Steemit Crypto Academy Contest / S3W2 – My Experience Investing in the Crypto Market : by @kasib07
I would be tackling all the necessary questions that are required in this contest without any hesitation. This is Week 2 of the season 3 steemit challenge contest and this would be my first entry for the week which is about your experience in investing in the crypto market. Watch out for my experience soon in this post.
Great and interesting topic, before I learned or I got to know about cryptocurrencies, It was through my introduction to steemit platform. I had no or zero experience and knowledge about cryptocurrencies until when I was introduced into steemit platform. Although before then I used to hear people saying they buy and sell Bitcoin and the rest to earn profits.
I used to have the zeal to invest in such currencies by then, but I was afraid of being fraud. It was when I was introduced to steemit platform that I got to learn more about crypto currencies and thanks to the steemit crypto academy platform for their wonderful lessons that used to provide us with. I must confess that those lessons were really beneficial as they made me to make research on cryptocurrencies including how to buy and sell (trade) them.
First, I used to transfer my STEEM tokens to a friend to sell for until I also decided to enter to the crypto market and start seling them on my own. They first made me to create a Binance exchange account after which I was introduced to the platform and also how to transfer assets in and out of it.
After I was introduced and taught how to make transfers, I tried in transferring my steem tokens to my Binance account and in about less than 5 minutes the tokens arrived in my account and I was like wow, that is really a fast transaction. I was also taught how to perform P2P trading on Binance exchange as well, so after I made the transfer, I then decided to also sell and see how real this was. I transferred my assets after converting the STEEM tokens to USDT into my P2P wallet, I selected the buyer and then initiated the sell, in less than 2 minutes I received the exact amount of money I was selling the token.
Wow, when this happened I was so amazed and surprised to believe this in my eyes, I then confirmed and released the asset to the buyer. I was really excited and this made me to give more attention to crypto currencies and all related aspects. This was what drove me into cryptocurrencies and that was my first experience in the crypto market.
My first investment in the crypto market was converting some of my STEEM tokens into USDT and then bought SHIBA tokens due to how small its price was. My first in crypto market actually yielded me a profit and that was what made me to put much effort into cyptocurrencies.
After earning some Steem tokens on steemit platform, I also decided to trade other crypto currencies by investing in them. With my first investment, I bought about $30 of SHIBA token, which I hold it for about a month. This currency was a penny currency by then and it is still of those currencies.
During the days of the bullish market which happened somewhere between May June thereabout, the $30 SHIBA token I was having increased to more than a $100. I immediately set a target and sold some amount of it without much wasting of time. That was my first experience for investing in the market and by a month or two I was able to earn profit from my investment. This really encouraged and gave me more trust to invest more into cryptocurrencies. It was a great experienced for me a positive of course.
Yes, I have encountered several situations where I made loss in the market due to the negative fluctuations in the market. When, it comes to losses in the market, I think there is no person that can boast that he/she has never experience a loss before. This is because although we use indicators to read and predict the future price of those assets but there are times when some fluctuations happen which leads to a great loss in the market and when that happens, it affects everyone without anyone being left out.
I used to have smaller losses in buying some crypto assets until recently I experienced a huge loss of about $60 when the LUNA token collapsed. I used to possess about $60 of LUNA token by then. When this token was at the verge of collapsing, my monies started reducing day in day out which we were having hope of it increasing the following days but nothing positive was taking place.
I used to always sit back watching my monies vanishing everyday without doing nothing because we taught that was one of the bearish trend in the market until we realized the LUNA token has been crushed. When this crush took place, a lot of investors really loss huge sum of monies and others also used this opportunity to trade with futures and earn huge profits as well. By then, I didn't have much knowledge about Future trading so I didn't involve myself in there. At the end of the day, my $60 investment had turned to $0.01.
One funny thing was that, I was advised to sell the asset during the fluctuations era when I gain back my monies but I wanted to earn some profit before doing so and this lead to all this great loss on my side. I think after I made this loss, I really learned a lot from investing in cryptocurrencies because one must put into play risk management.
As I write this article, I currently have three tokens in my Binance account and they include the following;
- SHIB
- LUNA
- USDT
Why I am holding SHIB? Yes, per my research and knowledge about cryptocurrencies, when you possess penny cryptocurrencies and a sudden increase or a bullish market takes place in the market, you gain a huge amount of monies than one possessing other currencies such as BTC, ETH, etc. Due to that, I always try to possess a penny currency in my portfolio so that any significant rise in the market would increase my portfolio.
Why I am holding LUNA? Yes, I still possess this currency due to the compensation from the previous crush of LUNA token currently changed to LUNA Classic. I am holding this token because, looking at the current price of it, it would a significant rise especially when BTC makes a significant rise in the market.
Why I am holding USDT? Yes, I know you would be wondering why I am possessing this token, USDT is a stablecoin and one must have it always in his/her portfolio so that when you can buy a trending asset in the market at any time that you wish to. Also possessing USDT (stablecoin) can also help you to get money especially when it is an emergency without necessary selling some of your crypto assets before. These are some of the reasons I am holding these coins.
Before this question can be answered properly, one must know the type of trading strategy that you would like to use in your trading or the trading style of the trader. If you are using scalping trading style then it is not necessary to hold assets for a very long time because you only trade and earn at a spot.
With that matter, when it comes to holding or trading, it depends solely on the trader and the type of trading style or strategy that the person wants to imply.
To me personally, I like the trading aspect and this is because I see it as way of earning profit faster. The reason I abhor holding is that, you aren't certain about the price of the asset rising or not and you are just holding all for the sake that the price would increase. So why not trade and scalp to earn small profits daily other than this waste of time holding for long before you can earn something small. In answering the question, I prefer trading than holding.
As a newbie to the crypto market I would suggest the following opinions of mine to them;
First of all, as a newbie, you should make your personal research about the crypto currency that you want to invest into before buying it. Don't just follow the crowd because you saw everyone buying or talking about a currency then you also buy without any research. It is advisable to research and know the team management behind the asset, the whitepaper of the asset, the markets (exchange platforms) it can be traded, the historical price data of the asset, the current price, etc before taking the step to invest into that asset.
Secondly, I would advice that before investing into any asset, make sure you invest the capital that you can afford to lose and not just use all your capital and then invest into an asset. This because we all know there are fluctuations in the market and so if you use all your monies and then invest then the market flops you, I think no one will tell you what's next.
Furthermore, I will advice newbies to be aware and vigilant with scam currencies. Yes, there is scam in cryptocurrencies as well, so before investing as said earlier, make sure you perform a vivid research about the coin before investing.
Moreover, I advice that a newbie should learn and know how to control and regulate risk management in trading. This can be achieved by setting proper take-profits and stop-losses using technical analysis to analyze crypto assets. It is also advisable to perform fundamental analysis as well as sentimental analysis on a crypto currency before investing into it.
Finally, a newbie should invest in multiple crypto currencies including penny cryptocurrencies. In doing so, these helps to balance ones portfolio especially when one currency is falling and the other is rising. This is one good strategy of investing into crypto currencies. It helps to minimize loss and also maximize profits as well.
I invite @njaywan, @nattybongo, and @analem to participate in this contest.
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Sorry sir, I really forgot to do so, please kindly review my work for me Sir. Thanks for your kind suggestion and reminder.@reminiscence01
Hello Sir, @reminiscence01, Please kindly review my work I have powered up now. Thank you
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