The massive adoption that cryptocurrencies are currently enjoying is primarily due to their ability to serve as an investment vehicle. It attracts new followers every year who hope to become cryptocurrency millionaires after investing a few dollars. However, the success of the first investments is far from guaranteed, which forces these beginners to change their investment strategy in the cryptocurrency market. Explanations.
From euphoria to disillusion
As soon as they enter the cryptocurrency market, beginners are mostly receptive to stories about assets that have skyrocketed in value over a period of time. This leads them to invest all over the place in shitcoins hoping that they will end up experiencing the same fate. This is the first level of the course for beginners who are convinced at this time that they have made a good investment. As the months go by, they begin to take an interest in other cryptocurrencies on the market.
Indeed, most newcomers having missed the bullish cycles of bitcoin and ether, they rely on altcoins betting on the fact that they are the next assets that will dominate the market. Very often, this second level of beginner investment, like the first, ends in failure. In both cases, the losses incurred are due to the lack of knowledge of the market and the absence of in-depth research on the assets having been the subject of these investments.
Training and back to basics
Following these initial disappointments, beginners finally decide to get trained in order to learn more about cryptocurrencies. Along with this training, some of them are trying to recoup the losses suffered earlier by investing heavily in bitcoin and ether. This return to fundamentals also allows them to better understand the dynamics of the market and to refine their investment strategy accordingly.
The last step in the beginner’s journey is to understand the projects that characterize cryptocurrencies and give value to them. Then begins for them a hunt for innovative projects likely to impose themselves in the medium term in the cryptosphere. They thus end up abandoning shitcoins which are replaced in their portfolios by assets supported by real technological value.
Suffering losses in the first investments and learning from your mistakes to better bounce back is the classic journey of any individual who enters the cryptocurrency market. If some bet on a winning horse as soon as they arrive, they generally end up being overtaken by this reality. Far from being a fatality, it is rather a beneficial experience that reinforces their faith in the future of the cryptocurrency market.
