One of the Worse Mistakes in the Bull Market
I've seen posts published by different people about one of their biggest mistakes in the bull market: jumping from token to token as one is flat and another is pumping.
That is definitely a mistake for most people and leads to losing the uptrend for all or most of your tokens, plus losing on fees and spread by regularly trading tokens. A select few may do better than just hodling what they chose at the beginning, but if they are, it happens usually because they join certain movements early and they turned to be successful (which you rarely know for sure).
Either way, this is not what I want to talk about. I did this mistake too, during the 2017 bull market, and decided to never make it again. And I haven't since. Not in a significant way, at least.
The other big mistake I made during bull markets was to not take profits at the right time. This would be the first cycle when I don't want to do this mistake again.
It's not like I haven't taken any profits or that I followed every project to the ground. Because I haven't. There have been good choices I made in the past, and that gives me hope that I am capable of taking the right decisions again, if I put my mind to it.
But the one that hurts the most, and judging by the sentiments that are sometimes spilled regarding the project, others are in the same situation, is Splinterlands.
At the top of the 2021 bull market and with Splinterlands assets to the moon, my holdings in the game were worth around a quarter of a million dollars.
Generated by Venice AI.
Now, 3 years later of almost full reinvestment in the game (as before), my holdings are worth about 14k...
Quite a difference, huh?
I remember the feeling during that bull market and the huge amounts of rewards we earned every day in dollar terms. On one side, I realized this couldn't continue much longer. On the other side, the incentives of the SPS airdrop to keep as much of the Splinterlands holdings, the impressive daily rewards, made me reluctant to sell. And I ended up pretty much a hodler... from 250k to 14k.
I did sell a few things, but not enough. I remember I sold a plot of land at a price that covered the full investment in my tract. The plot I sold was received as a gift/bonus for participating in the land presale. So, my 100 (+2 I sold later) land plots are pretty much free now. At least this one I did right. Better would have been to sell all land and buy it back later when the price dropped. Or not buy it at all, if it wouldn't have dropped or I had other plans.
Then I sold a couple of cards that were sought out on the market and I didn't have them maxed out or I had them doubled. The mistake was that I purchased some cards I wanted with the DEC I received. Wouldn't have been better to turn those into HBD, put them in savings when interest was offered and maybe buy those cards (or others) now when prices are so low?
Yeah, I know... Hindsight is 20/20. But every sign was screaming hype. And I didn't take profits. And there was time, it wasn't something like a spike for a few hours or a few days that you could miss. So yeah, this remains my biggest regret for not taking profits in 2021.
And I hope you'll be smarter than me this cycle, if you have the chance. I'm not referring to Splinterlands, but to taking profits in general.
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The main thing I have learned in investing is that I am bad at it and do best when I dca into something like and S and P 500 or BTC and then leave it alone.... My involvement can only make things worse.
Passive investments are everyone's dream. You seem on the road to that.
In some countries 250k$ might not be life-changing, but it'll set up up nicely and life wouldn't need to be hard again.
Unfortunately you'll have to live with this if splinterlands doesn't replicate those numbers again. However, it's how the market works. Two market cycle is never enough to wise up, you actually need a third and that means the one you now have to change things up.
Actually, that was one of the reasons why I didn't sell a lot more. But that's greed. We need to take profit when the time is right.
It looks like that. Hopefully, the 3rd one is enough...
Yet, 250k is a lot of money, if I had that really, it'll change my life in many ways. Hopefully this cycle will be better
As you know it's not easy to sell Splinterlands assets at desired prices. It was a little easier back then, thus my regret.
If it were me, I might not sell too, I wouldn't categorically call it greed, I just think it's not being aware of how things should be.
I was aware the prices and rewards would go down. The SPS airdrop was a deterrent and also, not knowing how quickly (or late as it turned out) land would be developed.
People who don’t take profits at the time sometimes seem like they are greedy, lol
When we get to a particular profit, it is always advisable to withdraw or trade or else, the price will fall again
Well, yeah. In hindsight, lesson learned.
This is just like a lesson to me. I’m new in the crypto world and I’d make sure to stay away from things like this
Thank you!
You can't stay away from things like this. They are all over crypto. What you can do is learn from the mistakes of others (the best) or your own (still ok, but more painful).
I could relate to what you say. Reminds me of those days when my GF Djinn Biljka was trading at more than USD 400+ in the market... And it's still with me now. :\
Yep. I don't remember exactly which was the card I own(ed) that was valued the most, but I remember it was above 3k USD.
I only Hodl tokens I've researched and that has utility. Then with each major upward movement the market makes I take some profit, so even if the bears come I won't lose that much or even not at all. With the lessons you've learned from your experiences I hope this bull run will be much better for you. Thanks for writing.
Seems like you have a good strategy!
Timing is certainly the most important thing for crypto trading brother, you're probably going to get very good at this as the mistakes come over and over !HUG
I sent 1.0 HUG on behalf of @theringmaster.
(1/3)
Timing doesn't have to be so important, if we aren't greedy. And I was.
I see the secret 🤔
Oh man! Thats a crazy number and I cant believe you didnt take any profits!!! They say to plan with the end in mind, but it is not as easy as it sounds and your emotions take over!
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I think at that time I was making tens of dollars a day from rewards + airdrop. Or something like that. On one side, taking profit was the best thing to do. On the other side, the SPS airdrop was about mid-way (or even less than 6 months into the year-long airdrop), and deciding to sell was... hard. Some did, and they made the right choice.
That's some serious bank!
Yes, it was. Too bad 2021 is gone, lol.
The problem is we don't know in which cycle the dollar collapses forever and hyperbitcoinization becomes irreversible 😕
One didn't have to sell into dollars. BTC would have done a great investment too by comparison, even if we went through a bear market. But Where is BTC now and where are most of the alts? Not that it isn't relatively normal in the cycle.
It's tough. I do think that people should take profits when they can. I was also a HODLer from the Splinterlands time. My deck value has dropped quite a bit and it would have been better to sell and buyback later. Either way, we can't change the past but taking some profit is never wrong.
One thing that prevented me from taking profits in Splinterlands was the lack of liquidity for many of the assets. It was a little better back then, plus the incredible prices.
I did the same + made CUB + POLYCUB the biggest part of my portfolio. I have learned the lesson in a very hard and brutal way.
Sorry to hear about that, man! I got out of CUB early enough, and mostly from PolyCub except the locked vexPOLYCUB until I burned them for LEO when the offer was made by the team recently. Another big mistake in crypto which I made with vexPoly - to lock something up long-term (over a year), in my case for 2.
My experience in the stock market in 2015 was repeated in my entry into the crypto space in August 2021. I was clueless that I joined close to the top of the bull market. I was holding 1,000 SPS then, and in just a month or two, its value rose to close to 1,000 USD. Now that I have close to 13x of that 1k SPS, it is funny that I am just holding around 71 USD.
Yeah, I've been doing my end-of-month situation in crypto and noticed that my SPS holdings dropped below 1000 dollars for the first time since I track this. Not very fun times, unless you completely ignore the price.