5 Minute Crypto Digest: What I wish I knew before investing
Keep your emotions in check and your coins close
That sexy hot crypto that’s turning young people into millionaires…
Right now crypto is a hot topic, but the prices are at a relative low compared to a lot of prices new investors recently bought into the market at. What caused the mania previously was in my opinion a premeditated strategy by some of the big investors in the game (or as some like to call them “whales”). Once the fear of missing out (FOMO) set in, it was pretty easy to get media attention and cause the market to sky rocket through a series of buy/sell walls and an army of bots driving volume up.
This trend was (again in my opinion) a “greater fool” scheme. This is when investors buy a hot stock/coin and wait for it to go up and then sell it the next person and so on and so forth until eventually the people who bought at the top are the greatest fool and the prices start to tumble down. When this starts to happen things get dicey and predicting prices and when the market is going to rise/fall is much harder.
But it’s not all doom and gloom…
What came from this last monster of a bull run (bulls want the market to rise, bears want the market to fall) was true media attention and awareness. This is huge! If savy investors to your dear old grandma now know about the crypto market the ones who are interested can now do their research. I think this is the key to a sustainable and inevitable rise in both the worthiness of crypto projects and the eventual rise in prices.
When this will happen is a different conversation for someone more experienced than I, and even they are just giving educated guesses.
What you can do to keep your coins/investments safe
In the last year I have read copious amounts of information about investing. From day trading techniques to how to handle your emotions through a bear market. So with this information I want to give you a few tips to investing smart and keeping your money rather than losing it.
- Never invest more than you are willing to lose
- Set goals/milestones for when you are going to take profit otherwise you will never sell because your emotions tell you OMG it keeps rising if I just wait a little more time I’ll be that much richer… (please don’t do this)
- Do your research and invest in projects that you like and have a worthy and experienced team to back up their big talk of altering the world as we know it.
- If you do not have time to do basic ongoing research and upkeep crypto is not for you. It is a lot more volatile than your average stock market or index fund and you need to be prepared for large swings.
- Never make a trade if you are emotional about it. All trades need to be based on goals, milestones, price rises/falls, or technical analysis. If you look at your portfolio one day and its down 15% don’t just get scared and sell. A lot of investors say that money goes from weak hands to strong hands, don’t fall prey to this.
- Time in the market is always better than timing the market. Warren Buffet says it best… when you try timing the market, unless extremely qualified you are going to eventually lose. At this point you are simply gambling.
A few books for those interested in investing…
The reason I recommend these to anyone interested in investing is that Tony Robbins does an incredible job describing the mindset and emotions you will need to learn and control while investing your money.
- MONEY Master the Game: 7 Simple Steps to Financial Freedom
by Tony Robbins - Unshakeable Your Financial Freedom Playbook
by Tony Robbins
Please do not take any of this information as advice to invest. If you choose to invest it should be a decision solely up to you. Thank you and good luck (if you decide to dive into the crypto market)…
