Crypto Investing Myths vs Crypto Investor Reality

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Quote from: Tanya_S on April 29, 2022, 05:25:53 AM

...The investor reality is that there is no “right time” for crypto investing.
The truth is that the market is impossible to predict. The market’s short-term ups and downs become far less relevant if you know this.
Pro-tip: The best time to invest is when you’re prepared.

Here I cannot agree with your statement, since it is very important at what price level you invest. And if you bought a coin when its price was high, then you may have to wait a very long time for its price to return to the purchase level. And in some cases, it can take years.

jostorres

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Quote from: MinMan on April 30, 2022, 08:34:23 AM

There is this "overconfidence" issue with many veterans, they shouldn't really do it but they tend to do it because we are talking about stuff that are simple in their views, but sometimes things do not go according to the plan and that's where they fail. This means that doesn't matter if you are a newbie or a veteran, you should be focusing on learning more, making sure you studied, you researched it well and then take action.

If you remove even one of those, you will crumble even if you have been in this market for a decade. It feels weird to say a decade but we have been here for more than that right? So, it is quite important for everyone to take this seriously.

I don’t think that there is a point where someone would reach and they would be like they’re on top of everything, there’s always going to be things that you do not know, and that’s why learning should be part of our daily lives.

We should always make sure that we are learning, because in the cryptocurrency market things changes, what you know today wouldn’t be what would be there tomorrow, something can happen and a lot of things will change and if you keep on holding to what you knew yesterday, then you would be making a mistake. So that’s why we should keep on learning, it doesn’t matter if you have been here for a long time or you are just a newbie.

Cling18

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If you learn things about how cryptocurrency works then you'll be able to understand the movement of the market and you'll know how to deal with it. There are really lots of myths but if you have enough knowledge, you would know the right timing on when to buy and when to sell. We could apply our own strategy based on our experiences.

Findingnemo

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We are talking about the investors or traders because both seems same but actually need different strategies to keep reaping the profits consistently. However about the myths most people tend to beleive it unless they experience the actual results and also we can't force people to do something in investment because if it fails they will blame the entire market and we also could possibly lose them from future investment.

Flexystar

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Why is it difficult to become successful investor if you already advising to have proper knowledge about crypto before investing into it?
Well if we simply follow that advise then we are all good to invest into crypto market, have spoonful profits and repeat the same until Wallet balance is satisfying to us. Tongue

Crypto is anyway new to everyone here unless and until they are hardcore info tech people. However in layman language crypto can be understood with bunch of books and articles out there. So still not a big deal to learn before investing.

Mahanton

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Among all this is where i do really oppose.

Never Invest When the Market Is Down

So the question would be, on when you would tend to make out decisions on buying? When everything is on peak or ATH price? Of course it would really be just
common sense that you would be finding out the cheapest price as possible although this isnt something that you could really make out decisions quickly due
to emotional aspect or effect on someones view because we are aware on how this market moves which will really be giving out that hesitance from time to time.

darewaller

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Your first point is a good one, no one really knows the right time to make an investment. it’s just all about how prepared you are, and whether you have the money to invest in the market. Someone who doesn’t have money to invest in the market will never be able to invest no matter if they are being told is the right time or not.

So, what really matters here is that you have that money to invest, and you can invest it in the market and not minding whether it will go down or up, because the market is a really volatile one, so you can’t predict for sure what is going to be happening the next.

ethereumhunter

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Quote from: palle11 on April 30, 2022, 09:34:13 AM

The last point that you mentioned is not far from the truth actually but we don't need to be afraid. Most people that have been successful in cryptocurrency investment have been people in pump and dump. Those telegram owners that they buy coins and get their followers in the group to buy same coin but later when the coins price increase, they cash out and making profit but only few genuine investors are making money on bear season. During the bull though many more gains are added to the profit takers.

This is what happens in reality because many people have experienced it. But if you want to invest in crypto, don't forget to learn when you can enter the market so you can buy at the right time. But I think determining the exact time is very difficult because the price can fluctuate in any direction.

Don't invest just because some people say that a coin will go up shortly because they don't necessarily know what will happen. So before investing, make sure you know what coin you want to buy.

Taskford

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Quote from: tranthidung on April 30, 2022, 10:13:36 AM

A good investment strategy should have something like

Use your own money to invest

Some newbie think about borrowing money to spend on crypto without even thinking the risk and now we see them got more problem because they lose their money for unexpected things that's why I agree with this to use your own money to avoid any further problems.

Quote from: tranthidung on April 30, 2022, 10:13:36 AM

Don't time the market that means you are wrong if you want to find absolutely bottom for your investment

Many newbies are eager to find the deep and for waiting to much for it to come they miss the best possible position and that how they get FOMO or been trap by wrong position they made.

Quote from: tranthidung on April 30, 2022, 10:13:36 AM

If you find good asset for your investment, you should use DCA with dips on the market. With DCA, you won't miss great dips by trying to find absolutely bottom

Correct because without this you are just guessing wildly on what is your next move and its dangerous to do this especially if we don't know on what we are into so best try to learn those things because this one helps on our decision making.

tranthidung

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Invest means you spend your money for long term investment. If you mean invest at the right time, it is more similar to speculation, not investment. Speculation is for short term movement on the market.

A good investment strategy should have something like

Use your own money to invest
Don't time the market that means you are wrong if you want to find absolutely bottom for your investment
If you find good asset for your investment, you should use DCA with dips on the market. With DCA, you won't miss great dips by trying to find absolutely bottom

palle11

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The last point that you mentioned is not far from the truth actually but we don't need to be afraid. Most people that have been successful in cryptocurrency investment have been people in pump and dump. Those telegram owners that they buy coins and get their followers in the group to buy same coin but later when the coins price increase, they cash out and making profit but only few genuine investors are making money on bear season. During the bull though many more gains are added to the profit takers.

MinMan

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Quote from: mk4 on April 29, 2022, 01:44:38 PM

Quote from: Tanya_S on April 29, 2022, 05:25:53 AM

Know Everything about the Crypto Before Start
The idea of knowing everything about crypto investing sounds like common sense because gathering information and doing research is an important part of investing.
The investor reality is this idea is so misleading.
In practice, crypto markets can sometimes move in ways that take crypto veterans by surprise. So if a new investor hopes to acquire the ideal amount of information, he or she isn’t ever going to get there. You have to take a leap of faith based on the knowledge you do have and keep a long-term strategy.
Pro-tip: Start with what you do know about crypto and keep learning from there.

Uhh.. what. Just because it's common for even the best investors or "veterans" to make mistakes doesn't mean that you shouldn't be educating yourself heavily before diving in and just deploy your money willy-nilly. While yea sometimes people need to learn the hard way(by losing money), this is in general very bad advice.

There is this "overconfidence" issue with many veterans, they shouldn't really do it but they tend to do it because we are talking about stuff that are simple in their views, but sometimes things do not go according to the plan and that's where they fail. This means that doesn't matter if you are a newbie or a veteran, you should be focusing on learning more, making sure you studied, you researched it well and then take action.

If you remove even one of those, you will crumble even if you have been in this market for a decade. It feels weird to say a decade but we have been here for more than that right? So, it is quite important for everyone to take this seriously.

so98nn

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Quote from: Tanya_S on April 29, 2022, 05:25:53 AM

Don’t Need to Invest Outside Retirement Account
Investing for retirement is incredibly important and should be a priority in our world. But retirement savings may not be the only investment and you may find you want more choices when targeting financial goals.
The investor reality is people may find more opportunities outside of your retirement account.
Crypto investing can offer many more investment choices and flexibility over a retirement portfolio.
Pro-tip: Understand your risk tolerance and identify your financial goals to invest in crypto.

I am not sure how crypto can be good investment for the retirement. Yes, I have myself made some crypto retirement investment just by keeping some % of my income in bitcoin with the thoughts that it may be equal to million worth in the future and my money will just multiply like that. However, there is no solid plan for this or there is real proof that bitcoin will stay for that long or it will value the same in the future or might be just zero who knows!

I mean take example of Government Pension Schemes, tell me on reason why I should choose 100% crypto as my retirement plan rather these schemes who guarantee me my money + interest after retirement.

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Quote from: gantez on April 29, 2022, 11:40:44 AM

Quote

Never Invest When the Market Is Down

This is one of the misunderstanding of the market. Newbies get confused here most of the time but I think this is the best moment for investment because you can buy cheap and if you hodl it for a long time you can count more profit. This myth of the market is true and the understanding is being clearer that buying a coin cheaper is better to buy higher.

I think he meant that "dip" is the beginning of the bear. Normally I think of "buy the dip" is when there is a bullrun and there is a correction in between weeks which they consider a DIP which is a good time to buy.

But when the price had reached its ATH like overbought line, that's when investing is not good. Its best to really wait til the market hit the rock and sometimes the halving cycle goes along with it.

Jawhead999

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I feel you're giving an advice about trading, not investing because you're mostly talk about timing. Do you know Dollar Cost Averaging? it's one of many investing strategy, in DCA you don't need to understand when the right time to buy or when the market is down etc. You're only need to know which coins you wanted to invest based on the FA analysis and keep accumulate every day/week/biweekly no matter what the price is.

24Kt

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Quote from: alik111 on April 29, 2022, 01:49:55 PM

You shared some important tips for investing in crypto.But the most important thing which should follow before investing is that you must have proper knowledge about any crypto project and need to have knowledge about risk management.

The knowledge when it comes to project is very important factor to consider whenever a person wants to get involved with it. Without prior research or background check, you are just putting yourself at risk of losing your funds without putting up a good fight. Those lessons will be learned once you put your hands into this market. Everyone has their own time to learn such lesson. Sometimes, even if we know what we are doing, we can't avoid the fact that we can still commit mistakes.

Husires

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In fact, there is an appropriate time to invest, on the contrary, an ideal time to achieve a guaranteed profit, which is when a major price correction occurs and everyone is afraid that the price will reach zero, or when others want to sell strongly.

There is a difference between investing and trading, if you don't realize this difference you will lose your money, when you invest you think about value and when you trade you are interested in the difference in price to achieve

Investing in cryptocurrencies does not require much, but crypto trading does require a lot.

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Quote from: Tanya_S on April 29, 2022, 05:25:53 AM

Invest at the Right Time
You feel tempted to dive into crypto when everyone talks about how coins X or Y are a winner. Some experts say that is the right time to buy crypto coins.
The investor reality is that there is no “right time” for crypto investing.
The truth is that the market is impossible to predict. The market’s short-term ups and downs become far less relevant if you know this.
Pro-tip: The best time to invest is when you’re prepared.

Too long, so I'll just quote one which I think is the most important of all. About the pro-tip, when? How exactly are you going to tell yourself when you are prepared to invest? It's a difficult decision because most crypto-investment is risky so "being prepared" is kind of not a factor.
I think it's when you are prepared to lose whatever amount of capital you are going to use. Yes, that means you are ready.

The first and second sentence seems to contradict. Some experts say (whoever those experts are) the right time to invest is when a coin is in a trend while the reality like you said is there's "no right time".
I will just agree with the latter. The cryptocurrency market is crazy, if you think there is a future for one project, buy it as soon as you can after research.
Relying on the trend doesn't always work, there'd be instances the trend was made up.

alik111

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You shared some important tips for investing in crypto.But the most important thing which should follow before investing is that you must have proper knowledge about any crypto project and need to have knowledge about risk management.

mk4

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Paldo.io 🤖

Quote from: Tanya_S on April 29, 2022, 05:25:53 AM

Know Everything about the Crypto Before Start
The idea of knowing everything about crypto investing sounds like common sense because gathering information and doing research is an important part of investing.
The investor reality is this idea is so misleading.
In practice, crypto markets can sometimes move in ways that take crypto veterans by surprise. So if a new investor hopes to acquire the ideal amount of information, he or she isn’t ever going to get there. You have to take a leap of faith based on the knowledge you do have and keep a long-term strategy.
Pro-tip: Start with what you do know about crypto and keep learning from there.

Uhh.. what. Just because it's common for even the best investors or "veterans" to make mistakes doesn't mean that you shouldn't be educating yourself heavily before diving in and just deploy your money willy-nilly. While yea sometimes people need to learn the hard way(by losing money), this is in general very bad advice.

Topic: Crypto Investing Myths vs Crypto Investor Reality (Read 171 times)