By Edward Valencia on The Capital
When dealing with the unknown you’re bound to develop uncertainties and doubts. It takes a while to take the leap of fate after just learning about crypto. The average person hears about crypto 7 times before taking the initiative to learn more about it. Along the journey, we all have encountered speculation and uncertainties. This article we will determine what they are and how to overcome it to help any newcomer get set up with the right mindset.
1. “It’s All A Scam”
The first and probably the hardest to overcome is closed-mindedness. We’ve all heard the negative press about Bitcoin’s beginning and the countless scams that go on every day. Don’t let these negative assumptions stop you from venturing out into new investment opportunities. As long as you do your due diligence there’s nothing to fear.
To overcome this is you must get educated. Learn the fundamentals of blockchain and work your way up to cryptocurrencies. There are hundreds of projects and companies working with blockchain so get on that train before it departs.
2. “It’s Too Complicated”
Many new investors are hesitant to enter the market due to their lack of expertise and their misunderstanding of the space. After deciding to learn about blockchain and all that comes with it, it’s important to acknowledge that anything complex can be simple. There’s no need to learn cryptography, economics, or technical skills to understand basic concepts. You must build a fundamental understanding of how the technology works and with time you’ll compound your knowledge.
The solution is to find a guide. Something or someone that can point you in the right direction. You’ll receive a clear road-map on what to learn and when to learn it. We’ve all been in a situation where we spend precious time learning something that we should have learned further down the road. It’s better to start with arithmetic than to jump straight into calculus. Don’t set yourself up for failure by biting more than you can chew.
3. “I Have No Time”
Learning this doesn’t require months or years. You’re learning how to navigate through the ecosystem, not program it. You’re not working towards a computer-sci degree so it should only take you around 15–20 minutes a day for a month to build a solid understanding. This can be done while you drive, on a break, or waiting in line. Fit it in whenever you can.
Commit to a time and stick with it until you feel confident in dissecting the market or a new project.
4. “It Has No Intrinsic Value”
This barrier appears after you fully understand what bitcoin and blockchain have to offer. There’s massive push-back from institutional investors calling bitcoin a gamble and it’s at this stage of your journey where you can have a constructive opinion on the matter. There is no doubt there is great speculation but it doesn’t mean the technology and what it represents has no value.
To have a strong stance on the matter you must learn some macroeconomic concepts and theory. Economics is a social-science which means that it can’t be entirely proven after all carrying experiments can be highly unethical. I mean, can you imagine the observational data economists can only dream of having?! Anyways, it’s important to create your opinion on the matter but only after you truly understood blockchain and crypto in its entirety.
5. “I Will Lose Money”
Don’t let the crypto market be your casino on-demand. Like any other investment, you must be willing to do market research. Great opportunity is waiting in the early days on the market but that doesn’t mean you should put your life savings in it. The classic saying “invest what you’re willing to lose” still stands, especially when you’re new. I’m saying this because when you’re pumped and excited about this new space you’re more likely to make emotional trades.
To keep you from losing money, you should have a sound strategy when buying in. “Buy low and sell high” is simple but it’s not easy. Learn to detach yourself from anyone's project or asset. When prices reach all-time-highs it’s good practice to question the valuation. Remember that profits and losses aren’t made until you sell so if you’re in it for the long haul then it’s best not to pay attention to the noise. Maybe one day you’ll wake up and you’ll be up 5x.
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