22 Lessons Crypto Has Taught Us in 2022
End of Year Experience | Facts | Happen Again | Whole Crypto Reality Every Side
In the crypto sector, 2022 had many ups and downs, as well as several new developments. Due to these incidents, many individuals began to believe that the crypto industry was about to collapse.
This year, we learned a few of the following lessons that will help us in the future. I was sharing this year’s 22 lessons with you so that you may grow your wealth in crypto.
1. Keys
The first thing we noticed is that if you do not have cryptocurrency in your own wallet, it indicates that your coins are in danger of being lost. Keeping thousands of dollars on an exchange like FTX, and if this exchange fails or goes bankrupt, your coins will be gone.
We’ve discovered that if you want to own crypto for a long time, you should keep the coins in your own custody.
2. Top & Bottom
Never try to forecast the peak or bottom of any cryptocurrency. Many individuals attempt to forecast, and sometimes they are correct, and sometimes they are incorrect. But if we continue to rely on them and the market attitude shifts, we will have nothing to repent.
We should maintain practising dollar cost averaging with the proper method. All of this is unpredictable. We can’t buy at the peak and sell at the bottom. We just have a middle zone in which we may benefit.
3. Follow Blindly
Please do not blindly accept the words of any crypto influencer who attempts to forecast like Baba Vanga or Nostradamus. Being absolutely correct is like luck in that it doesn’t happen very often, but it always requires some effort.
4. All Time High & Low
Investing should not be done by looking at all time high and all time low of any crypto. All these have sentimental value. Coins perform according to the trend in the year. Every year there is a new trend in the market, so we should always focus on the real value of the coin and its future potential.
5. Love
Always love profit instead of coin
6. Media
Many persons, including Ftx Founder and Luna Founder, were highlighted in the media. They did not shut trade in tokens; instead, they left it open and did not fix the issue. They didn’t give a damn about the minor holders and just walked away as if nothing had occurred. Today, all of this has been turned into nothing.
The audience, investors, and others like us who believed in him were swallowed up, and he is now happy in his life except for us.
It has been discovered that if something goes wrong within the firm, the founder or his staff will not come out and say it in the media. Even if there may be a mess-like odour, we must realise that it is now time to leave. We must immediately take the essential actions, such as selling, swapping, exiting, and withdrawing.
7. Anyone Can Break
Even if Coin is at the top of the list, don’t put all your faith in it. Luna, although being a top ten project that expanded rapidly, fell just as fast. We cannot now declare that the coins at the top of the list are secure.
8. Diversify
Diversify portfolio in various coins instead of one or two coins.
9. Stablecoin
Whenever you choose a stablecoin, keep in mind that it is not an algorithm. Someone has it established such that the other relies on one’s faith. For example, when a token is burned, that amount is issued in advance. Knowing the coins that arrive with such an algorithm, it is appropriate to leave.
I’d want to rename all stablecoins to unstablecoins because they don’t stay stable. I’m not sure which peg they drink from, but it always gets depegged.
10. Management
Crypto is perfect in and of itself. The project’s managers are either incompetent or irresponsible. The way the projects have been functioning up to this point, such as centralized exchange, we have relied on it until 2022, but now we are expanding as a major player and decentralized exchange.
Decentralized exchanges have been announced by a number of big exchanges. Everything will now be based on the algorithm, and they will continue to receive predetermined fees and everything will continue to function systematically.
Binance stated in an interview that over the next ten years, everything would be decentralized.
11. Double-Check
Every coin in which you have invested must be revalued. Every month, there is a simple method to verify everything. You must follow all of the project’s social media profiles as well as the actual analyst of the currency in which you have invested. We must continue to check after some time has passed. This is the most crucial point.
12. Avoid
Ignore Youtubers and Social Media paid Contents.
13. Same coin
One of our bad habits is to keep investing in the same currency over and over again. You may recall that when Elon Musk purchased Twitter, the price of Dogecoin skyrocketed. However, only a few people in this pump had the courage to sell dogecoin.
According to Twitter, everyone has been purchasing an excessive number of coins. Being detached from any coin is something that one must learn. If you bought it, you must sell it; if you don’t want to sell it for a profit, why did you acquire it at all? If in doubt, sell for slightly more than you invested.
After selling, invest the profits in another promising project. Keep such thoughts in mind.
14. Rule
Make a rule for trading and always trying to follow.
15. Staking
This year has shown us that long-term staking should be avoided. It is appropriate to stake for two weeks, so one month. Avoid staking for an extended period of time. Long-term coin staking has suddenly become dangerous. It is unknown when the destruction will begin in whatever currency.
16. Money is king
Always keep some cash on hand. Many people are expressing on social media right now that we need to invest but don’t have any money. Whether your portfolio is large or small, have some cash on hand at all times. This lesson was given to us by the time of covid, and it has now been demonstrated by the crypto market of 2022.
If you have money, you will be able to seize any chance and profit on it.
17. Balance
Always make a balance between Technical Analysis and Fundamental Analysis.
18. Confirmation
We used to check any project by looking at social media profiles, Twitter accounts, and Discord servers. But now we must dig a little further. What chain is the project on, how are the holders doing their operations, what is the true pricing, is the work being completed in accordance with the announcement, roadmap, token supply, what are they gradually adopting, and what are their plans for the future? What exactly are you thinking and how are they posting? What things do you need to cross off your research list?
19. Attitude
We use social media to check in on cryptocurrency and observe what people are thinking and doing. We make our decision based on all of this. They develop their plan after seeing how many people have opened short in the market and what setup they have created. So, whichever feeling we detect, if we execute the opposite action, we have a better probability of benefiting.
Knowing these two sentiments, someone sold at the top that this much profit is now sufficient, and at the bottom that if you do your dollar cost average, this thing will change your life.
20. Depends
We don’t have to rely solely on the cryptocurrency market. To cover our basic needs, we must have a fixed income or supplemental income. Only then should we concentrate on investing or trading with that money. Don’t think that crypto is the greatest option for us until you have a lot of money.
You must have begun to feel like you are devoting all of your focus to crypto, which is why your mood is off. In such a position, you cannot dedicate time to your family and friends on the right side, and if you do, you will be unhappy. Watch cryptocurrency on a part-time basis rather than full-time. If you are in the trading business, you should prioritise stock and currency.
The finest day was when you stayed steady even as the market was falling.
21. Learn and Change
When we change our minds about money, we must make adjustments to our portfolio over time. Some projects are currently performing well, but after some time, they do not perform well, and if some negative news arrives, we must change our views. Perhaps they used to perform well, but now there is an issue with their management, therefore we must reconsider our position.
This error is acceptable, however it shouldn’t be made again.
22. Meme Coins
Many people enjoy Meme Coin. It is required to invest only a little amount of money in such a currency. Meme coin is similar to a lottery ticket; if the winning number is discovered, it will increase 2–3 times in a few days. If the number is not found, there may never be a recovery.
What did you get to learn in 2022, must tell by commenting.
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Disclaimer
This is not a Financial Advice. This article is meant only for educational purpose. I am just sharing my thoughts and analysis based on my many years of experience.