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Crypto Lessons Learnt in 2022

I will share what lessons I have learnt while investing in crypto during 2022

By Sam BTCPublished 5 months ago 5 min read

We are nearing the end of 2022 and most of us have already started creating plans and resolutions for 2023. Even I was thinking of getting my action plan ready for the coming year but I thought I should first take a moment to ponder upon how the current year went.

For most of us who have been active in the crypto space for quite some time would realise that 2022 was not really a memorable year. While 2021 saw a magnificent bull run shape up which peaked towards the end of 2021, once we started 2022 we lost most of the gains made during 2021.

2022 was also notorious for the large scale scams and disasters. The fall of Luna few months back and the more recent debacle of FTX impacted most of us directly or indirectly. The NFT markets slumped completely with volumes falling for all segments. The DeFI space also pretty much dried up. BTC and ETH took heavy beating and many alt coins have sunk to their all time lows.

If you have have been playing around with crypto for more than 5-6 years then I am sure you would not be too gloomy as you would have wisened up through the multiple bull and bear cycles and know that bad times don’t last too long in crypto. If this was a bad year very soon there will be good times as well.

To ensure that we reap the maximum benefits during the next bull run it is very important to introspect and learn from the hard experiences that the tough times teach us.

In this article I will be sharing what were the main lessons I learnt during this especially tough year of 2022 and what lessons I will be keeping in mind during the coming year 2023.

1. Only Invest what you can Lose

This is the most important rule and if you were to pick just one rule I would maintain this one. It seems very obvious but if you look around you will see many people who forget about it in moments of greed.

We should only invest to the level that if we end up losing it there is no impact on our day to day lives. This strictly means only investing from surplus savings after taking care of our regular expenses and not taking risks with loans and high leveraged bets.

If you remember this you will not lose your sleep if you get caught up in a scam project which most of us do get at some point or the other.

2. Always Diversify

All of us have our favourite projects and are at time tempted to go all in for that one lucrative project. Here you need to keep in mind that no matter how great a project looks you should never put all your eggs in a basket. No matter how great a concept is there are always many market risks many of which appear out of nowhere when you least expect them.

This is a rule which you can use across project categories and sub-categories. Don’t just invest in your favourite coins like BTC and ETH but also explore other areas like NFTs, Gaming and DeFI.

Within the categories try to diversify further, explore different types of NFTs like PFPs, Gaming, Art etc.

3. Always Take Profit

Surviving long term in crypto requires having capital available so you can invest when a good opportunity comes your way.

You might have heard of the HODL concept but you need to use it wisely. I am not suggesting you to sell off all your crypto assets during the next bull run but one should always book some profits so he can maintain cash-flow ahead of the next bear cycle.

If you have invested in a NFT project try to get 3-4 so when it pumps you can sell a few to keep some liquidity.

If you filled your bags with your favourite coins during the bear market correction make sure to sell a part of it during the next bull run to have some stable coins handy to make the next investment.

4. Always Prefer Doxxed Projects

If you have been around for a while you would have surely noticed the number of scams that keep happening everyday. When you invest in a project where the founders are not doxxed you run a great risk that they may rug or abandon the project whenever they feel pushing on with the project has become a hassle for them.

While having a doxxed team is not a 100% surety that the project will not fail but at least it puts some answerability on the team behind the project and as the crackdown seems to be happening more frequently now it is definitely a lower risk option compared to projects where you have no idea who is running it behind the scenes.

5. Always Work with a Plan

When you have done the handwork to research about a project and make an informed choice to invest in it always have a clear plan about how long do you plan to hold it. When and at what levels will you book some profit. What changes will trigger you to move out of the project, will you DCA more into the project in the future etc.

If you don’t start with a clear plan you always run a risk that your emotions will get the best of you. You may panic sell at the slightest dip or over invest when the market seems to be booming.

Be very disciplined about buying when the markets are bleeding and selling when everyone seems to be buying thinking the markets will never come down.

My strategy may seem conservative to some but one lesson I have learnt the hard way is that the joy of seeing your investment pump should not come at the risk of the despair that a sudden rug-pull will cause to a project where you over-invested.

Stay safe and all the best for 2023.



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About the Creator


I am a crypto enthusiast so my articles will be focused mainly on blockchain and crypto related topics.

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