Introduction
Last week, I went to a local library to borrow some financial magazines to stay up to update on other markets. My strategy is to give another dimension to the crypto world and my articles.
It is important to take a step back and to see crypto from another perspective and be open toward new ideas.
The purpose of this article
I came across an interview of a billionaire and how he made his fortune. The article was interesting, but what picked up my curiosity is the framework in which this guy builds his wealth.
Investment framework
Five simple rules that you can apply to the crypto world or other markets:
- Make sure you get exposed to a few high-quality businesses.
- Follow those businesses and understand them from every perspective.
- Make sure those businesses are here for the long term.
- Use other people's money prudently.
- Hold these businesses for the long-term; buy and hold strategy.
It is something I will put on my wall to keep in mind. When you think about it it makes sense. If you follow a framework and keep your commitment toward it.
Investment does not need to be complicated, and everyone can follow some simple rules like this billionaire.
Parallel with the crypto world
In the crypto world, a lot of folks believe in the diversification to reduce the risk. They will buy every potential token and their crypto portfolio might suffer instead of performing to the moon.
It is humanly impossible to follow the thousands of projects that exist in the crypto space and keep pace with them. Instead, why not limiting yourself toward a few projects that you truly understand for the long-term?
When you have made your research, understand, and truly believe in the long-term, you can limit yourself to a few good projects and build wealth with something you understand.
Then you have less chance to get shitcoins in your crypto portfolio!
An example of the framework with crypto
In my case, the project I believe the most is Bitcoin and I love this specific use case. The second one is the steem blockchain, and I am very involved with this one.
It is normal for me to get exposed to Bitcoin and Steem. and keep them for the long-term. I understand those cryptos and it is something I use personally. I can relate to the framework of this billionaire.
Conclusion
You might find something useful in your crypto investment journey with this framework. This can apply in crypto and any market as well!
Invest in something you understand and you want to HODL for the long-term. Investing is a state of mind, belief, and patience.
I believe it is something that can help you in your crypto journey.
Chesatochi.com - For the love of crypto
Disclaimer: Never invest more than what you can afford to lose. This post is my opinion, do your own research before making any investment decision. If you make any trades after reading this post, it is your responsibility. I am not responsible for any of your losses. By reading this post, you acknowledge and accept that.
Posted from my blog with SteemPress : https://chesatochi.com/an-investing-framework-you-can-follow-in-crypto/