What I learned from getting Wrecked in Crypto

What I learned from getting Wrecked in the May 2021 Crypto Dump

If you invested anything into cryptocurrency at the end of 2020 or the beginning of 2021, you were almost guaranteed to have been making money by the end of the first quarter of 2021.

If you invested anything into cryptocurrency at any point in 2020, and hodled it, you were almost guaranteed to have some impressive returns by any point in 2021.

2021 has been a year of records, with Bitcoin, Etherium, and countless alt coins reaching parabolic, and continuous, all time highs.

Elon Musk, the self declared Techno-king of Tesla, had recently brought a positive light to Bitcoin, after a series of mass awareness tweets and a huge investment from the electric vehicle manufacturing company. Tesla then announced that it would be accepting Bitcoin and Dogecoin as a means of payment for new Tesla vehicles, which gave strong momentum to the crypto bull run, but anyone following digital markets or any sort of mainstream news outlets would have heard about the brutal crash of May 2021.

After reaching parabolic all time highs in May, Musk began tweeting about the energy consumption of Bitcoin and deemed it “unsustainable”, before he banned it as a means of payment for new Tesla vehicles.

At around the same time, China declared yet another ban on Bitcoin and other cryptocurrencies as a means of payment.

This eventually led to almost every crypto currency to fall by as much as 80%, over a period of less than a week, only to begin the steady rise again the following Monday.

As a hobby crypto investor, who was at sea and out of signal for the market crash in May, this month has been a heartbreaking time for my crypto portfolio. I suffered extreme losses, made panic decisions under the effects of delirium, before watching everything begin to return to normal, with significantly less than what I had before, but still more than what I started with.

So what would I do differently if I could do May all over, and what will I do differently during every bull-cycle from now on?

The 5 best pieces of advice for anyone who is looking to invest in crypto.

Control your emotions

The volatility of cryptocurrency is exciting and it is hard not to get emotional when your wallet value begins to skyrocket. Similarly, it can be hard to keep cool when it’s value plummets. Just remember, what goes up must come down (sometimes this is healthy for more growth, just be patient). Knowing all the possibilities of the game you are playing can also help you be prepared for the highs and lows, look at historical data to see the past rise and fall of your chosen investments.

The Shiba Inu Coin rose over 40,000% in a matter of months. This has been labelled ‘The Dogecoin Killer.’ Available on Binance. It is the newer class of meme coin.
Elon Musk spreading global awareness for small-capped coins, more than once labelling them as the future of financial transactions.

Take profits

In the space of 7 days, my portfolio’s value had less than halved. I listened to a number of seasoned traders who all swear by dollar cost averaging, which is a simple and effective way of taking profits, and making sure you have money to reinvest when the market takes a turn for the worst.

BINANCE is one of the world’s most trusted exchanges with the biggest and best range of coins available. Click here for an exclusive invitation with rewards for trading.

Have an exit strategy

If you don’t plan on taking profits along the way, do have yourself some sort of exit strategy. Have your own realistic prediction for a coin’s potential value and know when to cash out. The truest thing I can say about crypto is this.

Crypto is a long crawl to the top, but a fast free fall to the bottom. Blink and you will miss it.

Do your own research

There are countless self-proclaimed crypto masters, who all pretend to have the answers. I admit, many of them know a lot about what they are talking about, but you have to do your own research into anything you are planning on investing into.

There are countless dodgy coins, marketplaces and scams to avoid. Don’t send your money to those who don’t deserve it.

Cointree, Australia’s most trusted exchange. Click here for exclusive signup link.
The battle for the number one coin has historically been between Bitcoin and Etherium, but more and more players continue to emerge. Who is your hot favourite?
Cointree, Australia’s most trusted exchange. Click here for exclusive signup link.

Trust the process (HODL)

We all want to get rich quick, but Crypto is a long-term journey. Find good projects which are going to make a positive impact in the world and watch them grow over time, while also looking for your 40,000% gain shit-coin or ICO.

Remember that bitcoin was once a dollar, and every time it went up, it always came back down. Only invest money that you are willing to lose and just enjoy the ride.

Crypto is the future of finance, but there is a long and bumpy road to mass adoption. Buy low, sell high, and repeat!

My favourite exchanges:

Binance (Global)

KuCoin (Global)

Cointree (Australia)

Crypto.com (Global)

Published by Harry Hansford

Australian in Spain with a passion for all things sport, health, fitnes & nature. Go deeper to find out more.

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