19 year old (Newbie) in crypto but have a FOMO on ADA
By - Even-Understanding11
Keep learning and get involved in the community. Cardano is open source and welcomes the community to participate in all forms of development. This means that anyone can contribute. And there are lots and lots of ways to contribute.
This approach will give you more value in the long run than (just) buying ADA.
There is also no reason to fear that you will be missing out or that you are late. If this technology does succeed - then I guarantee you that if you get involved now or at any time in the coming few years - you are still very very early.
i.e. if you truely believe that this is the "next big thing", it would be wise to invest your time and energy first - and your money will follow.
Let me just say that I think your sentiment and feelings are probably shared by many young people today, and will continue to be in the future as more and more discover the technology and realize its potential.
Regarding FOMO: In 2016 I shared the same concern about Ethereum to my friend that had introduced me to it. He told me "You are still very early, dont worry". I didn't believe him and thought for sure I had already missed the boat. I mean ETH was in my head already up "like a million percent", how the hell could I be early? It was hovering around $10-13 at the time so it was really expensive. Surely those people that founded Ethereum or bought the initial sale, or bought it at under $1 in 2015 were the ones who had been early, not me. That boat had sailed for me. Looking back at that thought today I just laugh and realize how completely wrong I was.
The same rings true today. We are still far away from mass adoption. And even when we do reach some sort of wider adoption, you will still be early - at the start of widespread adoption. Just as if you got in right at the start when many people around the world just started to discover the internet.
So take my energy, read this text and try somehow to believe it. I sure wish I would have really believed my friend when he told me that back in 2016.
First off, thank you for the links its a small gesture but big in value.
Secondly, i would definitely take on your advice since experience > FOMO
You started off just perfectly. Doing your own research, asking questions. Experience is invaluable, but you can still make a negative ROI investment, even after decades of investing experience. How do you mitigate such losses? There are a couple of stratagies that you can use:
1. Dollar cost Average: Never go all in into a project with all your capital. If you find a project you like, start investing slwoly. Maybe put some initial bigger ammount if you think the price is at a good spot, and then keep buying every week/month/quarter, whatever you find works best for you. But are you going to buy it forever? No, so...
2. Set Buy-in and Sell-out targets. Lets take ADAX as an exemple. Its launching market cap was around 16M$ (0.3$ / token). I bought at public sale for 0.2$. My strategy is to buy a small ammount every week, as long as the price is below 1$. Then, i will sell at target price ranges. 20% when it reaches 10x my investment (can only figure out after finishing all my buys), 30% when it goes to 20x, and then keep tje rest for a longer term. Your stratefy may be weird and not very good at first, but its better than no strategy at all
3. Dont FOMO buy and dont PANIC sell. In broader terms, dont look at short time frame price action, unless you want to do trading (very hard to be profitable as a trader). If you found a project you believe in, and you keep watching it develop and the team keeps you updated and showing work, dont sell because the price went down 60%. Thats normal in crypto. The same goes to buying some dogecoin relative that went 300%, but there is 0 utility to that project, the team is anon and its all moonboys in telegram
Thats pretty much a good starting point. I try to follow these points, but sometimes deviate a little bit. Everyone will once in a while fall for the FOMO and FUD, its only natural when we are talking about our own money
Keep us posted about your journey!
Wow definitely some valuable feedback
I genuinely thank you
This is a subbreddit of ADAX, a project that is building a DEX on the Cardano Network. I would reccomend you post this on r/Cardano
Nevertheless, here are my 2 cents:
Cardano is close to a very important point on its development: Smart contracts are about to go live on the mainnet (scheduled for late August). This is a make or brake point for ADA, as everything that was built was with this particular milestone in mind, Defi applications that can go toe to toe with Ethereum, and be cheaper to run.
If smart contracts are released on schedule and working, ADA will burst. People have been buying in anticipation of this event, so the speculation part is already priced in. But ADA tokenomics (currently over 70% of ADA is being staked, so not circulating) make it so that the demand for it will probably be higher than the supply, and supply shortage always increasis price.
Having said that, it is all dependent on something you and I cant control: development comming through. So never invest an ammount that you dont feel comfortable loosing.
Now, talking a bit about ADAX. It was launhed less than a month ago. It is currently trading at just above its listing price. The Market Cap is only 17M at the moment, which means any market movement, up or down, swings it much easily than ADA. So its a higher risk/reward asset.
If you want to know more about ADAX, consider visiting our website ADAX.pro and brwosing through the subreddit.
Any questions just go ahead and ask!
I agree with pretty much everything in this comment.
ADAX is definately a much much higher Risk/Reward investment than ADA is. Do your research.
I agree that the speculation already has priced in a successfull launch of smart contracts - at least to 90%. What they may or may not have priced in is exactly what your comment mentions here: even though a high portion of circulating ada is delegated, it is today not at all involved in any DeFi. This will change with smart contracts. The demand for owning Ada for your personal utility will rise. How much? How fast? Noone knows this, but it will definatly be more than today!
I guess posting in the wrong sub-reddit definitely shows i have much to learn. I would surely ask questions, Once i get a more thorough and clear understanding of whats going on.
Cardano is all about community and empowering those who are voiceless in the finance world. So I think your gut feeling about ADA may be very correct.
Stick around and ask away.
Join our socials if you please:
Twitter - https://twitter.com/adax\_pro
Discord - https://discord.com/invite/GxXNQ9zS8e
Best of luck to you!
Would you mind sharing some 2 cents if you were a newbie like me?
I shared some strategies on the other comment, but something which is very important: token price is irrelevant, what matters is its market capitalization. That is the circulating supply X token price. You can look at ADA and think "wow, its only 1$, if I buy it now and it gets as big as BTC, im looking at a 30.000 ROI!!!" But thats nor right.
BTC current circulating supply is around 18.8M (there are 18M Bitcoins available to buy and sell) while ADA circulating supply is closer to 32B. That means that 1BTC is as rare as 1702 ADA. If ADA were to grow as much as BTC (have the same market cap) each ADA would now be worth 17.6$
Understanding this will avoid making huge mistakes when evaluating the probable future returns of an investment
Buy some Adax. It has more than doubled in the last month and it's not even functional yet as the Ada smart contracts layer is still being completed. Ada people will talk your ear off about what will happwn 10 years from now, but there is nothing wrong with making a serious profit in the short term. Best of luck to you.
Patience, we’re in a local bear market.
You a smart 19 year old !