For many, bitcoin has become a staple investment, but it’s never a good idea for someone to just jump into an entirely new trading arena without having appropriate knowledge to back up their maneuvers, and unfortunately, this is exactly what’s happening. Many new bitcoin investors are suffering from FOMO or fear of missing out, and Adam Traidman – CEO and co-founder of crypto wallet BRD – wishes that people were a little more willing to research crypto before jumping in headfirst.
Adam Traidman: Learn Before You Invest
In a recent interview, Traidman talks about what he wishes people knew and understood before simply stepping into the crypto arena. For one thing, volatility is a major issue for bitcoin and other large altcoins. He comments that the industry is wrought with whales, or individuals that like to purchase and sell large quantities of digital assets.
Traidman mentions that people need to be very understanding of this, and that not fully comprehending the volatile nature of bitcoin and crypto is going to lead to serious problems down the line. He also says that you cannot simply jump into selling all your assets the moment you see bitcoin (or some other major cryptocurrency) drop in price. He comments:
[When bitcoin broke] $50,000, a bunch of new people bought in, and then you had savvy whales who took their winnings and caused a pullback, and then some spooked investors sold, and the whales bought back in [at a lower price]. Be aware that if you put in X amount of money, there will be a time when you open your wallet and are down 30 percent. There will also be a time when you’re up two times.
He also says that it’s important to not get greedy. This is a big issue that gets in the way of lots of people behaving rationally while investing in crypto. He says nobody can engage in serious bitcoin or crypto investing unless they have a solid plan that they try to follow. Without trading goals, one isn’t likely to achieve success in the digital asset space. He mentions:
When you have a situation where your money is up two or three times, you’ll think that it was too easy. Stick to your guns and don’t be greedy. If your goal is two times the growth, and you hit that, sell it and be thankful that you hit your number.
Don’t Get Obsessed with It
Lastly, he comments that there will be days where you should try to put your money to the side and forget about it. Looking at it every day is just going to lead to stress and anxiety. He states: