1. FOMO and Panic: The #1 enemies
😱 FOMO (Fear of Missing Out) - The most costly mistake
What is FOMO in crypto?
FOMO in the crypto world occurs when a person makes an irrational decision to trade or invest in a crypto asset based on information received without properly verifying the source and/or accuracy of it.
What FOMO looks like in real life:
- You see that a crypto has risen 300% and think, "I have to buy NOW"
- Many novice traders tend to rely on hype or rumors, often discovered on social media or forums, instead of conducting thorough research
- You feel anxiety about "missing the opportunity"
- You buy when the price is at all-time highs
- You have no plan, you just act on impulse
Real examples of costly FOMO:
- Dogecoin 2021: Rose due to Elon Musk memes, many bought at $0.70, now it's worth $0.08
- NFTs 2022: People spent $50k+ on digital images that are now worth $50
- Terra Luna 2022: As a lesson from the collapse of Terra Luna in 2022, many bought out of FOMO before the crash
😰 PANIC - The second deadly enemy
What does panic look like?
- The market drops 20% and you sell everything immediately
- You read negative news and think, "crypto is dead"
- You make decisions based on fear, not logic
- You sell just when you should buy more (if you have a plan)
The vicious cycle:
1. You buy due to FOMO when it's expensive
2. Price drops (normal in crypto)
3. You sell out of panic when it's cheap
4. You lose money and blame the "market"
💡 HOW TO OVERCOME FOMO AND PANIC:
Before any investment:
- You have a written plan for when to buy/sell
- Have you researched the project for at least 1 week?
- You are not acting out of social pressure
- You can explain why you invest to a 10-year-old
During moments of FOMO:
- Wait 24 hours before buying
- Ask yourself: "Why didn't I know about this a month ago?"
- Remember: there will always be another opportunity
- Use only your DCA budget, never extra money
During moments of panic:
- Do not open your wallet for 48 hours
- Remember why you originally invested
- Look at long-term charts (5 years)
- Talk to someone calm before selling
2. Most common scam projects
🚨 PUMP AND DUMP - The classic scam
How does it work?
Pump and dump schemes occur when the price of a cryptocurrency is artificially inflated (pumped) by spreading false or misleading information. Once the price is high, scammers sell their holdings for profit, causing the price to crash (dump).
Warning signs of Pump & Dump:
- Sudden price spikes without fundamental reasons such as major announcements, developments, or partnerships
- Telegram/Discord groups promising "VIP signals"
- Cryptos with ridiculous names (SafeMoon, ElonDoge, etc.)
- Scammers take advantage of two human emotions: fear of missing out (FOMO) and greed
- Promises of "100x guaranteed"
- A lot of social media activity suddenly
Real example:
Crypto pump-and-dump schemes accounted for $825 million in trading activity over the last six months, and many beginners lost their savings.
RUG PULLS - When the creators disappear
What is a Rug Pull?
- Developers create a new crypto
- They do aggressive marketing
- Once there is enough money, they disappear with it all
- The project is abandoned and worthless
Signs of a Rug Pull:
- Anonymous team or with little verifiable experience
- No publicly verified code
- Exaggerated promises without technical basis
- Very low liquidity and easy to withdraw
- Marketing stronger than development
💸 CRYPTO PONZI SCHEMES
How to recognize them:
- They promise fixed and high returns (20%+ monthly)
- They pay old users with new money
- Very aggressive referral structure
- They don't clearly explain how they generate profits
- Constant pressure to "invest more"
Costly historical examples:
- BitConnect (2017): Promised 1% daily, lost billions
- OneCoin (2014-2019): $4 billion in losses
- PlusToken (2018-2019): $2.9 billion stolen
🎯 HOW TO PROTECT YOURSELF FROM SCAMS:
Golden rule: If it sounds too good to be true, it probably is.
Anti-scam checklist:
- Public team with LinkedIn and real experience?
- Is the code verified on GitHub?
- Real partnerships with well-known companies?
- Clear explanation of how it works?
- Technical community or just talk about price?
- Audited by recognized security firms?
3. Why not follow social media "tips"
📱 THE PROBLEM WITH CRYPTO "INFLUENCERS"
The reality behind the "gurus":
- Focus on the real fundamentals of the project, market data, and trends instead of social media hype or endorsements
- Many charge to promote projects (without saying it)
- Their portfolios are different from what they recommend
- They make more money selling courses than investing
- They have no legal responsibility for bad advice
🤖 BOTS AND FAKE ACCOUNTS
How they manipulate opinion:
- Coordinated bot accounts promote the same project
- Fake comments from "successful testimonials"
- Artificial likes and retweets to seem popular
- They create a false sense of urgency
🎪 MARKETING DISGUISED AS EDUCATION
Signs that it's marketing, not education:
- They only talk about projects that benefit them
- They never mention risks or downsides
- Constant pressure to "act fast"
- Hidden referral links
- Promises of results without showing proof
✅ REALLY RELIABLE SOURCES:
For news:
- CoinDesk, CoinTelegraph (general news)
- Official websites of the projects
- GitHub to see real development
- Reports from serious research firms
For education:
- Coursera, edX (university courses)
- Official technical documentation
- Developer podcasts (not traders)
- Books by recognized authors
For analysis:
- CoinGecko, CoinMarketCap (data)
- Messari (deep research)
- Glassnode (on-chain analysis)
- Reports from institutional investment firms
But despite everything, here you have a solution
4. How to create your own plan
📋 ELEMENTS OF A SOLID PLAN
1. CLEAR GOALS:
- Why do you invest? (retirement, house, education)
- When do you need the money?
- What percentage of loss can you tolerate?
- How long can you wait?
2. DEFINED BUDGET:
- Total amount you will invest in crypto
- Percentage of your monthly income
- Separate emergency fund (3-6 months expenses)
- Never more than 5-10% of your total net worth
3. ENTRY STRATEGY:
- Weekly, bi-weekly, monthly DCA?
- What percentage to Bitcoin, Ethereum, altcoins?
- Will you buy extra on big dips?
- When will you stop buying?
4. EXIT STRATEGY:
- At what price would you consider selling partially?
- Will you rebalance your portfolio regularly?
- Will you take profits gradually or all at once?
- When will you reevaluate your strategy?
📝 PERSONAL PLAN TEMPLATE
MY CRYPTO INVESTMENT PLAN 2025
CURRENT SITUATION:
- Age: ___
- Monthly income: $___
- Total savings: $___
- Debts: $___
- Emergency fund: $___
GOALS:
- Main goal: ___________
- Timeframe: ___ years
- Target amount: $___
- Loss tolerance: ___%
STRATEGY:
- Monthly investment: $___
- Buying frequency: ___
- Bitcoin: ___%
- Ethereum: ___%
- Altcoins: ___%
- Main exchange: ___
PERSONAL RULES:
- I will never invest more than $___
- I will review my plan every ___ months
- I will sell if I lose more than ___%
- I will take profits at ___%
- I will NOT buy due to FOMO
- I will NOT sell out of panic the first 48h
CREATION DATE: ___________
NEXT REVIEW: ___________
🔄 MAINTAINING THE PLAN
Monthly review (30 minutes):
- Am I following my DCA plan?
- Have my financial circumstances changed?
- Do I need to rebalance my portfolio?
Quarterly review (2 hours):
- Are my goals still valid?
- Should I adjust my strategy?
- How is my progress vs goals?
Annual review (half a day):
- Complete performance analysis
- Adjust plan based on new information
- Set goals for the next year
⚠️ WHEN TO CHANGE YOUR PLAN?
Valid reasons to modify:
- Significant change in income/expenses
- Change in life goals
- New fundamental information about crypto
- More than 12 months have passed
Invalid reasons:
- The market went up or down a lot
- An "expert" gave you a new tip
- FOMO for a trendy new crypto
- Panic from negative news
🎯 Key point of the topic:
The most costly mistakes are emotional, not technical. Having a written plan and following it religiously will protect you from 90% of the mistakes that destroy beginner accounts. Discipline is worth more than technical knowledge.