I lost $10K in my first year in crypto.
Almost quit the industry. But everything changed when I started working as a marketer. It was like someone flipped on the lights in a dark room. Suddenly, I could see all the tripwires and booby traps that had been waiting to snatch my cash (and time). Turns out, there was a way to learn all of these quickly and without spending a single cent.
These are the 3 biggest mistakes I wished someone told me before I started my crypto journey.
Mistake #1: Reading Every Single Whitepaper
Ever felt like you're trying to read ancient Greek when diving into crypto?
I used to think I was too dumb for crypto... I spent hundreds of hours trying to understand Bitcoin’s whitepaper.
Turns out, I was just making life harder for myself. Those whitepapers? They're not meant for us regular folks... they're for researchers who already speak fluent engineering. It's like trying to learn how to swim by reading about fluid dynamics. Almost 100% irrelevant.
Reading whitepapers as a newbie is like trying to assemble IKEA furniture blindfolded... with chopsticks.
So why should newbies avoid these brain-melting papers at the start?
- Assumed knowledge: These papers assume you've got basic understanding of Cryptography. It's like walking into a quantum physics lecture when you can barely operate a calculator... you'll leave feeling dumber than a box of rocks.
- Focus on the tiniest, most obscure details: It's like trying to learn how to drive by studying the molecular structure of rubber... interesting, maybe, but about as useful as learning to change a tyre.
- Sheer volume of info: This will make your brain feel like it's been put through a blender. It's like trying to drink from a fire hose... you might catch a few drops, but mostly you'll end up with a massive headache and soaking wet underpants.
So ditch the whitepapers and grab some beginner-friendly stuff instead.
Check out Coinbase Learn or Binance Academy... they're like the FREE "Crypto for Dummies" guides. Or hit up YouTube and watch Whiteboard Crypto... it's like having a patient friend using simple graphics to explain complex topics. And if you're feeling bookish, grab "Read Write Own" by Chris Dixon or "Crypto Confidential" by Nat Eliason.
Remember, in crypto, it's okay to start in the kiddie pool... we all have to start somewhere, and it’s not by starting with whitepapers.
Mistake #2: Believing The “Next Big Thing”
I once blew $10,000 on some obscure Bitcoin knockoff, thinking I was the next crypto genius...
Spoiler alert: I wasn't. Turns out, if I'd just stuck with good ol' Bitcoin, I'd have doubled my money. But nope. I had to chase the shiny new thing. Chasing the latest crypto hype is almost always a mistake.
A surefire one way ticket to bad financial decisions.
3 examples of crypto trends that fizzle out faster than a cheap firework:
- Remember the ICO craze? Everyone and their grandma was launching tokens. It was like a digital gold rush... until the SEC showed up and crashed the party. Now, those fancy white papers are just expensive toilet paper.
- Then came DeFi summer. Suddenly, we were all farmers, but instead of crops, we were harvesting yields. For a hot minute, it felt like free money... until the rug pulls started. Turns out, if something sounds too good to be true, it probably is.
- And let's not forget the recent NFT boom. We were buying pixelated cats and apes like they were the next Mona Lisa. Now? Most of those 'priceless' JPEGs are worth about as much as the metadata they're stored in.
Look, don't be a sucker like I was.
Understand that the “Next Big Thing” might NOT be big at all.
It's one of the biggest traps in crypto that has snared many newcomers. And if you really can't resist the FOMO of the next big thing — at least do your homework first. Spend some time stalking X/Twitter...
Just don't believe everything you read (which is what we will talk about in the next section)
Mistake #3: Researching on X, Discord and Youtube
Ever felt like everyone but you is getting rich off crypto?
I used to think I was the only sucker not making millions in crypto... turns out, I was just falling for the world's biggest social experiment.
Social media was my crypto kryptonite. All those success stories... those "overnight millionaires"... it was like watching a non-stop infomercial for get-rich-quick schemes. But here's the kicker: most of it is pure BS.
Crypto "success stories" are about as real as a three-dollar bill... and 1000x more dangerous to your wallet.
3 lessons on how to navigate social media from a crypto marketer of 4 years:
- “Underground” puppeteers: Those 100k follower "experts"? They're often just part of a shill squad. It's like a crypto circle jerk... they hype each other's projects, creating a FOMO tornado that sucks in newbies faster than a black hole. Essentially manipulating public perception with bought likes and followers.
- Most influencers are paid: Celebs shilling coins? They're not your crypto buddies... they're walking billboards. When 6IX9INE starts pushing memecoins, it's not because he's suddenly a financial guru. It's because his bank account got a nice bump.
- Always look for cold, hard data: 98% of memecoin buyers lost money. Those "millions" people claim to have made? Either dumb luck or straight-up lies. It's like bragging about winning the lottery... without mentioning the thousands you blew on tickets.
Don't let FOMO turn you into a crypto clown like I did.
Stick to learning about the big boys... Bitcoin and Ethereum.
Development on both BTC and ETH have never ended. In fact, development on Bitcoin is just ramping up, and you could easily spend years learning about Ethereum alone. The temptation to chase quick gains will be intense. But remember: nearly everything in crypto stems from the fundamental principles of Bitcoin and Ethereum.
Quick tip: mute those "get rich quick" accounts. Your mental health (and your wallet) will thank you.
Remember, in crypto, the tortoise often beats the hare... and keeps his shirt on too.
Summary of steps to learn more about crypto
Hopefully, my story of losing money has encouraged you to ditch the idea of getting rich fast.
Rather than writing yet another guide on getting started, it's far more valuable to show you the real-world challenges of navigating crypto.
I understand that I have thrown a lot at you!
Here’s the summary to get started in crypto:
- Start with learning, not investing
- Learn Bitcoin and Ethereum with these free resources https://www.coinbase.com/learn and https://academy.binance.com/en
- Watch Whiteboard Crypto on Youtube if you learn best with videos
- Read Read Write Own to understand the high-level principles of blockchain
- Read Crypto Confidential for a personal story of how a crypto newbie made and lost millions during DeFi Summer.
- Avoid creators that tell you that “NEW THING” is going to “REVOLUTIONIZE” something
- Follow the top 100 genuine accounts here https://hive.one/c/ethereum
- Mute anyone who claims they've made easy money in crypto
How to go deeper into Ethereum
Okay, but why Ethereum?
Almost all blockchain development stems from Ethereum. It's the first blockchain to support "smart contracts" (code that runs on it). Even recent Bitcoin developments are based on ideas from Ethereum. The next logical step for any newbie is to learn and use Ethereum.
If you're new to all of this, here are some articles on Coinbase that can help you get up to speed.
Read in this order:
After reading, it’s time to start participating in Ethereum.
But don’t worry, Coinbase has made it really easy.
- Create a Coinbase account so that you can exchange money with Ethereum
- Setup a “self-custody wallet” on Coinbase Wallet
- Fund your Coinbase Wallet with $20 and venture into Ethereum!
Ideas on how to spend your precious $20
- Buy a cute (cheap) NFT on Opensea
- Swap $5 of a $DOGE on Uniswap
- Stake your first ETH on Lido
- Bridge tokens to Polygon (Layer-2 blockchain)
- Predict events on Polymarket!
Congratulations! If you've completed all these steps, you're now more knowledgeable about crypto than 99% of people worldwide.
You've taken a significant leap into Ethereum and its use cases.
Okay but what if you are wondering how to earn tokens without “gambling?
Steps to actually earn tokens:
Follow https://x.com/StudyDragonsNFT on Twitter!
They are dropping an email course "Earn Your First Dollar In Crypto" pretty soon!
That's all! Thank you for reading!
If you enjoyed this, feel free to follow me on Twitter @jaywin0x
P.S. If you're a crypto veteran reading this, share it with someone you know who's dipping their toes for the first time!