Updated: Oct 4
At 123Cryptos, we firmly believe that education is the key to getting past the complexities that exist with Bitcoin.
While we're not financial advisors, we're here to share our thoughts and experiences to help newcomers embark on their Bitcoin journey confidently. Here are five essential lessons we've learned that every beginner should consider.
Lesson 1 for Bitcoin Beginners: Invest in Yourself
Before diving headfirst into the world of Bitcoin, take a step back and invest in yourself.
Education is your most valuable asset. It's tempting to jump into investments immediately, driven by the fear of missing out on potential gains. However, rushing into investments without understanding the fundamentals can be risky.
As the first lesson, we believe it's very important that any Bitcoin beginner should start by learning from reputable sources. Books, podcasts, and educational platforms like (shameless plug) 123Cryptos offer valuable insights into Bitcoin's history, technology, and potential.
These resources provide the foundation you need to make informed decisions. It may sound cliché, but knowledge really is power! Consider these two scenarios:
Scenario 1: A new fresh-faced beginner is looking to enter Bitcoin/crypto because they heard it will make them rich. They were told "any exchange will do" when it comes to the best place for buying and storing their crypto assets. They found the first exchange that showed up on the App store and then bought a load of different coins. Weeks go by and they are wondering why they haven't 10x their money yet.
Scenario 2: An eager beginner has discovered Bitcoin through a TikTok reel and wants to learn more. They heard it has properties of sound money and has similarities to gold. They spend the next month immersing themselves in YouTube videos, educational platforms and debates until they feel confident enough to make an informed decision for themself.
Which do you think performed better?
it doesn't take a rocket scientist to figure out it was Scenario 2.
Dedicating your time and energy to invest in yourself first will be more beneficial in the long run.
Ultimately, the more effort you put into anything in life, the better outcome you tend to have. A Tennis star didn't become fantastic overnight, nor did a Michelin Star Chef acquire their skills from scratch. It came from investing in themselves and dedicating the time and effort to learn before they jumped straight in to the deep end. The same goes for learning about Bitcoin and cryptocurrency.
Lesson 2: There Are No Guarantees
In the world of Bitcoin and cryptocurrency, there are no guarantees.
I hate to break it to you but there's no secret formula or guaranteed structure that will lead to success. As a beginner to Bitcoin, you may have seen numerous influencers telling you something will happen for certainty. A guarantee more or less. Unfortunately, this is just not how things work.
Past performance can offer some insights, but it's not indicative of future results. In simpler words, just because something happened in the past does not mean it is guaranteed to happen again.
Bitcoin's history is unique, and the cryptocurrency market is highly speculative and unpredictable. This means that anything can happen at any moment. Therefore, putting all your faith, trust and money into what some random person says is quite silly. Understand that there are no guarantees and you will have a sensible approach going forward.
It's crucial to recognise that uncertainty is inherent in this space. While Bitcoin has shown tremendous potential, it's also experienced extreme volatility. Approach your investments with caution and a realistic understanding of the risks involved.
Lesson 3: Ask Yourself What You're Here For
Bitcoin, and in particular crypto, has gained notoriety for stories of quick riches, extravagant lifestyles, and overnight millionaires. However, it's essential to ask yourself why you're entering the world of cryptocurrency.
Are you here for quick profits and the allure of luxury cars, or do you genuinely believe in the principles and technology behind Bitcoin?
If you're solely seeking quick gains, you might want to explore other investment avenues or speculative altcoins. This not something we would encourage at 123Cryptos for two reasons. 1. Because we are Bitcoin enthusiasts and therefore don't support altcoins. 2. Promoting gambling is not why we are here.
But if you're here as a beginner to Bitcoin, we hope you've identified its core values, such as decentralisation, financial empowerment, and trustlessness.
That said, we never want to tell people what they should or should not do. After all, we are not financial advisors. That is why we ask you to ask yourself what are you really looking for. If it's quick riches, Bitcoin isn't your answer, especially in the short-term. But if you are here to not get poor slowly and believe in a decentralised financial world, then stick around!
Lesson 4: Be Bold and Have Conviction
Life is full of risks, whether it's getting in your car for the daily commute or making significant financial decisions. Bitcoin is no different; it carries its own set of risks and uncertainties. However, risks are acceptable when you've done your research and have conviction in your beliefs.
Being bold in the world of Bitcoin means having the confidence to weather the storms of price volatility and market fluctuations. It means understanding that Bitcoin's journey is a long-term one.
While it's essential to stay informed and adapt to new information, having conviction in your investment thesis can help you navigate the turbulent waters. This is why HODLing has built up such a strong reputation.
HODLing every single day is not easy and we believe is a conscious decision. In other words, every day one must wake up and decide that you are going to HODL no matter how crazy things are, or how pessimistic things seem. That's why it's crucial to do your homework, be bold and have conviction.
Lesson 5: Constantly Question Yourself Through Research
The crypto space is a vibrant and often noisy ecosystem filled with opinions, predictions, and conflicting information. It's easy to fall into the trap of an echo chamber where you only hear what supports your biases.
To avoid this, continually question yourself through rigorous research. Challenge your beliefs, test your assumptions, and engage in healthy debates. Explore various perspectives, both within and outside the crypto community. Bitcoin is a complex and evolving technology, and staying open to new scenarios and ideas will help you make well-informed decisions.
At 123Cryptos, we are constantly testing ourselves, challenging each other and coming up with potential reasons why we may be wrong. This is healthy and we encourage everyone to do the same!
In conclusion, while 123Cryptos offers no financial advice, we hope these lessons from our own experiences will serve as valuable guideposts for newcomers entering the world of Bitcoin.
Education, caution, alignment with your values, conviction, and continuous research are essential elements of a successful Bitcoin journey. Keep learning, stay curious, and remember that your path to becoming a fully-fledged Bitcoiner is a marathon, not a sprint.
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