1. You’re waiting for Bitcoin to reach $1,000,000
If you’re investing $1,000 or less in Bitcoin, you’re wasting your time.
That $1,000 isn’t going to turn into $10,000 anytime soon.
Let me give you a realistic perspective:
Bitcoin's current market value is $0.59 trillion. Despite the bear market, it is still worth holding for the long term.
2. You believe in HODLing
HODL It is not an official English name or even a commercial name, and there are different theories about how this word was formed. However, the name has been around for a long time and is now widely used by cryptocurrency investors.
There are two common theories that attempt to explain what the term HODL means in cryptocurrency.
The first theory states that the word is simply a misspelling of the word HOLD, which is used to describe buying and storing your cryptocurrency until the price is higher than the selling price.
The second theory is that HODL is an acronym for Hold On for Dear Life. This basically has the same meaning as HOLDING, but with a slight difference.
In this sense, the term HODL is used to denote die-hard Bitcoin holders. These investors will not sell their investments even if the price rises because they firmly believe that Bitcoin and other cryptocurrencies are the future of finance.
Coin holders would rather wait to use their Bitcoin as a mainstream currency than trade it as an investable asset.
The HODL mindset instructs you to allow the cryptocurrency you are in to dictate your emotions and outcomes.
It takes away your only “control” over the market - the act of closing a position before losses mount and taking profits after prices rise to new highs.
You only make money when your trade is closed. How can you consistently buy more crypto when your position is never closed? That’s probably hard.
NOTE: HODLing is only possible if you are not bound by item 4 in this list.
3. Overconfidence in one’s own beliefs
The feeling of holding on to your obsession is often the killer of crypto wealth.
Let’s say you found a coin that has the potential to do 1000% (10X):
You bought $500. 2 days passed. The token price remained stable.
But on day 3, the price of the token has been steadily decreasing — you can see lower lows forming. However, you believe in your belief that this coin will go up 10x, so you hold on to your position and don’t make any changes.
After 2 days, the coin drops sharply and now everyone tries to exit their positions - which makes the coin drop even lower.
Your $500 position is now worth $47, which leaves you to accept defeat.
You then proceed to put all the blame on the crypto news or your friends who told you about this coin.
When In Truth: It is your fault for not selling when there are signs that it will continue to go down.
There is a lot of dogma in the crypto community, and the “hodl” mentality pushes people to make the right decisions as quickly as possible and escape that dangerous matrix as quickly as possible.
4. You don’t have an exit plan for your crypto
Getting into crypto without an exit plan is like driving out without being sure of your destination – no point.
You will see the price of the token go up and down and then the price will eventually reach a point that emotionally triggers your exit. However, this point is most of the time at a loss or break even.
Setting an exit price early will make your crypto life easier because it prevents you from struggling to manage your positions. Too many crypto people like to stare at charts all day, losing sleep over every price change.
The whole point of buying cryptocurrency is to make your money work for you.
An exit strategy doesn’t always center around actual numbers. It can be based on:
Action at a certain price
A certain time
Significant changes in volume
5. You’re not using low-risk methods to increase your income
The main motivation for cryptocurrencies is very high returns, but they mostly come with high risks. What most people do after winning big is double down on another coin or invest their earnings in Bitcoin.
Both were wrong decisions.
Think about it. Bitcoin is no stranger to apocalyptic-like drops — you can lose 50% of your crypto net worth in a single day. Putting money into new coins has a 2-10x chance of making a profit, at least for a short period of time, but the risk of losing everything quickly still exists.
Remember: You can't be right all the time. Besides, it's better to make money than to be right.
With the invention of Ethereum DeFi, there is no reason to continue using high-risk methods to get more crypto. Instead, you can:
Earn interest from staking stablecoins (totally eliminating risk) or cryptocurrencies like WISE and HEX
Become a UniSwap liquidity provider
6. You are too impulsive
Influenced by fear or greed from external sources, impulse buying cryptocurrencies when you never planned.
Impulse is what drives the crypto mind to make uninformed decisions every second.
It often results in you impulsively buying a position and realizing after doing more research that you shouldn’t have done so. However, closing the position would result in a 20% loss. So now, you’re stuck.
Or you hear a crypto news recommend your coin, or a whale buys your coin. Suddenly, the price shoots up. Now, you buy back out of FOMO — only for the price to go back to your first purchase price. You are stuck again. It’s like a T-trading in stocks.
At this time, the impulse of emotion in cryptocurrency has overcome logic. The consequences of impulse are often difficult to control. The most important spirit in this circle is to always stay calm.
7. You believe that the love of cryptocurrencies is the root of all digital evil
This means that you think any new crypto opportunity is a scam.
A good example is BitClout - a crypto-based Twitter where your social value is equated to monetary value through your own coins. The more people buy shares of your coin, the more it is worth.
Many people are quick to label it a scam, but if they dig deeper, they’ll know key things that aren’t true:
Backers of the project (Coinbase Ventures, Winklevoss Capital, Houbi)
Later influencers (Jake Paul, Jake Tran, Tim Denning)
Progress being made (NFTs, mobile apps)
Those who enter now will have the same status as those who entered before the rise of Instagram. But this time, they will be additionally rewarded with liquid cryptocurrency.
This is just 1 example of what is happening in real time.
It takes faith to grab good projects and cryptocurrencies early.
You have to take on a certain amount of risk before it stops being a “risk” per se.
No one wants $20 Bitcoin, but everyone wants $50,000 Bitcoin. Why? Because they think it’s ideal to jump on a fast-moving train as it hurtles toward its final destination — they enter the Bitcoin market late, expecting it to make them millionaires.
I believe that most people have faith in cryptocurrency, and it would be lonely to have something that is not supported by faith.
You can get on the cryptocurrency train anytime on your journey to riches. Making the right decisions over a period of time is the only way to get in. But this journey does require persistent learning and research, because there is no wealth that can be easily obtained without paying anything.
(Purely personal opinion, if you want to debate with me then you are right)
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