At one point or another, we were all new to the cryptocurrency market. Not even knowing where or how to begin. The new terminology seemed like a foreign language that we would never be able to master. Which projects should we invest in, and where should we even buy? These are questions that many of us asked when first entering the crypto market.
But, what is the vital information that you absolutely need to know?
Things that not only could help prevent you from the worst-case scenario of losing your money but also could help put you on the right track toward having success. As always, knowledge is half the battle.
1. No One Will Hold Your Hands
One of the hardest things for most people to get over in this space is that no one will hold your hands. There are no do-overs or mulligans. If you get rug pulled, buy a junk token that goes to zero, are hacked, or send your crypto to the wrong address; there is no one that will give you a refund. Your fate in this market is entirely up to you.
No one will sit here and teach you everything, telling you the terminology or which projects are great. You must be dedicated to putting in the work to find your own success. This is what separates people in this market. You can be as successful as you want to be. However, you must remain focused at all times. One mistake could cause you to lose everything.
2. Cash grabs and Distractions are Everywhere
Bitcoin is often the first cryptocurrency that people entering the market will look to buy. However, when they go to an exchange will they see Bitcoin, Bitcoin Cash, and in the past Bitcoin SV. They don’t know the difference, or that two of those were worthless cash grabs.
They might look at the price of BTC and feel that it is too expensive, especially when compared to BCH or BSV, and may opt for those “cheaper” coins. Not realizing that they aren’t buying the actual Bitcoin that they were wanting to.
3. Marketcaps are Essential
People come to the cryptocurrency market hoping to make as much money as possible. They look at the price of Bitcoin and feel that it is either too expensive or that they missed out on their opportunity already. They then begin looking at altcoins and buy them. Some of them even believe that they could eventually reach the same price as Bitcoin.
What they don’t realize is that the project they bought has a supply of billions or trillions of tokens. For it to reach the same price as Bitcoin, the market cap would be hundreds of trillions of dollars. Nearly all of the value on Earth. It’s impossible.
Understanding token supply and market cap is essential to being successful in this space.
4. Too Good to be True Opportunities
In crypto, if something seems too good to be true, it most certainly is. No one would be willing to double the crypto that you send to them. There are people lurking around every corner hoping to take your money.
And then there is staking. If you ever see a service offering hundreds of percent of interest; run! There is no way that is sustainable for the long term, and it likely isn’t a legit project. While the opportunity to make great passive income can be enticing. Always remember that 200% interest on a token that goes to zero, is worthless.
5. Self-Custody is King
While you are just getting started in the crypto market, I would recommend you keep your coins on reputable exchanges such as Coinbase or Binance.
However, once you have put up experience and have accumulated a decent amount of crypto, at that point, you should move your tokens to self-custody. People who chased yield last year had their funds frozen on insolvent services, with the chance that they will never see their full amount of crypto again. The people who were conservative with their crypto lived to see another day. There is a valuable lesson in that.
While these are all basic tips, the truth is that they are very vital for you to know. They not only can help you from losing your coins, but also allow you to sleep much more peacefully at night. Also, it gives you the skills to begin differentiating quality projects, from junk projects. The crypto market is a market where those who put in the most work and effort will often outpace those who don’t.