Do not fall in love with your coins – A cryptocurrency gambler’s dilemma

After reading about it so many times on virtually every investment subreddit, I didn’t think it would happen to me.

I opened an account on Binance and bought my first batch of coins one November evening after deciding I was too bored and too curious. The experience was thrilling. The platform was seamless and very easy to navigate considering I have never used an exchange ever in my whole life. In no time, I had spent $300 each on 3 alt coins that were mentioned the most on /Cryptocurrency and did not notice I fell asleep at 3:00AM with my eyes glued to the charts.

Binance is ridiculously user-friendly. From setup to trading, they have streamlined the end-to-end process. It’s so easy to use so it’s also easy to lose money hehe.

The next few days were spent the same. I was blissfully adding more to the first 3 coins, and also reading about other projects that looked stable and promising. I grew greedy, after all, November to December were extremely bullish months. So I threw in more and more. By the end of the bull run, I owned BTC, ETH, and 10 alt coins. I was happy that they were all in green.

Until things started to go down. They always do, don’t they? Even the king and queen’s resistance broke in 2022, the alts followed suit almost immediately. Whether it was a market correction, or a trend reversal, it didn’t matter. The charts were red. I’m not hurt to be at a loss since I fully expected it. To soften the fall, I diligently DCA-ed over the next few months until I lost the motivation to. The idea behind doing dollar cost averaging only works if your coin survives. Even legitimate and great projects with a solid team may not have the resilience to bounce back, much less eclipse its previous all time high. So don’t go around telling people, “When in doubt, zoom out.” Past performances tell you its history, but it is certainly not an indication of what’s to come tomorrow. The only guarantee you can claim when looking at the chart is that it will move to the right.

Coindesk
Coindesk‘s Bitcoin chart from January 2022

Crucify me if you want, but I think this has to be said: “DCA, HODL, DIAMOND HANDS” mentality is poisonous. Persevering and powering through a bear market or crypto winner sounds heroic, it’s exactly why it is often times romanticized. But just as there are many fervent stories from these victors that survived and weathered by hodling, there should be as much people sharing their wins from executing their orchestrated exit and re-entry strategies. Being called a “paper hands, b* word” is better than having to eat instant ramen 3x a day until the next fortnight. Being accused of not believing in the technology is better than having to consider taking out a loan for the lack of liquidity. There won’t be any medal of honor for you if you hodl for the sake of hodling.

But even if I acknowledge all these, and luckily remain not indoctrinated from the echo chamber that is /cc, somehow, some way, I can’t part with my coins and their poor positions. One of the smart routes I could have taken when signs of decline started showing would have been to consolidate and flee to the “safety” of the Bitcoin, Etherium, and perhaps 2 stable coins. I knew this. I recognize that it was sound and pre-emptive. But did I do it? I didn’t. There is no question to be asked here. I have written on the title exactly why I am in this situation: I have fallen in love with my coins. I deludedly wish for all 10 of my alt coins to turn the tide and have an impossible rally that ignores market principles. Or maybe this is a thinly veiled case of the classic FOMO? Scared of the thought of the coins I held since the beginning to “moon” just after I jump off the rocket? Maybe so. On the other hand, what if I’m holding on to bags of poo??

Many say that it takes a lot of courage to hold your bags when the market is down- but as I write this, I realize more and more that it takes a lot more courage to face the truth and cut your losses. Over 5 of my alts are less than 50% of their value despite me averaging down on them. Compared to the peak from the time of my purchase, 2 are almost 1/4 in value. Am I ready to write off those $$$$, push forward, and never look back? Should I end my one-sided love affair with these alts?

If you’re still undecided and think you’re about to enter your ramen era, at least try to exercise your creativity and enjoy some variety. Here is a video with some easy to follow recipes to help you elevate your $3.00 meals.

Check out the rest of Aaron and Claire’s channel while you’re at it!

Now that you’ve read this far, who wants to guess my 10 alts? If you can get all 10 right, I will send you $10 UST on your Terra Station Wallet! Leave your poor man’s lottery tickets on the comments section!

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