Let’s Talk About That Time I Almost Lost My Shirt in Crypto
I’ll be honest with you—I fell for the hype.
Back in late 2021, I had just landed my first full-time tech job, and like many folks working in IT, I was looking for smart ways to grow my income outside the usual paycheck. I’d been dabbling in side hustles, reading Reddit threads, and seeing “crypto millionaires” flash their gains online. So I jumped in—Bitcoin, Ethereum, a few altcoins that were trending. Zero strategy. Pure FOMO.
Within weeks, my portfolio was down 40%. It wasn’t just market volatility—it was me, making all the rookie mistakes.
If you’re exploring investing in crypto now—especially as we move deeper into 2025, when more hustles that pay weekly and on-demand work are drawing people into digital finance—you don’t have to learn the hard way like I did. Let’s talk about what not to do when you enter the world of cryptocurrency.
1. Chasing Hype Without Doing Your Homework
We’ve all seen it—a coin starts pumping, Twitter’s buzzing, and YouTube influencers are screaming “Don’t miss this!” It’s tempting to throw in money and hope for the best. But this is not investing. It’s gambling.
Real talk: If you wouldn’t invest in a business without knowing what it does, don’t buy a coin you haven’t researched.
Before investing in anything—Bitcoin, Ethereum, or a lesser-known token—ask:
- What problem does this crypto solve?
- Who’s behind it?
- Is it used in real-world applications?
- What does the whitepaper say? (I know it sounds boring, but it’s gold.)
Tip: Bookmark CoinGecko and CoinMarketCap. Check the project’s website, whitepaper, and GitHub activity. If you don’t understand it, you don’t need to buy it yet.
2. Putting in More Than You Can Afford to Lose
This is probably the most ignored rule in crypto. I’ve seen friends borrow money, sell their tech gear, or drain their emergency fund just to “go big” on a coin they believe in. Please don’t be that person.
Crypto is still volatile—even Bitcoin and Ethereum, the two most stable names, can swing wildly within hours. So if you’re thinking, “I’ll just throw in $2,000 from my rent money and double it by next week,” take a step back.
Instead: Treat crypto as a long-term play. If you’re into side hustles that pay weekly, you can take a small chunk of that “extra” cash to build your crypto portfolio over time—weekly in 2025 is a smart way to dollar-cost average your way in.
3. Ignoring Security and Scams
Crypto doesn’t come with a customer service line. If your coins get stolen or you send them to the wrong wallet, there’s no “undo” button. One of my early mistakes was storing everything on an exchange I barely researched—and that exchange later shut down.
What to do instead:
- Use a hardware wallet like Ledger or Trezor for long-term holds.
- Enable two-factor authentication (2FA) on all your crypto accounts.
- Never click random Telegram/Discord links promising giveaways or “airdrops.”
Security is boring until it saves your butt. Trust me on that.
4. Trying to Time the Market Perfectly
“Buy low, sell high.” Sounds easy enough, right? Until you realize no one—not even the crypto bros with Lambos—can time the market perfectly.
I tried trading actively for a month. I ended up overthinking every dip and peak, refreshing charts every 10 minutes. My mental health took a hit, and my returns? Mediocre at best.
A better strategy: Stick to a schedule. If you believe in Bitcoin, Ethereum, or other long-term plays, set up weekly 2025 buys through a trusted exchange. This is called dollar-cost averaging, and it removes emotion from the equation.
5. Going All-In on One Coin
You wouldn’t bet your whole career on one programming language (looking at you, Flash developers). Same goes for crypto. Putting all your money into a single asset—no matter how promising—is risky.
Diversify, even if it’s just:
- 50% Bitcoin (relatively stable)
- 30% Ethereum (widely used in apps/NFTs)
- 20% selected altcoins (high risk, high reward)
This way, one bad project doesn’t tank your entire portfolio.
6. Neglecting Taxes and Regulations
It’s easy to forget that gains in crypto = taxable income in most countries. If you’re cashing out on a spike or converting crypto into fiat, you need to report it.
In many regions, even swapping one crypto for another counts as a taxable event. I ignored this early on and ended up scrambling during tax season.
What you should do:
- Use tools like CoinTracker or Koinly to keep tabs on your transactions.
- Save a portion of your profits for taxes.
- Stay updated—regulations are changing fast, especially in 2025.
Wrapping It Up: Be Curious, Be Cautious
If you’re new to investing in crypto, don’t let the fear of messing up keep you out—but don’t let FOMO make your decisions, either. Think of this like learning a new programming language or picking up a new tool in your IT toolkit. You experiment, you study, you grow.
And remember, crypto isn’t a get-rich-quick scheme. It’s one of many tools in your personal finance and tech arsenal—just like freelancing, upskilling, or exploring side hustles that pay weekly.
Start small. Stay curious. Protect your wallet—and your peace of mind.