My biggest challenge from the start has been the lack of conviction. What that does is make you susceptible to greed and fear. When your actions are dictated by greed and fear your upside will be limited and your risk elevated. That's because the best thing you can do is manage to do the odd very successful momentum trade. Most of the time you won't reap the largest gains because you won't invest in anything that already hasn't got a decent market cap and a pump going. Being late to the party exposes you to considerable downside as well.
The most successful crypto investors - or investors in general - are those who do their research well. They get to the bottom of what makes for strong fundamentals and build their thesis from there.
When they're ready, they'll study the markets to find the moment of maximum financial gain and minimal financial risk.
When it comes to crypto, I only have to marvel at how few people demonstrate with their actions that they believe in the four-year Bitcoin cycles despite their existence being proven beyond a shadow of doubt by now. I believe that to still be the easiest way to 30x-100x your money in just a few short years.
I haven't done that, yet. That's because until Bitcoin bouncing back from the flash crash of March 12 2020 brought about by the Covid-19 shock I considered Bitcoin and crypto to be an unproven asset class. Because the space had not yet faced a single recession, it was deeply uncertain whether or not it could live up to its most talked about value proposition at the time, which was that of an uncorrelated asset.
It turns out that Bitcoin wasn't an uncorrelated asset. It has proven to be a risk-on asset that moves in tandem with the riskiest tech stocks.
But what the Covid-19 crisis and the way it amplified the existing deep flaws in the current economic system made the macro case for Bitcoin perfectly clear. Because the only way a very ugly crash can be prevented is that central banks ramp up their ultra-light monetary policies, there will be ever growing amounts of liquidity, which has to go somewhere. Because bond yields must be kept low, which forces even conservative mainstream financial institutions seek higher returns, we have recently seen very large institutional investors enter the space. In the current macro conditions, a very large influx of capital into the crypto space is simply inevitable. What institutional involvement also means is that Bitcoin and crypto will no longer be banned by the most influential governments. That train has now left.
As the space matures and custodial solutions improve, the crypto space will only grow going forward. As it grows and as development makes that integration deeper the likelihood that it will remain a fad is rapidly becoming smaller. The advantages of this technology will be made full use of.
I think my challenge going forward will be finding the time and the energy to do my research much more thoroughly than before. This is where communities like LeoFinance can really prove their worth. Let's just say that I'm extremely grateful to Khaleel and others for them informing me about Thorchain (RUNE). That project has extremely solid fundamentals. I believe it to still be a sleeping giant.
Speaking of LeoFinance, to me it's a total no-brainer to earn both HIVE and one of the best HE tokens in existence by talking about crypto and investing. There is invaluable information available here. But you can actually earn valuable tokens while taking part in discussing that information.