What’s the toughest crypto rule to follow?
We asked 6 experts
6 experienced crypto investors and professionals share some of the crypto rules and advice they find difficult to follow and why.
We all have that one friend who just loves to tell others what to do. In my friend group, I am that person. From “you don’t need a relationship to complete your life!” to “you should water your plants”, I love to give advice to people. I’m always happy to share my opinion (solicited or not). You’d think that with all the telling people what to do, I would be good at taking advice, too. Far from it.
When it comes to people giving me advice, I can’t lie — I don’t always take it. I’m even less likely to adhere when it comes to financial advice — a topic that we have to admit isn’t always one-size-fits-all.
Let’s be honest: a lot of money advice is just generic. And when it comes to crypto advice, it can take a lot of trial and error to find what works for you. For instance, if I’d taken the usual “You’re young! You can afford to take high risks” advice, I’d be a very financially anxious person because my personality just doesn’t gel with high-risk anything (except food for some reason).
Curious about how other people navigate financial advice, I spoke to some of my colleagues at Nestcoin about what crypto investment advice they’ve given or have been given in the past that they have found difficult to take.
Here’s what they told me:
The advice: “Buy your crypto and hold it for the long term.”
Who said this: Yele Bademosi, CEO of Nestcoin.
Why: “When you buy an asset and the price drops really low, it can be difficult to hold on to it. But it is a generally good rule of thumb because I would have made more profits if I had held some of my assets for longer and didn’t even think of selling them.”
The advice: “Take profits.”
Who said this: Ayomide Salako, Developer Relations & Community Advocate at Nestcoin.
Why: “It’s easy to preach the gospel of taking profits when onboarding new people but you’ll see in your portfolio, bags that you rode up to 3x, 4x without taking profits. The worst part? Now, you’ve downed them by 20%.”
The advice: “Never FOMO” (meaning never buy a token just out of the fear of missing out on profit).
Who said it: Nnamdi Okafor, Growth Manager at Breach.
Why: “Sometimes I go on Twitter and see people raving about a project that has advanced by like 4x and all of a sudden, I want to buy it even though I know I should take my time to learn more before buying. This is almost always a bad idea though. Take LUNA for instance, in the midst of its current crash, it increased by 15x for a short period and a lot of people bought out of FOMO and got rekt AGAIN”. (Rekt is slang for a cryptocurrency trader who sufferers due to losses from a recent price crash).
The advice: “DYoR [Do Your Own Research].”
Who said this: Tomi* — A team lead at Nestcoin who chose to stay anon.
Why: “Lol, I tell people this, but I still end up with so many shitty coins in my bag. For example, I can’t explain 90% of the project related to the tokens I hold. I guess you can put it under my “stroke of luck” portfolio. Although most times, they end up bombing. 😆”
The advice: “Research assets extensively before investing.”
Who said this: Joseph Fakorede, Finance Manager at Nestcoin
Why: “I tell people to research everything they want to invest in, but sometimes…”
The advice: “Start by investing in established tokens like Bitcoin and Ethereum.”
Who said this: Adeniyi Olowoporoku, Content writer at Breach and Founder of crypto news platform, Fxcryptonews.
Why: “It can be difficult to stick to this rule when you’re seeing other new tokens that can potentially get you massive returns. But regardless of if you decide to start with Bitcoin or not, it is still important to research whatever asset you’re getting into.”
It can be difficult for anyone — even those with significant experience — to follow the rules all the time. The best thing for me to do is to consider what rules work for me and what I can actually commit to. If it feels realistic for my life and personality, I will definitely do my best to follow it. And when I find myself at a loss after abandoning my rules, all I can do is hope for the best and learn from my mistakes.