December 6, 2022

5 Tips to Start Your Web3 Journey

A long intro and background

If we start the count from the Luna crash and Celsius freezing its clients’ accounts, the crypto market has gone into bear momentum for nearly half a year now. According to analysis and market cycle predictions, it might take us at least another half a year to reach the start of a bull run again.

The bear market is the preparation period for the next cycle. It is a building time for developers and projects, with market feedback from last year’s battle tests to breed better market-fit products. It is a time to rest for traders as they are less active with low market volume and loss in the hype. Everything has slowed down and is quiet, but it is also encouraging, with significant institutions and brands entering the field in different forms, such as royalties programs, fashion shows, physical-tied digital collectibles, and the like.

We saw many Web3 participants step into the field last year at the peak of the hype. Fear of missing out was widespread as there was too much information and opportunities every day, and spending all the time they had digesting them. However, instead of getting all the new protocols and project details, they should put more time into preparing themselves, like basic knowledge about blockchains and cryptocurrencies, establishing research skills, how to fact-check pieces of information, and secure their funds.

During the long waiting bear market, it would be a good time for newcomers who want to benefit in the next bull run to prepare themselves. I am sharing 5 tips for newbies to enter the web3, which I wish I had learned when I first entered the field.

Security is key

Security and safety are the primaries. Unlike in Web2, assets are under our control and are free from the reach of institutions and mega-centralized powers. The bad side is that we take full responsibility for it, where our assets are no longer protected by service providers and 3rd parties. Millions worth of assets in the crypto market were stolen by hackers or attackers last year, by simple mistakes of the owners, like clicking the wrong link or approving misleading transactions. We gained freedom in exchange for exposing ourselves to more threats.

Here are some of the keys to security you need to understand and learn during this preparation period:

  • Learn about wallets, hot and cold, and storage methods for seed phrases. Never tell anyone your seed phrases and private keys.
  • Check the websites you visit. Beware before connecting your wallet. Disconnect the access once you have done so.
  • Make sure the transaction you are asked to sign will execute as it tells. You might be asked to sign for minting but end up sending all your funds to the receiver.

DYOR and only invest in what you understand

The Internet offers us the convenience of access to information. We can easily find information about new projects, layer1 chains, and protocols by typing their name on the search bar. We need to learn the difference between facts and opinions. And surely you want the former to back your decisions.

DYOR, which stands for Do Your Own Research. You are responsible for your funds and so the results of your investments. Nothing is much more confident than trusting your research and knowledge. You are welcome to reference and learn from others’ research. What makes it more excellent is to build yours on top of theirs.

Here are some of the keys:

  • DYOR on every investment and knowledge you want to learn.
  • Create your own research guideline and procedure, and optimize it.
  • Always look for primary information resources, and check if more than two sources tell the same truth.
  • Only invest in what you understand; the fewer uncertainties, the better you deal with your funds.

Don’t be greedy. Stick with your strategy

Investment and purchase can be easily affected by our emotions. It takes time to learn to keep calm and rational about our decisions. And to do so, we need to give ourselves a plan before executing an investment, with clear goals, an entry and exit strategy, and a time limit for the plan. No one can predict how the market will go and how the price will perform. But we can plan how we will react to the market and price changes when we encounter them.

Here are some of the keys:

  • Set a clear plan for all your investments, with clear goals, price targets, an entry and exit strategy, a time limit, etc.
  • Make a record and study your past investments.
  • Implement straight on your plan and self-discipline.
  • Accept loss and failure in investment as they always come with profit and success.

Find your community, learn and exchange with each other

We mentioned doing your research in the above context, but it doesn’t mean you should isolate yourself. Blockchain and crypto involve unlimited fields, knowledge, and endless opportunities with new inventions and ideas. We only have limited time to interact with them. We must find our community with people or friends we trust to share our knowledge and research. It saves time and utilizes everyone’s specialties. Some might be more familiar with layer one chains, some might be more interested in NFTs, and some might find it easy to understand DeFi. Different people with different research methods and perspectives could also discover blind spots in your findings, making yours more complete and all-around.

Here are some of the keys:

  • Divide tasks and save time for each other.
  • Learn from others’ approaches and also examine them to improve each other’s methods.
  • Once you decide to share, don’t hide from others; eventually, you will benefit from it.
  • Community is power in Web3.

Give yourself enough rest

Last but not least, it is about time management. It would be best if you devoted all you could, but only some of your time. I once saw memes on Twitter about crypto investors investing all of their money and time in crypto, 100% focused on crypto, and screwed with their living. Investing and learning are for a better future, but you should care about your current self as you live in the present.

Rest directly affect your physical and mental health. Ask yourself two questions. Does your crypto life change your relationship with your family and loved ones? And can you fall asleep without worrying about your open positions and trades? The former shows you better time arrangement is needed, and the latter tells you to invest what you can afford to lose.

Here are some of the keys:

  • Schedule your time in crypto. Discipline is always the secret to success.
  • Results take time, and so do your learning and investment. Don’t rush to success.
  • Crypto, protocols, NFT, etc., should not occupy your life. Spend your time with your habits and loved ones. Otherwise, it’s crypto controlling you.

Final thoughts

I hope the above advice will help! Crypto offers a life-changing opportunity to everyone, and it’s an industry with comparatively low entry. Nevertheless, we should equip the right mindfulness to prevent ourselves from losing control and blindly pursuing success. There are always successful stories of how people get rich quickly, neglecting that people seldom share how they lose money quicker. The industry isn’t going anyway, and opportunities are unlimited and only for those who are well-prepared in knowledge and mental health. I wish I had someone to tell me this before I entered the market, and I am glad I have the chance to share this with all of you.