When I first entered the cryptocurrency market, I was eager to make quick profits but lacked the experience to navigate the volatile world of crypto. One of my earliest mistakes was buying during a market frenzy. Let me share my story and what I learned so you can avoid similar pitfalls.
Back in 2021, I followed the hype surrounding Cardano (ADA). Everyone was talking about how the coin was going "to the moon," and I feared missing out. By the time I jumped in, Cardano was already near its peak price. Sure, it climbed a bit more, but the real profits were made by those who had bought in earlier.
I made the mistake of holding onto the coins, believing they’d skyrocket even further. Instead, the price started to decline, and I ended up holding my investment for over two years before finally selling—just enough to recover my initial funds and earn a small profit.
Here’s what I learned from this experience:
- **When your coin surpasses its previous high, consider selling.**
- **Wait for the inevitable correction, then buy at the low.**
For instance, if a token reaches $2.50 and surpasses its previous peak, you can sell and lock in your profits. When the price corrects and dips back to $1.80, that’s the time to reinvest.
Had I followed this strategy back in 2021, I could have avoided the long wait and the frustration of holding an asset that had lost value. Instead of buying during the hype, I would have waited for the market to cool down and entered at a lower price, significantly improving my outcomes.
The key takeaway is simple: **When the market is low, it’s time to buy. When it’s soaring, consider selling.** Avoid buying during the hype—it often leads to disappointment.
For those just starting in crypto, patience and timing are everything. Stick to these principles, and you’ll be better prepared to navigate the market’s ups and downs with confidence.
