So, we all have those days when we sit and think – “I really wish I did things differently” – we see a result of something, and then we go over every mistake and decision we made, trying to justify to ourselves that if we did something differently, our own outcome would be better somehow. Without a time machine, we simply learn from our mistakes, or in many cases realize that we’re human and we can’t make perfect decisions all the time. I want to share a few tips I wish I knew before I started investing into Litecoin, as well as things that the community now know since the recent value surges.
Litecoin value can rocket
It was a safe assumption just a few weeks ago that Litecoin was the more stable and steady coin to invest in be involved with. However, now that main stream media outlets are publishing interviews and articles on Litecoin, we’re seeing that the value can sky rocket just as Bitcoin did once it hit $10,000. As of this article, Litecoin has leveled out around $310-$320 per coin, a very strong position considering it was worth $85/coin just two weeks ago.
You don’t, and shouldn’t keep your coins on an exchange
The entire point of cryptocurrency is to be in control of your own money. Currently, there are numerous exchanges that make it super easy and fairly painless to purchase and sell coins. While this is good, and making access to crypto more widely available is always welcomed – it’s not a good idea to leave chunks of coin or money sitting in these exchanges. If they get hacked, shut down, or any number of things that happen to high-value targets, you’re out of your coins and money. Not good! It’s a good idea to move your assets to a wallet (which I’ll explore in a future article).
A drop in coin price doesn’t really matter
This is perhaps the most important lesson I’ve learned. It’s nice to see your investment and the value of Litecoin soar, but it means very little as the price could fall just as quickly. To that effect, it doesn’t really matter if Litecoin hits an all time high, then drops 10-30%. This is the market’s way of correcting itself, getting rid of some of the people who are in it for a profit, and leveling out. While there is no guarantee or reason for it to climb again, at this young stage, it’s likely it will in due time.
This also brings up a valid point of panic selling. When you’re watching the markets and see your initial value decreasing, it can sometimes lead us to sell off for fear of losing money. This is the wrong thing to do in the majority of cases, as outlined in my previous article “The basics of investing”
Set a ‘moon‘, don’t let the HODL crowd dictate your investments
We use the term ‘moon’ a lot, and in various ways. For some, it’s the value at which they will sell off a portion of their Litecoins. For others, it’s the level of value we want to see Litecoin obtain (the moon being high in the sky, we want the value to be really high). It IS okay to sell your investments, after all, it’s your money and you are free to do what you want with it. Some of us buy into the crypto market to see short term gains with a high profit margin; cool. Some of us are in it for the long haul and wont sell no matter how high the value goes (a.k.a HODLers). If you have debts in your life or major expenses you wish to utilize Litecoin to help pay off, that is totally fine! Litecoin isn’t a strict thing you have to obey, and that’s the beauty of it all. I have my own ‘moon’ at which I’m willing to sell off some of my investments to ensure that my own financial situation is more comfortable than it is, and maybe you should have your own ‘moon’.