Well when it comes to investment,everybody is afraid of losing their invested capital hence they are afraid to invest and this is a normal feeling but what is more important is that if the person can overcome those fears make all the difference.Overcoming your fears will help you to move forward and learn more about the journey of investment
You are actually right, if we actually know the basic knowledge and understand how crypto works, we won't be afraid of investing or trading, although it's a risky journey but with time and are more consistent in it, because crypto actually require time, energy and patience because without these one can be afraid of investing or trading and can also lead to loss of money, both capital and profit. So I would suggest we should know how crypto works first, so that we won't fall a victim of scammers who will claim to help us.
To know how crypto works should be for someone to invest with their spare money, buy in the bearish market and sell in a bull market, safeguard their seed phrase, hodl bitcoin for long, altcoin for short term plans, and not invest because of FOMO, your crypto investment should be more of bitcoin than altcoins.
I hope am correct in the points I raised about how crypto works for someone to be aware of as a newbie in crypto investment.
Most of what you've said is quite correct, but I'll disagree with a few points you've stated.
The part about investing with your spare money is somewhat correct, I think the correct statement should be, invest with money or funds you can afford to lose and not funds that are meant for another purpose because profits are not guaranteed as losses can also turn out to be the outcome of the investment.
And the part about buying in a bear market and selling in a bull market isn't a pretty clear approach, because with Bitcoin, there's really no specific time considered as best time to buy or sell, but then again buying the DIP could be considered as more appropriate approach to buying during a bear market.
And then I believe the bull market is meant to be the period where you're supposed to start making profits from your investment, so how would you suggest at a time when you're supposed to be making profits?