Let me start by saying, I am no expert here.
But I am a very attentive and dedicated student.
Over the last month I've read books like:
- Richest Man In Babylon (all-time recommended book)
- Tony Robbins - Money, Master The Game
- James Altucher - Choose Yourself Guide to Wealth
- Blockchain:Trust Companies by Etwaru Richie
- CryptoAssets: The Innovative Investor's Guide to Bitcoin by Chris Burniske
(+ got 4 courses on Udemy, watched Rocky Darius Crypto Course, James Alltucher's Crypto Course and the best one was by Teeka Tiwari - Palm Beach Confidential)
and now reading Ray Dalio - Principles.
Hopefully these lessons will be valuable for you too! Happy investing!
The Best Of: 10 CryptoCurrency Investment Ideas
Now as I get involved in the investment world myself, I keep reading how important is to set rules before you start.
These rules will help in turbulent times when emotions take over and you can potentially lose a lot of money, just because you become irrational.
1. Invest For the Long Term #HODL
There is a reason why term HODL (Hold Onto them for Dear Life) is so popular in Cryptoworld.
While there are smart people who can make money daytrading and with Forex, truth is - it's super stressful and not worth it. Crypto markets are so volatile anyway, no need to daytrade!
Instead decide upfront what are your goals:
- like when you will take some money out
- how much money will you invest
- % how will you diversify, rebalance
2. Only Invest What You Are Prepared To Loose
Cryptocurrency markets are huge speculation, it's a new market and nothing is sure thing.
That's why I keep reading that if you speculate, then be prepared to loose it all.
Truth be told Cryptos are super high risk. Smart investors suggest to diversify with secure investments.
Since nothing in Cryptos is secure, be prepared to loose it all.
Before entering Crypto market I had this conversation in my head:
- I could lose it all - I could live with that
- But if I don't enter this market and it goes BIG I won't be able to forgive myself
3. Balance Your Portfolio So You Win In Both Cases
For example most new cryptoassets are built on Etherium platform.
But then there is NEO, GAS - Chinese platform and there are indications, that China will push their own platform as they have done with search engines (in China there is no Google - there is Baidu)
I believe there will be one platform that's used by most cryptoassets, so instead of trying to guess one winner, invest equal amounts in all mayor or upcoming players, so in either case you win.
4. Invest small equal amounts and create diversified portfolio
While there are few bigger positions like Bitcoin, Etherium, Litecoin, Monero, Zcash (20%), most of the positions are 100-200$.
Since I did the research I could invest in 15 more small coins with small investments. If coin doesn't do well, it's okay, 100$ is no big deal. However if it goes 10x/100x - it's potentially 1000$, 10,000$ with no risk.
Plus I sleep well with this kind of portfolio.
5. Store Your Money Securely
I keep reading how CryptoExchanges are getting hacked or accounts are suddenly being reviewed.
Again to sleep safer it's important to keep your biggest investments in warm wallet or ideally cold wallet. I got Trezor hardware wallet for that.
Yes, the challenge is that not all small coins have wallets so I cannot keep it all on one.
But so far my setup is:
- Keep bigger amounts of ETH and BTC on Trezor
- Keep other currencies on Jaxx wallet
- I have specific Wallet for NEO, Gass Crypto
- Other small coins that dont have wallets are on exchange (not ideal, but it's small 100$ amounts anyway)
6. Setup alarms on your phone, don't check news/updates every other minute.
There is a nice iPhone/Android app - BlockFolio- that lets you set alerts. I set alerts for 30% increments, like I want to know if Etherium goes up or down 30%.
That helps me avoid checking price fluctuations all the time.
7. Let The Game Come To You
This is the most important lesson I learned from Teeka Tiwari.
Instead of buying when price goes up, be patient and wait when dips come. They always come and come very often every week.
Since I have research done on 20 coins, then I can always just check in morning what's going on and if some good coin has big dip I buy it.
Like recently Bitcoin was going from 10K to 17K but Etherium was going down.
Instead of racing to buy Bitcoin as everyone else I bought Etherium. Guess what in few days ETH went up again.
I could do this because I did the research. I know ETH will do great in long term so I don't worry about short-term.
Instead use dips in your advantage! Let it come to you!
8. Remove emotion. Create a Plan and Stick To It.
Ouh, this is probably the hardest point. It's hard to stay unemotional when prices are jumping like crazy.
But it never helps to make rash decisions, instead stick to the plan or just sit down and write in the journal.
Write the pros and cons, talk to a friend and make calm, informed decision.
9. Remain Humble and Cautious - Always Ak - "What Don't I Know?"
This tip comes from Ray Dalio. The way I stay cautious is by not following my own thinking, but find some experts I get to trust (after researching a lot) and cross-check your thoughts with these experts.
Ideally eventually I hope to have a group of smart crypto-investors around to discuss thoughts, but you gotta start somewhere. I start with books and courses and finding experts I trust.
“The four most dangerous words in investing are: ‘this time it’s different’.” John Templeton
This goes together with being cautious - study the markets in past and know that history events tend to repeat themselves. So it's clear that CryptoCurrencies will be a bubble at some point, just do your research so you would notice when it happens (we are definitely not there yet).
10. Do The Opposite Of What Crowd Does.
Try to be fearful when others are greedy and greedy only when others are fearful.” - Warren Buffet
This is the reason why I didn't buy much BitCoin (I entered market late..). Instead I did the research on other coins and tried to buy them in the dips.
- If Bitcoin goes from 15K to 30K it will be 2x growth.
- If Ripple goes from 0.25$ to 1$ it will be 4x growth.
Surely Bitcoin gets headlines, but I prefer investing smaller amounts in coins, that has potential for 10x growth.
I would love to get the discussion going, what are you most valuable CryptoInvestment ideas you use to maximise your investment results???
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