Key Insights

  • Investing in the crypto market can be brutal for beginners who jump in too fast.

  • To avoid being a victim of the market’s volatility and scammers, be sure to always DYOR.

  • Take security very seriously, and understand Indian crypto taxes before it’s too late.

  • Crypto volatility can be brutal, so start small and venture further as your confidence grows.


When I first stepped into the crypto space, I remember being very excited. 

The idea of becoming financially independent and investing early in the “next big thing” was impossible to ignore. 

However, my enthusiasm overpowered my knowledge, and like many beginners, I made a few mistakes I could’ve avoided altogether.

Here are a few of the lessons I have learned over the could have saved me time, money and stress. 

1. DYOR

You’ll hear the phrase “Do Your Own Research” (DYOR) everywhere in the crypto space. This is good advice, and you should take it. 

Looking back at my days as a beginner, I thought DYOR was just a friendly tip. 

I’d glance through a coin’s website, check its Twitter account and maybe watch a YouTube video before buying in. 

But DYOR isn’t just a catchphrase. It isn’t a pointer to glance through a few webpages and jump straight to investing.

It’s your first line of defense.

Before starting to invest, look into things like whitepapers, the team behind a project, tokenomics, community and so on.

After spending time in the crypto market, you start to realize that scams and most unsuccessful projects have a few things in common.

Before investing a single rupee, make sure that a coin/project’s whitepaper makes sense to you. Make sure that it has a team that is transparent and reachable.

Be sure to check things like token supply, distribution, and how tokens are allocated. Is there a clear use case for the token? Are there mechanisms to prevent insiders from dumping their holdings?
Does the project solve a real problem, or is it just another copycat?
Searching for answers to these questions honestly can save you a lot of time, money and effort.

Because sometimes you might get lucky investing in the wrong coin. But chances are, you might be making a mistake.

2. Security Isn’t Optional 

When I first started to invest, my attention to security was embarrassingly basic. 

I did the bare minimum and avoided clicking shady links or sharing my private keys. However, in many cases, this is not enough. 

Crypto is a magnet for hackers and scammers, and if you don’t take security seriously, you could lose everything.

To make sure that your funds stay safe, consider using an authenticator app like Google Authenticator or Authy for all crypto accounts, especially exchanges and wallets.
Never reuse passwords and always check URLs before clicking.
If you’re holding large amounts of crypto, it might be a good idea to move your funds off exchanges and into a hardware wallet like Ledger or Trezor.
Being careful isn’t paranoia in crypto; it’s survival.

3. Understand Indian Crypto Taxes Before It's Too Late

In my early days, I was focused on profit and ignored the tax implications. That turned out to be a huge mistake. 

If you didn’t know by now, India’s crypto tax rules are strict and not complying can cause serious trouble.

Keep the 30% tax on profits in mind, because any gains from selling, trading or using crypto are subject to this.

Also, the 1% TDS on transactions applies when you sell crypto or even trade one token for another.

Indian exchanges automatically deduct it, but international platforms may not.
Also, losses from one coin can’t be used to reduce taxes on gains from another, which means that you might end up paying high taxes even if your net return is low.
On the bright side, receiving crypto as a gift can be taxable unless it's from a relative or below ₹50,000 in value in a financial year.

4. Crypto Volatility Is Brutal 

My early experience with crypto’s volatility was nothing short of emotional. Prices could surge or crash by double digits in hours, and I’d find myself checking my portfolio over and over again. 

In time, I learned that surviving the chaos requires discipline.

To this end, you should only invest what you can afford to lose: don’t gamble your rent or emergency fund on crypto.
Avoid emotional trading, where FOMO (Fear of Missing Out) and FUD (Fear, Uncertainty, Doubt) can lead to poor decisions. Have a plan and stick to it.

Finally, use dollar cost averaging and think long-term. This involves recognizing market cycles and playing by the rules.

5. Start Small and Focus on Learning

When I first invested, I made the mistake of going in too deep, too fast. I wanted big gains but didn’t fully understand the tools or the market. 

Crypto has a steep learning curve, and the best way to approach it is gradually.

Remember to start with a small amount and invest what you’re comfortable losing while learning the ropes.
Use platforms like CoinDCX, Mudrex and ZebPay, all of which are beginner-friendly and allow INR deposits via UPI or bank transfers.

Take crypto one concept at a time and start with buying and selling, before moving to staking, DeFi and other areas as your confidence grows.

Finally, the crypto space is full of free resources, and you should consider using them. YouTube channels, blogs and even exchange platforms are at your disposal, and you should treat your first year in crypto as an education:

A marathon of sorts, and not a sprint.