Crypto Basics: What I Wish I Knew Before Investing

I almost bought Bitcoin on impulse. What stopped me was a crash course in crypto reality that reshaped how I see money.

The Day I Nearly Clicked “Buy”

It was a Tuesday afternoon in Miri. I’d just finished a client call, ordered a kopi ais, and was scrolling through a crypto exchange app. Bitcoin was up 4% in the last 24 hours. My thumb hovered over the “Buy” button.

I paused. Anxiety and uncertainty crept in. Was I really about to throw my hard-earned ringgit into something I barely understood? That hesitation marked the real start of my journey into crypto, making me realize how little I knew.

What I Thought Crypto Was?

Like many, I assumed crypto was just digital money. Buy some Bitcoin, wait for it to “moon,” and cash out. Simple.

But the reality is more layered. Crypto isn’t just coins; it’s an ecosystem built on blockchain technology, which records transactions on decentralised ledgers. No single bank or government controls it. Sounds liberating, right? But it also means no safety net if things go wrong.

The First Hard Lesson—Volatility

When I dug deeper, I realised crypto isn’t just volatile—it’s wild. Bitcoin has seen single-day swings of more than 10%. In 2021, it hit nearly $69,000 before crashing below $20,000 in 2022 (Investopedia, 2025). (Bitcoin Price History, 2025)

That’s not just a dip; that’s a rollercoaster. My stomach dropped at the thought of waking up to see my savings halved overnight. It made me doubt if I was ready to handle that kind of emotional upheaval.

Disclaimer: This does not constitute financial or investment advice. You should conduct your own research before purchasing, using, or investing in any digital token project.

Why People Still Dive In?

Despite the chaos, crypto attracts millions. Global ownership is estimated at over 420 million people in 2024 (Crypto.com, 2025). (Crypto Market Sizing Report 2024, 2025) Why the appeal?

- Diversification: Crypto doesn’t always move in sync with stocks or bonds.

- Accessibility: Anyone with a smartphone can join.

- Potential: Early adopters of Bitcoin saw life-changing returns.

But for every success, there are many stories of people buying high and selling low.

My First Rule—Never Invest Blindly

I realised I needed rules before I considered buying. My first? Never invest in something I don’t understand.

So I started small: reading guides, watching explainers, and testing demo accounts. I learned about wallets (hot vs cold), exchanges, and the importance of private keys. Lose your key, lose your coins. No “forgot password” button.

Risk Management—The Boring but Crucial Bit

Here’s where my inner pragmatist kicked in. I made a plan:

Only What I Can Afford to Lose

Experts suggest treating crypto like a high-risk asset—no more than 4–10% of your portfolio (Schwab, 2025). That way, if it tanks, you’re bruised, not broken.

Dollar-Cost Averaging

Instead of lump-sum buying, I looked at dollar-cost averaging: investing small amounts regularly. This smooths out volatility and reduces the risk of buying at the peak.

Security First

I also learned that exchanges can be hacked. Over $3.8 billion was stolen in crypto hacks in 2022 (Chainalysis, 2023). (Team, 2023) That stat alone convinced me to research hardware wallets.

The Emotional Side of Crypto

What surprised me most wasn’t the tech; it was the torrent of emotions. FOMO (fear of missing out) is intense. When you read headlines about overnight millionaires, your heart races. It’s easy to ignore reason and want to jump in, just to not be left behind.

But I reminded myself with a mix of frustration and relief: if I’m buying just because of hype, I’m already late to the party and likely to regret it later.

That day in Miri, I didn’t buy Bitcoin. Instead, I closed the app and wrote down three questions:

1. Do I understand what I’m buying?

2. Can I afford to lose this money?

3. Am I investing—or gambling?

Those questions became my anchor, calming my nerves whenever excitement surged or doubt crept in. They kept my emotions in check and guided every future decision.

Why I’m Still Interested?

Here’s the twist: I didn’t stop exploring crypto. I just walked away from investing without understanding.

Crypto is reshaping finance—whether through decentralised finance (DeFi), NFTs, or central bank digital currencies. (Aquilina et al., 2025) Even if I never buy a coin, understanding it feels essential.

My Takeaway for You

If you’re tempted to dive in, pause like I did. Learn the basics. Set rules. And remember: crypto isn’t a shortcut to wealth; it’s a high-risk, high-reward experiment in the future of money.

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Final Thoughts

I nearly gambled on Bitcoin that Tuesday, not just with my money but with my peace of mind. Instead, by stepping back, I gained something more valuable: hard-won perspective and a newfound sense of control over my emotions.isn’t going away. Neither is risk. If you’re considering investing, start with knowledge, not hype.

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