There is a common misconception among people who are just getting into bitcoin and other cryptocurrencies. A large portion of the people getting into the markets are wanting to become rich, or make enough money to improve their lives. While that is very possible and admittedly the reason why I invest into it as well; but there is a common misconception that achieving this will be very easy and almost just given to you.
While it is very possible if you are a trader to find the hidden gem coin and receive enough gains to achieve the above goal, but for the majority of us, spot buying and purchasing when we have extra cash is the best way to go. There is a famous phrase; “It takes money to make money.” And I believe in this fully. Even in the cryptocurrency markets, it still takes money to make money. It wouldn’t be logical to invest just $100 into bitcoin or ethereum and expect to become rich from it.
That philosophy is even truer if you want to make an interest from lending your bitcoin, ethereum or some other coin. For example lending $100 of bitcoin at a rate of 6% per year, would land you with $6 after lending for a year. Granted the way bitcoin has performed recently, in a few months that $100 could become $200. But you will still then receive just $12 in bitcoin by lending it for a whole year. Staking or lending out your coins doesn’t begin to really give out large rewards unless you are lending at the very least several hundreds of dollars, but preferably thousands worth of that respective coin. That is when the results begin to snowball into something larger, and then by continuing to add to your total by purchasing more; your portfolio can grow into something much larger.
But, this is a process that takes time.
A lot of the newer people into cryptocurrency aren’t in it for the long-term, and just want to quickly make gains and then sell.
Those same people will then be jealous of people who have been into bitcoin for quite a while and have made significant gains. They will often say how that person is so lucky to have bought at such a cheap price. The problem is that HODLing your bitcoin isn’t always easy; in fact many times it can be very difficult. It takes a special sort of person to have firm confidence into their beliefs in bitcoin, cryptocurrencies and have the self conviction to not sell. These people have held bitcoin through the darkest days, back when the coin was much less established, and it having a future was even less certain.
The fact is that people that have that quick gain in and out thinking; would have never held the coin through those difficult times. I have seen all over the internet about how many people sold this weekend who had just gotten into the market.
How many of your were able to hold strong over the weekend? Or perhaps how many of you were able to continue holding last year on March 12 during the huge Covid drop. But I think an even better question that shows if you do in fact have full control over your investing emotions is during those big price-drop days; where you buying!?
This market will test your like you have never been tested before. If you can continue to hold, and also continue to buy on those very red buying days then I truly believe you will be heavily rewards as the months and years go by.
But it won’t always be easy. Remember to stick to your plan, Don’t FOMO in or out of your position.
Were you able to hold strong during the price drop days!? And even better, did you add to your portfolios on these days!?