DON'T FORGET TO FOLLOW YOUR METHOD

In my last post I shared how I took my first steps into the world of cryptocurrencies. Today, I want to talk about the first mistakes I made: not following my strategy.

I started accumulating the most promising coins of the moment: $BTC, $ETH, $LTC, among others, following the #Twinvest method. This method is an “extremely simple” investment strategy that is based on investing periodically and automatically, adjusting the amount invested depending on whether the market is expensive or cheap1.

After a year and a half of accumulating cryptocurrencies with this method, I decided to switch to the #GAD method just as the first bull market that would later turn into a bubble began. The GAD method, or Automatic Money Management, is a system that uses mathematical formulas to determine when to buy or sell based on market reactions2.

I had promised myself to make one GAD method trade per month, but the market euphoria got the better of me. When prices began to rise exorbitantly, I couldn't resist and sold everything much sooner than the method advised. As a result, I sold everything at a profit of 300x or 400x, but I missed out on the opportunity to have bought a villa if I had followed the method.

The lesson I learned was valuable: it is crucial to set a strategy and follow it rigorously, without getting carried away by FOMO (fear of missing out) or FUD (fear, uncertainty and doubt). Discipline is essential in investing, and although it is easy to get carried away by emotions, consistency and patience are often rewarded.

Which method do you like more?