“Life is a cheat sheet because anything you want to try someone already did it and succeeded or failed.” Whichever it is, you can learn from their experience.
“We all gonna make it” if we all follow the path of those who made it. Many people in Web3 are not treading that path due to a lack of financial education and not being willing to learn from others' experiences.
People without financial education don't make it, and people who learn from personal experience before learning from others experience get burned first; they learn the hard way, which is not the best way most times.
In this article, I'll share with you 10 ancient wisdoms I learned from the best-selling, timeless financial education book "The Richest Man in Babylon" and how they apply to the cryptocurrency world. Whether you are a newbie or not, this article is packed with valuable information that'll serve as your compass toward the path of making it in the cryptocurrency world.
WAGMI
So, let's get started before I change my mind.😂😂😂
Lessons from the book "The Richest Man in Babylon"
1. Pay Yourself first.
This lesson insinuates that at least 10% of your income is yours to keep, meaning you should take profits and keep some in stable coins as savings for yourself and low-risk long-term investments.
2. Invest Wisely:
Don't blindly invest in every token you come across; take time to do your research on the fundamentals and make sure you are convinced it has long-term growth potential.
Even if you are a degenerate meme coin trader, there are some metrics to look out for when investing in meme coins. Throwing your funds around blindly will get you rekt very fast.
3. Avoid Debts:
Be careful when taking out loans or borrowing money to invest in cryptocurrency; it's not a wise thing to do, especially if you don't have another means to repay the debt apart from your cryptocurrency gains.
This is because the cryptocurrency market is very volatile, and nothing is guaranteed.
You can lose the money you borrowed, and your position can be at a loss when it's time to repay the loan, forcing you to sell at a loss if you don't have any other means of repaying the loan.
"It's best not to take a loan because nothing is guaranteed unless you understand the risk and have another means to repay the debt."
4. Seek Knowledge:
Gain substantial knowledge in the cryptocurrency world before you invest a dime.
Because of the dynamic nature of the cryptocurrency world and because it's an emerging technology, investors need to stay informed about market trends, New projects, regulatory News, and emerging narratives to make informed and data-influenced Investments.
"Learn before you Earn, keep learning to continue earning."
5. Control Your Expenses:
Every project wants your money and they’ll do everything to convince you that they are the best investment.
As an investor, you need to be in control by avoiding impulsive trades and unnecessary charges.
"Diversify, but keep your investment bracket small so that you can be able to monitor them and stay informed."
6. Make Your Money Work For You:
"If you don't find a way to make money while you sleep, you'll work until you die":- Warren Buffet.
Don't just hold the cryptocurrencies you bought; engage them in passive income-earning activities like staking and lending.
Staking, lending, and farming Airdrop earns you rewards for your cryptocurrency with zero risk instead of just holding without any rewards.
7. Take Calculated Risks:
"Look first/ Then Leap":- TradingView
"Always risk what you can afford to lose because at some point you will lose it"😎:- Ox.Wealth
Don’t invest in Cryptocurrency just because the team or influencers say it’ll be Massive, because it’s there job to hype the project.
Always do your research and risk only what you can afford to lose. Don’t fall in love with any project.
8. Plan For The Future:
"Failure to Plan is Planning to fail."
Just like everything else, having a plan gives you directions in the cryptocurrency world. Plans can include the type of cryptocurrencies you will invest in, when you'll take profits, when you'll cut your losses, and what you'll use profits made from the investments for.
Set SMART goals and always review your investment portfolio and investment decisions to make sure they align with your ultimate goal.
9. Protect Your Wealth:
Everyone wants your money, projects, influencers, friends, family, government, scammers, and hackers.
You must protect your cryptocurrency wealth, especially from theft and loss.
Use secure wallets, don't interact with untrusted links, have a cold wallet you don't use to interact with any Dapps, and keep your seed phrase safe and written in code.
10. Give Back:
“Money is not the only commodity that is fun to give. We can give time, we can give our expertise, we can give our love, or simply give a smile. What does that cost? The point is, none of us can ever run out of something worthwhile to give":- Steve Goodier
The above quote said it all: giving back isn't only monetary; you can give back by creating educational content like I'm doing with this article.
Giving is always rewarded in the cryptocurrency world; just keep dishing out values, and your rewards will come in folds.
This brings us to the end of this article. Remember, wealth is not all about just making money; it's more about our financial literacy.
By applying the above lessons from "The Richest Man in Babylon" in our cryptocurrency grind, we stand a better chance of making it in the long run.
I'll advise you to read the book "The Richest Man in Babylon" to gain more knowledge and lessons on how to build wealth that lasts a lifetime.
🍻Cheers to learning from others' timeless experiences and knowledge to shape our prosperous future in the Cryptocurrency world.🍻
