Crypto Investing Mistakes I Have Made so far…

From investing in crypto at a young age, these are some mistakes I made when first starting out. I hope that new investors to the market will not make the same mistakes I have. If someone had told me these things when I first got in the markets I would be in a extremely different position right now. These lessons will apply to people wanting to invest in crypto for the first time.

First of all a bit about me, my name is Lorimer Jenkins and I am 17 years old. I have been learning about crypto since Bitcoin was at $400. And have been investing in crypto since I was 14.

Now I am an investment analyst intern for Aves Lair, an early-stage crypto venture firm. I have a cryptocurrency educational channel where I educate new retail investors. As well as run my own small scale fund / bot development venture with outside investors. I am also currently working on my own token.

Socials: — — LinkedIn — — Twitter — — Channel — — MyFund — — Email

Hope you enjoy :-

1. You will lose money

And that’s okay ! Money comes and goes so instead of sitting there upset, think how you can get out of that situation into a better one. Use those faults to your advantage, do not get caught up with failure as you are usually a lot closer to success than you think.

Make failure motivate you. Losing day, after day, after day will put you down to the ground. Every investor / trader has been there. But the good ones simply don’t care and do not let it get them down. Be like them.

You are not Warren Buffet. You do not have the ability to make endless profitable trades. So therefore don’t act like it. Not every idea you get will make you money. It’s okay to admit defeat. Ideas work in your head and then you test your theory in the markets and it becomes your biggest loss to date.

Money comes and goes. One of the biggest reasons people don’t succeed in trading or investing is because they get so hung up on losses. If you have good strategies and risk management plans, you will not be one of those people.

2. Keep your profits and portfolio a secret

From telling people you are in crypto and have been for a while, comes a stigma. People assume you have made money. But in reality you have not made much ! No one likes a boast ! Like people who steal watches and diamonds, I am certain people will one day try to steal ledgers. So keep it quiet.

We all get into those situations where someone asks how much you have made and you then freeze and don’t know what to do. If you literally can’t get out of that situation the best thing to do is to speak in percentages. e.g i made 10 percent growth on a trade yesterday. This could mean you made £1 or it could mean you made £1M.

If you start telling people you have made millions when realistically you have only made a 5 percent growth, it does come back to you. You start getting in a deep deep hole which is far too steep to climb out. The best thing to do is keep your mouth shut.

The probability of you making a decent return and then losing it after telling your friends you can make them a millionaire, is HIGH.

It’s better to work in silence, as if a day comes where your portfolio gets wiped out. You will not have the embarrassment of trying to explain what happened. Instead you can focus all your time on getting back into that position.

3. Never give up

Find your motivation, for me now it is a quote to why I want to strive forward with my life. Find yours, something you can think that gets you going. As when you are first starting out 9 times out of 10 the coin will go down.

A big thing people are held back by is assuming they will make money when someone tells them to buy something, this is not the case. Just because you buy a low market cap coin does not mean it will go up. Again, buying newly listed coins will not guarantee they go up. If it’s too good to be true, it is. It is the oldest piece of advice and still applicable. Always assume someone wants something out of you in return. No one does anything for free.

You are not dealing with millions so stop worrying. If you are dealing with millions I apologize, but regardless worrying will get you nowhere. Don’t worry, do something about it.

Nothing is guaranteed in crypto as it is so volatile. A regulation could come out that crashes the market in hours. So make sure you have plan after plan on what to do if … happens.

As long as you don’t put all your eggs in one basket this won’t happen. Diversification may lower profits but will cover your back in every way. It’s better to have the insurance, than to need it and not have it.

Never give up as the answer is usually closer than you think. It is so true ! When you give up you usually are inches away from making it. If an idea is not working try to switch things around. Jumble it up. And if that didn’t work then use what you have learnt on the next project.

Treat every mistake as a learning curve. Believe me reading this you probably will still make a mistake even if i tell you. But every mistake you make, treat it as you are paying to learn not to do that. Like it’s preparing so you don’t lose when you deal with millions.

Just because someone is telling you every single time you bring up a project that it will never get off the ground doesn’t mean they are right. I told my friends in 2019 that Ethereum will be huge one day. They told me to shut up, 2 years later they are asking me is now a good time to buy.

Make sure you have that drive to keep on going !

4. DYOR

DO YOUR OWN RESEARCH, the people telling you advice are likely not financial advisors so stop blindly following them. Even me right now, base your knowledge of your own re search. But take snippets from other people.

When you are trading specific patterns, buying a new coin or even just looking at a project. Treat it with an open mind not as a chore. As it is 99% research in this game, only 1 percent actually pressing the buy and sell button.

A tip with research is to do small segments. You will burn out easily if you try to learn how everything works in a day. You need to be able to learn and unless you have a photographic memory you need time to process. What you’re trying to do is hard. Give yourself time to understand what is going on. It’s okay to take breaks

5. There is always room to improve

You are not the smartest in the room. The most intellectual people I know do not say a word. Clever people often don’t. So don’t go rambling about how clever you are, there is always something to learn.

There is always someone better than you. Whether that is Satoshi, Vitalk or your Mum. There will always be someone greater than you so keep pushing pushing pushing. I don’t want to hear how you have made mass amounts of money. The richest people often don’t tell anyone how much they actually have. And that is usually because they think they can have more !

If you don’t know how to improve then reach out and ask someone how. I wish I knew why anyone would think it’s not okay to ask for help. Maybe pride. But when you don’t understand something and someone else does. What’s stopping you from sending them a message? If you don’t know anyone to ask, then join as many Discords and Telegram chats as you can. It is FREE you have nothing to lose from joining a group, as you never know the next Satoshi could be in there.

6. Open mind

Throughout my whole life all I have done so far is go with the flow. For some reason in the beginning I did not treat crypto like this. I treated it with traditional finance conservative thinking. This didn’t work as it is so new anything could happen. Now if I think something is cool I just try it out. If it’s not for me it’s not for me.

You can learn more from actually doing something rather than learning about it. Open a Meta Mask wallet. I think you will learn more about wallets in the space of 5 minutes than you will watching a video in 30 minutes. Just try it out, there is no harm in it.

Traditional technical indicators wont always work. Most people when they want to learn how to trade Bitcoin type something in on YouTube and it comes up with “trade BTC for beginners”. You’re either taught how to buy a worthless course or taught overused stock patterns which usually end up manipulated. You’re much better off keeping that open mind and dollar cost averaging and hodling, you will make more money long term believe me !

While you shouldn’t assume everything you touch will make you money. Don’t let that put you off anything. You should always try, try, try. As you never know you could have found something to build your legacy off.

7. Know when to cut your losses

I’ve been in situations where I am down huge amounts and think I have hit rock bottom. But then something else happens and I am down even more. Know when to call it a day. Create a risk management plan. Preserving your wealth should be a priority.

Set stop losses. But what are they ? you ask. They are essentially automatic orders that get executed at a price you specify to preserve your capital. e.g if you bought 1 Bitcoin at £10,000 and you don’t want to lose more than £1,000 if it went down. You can set a Stop Loss to sell your one Bitcoin at £9,000 automatically. Basically it means you can have a life outside of trading.

If a trade is not going your way and you want to get out. You don’t want to be sitting there all day watching the price, I think doing this is one of the most unhealthy things you can do in the space.

The market can drop quicker than anything else, I assume you have a life outside of this. And a stop loss allows that !

I traded on margin for a time without stop losses and honestly I was terrible at it. The beauty of spot trading is you have a lot of room for error. And there is always the option of when things get very rough to HODL. With margin trading it’s a very different thing. Want my advice ? Trade futures not on margin.

8. Have a strategy

If you start blindly following coins just because you like the logo, then you are not investing you are gambling. There is a vivid line between investing and gambling in some investment strategies. Make sure you know the difference.

Before you even open a trading account you need to sit down and create the following :

  • A risk management plan, what can you afford to lose. Some people are happy with gambling their whole portfolio with the chance of making money. Find out if that is you or you want the best chance of continued growth.
  • A take profit strategy, where you should cash in your investments. Some people sell half at a time. Some people take their original investment out and let the profit work for them. Find what’s best for you.
  • A research strategy, what are you looking for and where do you start when looking for what to invest in. Where do you think the world is heading? Then try to capitalize on that.
  • An investment criteria, you find a project you like and you want to invest. What boxes does that project tick for you then apply it to others.

Then once you have created these things. Stick to them. Unless they are broken, don’t fix them. Whether that is your take profit strategy or your risk management plan. If you are making money do not start changing variables.

Most of you will not do this and then later on down the line lose money. You are trying to make money here. THIS IS NOT A VIDEO GAME. This is the real world there is no safety net. So treat this like a job.

When developing strategies take your time but when executing them, speed is key. Make sure you understand every detail. But not every opportunity lasts forever, everyone has access to the same information. So it won’t be long before other people catch on. So keep that in mind.

People seem to think they can buy a coin and it will make them millions of a £100 investment. This is not the case with trading. Making £10 of that investment is seen as a good return. So when you play with small amounts do not get greedy and then get annoyed when you make these returns. Make sure you manage your expectations.

Remember there is a difference between investing and trading. Investors look long term. Traders look short term. If you brought 1 Ethereum and forgot about it a year ago you would have made a 10 x return. If you traded Ethereum daily for a year as a beginner you would have lost 3 quarters of your portfolio. I know which one I would rather do.

When making personal investments here’s some simple things I follow before investing :

  • When I invest I treat the money as if it has gone
  • I focus on the bad parts of projects before investing
  • I think no one works for free so finding out the teams motive is a must
  • Would my family buy / use it later on down the line
  • Is it scalable

9. Your mental health

There was a time when I had the ability to double my portfolio every week for 3 months. During this time I felt invincible and quickly got carried away with profits. The value of things seemed like a minor thing. This quickly led me to take huge losses on other trades as I felt it didn’t matter as I could just make it back the next day. When my ability stopped I quickly lost a lot of money. Try to remember the value of things !

Numbers on a screen seem very small when you are looking at crypto market caps all day. But often you are trading with a very big chunk of your net worth.

When I was making good returns I never felt satisfied I was actually worthy of what I had done for simply buying something. This happens to a lot of people I think. It will happen to you one day either if it’s not in crypto. When it comes to it, try to forget what’s going on !

Don’t compare yourself to others ! This is particularly hard in crypto as a beginner you hear the stories of the success of others ALLOT. I’ll let you in on a little secret about those people. From someone who has spoken to a lot of them, most of them say, IT WAS LUCK. In the beginning you really had to either be extremely intelligent and able to work things out for yourself. Or literally in the position to be able to gamble thousands. As that is what it’s all about, being able to GAMBLE thousands.

Finally number 10:

NEVER BACK DOWN

I always say you can be more smarter, faster and richer than me

but you will not outwork me

Don’t think you will make these mistakes ? Neither did I …

Thanks for reading and happy investing ! Feel free to reach out to me for any help or even just a chat :) My socials are at the top.

*DISCLAIMER — I AM NOT A FINANCIAL ADVISOR. I have not made huge amounts of money or in any position of wealth or power. But i personally think if I knew these things when I first started I could be. Do not blindly copy these lessons, as your experiences will most likely not be the same as mine. Take what I say with a pinch of salt, but you never know this could help you one day !*

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