How to get into crypto from scratch

Source: thedefinvestor Translation: Shan Ouba, Golden Finance

Over the past few years, I've often been asked this question: "If you had to start from scratch in the crypto space today, what would you do?" Overall, I'm incredibly grateful for my journey in this industry. But I've also made many mistakes, and there are things I would do differently if I could do it all over again. So I thought I'd write this article, hoping it might help those who come after me. Here are five things I'd do if I were starting over again. 1. Find your passion and focus on it. My advice to new crypto investors is to focus on one or two niche areas. For me, DeFi is what I'm most interested in. I've been a deep user of DeFi for many years and truly enjoy researching new protocols, investing in DeFi projects, and participating in mining and yield farming strategies. I've made a lot of money in DeFi. However, if I had chosen a field I wasn't passionate about (like GameFi), my returns would likely have been much smaller. For newcomers, I recommend trying as many different things as possible, finding what you truly enjoy, and then delving deeply into that area. There are countless ways to make money in this industry, but the key is combining hard work with passion. 2. Prioritize income before investing. I know this advice may be unpopular. But if you want to turn a few thousand dollars into millions through trading, the reality is: it's statistically impossible. If you have free time, I recommend focusing on increasing your income first and finding a stable source of income in the crypto industry before considering trading. Love writing? Create content on X or try ghostwriting. Can you code? Find a job developing smart contracts. Good communicator? Apply to be a community moderator on a project. Why work in crypto? One important reason: If you live outside the US or Western Europe, the average local salary is likely far lower than what you could earn online in crypto. Of course, this is easier said than done. But there's one way to significantly increase your chances of success: Give value first, then demand return. For example, if you want to become a Discord moderator for a project, start by being very active in the server. Avoid idle chatter, but instead help answer newbies' questions and show the team your value. This won't guarantee you a job, but it will significantly increase your chances of success. 3. Adjust your risk appetite based on your capital size. Imagine you have a $1,000 portfolio. To have a real chance of success, you must take on more risk than someone with $100,000. For example, instead of buying a dozen tokens, choose four high-conviction ones. If you only buy BTC or ETH, you might get a multi-fold return over the long term, but that won't be life-changing. So, if I were starting over with a small portfolio, I would only invest in altcoins.

Strategy:

• Enter the market boldly at the beginning of an uptrend and gradually sell when the market becomes euphoric.

• Don't wait until Crypto Twitter is collectively bullish before taking action; by then it will definitely be too late.

• As your funds increase, gradually diversify your investments and reduce risk.

The goal is not only to accumulate wealth, but also to preserve wealth.

4. Expand your network and establish valuable connections

I recently did an interesting statistic. Over the past few years, approximately 30% of my biggest gains have come from opportunities brought about by my connections, opportunities I likely would never have discovered on my own. Knowing the right people can often accelerate your journey. How can you build valuable connections? One way is to increase your social media influence and share valuable insights on X. This makes it easier to connect with people in the industry. If that's not for you, another path remains: Provide value first. For example, if you're a designer and see a KOL's X banner that doesn't look good, offer to design one for them for free. If you're a gem hunter, share potential money-making opportunities to build relationships. These small actions can help you gain many valuable connections. 5. Remember: Patience is everything. I've witnessed this countless times. I have a friend who has been in the crypto industry for over two years. For the first 18 months, he failed at everything he tried. He couldn't make any money and was tempted to give up several times, thinking crypto might not be for him. But recently, he stumbled upon an opportunity that tripled his portfolio in a matter of days. That's what crypto is all about: it constantly tests your patience until the moment you finally win. If you don't give up, keep working hard, learn from your mistakes, and constantly improve, you'll eventually be rewarded.