A lot of terms has coined about what cryptocurrency is supposed to be. Everyone has his or her own opinion, and even the critics and government have something to say. The technology might be far from perfect, but there is no lie that the technology has come a long way from where it started. Since the emergence of Bitcoin, numerous coins and tokens have come to the light even to this date. Of course, there have been some ups and downs, but the crypto world remains.
Among the ups experienced by crypto is the fact that a few countries have legally recognised cryptocurrency as a legal tender despite the strong resistance it has faced from different countries. Also, many people are more aware of crypto, and the adoption has been crazy as it continues to rise. Aside from that, new ideologies and ways in which the coins and tokens could be used continue to rise. Also, financial institutions and financial institutions governing bodies are looking to get more involved in the market as they continue to devise ways to regulate it.
While the Ups are cool, the downs have been catastrophic in their own ways as lots of coins and tokens prices continue to crash. If it were just the value of coins that was crashing, it would have been bearable, but when one of the biggest and trusted exchanges crashes, you will know there is fire on the mountain. The case of Luna has bankrupted so many millionaires, which has dented the confidence people once had in technology.
As someone approaching his 5 years in this space in May, I have learnt a thing or two, and I believe that I am well informed about some aspects of the space based on my experience. I have also experienced the ups, and of course, I have experienced the down too, and so far, it has been a bumpy ride for me alongside everyone else. A summary of what I have learnt is discussed below:
Don't Fall in love with a coin or project: A lot of people are always making the mistake of falling in love with a coin, and that could lead to holding for too long, which could yield to a total loss. You will be surprised to know that someone could buy a project at 1 dollar and hold it for years, and when the project/coin finally hits the All time high of 3000 dollars, they will not still sell the project, and they hold till the value reduces back to 4 dollars. The bad thing about this is that the project might never moon beyond 10 dollars ever again. So always take profit from a project because the project could crumble or rug pull; this way, you are safe.
Fuck the charts and predictions; it's all luck and gambling: I have watched lots of youtube shows where the speakers continuously predict the prices and value of coins, and in the end, the coin predicted won't make any headway. This made me realize that everyone is just taking a gamble, as no one can correctly predict how a coin will go. The reason for this is that the demand and supply metrics determine the market value of a coin, and we all know people can be so unpredictable. So to me, it is all a gamble, as no one truly knows what to expect. Sure, you can speculate and guess, but that's what it is speculations and guesses.
Even with well-made research done on a coin, the project could still crumble, and some who did not research at all could buy a token of 100 dollars value in a day; it has multiplied to 1000 dollars. So to me, it's all luck and gambling, as no one is sure of an outcome.
The crypto space needs regularisation and some rules: The lawlessness and lack of rigid and concrete rules have made investing in a coin a gamble. It is also about a game of survival now as a person could create a token, and after investors have put in their money, the devs and owners of those projects would rug pull on such a project. Rules and regulations have to be in place to put in some strict punishment for people who do such acts. With regulations in place, many tokens without substance or use cases will be eradicated from the market. It would stop the entry of useless tokens, thereby saving the people who had invested their hard-earned money in a project/Coin designed to fail.
Regulation and rules in place reduce the amount of gambling people take on a coin as they would have a bit of confidence investing in the crypto market.
The market is too volatile: Things could change in a split second in a crypto market. You could be a millionaire one second; you are a pauper the next minute. It is bad because a project could be rug-pulled, or a whale could dump all their coin in the market, which could collapse in no time. You have to operate in real-time in this space. Regardless of whatever you are into, you need to be sharp and be on the lookout for information or update that could affect the whole course of the market.
They are favourable news which could lead the market to the moon, and they are some news that results in an instant bear market. So just like the popular saying goes, you snooze, you lose, lol. Always ensure to get the first-hand correct information before making a decision.