Cryptocurrency has become the talk of the town and although it came in slowly, now it is here to stay, yes sure.
The use case of cryptocurrency is one of the great driving factors upholding cryptocurrencies to date.
This has led to a lot of people zooming into the crypto space with little or no knowledge at all.
As a beginner in the crypto space, your mindset towards the space matters a lot and if not properly tamed, you may not last long in the crypto space.
So many have been asking this question for years now and it has never been answered or maybe it has been answered, but not properly answered.
The question is, What’s the right crypto mind for beginners?
This looks easy to answer by people who think they know about crypto, I call them mini crypto mentors.
They be like, fund your account and buy any crypto of your choice.
How do you expect someone with no knowledge about cryptocurrencies to just fund his/her account and start trading currencies?
Today, our crypto ecosystem is left with people blaming and cursing their crypto mentors all over the internet for one wrong buying signal or the other. This is because of a faulty crypto foundation they had in the first instance.
If you were not oriented properly at the beginning stage, you will have a faulty crypto mentality that won’t allow you to accept blame but will lead you to abuse professionals or mentors.
Thanks to the company’s policies, where a new employee must understand the firm’s protocols and be properly oriented.
This is how the crypto space should be, with this, a little loss or bitcoin DIP will not cause alarm from newbies or beginners.
In this article, we will lay down some critical steps to take as you start your crypto journey.
Crypto mind for Beginners
Although the title underlined beginners, but if you have a bad mindset about crypto, even if you are in your 2nd year in crypto, this article will shape you.
Understanding that crypto is not a get-rich-quick scheme
The first thing to note before venturing into whatever branch of cryptocurrency is the fact that crypto is not a get-rich-quick scheme. The flashing and hyping in the crypto ecosystem might give you the wrong mentality in crypto, and you will discover the truth later in space. Crypto is not blood money. If you made good money in crypto, then you are lucky and you shouldn’t corrupt newbies with the bed-of-roses mentality. It’s obvious that cryptocurrency can be lucrative, but it is not easy as it is painted. So you have to enter the space with a normal business-oriented heart, where you can gain and as well lose. This will make your mind built up for what is to come.
Understanding that you have to learn to earn
If you want to be in crypto for the long term, you have to understand that the learning process cannot be skipped for any reason. HOLDING is a crypto technique where you buy coins and store them till it gains good value before selling them for profit making. This looks so easy hearing it, but HOLDING has a lot of principles. Not all held coins will bring profits. So, if you don’t learn crypto, you can hold for years and find no value after all. The learning stage in crypto should not be skipped. Forget the ease at which some mentors say it;
“just fund your account and I will be sending you coins to buy”
It is so simple, but why can’t you learn it so you could fetch yourself good coins with cool use cases?
Never skip the learning phase in the crypto space. It may take longer, but it’s worth it.
Understanding the high risk involved in cryptocurrencies
Cryptocurrencies are volatile which gives them a lot of possessed risk. Without learning about cryptocurrencies, their possessed risk can make you poor within hours. That is why you need to acquaint yourself with basic crypto knowledge to make profits with the risk involved. Understanding their risk will make you realize that you can gain a lot of trading currencies, and still lose a lot.
Understanding the positivity of Focus
The crypto space is greatly lucrative and flashy with a lot of hype around. Learning and developing yourself in a particular field will make you achieve a lot in the crypto space. In this course, diversifying is not a bad idea. But as a newbie, you need to focus on a particular crypto field. If it is in spot trading, learn and focus on it. If it is in futures trading, learn and focus on it. It will be wrong to have weak knowledge in areas of your diversification.
Even in trading, we have different trading patterns like day trading, scalping, and so on. Choosing one and working on it will make your trading effective.
In summary, it will be nice if you learn gradually than jumping from one field to another because of FOMO( fear of missing out).
Understand crypto terminologies
This is very important for a beginner because some crypto learning sites might teach based on the fact that you know the terminologies, whereas you don’t.
Acquainting yourself with the basic crypto terms will guide you and make you familiar with the crypto space.
The truth is that the joy of a beginner in the crypto space will be filled if he/she understands crypto terminologies.
Looking at the protocols of companies around us, or the ones we have worked in before. In the course of the job, you were taught some basic terms used in the job for easy understanding and easy communication. That’s the same mechanism in the crypto space.
Understanding the right risk management strategy
No matter how risky the crypto space is, if the right risk management strategy is used, you can reduce losses.
After learning, you might choose to invest in the crypto space and this will lead you to choose the right crypto risk management technique.
The first technique is, not investing what you can’t afford to lose. No matter how sure you are with your signals or predictions. You can’t venture with all your capital or borrowed money. You have to use capital that will not make you mad if you lose it.
Secondly, you have to set stop losses and take profits in all placed trades. Stop loss is a price trigger you use to stop your trade when it is going against you.
This will help you to manage and reduce your losses, instead of losing all your capital.
All these will be learned during your learning stage, that is why you are not meant to skip the leaning stage for no reason.
The beginning stage of any event matters a lot and should be taken seriously. It is advisable that you follow the above key points to strengthen your foundation in the crypto space.
Having the right crypto mind for beginners is a must and not an option
Cryptocurrencies are volatile with their possessed risk. You are advised to do your research (DYOR) and trade at your own risk. The above article is for informational purposes and not financial advice.