Lessons to be learned from the rising digital currency market in 2017

[arashios]

1. The digital currency market is not a logical market

The digital currency market, unlike all the markets we have ever seen, operates and we must always wait for unusual and wonderful things in this market. I remember that in those green days of the market, many analysts were analyzing and using logical trading principles and techniques in their analysis, but in the end, their analysis turned out to be wrong.

This means that in the digital currency market, we must always be prepared for the most unpleasant events and always enter the market with capital that we can afford to lose. It is very important to set a limit on losses in digital currency transactions, and naturally, if we are not a vigilant trader, we will lose all our capital over time.

2- Always monitor the actions of experts and prominent people in this field

I remember that in 2017, Charlie Lee, the founder of Litecoin, started selling his Light Coins. He stated that he has donated his LightQueens to the LightQueen Development Foundation and wants to remove his financial incentive from the project. These remarks, while very honorable, are also very interesting. Charlie sold his Light Coins at the peak of his price, and after that, the price of Light Coins gradually went down. This has been a great lesson for me, and since then, I have always tried to carefully consider the actions of crypto experts and celebrities. It often happens that one of these experts buys or sells a particular coin, and other people in the digital currency community immediately follow the behavior of this famous person. This means that the actions of such people affect the market and must be taken into account.

3- If you do not have expertise and skills, do not trade

In that bullish and dreamy market of 2017, unskilled people entered the market, and these people, even in that extraordinary market, did nothing but lose. Trading without specialization and skills is more like gambling and eventually wastes one's capital. To trade in the digital currency market, you have to be trained and entering without training will sooner or later fail.

Many newcomers have heard about the digital currency market and its potential, and think that entering this market means making a profit and making a fortune. In response to these people, we must say that if that were the case, now everyone active in the digital currency market would be billionaires traveling to the Hawaiian Islands and around the world. The truth is that success in this market requires enough experience and knowledge, and in the first stage, we must train ourselves.

4- Harvest your profits step by step and avoid accumulating them

After making a substantial profit, try to withdraw your profits and stay away from things like tax trouble. Many people in the bullish market of 2017 accumulated the profits and finally could not withdraw these profits due to matters such as taxes, hacking, etc.

Withdrawal of initial capital, after making a lot of profit and doubling our capital, seems to many professional traders necessary and must be done. The regret of losing a lot of profit that has been accumulated for a long time is very strong and makes many people depressed.

5- Emotions and emotions are the biggest enemy of the trader

We are all human beings and emotions are in our nature. When the market is bullish and money is involved, these emotions overwhelm us and deprive us of the ability to make rational decisions. In the bullish market of 2017, many people were affected by their emotions and lost the fear of falling behind the caravan. Under the influence of exaggerated propaganda, these people bought various coins and participated in many initial offerings of coins that had no fundamental value, and in the end, the result was nothing but a loss of income.

6- If you are not a professional, avoid daily trading

If you are not a professional trader and do not have enough experience, you should not go for daily and short-term trading. Short-term trading only increases the fear and anxiety of non-professionals, and naturally long-term trading works better for people who are not very professional.

7. You only made a profit when you cashed in on your profit

I remember that in 2017, in a successful trade, I made about 70% profit, but I did not withdraw my capital and profit, and I felt that I could make much more profit. Little by little, the price of the particular digital currency I had bought went down, and I was finally able to exit the trade with a small profit.

8. Bitcoin halving is a very important event in the digital currency market

The Hawing event is an important event, and history has shown that after this event, the price of bitcoin has always been in an upward phase. Bitcoin is the king of digital currencies, and naturally its rise could mean the rise of the entire market. As bitcoin experiences a strong uptrend, Altcoins will follow suit and will experience a much stronger uptrend than bitcoin. So bitcoin moves and important events like Howing should always be considered by digital currency market traders.

9. Never forget diversification

The principle of diversification is very important in investing and should be observed as much as possible. During the bullish market of 2017, we saw many people who had their capital confined to only one particular coin, and their coin did not appear as expected. These people spent a long time looking at that lucrative market, with no money left for them to participate in other projects.

In the digital currency market, it often happens that the analysis does not turn out well and the projects do not appear as expected; This is where diversification helps and allows you to make a profit from other projects. Diversification in such situations reduces the loss of bad positions and allows better use of the market.

10- Increasing scams in ascending markets

What is interesting is that various scams also increase during the bullish markets. In the bullish market of 2017 and after the increase in the value of Bitcoin, the number of hacks and scams also increased. So in bullish markets and at a time when the value of coins in the digital currency market is rising, you should be careful about your assets and choose offline storage as much as possible. As the value of digital assets increases, scammers become more tempted to commit more scams.

11. Optimists and naive people begin to make predictions

In ascending markets and after the value of coins has risen, optimistic and simple people are making astronomical predictions on YouTube, telegram channels and in various parts of cyberspace, stating that the price of coins will go much higher. In the midst of the rising digital currency market in 2017, there were strange predictions about the price of bitcoin and other currencies, and I remember someone telegraming a channel and attracting a large audience, claiming that bitcoin up to It will reach one million dollars in another year.

12. One source should not be enough for research

In all markets, and especially in bullish markets, we see a lot of advertising about certain coins, and we must keep in mind that many of these ads are from people who pursue their own interests. Many people take money from various projects and advertise for them, or sometimes even good people may have a lot of a certain digital currency and advertise for it. So we should not trust anyone in this space and we should always rely on different sources for research. Relying on a resource can be very dangerous and can ultimately lead to losses.

13. Do not advise anyone to buy digital currency

During the bullish market of 2017, many people entered the market on the advice of acquaintances and relatives, and some of these newcomers, unfamiliar with the simplest principles of investing, after losing and losing their capital, began to accuse people who They were encouraged to enter the digital currency market. Always encourage people to read, and if someone wants to enter this market, tell them the importance of studying and learning, as well as the risks of this market.

14. Never keep your digital currency in exchange offices

Concentrated exchanges have been formed contrary to the blockchain philosophy and are a dangerous place to store coins. You should always use a wallet to keep your coins and have the private keys of the coins at your disposal. This is especially important in times of bullish markets because, as mentioned, hacking and scams are on the rise during these times, and of course centralized digital currency exchanges are also attractive prey for hackers. So finally we have to say that we have to take security seriously and pay much more attention to it in the bullish markets.

[metenjean]

From 2017 we can learn how to manage and know when have to sell bitcoin and altcoin assets or when have to hold it, many people looks very trusted with cryptocurrency will make the rich by holding for long term, what for have to hold if we can get good price now and have raise much profit for selling, we can take other moment when bitcoin and altcoin dump to invest again and always have circle how to get profit every time without risk and long term holding.

[(o)(o)ilikeboobs(o)(o)]

I agree with most of your opinion, when the market gets active again there are many problems such as fraud, manipulation, and trading risks.
Number 14 is not true since the major exchanges support cryptocurrencies, we should leave them there as long as we do KYC, secure our accounts.

[sunsilk]

I agree that you have pointed out things about trading. When people will look back to 2017, everyone will be amazed and encouraged to start bitcoin trading and they will think of it as if it's the easiest trade of their lives. But that assumption was very wrong.

It was never easy to do day trading and it will cost you more than what holders have. I think you should also add this, "never borrow money which you'll use for investing in bitcoin/cryptocurrency". There were news and mistakes like this before.

[TravelMug]

"2- Always monitor the actions of experts and prominent people in this field"

There are no so called experts here, and you have to check the spelling though, its Litecoin not Lightcoin.

And also this lessons, not just in 2017, but this philosophy is very important, "Invest what you can afford to lose". And crypto investment is "not a get rich quick scheme".

[TIDOVEE]

In addition, Opportunity comes in the lifetime of that opportunity, not all times are rossy, as there is time for everything.many never knew it will end when it ended and never made the best use of the opportunity.
Procrastination, thinking I will cash out later and later until it was too no more paying.in this vein, one should take note of greed, some greedy traders has found themselves in jail for gathering money from people to trade for them without orientating them on the risky sides of it.

[maydna]

Number 3 will be the suggestion for the new people who want to trade because you will feel difficult to search for the right time to enter the market, and you can feel it difficult to place a low target buy and high target sell. You need to learn more about trading to trade like other people, but you need to remember that learning trading will need time to have skills.

Number 5 will be something that every trader needs to avoid, especially when they lose in trading, and even that can happen when they can make a profit. When they are profit, they could become greedy because they will want to chase more profit. They can forget how the market still moves because of greediness, so that can make them lose the chance to sell at a high price.

[SamGoes]

6- If you are not a professional, avoid daily trading
Has anyone previously done day trade? I personally cannot but I wonder with the proper mentality and given time, is daily trading profitable?

[Poker Player]

It is curious that most of them can be applied to the stock market, which reaffirms that crypto currencies (including bitcoin) are being used nowadays as high volatility assets to earn fiat money, and not so much as exchange currencies to acquire goods or services.

[Darker45]

3- If you do not have expertise and skills, do not trade

I can remember there were times in 2017 and earlier when cryptocurrency trading became somewhat an easy thing to do. I, along with so many online and real friends, got into trading and felt like we were professional and expert traders. We bought a little of this shitcoin and a little of that shitcoin and a few months or even weeks later we were celebrating for our nice ROI.

But those calls didn't actually require expertise and legit trading skills. It just so happened that there were moments when coins are suddenly soaring high. You just have to pick a shitcoin, wait for a little while, and you'll have your profit. Dump them, shift to another shitcoin, wait for a pump, and then another nice and easy money comes.

But we all know everything's just an old memory right now. The altcoin hype died. The ICO hype died. And shitcoins, thousands of them, eventually died one after another.

[pooya87]

1. The digital currency market is not a logical market

it is actually a lot more logical than you may think. the problem is that usually with the logic being wrong not the market being illogical. for example when people buy into pump and dump shitcoins and then expect them to continue rising or keep the pumped price, that is the problem with their logic. otherwise the correct logic is that these shitcoins will dump sooner or later and go below the price they started with.

with that simple correction in the false logic you can see how logical the altcoin market really is.

2- Always monitor the actions of experts and prominent people in this field

wrong. there are no "experts" in the field that would ever publicize their actions for others to monitor. the only people who do that are scammers and idiots who want publicity.

3- If you do not have expertise and skills, do not trade

that's the only good advice.

4- Harvest your profits step by step and avoid accumulating them

After making a substantial profit, try to withdraw your profits and stay away from things like tax trouble. Many people in the bullish market of 2017 accumulated the profits and finally could not withdraw these profits due to matters such as taxes, hacking, etc.

actually many in 2017 couldn't withdraw their profit because the profit evaporated as the shitcoins got dumped. and some even waited a couple of years to get the profit back but were forced to sell at -80% under their initial entry.

[Wexnident]

2- Always monitor the actions of experts and prominent people in this field

3- If you do not have expertise and skills, do not trade

Uhh quite contradictory tbh? if you have skills, why would you monitor the so-called "experts"? And if you didn't, then you shouldn't really trade that I do agree with. Trading requires your own judgement, and adopting another's judgement isn't really yours per se, but if you do achieve the same judgement due to doing your own research, then that's completely fine as long as YOU yourself reached that conclusion that is.

1. The digital currency market is not a logical market

5- Emotions and emotions are the biggest enemy of the trader

And that's why it's called logical market, because emotions aren't needed in trading, only logic. Being wrong in their logical analysis doesn't mean it's illogical, it only means you're wrong.

11. Optimists and naive people begin to make predictions

I'm not going to say to believe to those insane predictions that say 1million in a year or so, but still look at some predictions that do have logic in them. Not all predictions are stupidly wrong, and some have a basis in them and you can probably take note of it when deciding stuff in the long term.

[amishmanish]

About Diversification
You said, "People did not have enough money to invest in new projects". This gives an indication of the shit strartegy of running after the pumps and dumps and hoping to sell at ATH. In reality, what diversification means is that if you want to earn through the shit show, just keep a war-chest of moneh you can lose to put on these "projects". This should be a very small percentage of your holdings. You must always have atleast half in bitcoin if you don't want unnecessary headache.

The rest of this market is only about organised groups and whales trying to take advantage of you as a retail investor. Don't fall for that trap in the names of "projects".

[maxreish]

Harvest your profits step by step and avoid accumulating them

 Indeed. We can actually feel the fruit of our labor by cashing out the profits we had from our trading. It's not also bad if we reuse and readd our profits into the capital to maximize profits. It's all about how we can handle and manage it.
 
 Also,
 
 

Emotions and emotions are the biggest enemy of the trader

 We are actually gaining for sure. But the reality is that, we tend to be greedy. Our emotions are butting into our trades making oud original plan to be ruined. Certain times that a trader regrets not to exit or sell off the coins because he/she aren't contented and doesn't follow the original set goal profit.

[btc_angela]

It is curious that most of them can be applied to the stock market, which reaffirms that crypto currencies (including bitcoin) are being used nowadays as high volatility assets to earn fiat money, and not so much as exchange currencies to acquire goods or services.

That's one use case though, but it is not as easy as it sound though. it's very volatile and only experience traders can earn money without suffering any damage. And this is the main reason why people wanted to enter crypto, but it is very difficult specially if you're a beginner and your capital could easily evaporated in an instant, just like what the #3 and #6 tip is. So timing is very important here, don't be greedy, get your profits if you can and learn to mitigate risk.

[Ozero]

In addition, Opportunity comes in the lifetime of that opportunity, not all times are rossy, as there is time for everything.many never knew it will end when it ended and never made the best use of the opportunity.
Procrastination, thinking I will cash out later and later until it was too no more paying.in this vein, one should take note of greed, some greedy traders has found themselves in jail for gathering money from people to trade for them without orientating them on the risky sides of it.

In 2017, I had a lot of good tokens that were trading at high prices. Then it seemed that the price would continue to grow, after which almost all of them lost 90-95 percent of their price and the possibility of making a big profit was irrevocably gone. Therefore, I realized that if there is a good opportunity, it should be used to fix your profit and if you do not cash your altcoins, then at least transfer them to Bitcoin, ethereum or other top cryptocurrencies.
The recommendations given here are generally good and I agree with them.

[bitsurfer2014]

After making a substantial profit, try to withdraw your profits and stay away from things like tax trouble. Many people in the bullish market of 2017 accumulated the profits and finally could not withdraw these profits due to matters such as taxes, hacking, etc.

actually many in 2017 couldn't withdraw their profit because the profit evaporated as the shitcoins got dumped. and some even waited a couple of years to get the profit back but were forced to sell at -80% under their initial entry.

I suppose most of these perceived profits went up in smoke in no time when those pumps immediately dumped especially when traders did not utilize stablecoins such as USDT to protect their portfolio - a lesson that I've learned in a bitter way.

[hatshepsut93]

2

No, listening to experts is a great way to get scammed or otherwise lose your money, because most if not all of these experts don't know what they are talking about, and they also become sellouts quite easily and start shilling for scams and garbage projects.

9

You can't really diversify in crypto, they all move together following Bitcoin. It's better to actually diversify out of crypto - if you have no other investments other than crypto, consider some traditional investments, especially those on lower risk side.

[pooya87]

After making a substantial profit, try to withdraw your profits and stay away from things like tax trouble. Many people in the bullish market of 2017 accumulated the profits and finally could not withdraw these profits due to matters such as taxes, hacking, etc.

actually many in 2017 couldn't withdraw their profit because the profit evaporated as the shitcoins got dumped. and some even waited a couple of years to get the profit back but were forced to sell at -80% under their initial entry.

I suppose most of these perceived profits went up in smoke in no time when those pumps immediately dumped especially when traders did not utilize stablecoins such as USDT to protect their portfolio - a lesson that I've learned in a bitter way.

that has been the case for nearly entire 2018 and partially in 2019. you can still find a lot of topics that are encouraging the bagholders to "have patience". there are literary dozens of topics per week giving newbies false hope so that they don't dump while the price keeps on dumping and their losses grow more.
usually they buy into the hype (meaning closer to the peak rather than buying near the bottom) so there wasn't that much profit to have more room for losses either.

as for stable coins, i would be extremely cautious when using them specially if you decide to "hold them" for long term. remember that coins like USDT are centralized altcoins with 0 guarantee of existence in the future. they may very well disappear overnight some day.

[AniviaBtc]

I agree with most of your opinion, when the market gets active again there are many problems such as fraud, manipulation, and trading risks.
Number 14 is not true since the major exchanges support cryptocurrencies, we should leave them there as long as we do KYC, secure our accounts.

It clearly depends on the exchange that you are going to use to secure you cryptocurrencies in a wallet.

Choosing a reliable and most trusted exchange is not that hard to do because there are a lot of cryptocurrencies exchange that are already existing.

Most of the things in the list are true and I already experienced those kind of things so I understand every details.