3 Golden Lessons That Will Make You MONEY in Bitcoin [Nigeria]

Photo by Tezos on Unsplash

No one has ever lost money holding Bitcoin for 4 years — Michael Saylor, CEO of MicroStrategy

If are losing money investing in bitcoin and will like to start making money, then please read this.

Forget the hype,

There is no point in investing in anything when you are going to lose money. It is just better not to invest.

This is the 13th year since Bitcoin came out, and thousands of people have lost money during these years.

If you invest in Bitcoin and you lost money, there are only three reasons why you lost:

1. You thought Bitcoin price will continue to rise
2. You needed the money you invested
3. You lost patience

These three things eventually led you to withdraw your Bitcoin back to cash.

I have to make this confession, I have made all three mistakes, some multiple times. And it seems it is really hard to avoid one of them. So what I am sharing here is based on real experience.

Let’s get into it.

In late 2017, December, the price of Bitcoin rose to $15,000, and I invested N100,000. Then it rose 11% more, but by Mid January 2018, it fell sharply by 25%.

As you may already know…Bitcoin is volatile.

If you are investing in Bitcoin, be very aware that the price of Bitcoin will not always go up. And more importantly, it usually won’t go up the time you want it or expect it to.

A smart trader or someone who want to take credit for predicting will do their best to tell you to bet on Bitcoin but be aware that this is crypto — price might turn out different.

You should be optimistic about the price, optimism drove the industry to where it is, but be aware that price will fall, the road is not smooth.

People don’t usually expect the price to be down. So they will angrily sell at a loss when the price fall.

That said…

The most rewarding investments are volatile - with ups and downs.

Bitcoin is considered the best performing investment class for the last 10 years, performing 10X better than any investment since 2010, including Gold or Apple stock. N50,000 invested in Bitcoin in December 2018 would have returned N1,000,000 in April 2021, that's a 2000% return.

Solana, another crypto asset released late 2020, the price rose by over 20,000%. N10,000 invested in Solana in January 2021 would have returned N2,000,000 in November the same year. But the price of SOL went up and down between Jan to Nov 2021.

As of this writing, the price of SOL, BTC, and other popular crypto assets are down by at least 70% from their all-time high in November 2021.

Lesson #1: To make money in Bitcoin, you have to embrace the rise and fall of the price.

Well,

It is not enough to embrace volatility alone.

Let me explain.

You can understand that Bitcoin is volatile.

But, if you invest too much money, or you invest money you may end up needing, then things might go bad.

Let me share a story.

There is this Pastor I know, he invested about N25,000 in Ethereum(a bitcoin alternative) when the price was $3,500. Now, this was a little money for him. In fact, he followed the advice of only investing a little or spare money.

However, this Pastor later bought a car to be used as Taxi for N1M, but unknown to him, the car had a serious problem and he spent nearly all the money he had at hand to fix it.

This man ran out of money.

What did he do?

You guessed it.

Now by this time, Etheruem was down by at least 50%. He sold at a loss.

Lesson #2: Understand lesson #1, then only invest money you won’t touch until you see a profit.

But,

Keep reading.

the truth is…

While most of us invest the money we think we won’t touch until we see a profit.

Sometimes when you invest in a coin, that is when the price will start going down. Or the price will just stall and be moving slowly.

And because we bought at the top, it may take a long time for you to see a profit. For instance, if you bought Bitcoin at $64,000 in May 2021, the fact is, you bought at the top when the price is about to fall, and it will take a long time to see a profit.

This will make you run out of patience or see another coin that you think will make you more money.

So you will be tempted to sell.

Let me share a story, I once invested $20 in an altcoin called MATIC when I noticed it was rising very fast.

I felt $20 was a little money, I won’t care if it goes down, let me give it a shot.

But after investing,

LoL.

The coin price refused to rise, the price just keep going up and down, never going up much past the price I bought it.

And I was seeing other coins doing well.

After 2–3 months, I felt this MATIC coin was useless, and I didn’t do any research about the coin.

I lost patience and sold at a little loss to buy another coin. But two months after I sold, the coin price rose by 120%.

Worst of it, the coin I later bought, the price didn’t even rise again and it even went down down, so bad.

If I was patient enough with MATIC, I would have turned $20 to $44 in 4–5 months, without working.

I have made this mistake multiple times, in fact, this is a common mistake with investors.

You can master lessons #1 and #2, but the only way for you to avoid losing patience is to reduce your anxiety and greed for more and use fresh money to invest in another coin if you must.

Lesson #3: Be patient with coins like Bitcoin, reduce your anxiety and greed, so you won’t be tempted to sell or buy wrongly.

Now, let me recap with an important note.

The goal is to take advantage of the rise and fall of the price, not to be too religious about a particular investment. Though you should be religious about some crypto assets, not too much.

It is good at times to sell when prices are falling to keep cash, this might save you from losses or help you purchase cheap when the market has regained.

Secondly, there are times when you might want to invest a lot of money you know you will need. But since investing in all might bring you a much higher and unforgettable return. It makes risk-sense to do it, losing a few times is also part of the game if you want to win Big.

Lastly, it might be a wise step to take a run out of patience and sell for another coin. There is no point holding something for too long when it won’t be profiting. Just make sure you know what you are doing and be willing to accept it if the coin you left later do well.

Here is a summary point of the three lessons you just learnt:

1. To make money in crypto, you have to embrace the rise and fall of the price.
2. Understand lesson #1, then only invest money you won’t touch until you see a profit.
3. Be patient with coins like Bitcoin, reduce your anxiety and greed, so you won’t be tempted to sell or buy wrongly.

I believe these lessons when you always remember them, will help you become a better crypto investor. Crypto has come to stay.

This article was written by Jeremiah Ikwuje, Cofounder of Remicash.

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