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6 Things to Avoid If You Want to Succeed In The Crypto Markets.

CryptoWhale
CryptoWhale
1. Not Being Patient When Investing
One of the major reasons why people avoid the crypto markets is because of how extremely volatile everything is. The markets could surge thousands of percent one month, then tank and lose everything the next.
One of the most common mistakes people make is their inability to remain patient and calm during these market movements. People are always hesitant to remain in a single position, and always eager to make new trades.
Some of the most successful crypto investors I’ve met with 7-figure net-worths have all relayed the importance of remaining patient. If your research and analysis show the markets are bullish and projected to rise, don’t feel discouraged after a tiny dip, and conversely, If your analysis is bearish, don’t feel panic or fear if the prices bounce.
Not only is timing the market impossible, but it’s a huge factor in why people can’t remain patient. When their portfolio isn’t in constant profits, they feel the need to take action. Sometimes the best action is no action at all.
In this article I wrote, I go over several reasons why Patience is the key to Investing. I definitely recommend reading it if you haven’t already!
2. Gambling Rather Than Investing
The greed in this space is unlike anything we’ve ever seen before.
People are apeing into random NFTs, meme coins, and worthless tokens in hopes of becoming instant millionaires overnight. While the dream may be seductive, it’s a dangerous trap in which 99% of traders face significant losses.
Whether you have experience in the markets or not, you need to differentiate between gambling and investing. Investing requires lots of research and due diligence using logic, while gambling requires spontaneous emotional outbursts and delusional thoughts, which are often regretted.
For me, when there is only speculation, and no fundamentals or utility behind the token, it’s considered gambling. Almost the entirety of the crypto market has been pushed up due to extreme speculation, and greed, but this doesn’t last forever. We saw this play out perfectly in 2018 when almost all alts plummeted 90–99% after the Crypto Bubble finally popped.
Most of those alts don’t even exist today, and we now have a new wave of worthless tokens replacing them, which will undoubtedly result in thousands of bagholders after the crypto bubble has fully popped again.
Gambling looks like this:
  • Buying cryptocurrencies willy-nilly
  • Following a hot tip
  • Purchasing the hottest token
  • Trying to time the market (buying when it’s high, freaking out, and selling when it plunging)
  • Deferring decisions to another and sticking your head in the sand
Investing, on the other hand, looks like this:
  • Creating a financial plan based on your goals and risk tolerance
  • Building a diversified portfolio, based on the plan
  • Adhering to the plan until something changes
  • Making decisions supported by your plan, not your emotions
  • Taking a long term approach (gambling is all about rapid gains)
Having a plan is the key distinction. If you don’t have an idea of where you want to end up, it will be far more difficult to make the right decisions.
3. “HODL Forever” Mentality
The idea that one should “HODL forever” without ever taking profits has become a dangerous mentality that has been conditioned into the foundations of the crypto markets, mainly by big players, insiders, and institutions.
Ask yourself why CEOs of big projects, exchange owners, or some big-shot investor are urging others to buy and “HODL” forever? It’s a very simple concept and is because they want to front-run everyone else.
How would they be able to dump their bags if everyone else was too? The HODL narrative provides them with the necessary amount of stability, and liquidity to sell at higher prices.
Charlie Lee and The Litecoin Bubble
If you were around during 2017–2018, you may be aware of the scandal surrounding Charlie Lee, the CEO of Litecoin. He told his millions of followers, and investors to “hodl on for dear life!” at Litecoins peak.
Not even 24 hours later, Lee dumped his entire Litecoin portfolio, and the prices tanked -99% within the following 12 months.
This whole “HODL” and “Diamond Hands” movement is simply just a ploy by the insiders and big players to dump their bags on retail investors.
HODL during early stages of a Bull Market
HODL isn’t always a bad idea. In fact, It’s actually recommended during the early stages of a bull market. For example, In March 2020 when Bitcoin plunged under $4000, I made several comments advising people to HODL and prepare for the incoming bull market, due to the bullish fundamentals.
When prices are significantly lower than ATH’s, and you have strong reasoning for a lengthy bull market, HODL isn’t a bad idea. Unfortunately, it’s mainly pushed near the peaks of the bubble, which is why many get rekt.
4. Following Moon Boys or Maximalists
Moon Boys and Maximalists are some of the most deceptive, and manipulative players in the market. From urging their followers to take out double mortgages and buy at the peak, to shilling blatant Ponzi Schemes, this is definitely something everyone should look out for.
Watch out for Pump and Dump schemes.
Cryptonator1337 is just one of many Crypto Influencer who have been scamming his followers for several months now. By shilling tokens to his followers, he’s front-running them by dumping his bags when they buy.
This is known as a pump and dump scheme and is very common. It’s just another reason why you should be wary of following strangers’ advice online.
In the picture above, we see Cryptonator shilling his XHV token near the peak, which was followed by a total collapse of the coin (after he and his insiders dumped their bags on his followers), he’s done this with several hundred tokens over the years, but is rarely called out because of how common it is.
After I exposed him out in June, he wrote an extensive confusing thread accusing me of being a scam artist (despite showing absolutely no evidence at all). This is yet another tactic that these scam artists do, they want to slander and discredit anyone who calls them out.
Gain Followers with ClickBait Content
When it comes to moon boys, their only goal is to lure in as many followers as possible, then shill them to death with affiliate links and Ponzi schemes.
This is why you’ll commonly see them with orgasmic thumbnails promoting unrealistic calls like “$500,000 incoming next month” or “$100,000 by end of the year!” — it all attracts attention.
Always remain Realistic
While I think there is lots of value in listening to both bullish and bearish sides of the argument, moon boys and maxis simply provide no value in this space.
There is no debate that they are emotional and unrealistic. They don’t have any investing skills and are essentially just snake oil salesmen trying to sell you stuff, which is why following them is dangerous.
Many new investors in the crypto space will follow them and be fed terrible financial advice. It’s recommended that you follow individuals like myself who aren’t trying to sell you some shitcoin scam, but rather use logic and reasoning to relay the advice that is actually helpful in your journey.
5. You Don’t Do Your Own Research
People who are lazy, or expect others to always do things for them, are often not rewarded with anything. As we see millions of new retail jumping into the markets, many are looking for quick gains, rather than doing the entire process of researching, and analyzing projects on their own.
Unlike other crypto influencers, I’ve always urged everyone to make their own decisions, and not blindly follow me (or anyone else). No one is ever going to be 100% right with the predictions, and speculations, which is why doing your own research is absolutely imperative.
With 12,000+ coins on the market, every one of them claims to have some groundbreaking solution for a non-existent and self-invented problem. If you blindly take their word for it, or some YouTubers, you could be left holding worthless shit coins, which is often the case.
You should also read everything with a grain of salt. Many will shamelessly shill their own crypto positions. That’s human nature. Just be wary of that.
A good way to actively use this strategy:
  • Identify potential projects to invest in
  • Give the projects a rating out of 5 on each category
  • Only invest in projects with the highest overall score
Anyone with an internet connection can implement this strategy into their cryptocurrency investments. It just requires your time & effort. And it will make a big difference in the decisions you make.
6. Trading With Emotions Instead of Logic
One common thing I’ve noticed is the extent to which the crypto community uses Emotions rather than Logic when Trading. This is a dangerous path, and should always be avoided if you want to succeed.
Market cycles are something everyone should study, and understand. Below is a chart that outlines several different phases we will witness throughout a market bubble, which can help you better understand and prepare to act logically against the current market sentiment.
Research Builds Confidence
If you easily persuade yourself into buying high and selling low, it’s very unlikely you’ve done any real research into the asset you’re trading. Instead, you’re too focused on making quick gains, which often results in quick losses.
Let’s assume Bob had $100,000 to invest. He could either ape in and out of worthless shitcoins whenever his mood changes due to price fluctuations, or Bob can do extensive research into several tokens he’s interested in.
Assuming Bob finds a token he really likes because of strong technical and fundamental analysis, he decides to invest. Bob knows he’s done the research and is confident with his analysis, thus he won’t feel the same emotions as others.
People who fully understand what they’re invested in are more likely to withstand the emotional factors that make investing much more difficult.
In this Twitter thread, I outline several key investing tips to help you control your emotions. I highly recommend reading it if you haven’t already!
Thank you for reading!
My goal in writing articles like this is to help others. I hope that the points I listed above can reinforce ideas that are extremely essential to succeed.
Interested in ever becoming a member on Medium, and read unlimited articles from me, and thousands of others? Sign up using this link, which will get you an amazing deal. cryptowhale.medium.com/membership
Have an amazing day everyone!
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