Hey, Gang! Jake here!
In our first few weeks of opening, we think it’s crucial to inform you of what not to do. Especially considering the recent price action of Bitcoin. As Bitcoin has dipped our monthly watchlist has ripped!
Take a look here for yourself! This big green candle is Kyber $KNC on our monthly watchlist! That’s just another reason why we’re here!
1. Leaving the Market
The first major thing you want to avoid is leaving altogether. Do you think I’d be here today If I sold all my bitcoins for around $1,000? No.
I see this all the time. Someone buys high and sells low, then never gets back in. That’s the worst mistake you can make.
We cannot stress this enough. We’re at the beginning stages of a brand new more efficient economic system.
I believe the digital asset ecosystem WILL absorb traditional finance. One day, it will be the “regular” economy.
Even if you make a few mistakes, pick yourself up; keep learning and stay engaged. This market isn’t going anywhere, so we hope you don’t either. Sorry to those that bought the top; been there, but I stuck it out.
We’re here to help you stay informed and prepared for the future economy.
This is going to be a rocky road, major changes are never easy. That’s why we’re here to guide you every step of the way.
A great strategy I’ve seen is keeping a “just in case bag”. Even if I do move on to another asset, sometimes it’s best to keep a little, just in case.
2. Following the Hype
While following hype is fun, it usually doesn’t play out to just chase green candles. Especially in this space.
It’s always more important to focus on the fundamental utility of an asset rather than simply its percentage gained.
Did Dogecoin explode? Yes.
Does Dogecoin have sustainable tokenomics? No. Every minute 10,000 new Doge enter into circulation. What do you think will happen when people stop buying it?
That’s why it’s always better to have a solid grip on the fundamental aspects.
Every digital asset investor knows the words “Do Your Own Research” (DYOR). That being said, almost all blockchain enthusiasts think they are properly researching projects they buy – but are they really researching enough?
Ask yourself these questions before investing in a project:
- Who is it backed by?
- Does it have any utility at all or is it simply going up by hype?
- How substantial is the Whitepaper?
- What are the tokenomics?
- What exchanges is it on?
To get the tools you need to answer these questions check out our other article written for “3 Tools You Need for 2022”.
Here’s the bitter truth: Technology fundamentals are more important than price analysis in digital assets. This is not stock investing. Never forget that. Your knowledge of traditional markets isn’t going to translate as easily as you’d think.
Most people decide to rely on influencers on Twitter or Youtube to tell them what digital asset to buy.
However, many of these investing icons are just paid marketers/influencers. Meaning they take money from the assets team and “pump it” to their community, only to use their followers as exit liquidity. We don’t do that at CoinCommand.
Furthermore, some financial gurus will sell you products based on common knowledge like Bitcoin’s halving cycle or the “coinbase” effect. (lame!)
We’re here to teach you how to fish, hook the bait, help you cast, and of course reel ’em in!
3. Panic Selling When You Should HODL
“WHEN IN DOUBT, ZOOM OUT!”
To put it in perspective, here is an all-time favorite chart of mine. The all-time Bitcoin chart. This is why I don’t sweat pullbacks.
The digital assets market is extremely volatile. Let me say that again, EXTREMELY volatile.
Short-term price corrections happen all the time, and they are not for the weak of heart, so be ready. If you’re ever in doubt or scared of the recent price action, like we’re seeing lately, zoom out.
Cement this saying into your mind “when in doubt, zoom out”.
Recognize that you’re in the beginning stages of a new world economy.
This WILL be a set of trials and tribulations. I believe that HODL will prosper.
Sudden price drops happen, but the price will start growing again if it has a use case. If you take one thing away from this let it be not to act on emotion.
Patience is a virtue.
Don’t let your mistake be the reason you give up on this market.
Let your mistakes be a learning experience, rather than an obstacle.
Not sure if you looked outside lately, but our world is changing drastically. Our economy will change with it.
We’re here to prepare you for the changes of the future and keep you well-guided along the way. With the recent price action of bitcoin, I can understand why some of you may be in fear.
However, to broaden your perspectives, this is the future of economics. It will fundamentally change the way we interact with one another. Our entire economy will transfer from trust to truth. Keep that in mind if you’re stuck staring at red candles all day. Be open to change.
“Change is the law of life. And those who look only to the past or the present are certain to miss the future.”
[Address in the Assembly Hall at the Paulskirche in Frankfurt, June 26, 1963]”
― John F. Kennedy