After studying the price action of multiple cryptocurrencies over the years, here is my manifesto for success. It all boils down to one thing: emotions. Remember, you can’t move the market.
- 1. Never buy more of a cryptocurrency than you can afford to lose. If you do, the temptation to sell will defeat you.
- 2. If you buy a crypto for $50/token, never buy more at any price above that. If the idea was so good, you would have bought more at $50/token.
- 3. Only buy the dip from your initial target price. Buy more of the crypto when the price is less than $50/token. Never above. Never.
- 4. Perform due diligence. Know why you are buying. The ability to validate your thesis helps keep your sanity.
- 5. Never panic sell. If tempted, remember 1.
- 6. Don’t make the mistake of staking all your money on a crypto. Diversify.
- 7. If push gets to shove, you will be forced to join the FOMO-FUD patrol team, remember 4. Then revisit 1.
- 8. Beware transaction fees. HODL is better than trading in/out in the long term.
- 9. Never put all your crypto on one exchange. Remember Mt. Gox
- 10. Take security seriously. Passwords, 2FA, private keys, offline storage.
Happy investing!!!