9 Crypto investing rules to live by

Too often I find people that make common mistakes when investing in the cryptocurrency markets. They’ll own 50+ coins, buy only when things pump, and obsesses about catching tops & bottoms. This post is for all the new guys in the crypto markets who find themselves struggling.

In order to succeed in these markets, you need rigid rules and a guiding philosophy to stick to. Hopefully, I’ll be able to get you started with these.

1. Don’t over diversify. Concentrating capital in projects you’re confident about is the best way to build wealth.

2. Measure success against $ETH or $BTC, not $USD. If you’ve made money but haven’t outpaced those two, you’re not doing it right.

3. Never chase a pump. Look for the overall trend instead.

4. Just because it makes you money doesn’t make it a good project. There are plent of coins that have made people rich, only to crumble in the end. (See: Bitconnect)

5. Don’t actively trade…unless you seriously know what you’re doing. Holding good tech will outperform. If you insist, limit it to <10% of stack until you’ve proven to yourself you can win.

6. If you’re trading, forget highs/lows. $ is made between the 30yd lines, don’t worry about catching tops and bottoms.

7. 95% of cryptos are worth 0. Some are worth >$1T

8. Bitcoin is technology, and technology often fails unless it adapts. Competition is fierce, don’t have loyalty to a project. They can become obsolete very quickly.

9. Take profits, and stay humble. If your speculative investment goes 5x, cash out 50%. Don’t wait for the 10x.

If I’ve helped you re-think your investing style and you want to keep the conversation going, you’ll ❤️ my daily newsletter where I make bad jokes and talk about these concepts.