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“Which coin should I invest in?”
Mr. GoBrr
April 03, 2024 • Reading Time:6 minutes
Good Morning,
Finding daily related topics to your interests can be quite challenging .
Today, I've taken a question from the feedback I received and provided an answer below.
“I need a guide on the best coin to invest…”
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💰Bitcoin
🚀 Altcoins
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Educational
“Which coin should I invest in?”
This is my third bull market experience.
I purchased Bitcoin at the beginning of 2017 when the price ranged between $1000 and $2000, which I still possess.
I've made numerous mistakes and can foresee the potential errors that newbies are likely to make.
Below are the two most common mistakes that beginners in this market tend to make, followed by a solution:
Emotional trading:
FOMO BUY
Panic selling
1. FOMO BUY
FOMO is an acronym that stems from the phrase "Fear of Missing Out".
Fear of Missing Out : fear of not being included in something (such as an interesting or enjoyable activity) that others are experiencing
When you're new to this and you see a coin “pumping”, you might feel scared that you'll lose out if you don't buy it right away.
This fear make you buy at the wrong time (when the price is skyrocketing).
Buying at the wrong time can make you lose a lot of money.
You need to be aware of this fear and try your best to resist it.
Remember, there are always new chances to make money in this market.
If you miss one, you'll find another.
I could tell you not to buy out of fear, but I know it can be tough when you're just starting out.
So, if you ever feel like you need to buy a coin because you're scared of missing out, use a small amount of your total crypto money, about 0.5-1%.
2. Panic Sell
After buying a coin because of fear (FOMO), people often sell it in a panic.
Both of these actions are driven by emotions rather than clear thinking.
It's okay to make these mistakes.
They can help you learn about yourself and are part of the learning process.
“If you can learn to create a state of mind that’s not affected by the market’s behaviour, the struggle will cease to exist,"
But keep in mind, whenever you make decisions based on emotions (like greed or fear), you'll usually end up losing money.
If the market turns bad and you act out of fright, it means you don't fully know about the coin and don't have a strategy to guide your actions.
Solution
If you want to succeed in this market, avoid making decisions based on emotions.
To avoid decisions based on emotions, you have to understand how this market works.
To understand how this market works, you need to understand Bitcoin.
Yes, the most crucial thing for a beginner is to comprehend Bitcoin.
You need to understand its function, the problem it solves, what gives it its value etc..
Getting a solid handle on Bitcoin is the foundation of this market.
Every other coin (altcoin) follows Bitcoin's moves.
When Bitcoin's value dips, Altcoins' value dips even more.
When Bitcoin's value increases, Altcoins' value increases even more.
No one usually tells you this.
Crypto influencers may suggest you buy certain coins. Do you know why?
They are often paid by the projects to pump the prices of those coins.
So,
Instead of asking "Which coin should I invest in?",
You should be asking "What should I learn so that I know which coin to invest in?"
The answer: Start learning about Bitcoin.
Now, go and learn more about Bitcoin,
Mr GoBrr
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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.