Non-financial advice — How to not get REKT in Crypto
I’ve been in the cryptocurrency and blockchain space for many years having seen people grow their wealth or simply get rekt. Most of all, I hate to see family and friends get rekt. So, I’ve composed this unordered list of my unrestricted non-financial advice.
Invest in things you understand
Don’t invest in a stock if you can’t read a company’s financial statement. Don’t invest in real estate if you don’t know how to change a door knob. Don’t start a construction company if you can’t change a lightbulb. — If you don’t understand blockchain and cryptocurrency, then you’re going to waste your money through pure speculation. You may consider taking advantage of all the free educational resources on the internet.
HODL and it’s okay to take profits
HODLing is the act of holding a cryptocurrency for a long period of time no matter the up or down market cycle. If you’re going to HODL a position, then intend on holding your position for 3 years or longer.
There are many people in crypto that will tell you to never sell and HODL for 10 years or forever. There are also people on Wall Street that tell you to keep holding a bag of stocks because the market will recover anyway… It’s okay to take profits if you want to and have some liquidity.
Most traders lose money
You likely have a full-time job and just looking for a cryptocurrency to invest in. So, if you’re not a day trader, then do not become one. Most day traders lose money and day trading is a great way to stress yourself out, age faster, and of course — lose a lot of money.
Don’t overleverage yourself
Paying your rent and feeding your family is more important than crypto. The crypto market has crashed -85% multiple times in history. Lending platforms and exchanges can become bankrupt taking your assets down with them. If you’re taking out personal loans or credit card debt to buy crypto, then you’re no different than a compulsive gambler.
Understand your tax liabilities
There are 2 inevitable things in life; death and taxes. Make sure you understand the relationship between taxes and cryptocurrency in your jurisdiction. Seek the advice of a licensed tax advisor.
Keep your crypto safe
Ask Google before asking your “crypto” friend
Don’t be lazy, do your own research.
Not your keys, not your coins
Many exchanges and lending platforms control your wallet. If they were to go bankrupt, then they can take your assets down with them. If you do not control your keys, then they are not your coins.
