When I first started getting into crypto trading, I thought I’d give it a shot and make some quick, easy money. Boy, was I wrong. Turns out there is A LOT that people don’t tell you about when it comes to the crypto world — especially if you’re just starting out. I wish someone had shared these 10 things with me before I dove in.
1. Crypto Can Be Highly Volatile (And That’s Okay)
The very first thing that shocked me, was how volatile the market really is. I had heard stories about people making fortunes overnight but what they didn’t mention is, how quickly prices can drop too.
The market can swing massively up one hour, only to reverse the next. But, such is life within this space. Some days, you watch the sunrise from the mountaintop, with investment gains running up your sleeve.
Other days, though, it’s as if you’re standing knee-deep in mud. The trick? Still water runs deep. Keep focused on the long-term objective and don’t let short-run vagaries dictate terms.
2. You’ll Need to Stay On Top of News
This isn’t like normal stocks. It’s extremely news and social media sensitive, and sometimes even to celebrity endorsements. Just one tweet or regulation news can push it either way drastically.
Be well-informed, but don’t get caught up in the whirlwind of every breaking story. Stick to reliable sources and keep an eye on the bigger picture while noting what really matters rather than reacting to every piece of news.
3. Security is Crucial – Don’t Ignore It
One of the most overlooked aspects of crypto trading is security. When I first got into it, I didn’t fully appreciate how important it is to protect your assets.
Your crypto is stored in digital wallets, and if your wallet isn’t secure, you risk losing everything. It’s essential to use strong passwords, enable two-factor authentication, and consider cold storage for larger amounts. Take the time to protect your investments—it’s worth it.
4. You’ll Encounter A Lot of Hype and FOMO
It’s hard not to buy into the hype around certain coins and projects at least a little. Everyone seems to be discussing the latest “must-have” coin that’s going to make you filthy rich. Enter FOMO (Fear of Missing Out). It is too easy to be caught up in all of this.
But here’s the truth: Just because everyone is talking about a coin does not make it a good investment. Do not let FOMO drive your decisions. Research, be thoughtful in making choices, and do not be afraid to say the word “no” when everyone else is rushing in.
5. It’s Not Just About Buying Low and Selling High
I used to think that crypto trading was all about buying low and selling high. And, while that’s a part of it, there’s much more to it. Sometimes, the key to success is simply holding onto your coins for the long term and waiting for them to appreciate.
Crypto is still a young market, and prices can take time to recover after a dip. Don’t panic when things go down—if you’ve invested in good coins, sometimes it’s just a matter of being patient and letting time work for you.
6. There’s Always Risk – No Matter How “Safe” It Seems
A lot of people talk about how safe crypto is compared to traditional investments, but the truth is, there’s no such thing as a completely risk-free investment. Even the biggest coins, like Bitcoin, can experience major volatility.
Make sure to diversify your investments, and never put more money into crypto than you can afford to lose. It’s a great way to build wealth, but it’s not without risk. Always be prepared for the possibility that things might not go the way you expect.
7. The Taxman Will Be Watching
When I started trading crypto, I didn’t think about taxes. Too much focus on the trades, and I forgot the implications. In most countries, it is taxable. One has to report the gains or losses.
Keep good records of all your transactions, and don’t try to hide anything from the tax authorities. If you’re unsure about how to handle taxes, it’s always a good idea to consult with a tax professional who understands crypto.
8. Crypto Trading Demands a Lot of Your Time
I had thought of crypto as quick and easy money. But it’s not. Yes, trading takes time. You have really to monitor your investments and the markets. As well as be ready to change your strategy.
Then I consider longer-term investing, if passive is more your approach. Day trading is exciting but pretty time-consuming since it demands constant attention.
9. It’s Easy to Get Overwhelmed
There is plenty of information available regarding crypto, and at the onset, it can be rather overwhelming. The countless different coins plus the different trading platforms and strategies make for quite a lot of information to process in one go.
My advice? Start slow. Use a few reputable resources, choose a few coins to track, and, first and foremost, get the basics down in your comfort zone. If you don’t want to get overwhelmed, do not try to learn everything simultaneously. There’s no need to know everything at the start.
10. You’ll Need Patience – Don’t Expect Instant Results
This is one of the hardest lessons I’ve had to learn. We all hear stories of people making huge profits quickly, but for most of us, crypto trading is about slow, steady, long-haul gains. Set realistic goals and don’t expect to be a millionaire overnight.
Stick to your strategy, be patient, and remember that in many respects, cryptocurrency is a marathon, not a sprint. Look for the results not immediately, but eventually as long as you are patient and stay with it.
Most people do not talk about what crypto trading really entails. I learned this the hard way: it is not a get-rich-quick scheme. But if you stay patient and keep informed, and keep your expectations in check, then it truly can be a rewarding journey.
My Conclusion
So just remember to take your time, stay secure, and don’t let FOMO or the volatility scare you into making decisions you’ll regret later. The point is that in doing cryptocurrency trading you actually learn something and get to be pretty good at it with each step.
