THE ART OF PATIENCE IN CRYPTO INVESTMENT.

As I commented in previous posts about my career in the world of cryptocurrencies, I realize that the mistakes made in the first years were valuable lessons that caused me to miss opportunities for significant profits. As in the art of Japanese war, patience and reflection are virtues that are learned over time.

After the first crypto bubble, I witnessed two more cycles where I could have made huge profits. However, I found myself without liquidity, since all my capital was invested. The importance of keeping a portion of your portfolio uninvested for unexpected times is a lesson I won't forget. Crises, black swans, and other unpredictable events can present unique opportunities that require quick action.

I clearly remember March 20, 2020, when $BTC fell to $3,500 due to the COVID-19 panic. It was a historic opportunity to buy at least one Bitcoin, but my lack of liquidity prevented me from doing so. Additionally, I had investments in other securities outside of crypto that also offered attractive opportunities, but I didn't have enough money to take advantage of them all.

At the time, the market was clearly influenced by FUD (fear, uncertainty and doubt), with stocks such as supermarkets falling without apparent logic, even though their sales were expected to increase as people would be eating more at home. The frustration of not being able to invest taught me the importance of always having a reserve of liquidity for good opportunities, especially when the FUD is strongest.

Liquidity is a crucial aspect in investing, as it allows assets to be converted into cash quickly without losing value. In times of high volatility, it is important to have strategies to maintain liquidity and be able to take advantage of opportunities that arise3. Diversifying cryptocurrency holdings and having a margin of safety are effective tactics for managing liquidity during these periods.