The excitement that comes with being a part of the crypto train can be extremely overwhelming because of its massive wave of attraction, placing it as a phenomenon.
A friend tells you all about it, explains how lucky he was to hit the jackpot and all the luxuries he now enjoys from the money he makes; and then adrenaline runs through your veins as soon as you get the idea of trying it out. You take out your smartphone and go ahead to create an account on any crypto wallet of your choice.
Well, actually, it’s too easy, because these kinds of stories create a false sense of confidence and security that pushes us to making poor decisions with money at the end of the day.
As much as investing in crypto can be exhilarating, we most times get caught up in clichés that create an air of sophistication which drives us to making countless mistakes and at the end of the day, lands us in trouble.
You do not become an expert in trading overnight, there are a lot of skills required to trade successfully besides extreme focus and time.
Just like any other form of trading, cryptocurrency trading is built on sound principles that every expert trader knows. If you are new to it, there are many dangerous practices that you should stay clear of. Therefore, exercising discipline is one force that should help keep you in check and prevent you from making many mistakes.
Bolaji Oluwatosin has been trading coins like BTC, DOGE, WKD, LTC & many more for a long time. Sharing his story with CRESTHUB, he narrated how he started out and eventually became highly knowledgeable of the current trading systems. Establishing a set goal before anything else.
“I decided to get into cryptocurrency trading after reading a lot about Elon Musk and his bold plans for the future and I realized that my pursuit of a law degree just isn’t enough! I wanted a special skill that can help sponsor me to Russia after graduation, to take a course in technology, that will enable me nurture a team that will successfully provide solutions to challenges in the world that require bold steps”.
Due to the volatility of cryptocurrencies around the world, it is not advisable to start trading directly. However, for Bolaji, taking a course first was the right thing to do.
“I didn’t just jump into trading. I took a course at a registered academy in Calabar. It cost me a whopping 100,000 naira I didn’t have. I had friends who were desperate to learn the skill too for money making, so I spoke to nine of them and told them I would take the course and then teach them later on. They contributed the entire amount. I took the course and from there my journey began. I saw a lot of videos on YouTube and read a lot. I traded in the demo for a while until I was sure I could trade live.”
Crypto trading is a highly volatile market and a lot of skills will be tested, especially the ability for traders to recognize and overcome one solid weakness- greed.
“Most early traders are aware that over $5 trillion worth of crypto transactions take place daily, which is an average of $220 billion per hour, which drives them in wanting their cut in millions of Naira in a day, therefore taking the entire operation as a “get-rich-quick” scheme and this is the bait that drags many right back into poverty.
Greed is a killer and without killing it in crypto trading, one is bound to fail in an incurable way. Many have committed suicide due to huge losses in the market.”
Before trading, you need to establish a plan and adopt a good strategy as well. Have an entry and exit point.
“One needs to figure out how the market works and how the Smart Money interests and large banks around the world control, dominate and manipulate the market prices, as well as the dumping of hundreds of millions and billions into the market at key levels and at certain times.
You need to effectively develop your own trading psychology so you can handle the ups and downs of trading. Fund your live account with enough capital to make a return that is worth your time and investment of your resources. Gain the skill and experience to craft a strategy/system for yourself that enables you to make more than you lose on a regular basis and also,work your trading plan effectively.”
Even after several months of experience, traders still make mistakes. Be sure to check out the exchange you trade on carefully.
“As a newbie in trading, you must not rely on fundamental analysis alone but it is essential to marry the techniques with the fundamentals in order to get the necessary results and save yourself from many heartbreaks.
I got out of ugly situations in trading by understanding effectively some of the moves that made me make certain mistakes. I have honestly lost over 2.4 million naira, a combination of both my money and others. This is one investment journey that broke me seriously. I was depressed for months. I was pressured into paying back my debts which I did in the space of 5 months but it was really difficult. However, I have been able to successfully carry on ever since.”
As the crypto industry expands, so does the rise of many exchange platforms, ensure to use a trustworthy, robust and secure exchange.
“It is important to use a trustworthy currency exchange platform like Binance! There are others like Blockchain, Roqqu, Luno amongsts others.
Many Nigerians have chosen to use Binance because it offers easy-to-use features for newbies as well as complex trading tools for professional traders. Binance is reliable and they have keyed into constantly innovating lots about their business and there’s also reduced cost in transactions too.”
Do not Let the Whale Eat You. Be Crypto Smart!
“My advice to anyone interested in trading will always be to kill the greed stapled in making fast money, to avoid unnecessary losses. Keep learning even as you earn. Get mentors who are readily available to help you through the process. As you earn, save up as well! You could also help others trade safely.
Stay positive. As long as your head is straight in the game, you’ll be extremely productive.– Bolaji Oluwatosin