The cryptocurrency market is such a volatile one. Today, you are up. The next day, you are down. Both short-term coin holders and long-term coin traders have a similar fate.
By making investments in the cryptocurrency market, several Nigerians have become millionaires overnight. Many people have also lost a sizable portion of their earnings.
Success Ozioma aka Step On has similar experience recently. It has been up and down for him. The nineteen-year-old crypto enthusiast told TechEconomy how he made over N3 million in October 2022 after investing less than N1 million on a coin but lost everything the next day.
“I have bought several coins, but the one that shocked me with its ROI was the one I bought in October 2022. In a few days, the coin yielded amazing returns.”
Surprisingly, the same ROI disappeared within 24 hours. “I was over the moon; unfortunately, it was shocking how I lost everything the following day. Continuing, he said, “It wasn’t because of the N3M but the duration at which I was able to get such a return.”
Many experts have stated in various forums that crypto traders should diversify their portfolios, which means buying different coins rather than putting all of their money into a single coin.
Step On explains that his passion for cryptocurrency led him to register a business name (Step On Crypto) with the Corporate Affairs Commission.
“It’s just a business name for now. I have trained a few people on how to identify opportunities in the market, how to secure their wallets properly, and other fundamentals. I am passionate about this innovation, and I believe it will pay me off.”
LESSONS AND CHALLENGES
Highlighting some of the challenges and key lessons after just less than one year of venturing into the crypto space, the lad said raising the capital to buy a coin was problematic from the onset.
“It was very tough. I needed to speak to my brothers. I was seeing what they couldn’t see. Eventually, they were able to back me up with some funds for investments. The more you invest, the bigger the return in a bullish market.”
According to Step On, not doing the needed homework before purchasing a coin can be catastrophic.
He said that before purchasing any coin, it is crucial to understand the basic technology and the people behind it.
“After identifying the coin to buy, you go ahead and purchase it. Added to that is the fact that you must start monitoring your investments. It’s critical to keep track of your investments and keep an eye on how they’re performing”.
He said this will prevent anybody from falling for scams, and unrealistic projects, and “do not invest in anything without proper research and due diligence.”
Further, he reiterated that not diversifying portfolios is almost a disaster. “You aren’t going to win all the time, therefore, the best bet is to start diversifying your portfolio, which can help mitigate risk and increase returns.”