One year ago, I dabbled in cryptocurrencies for the first time.
I mentioned that "I am excited to begin this journey into Crypto. The excitement is like stepping into a Casino."
After barely one year, time has proven me right as we witnessed the crash of Luna, fall of FTX and contagion domino effects on other crypto exchanges and meltdown of cryptocurrencies.
Although I am disheartened by many crypto investors losing huge amounts of their heart-earned fiat and cryptocurrencies, and despite personally losing more than 80% of my paltry $500, I believe there are valuable takeaways from this meltdown and this is a good wake-up call.
Let me share the 5 great lessons learnt.
1. Fundamentals are important in any investment
Unlike national currencies backed by a country's cash reserves, cryptocurrencies are not backed by any government, country or underlying fundamentals. Traditional debt market fundamentals or stock valuation techniques all do not apply. Cryptocurrencies...