1. Avoid Financial Leverage:
Avoid borrowing money, especially margin trading, to invest in crypto.
Limit the use of derivatives, and if used, they should account for less than 3% of your portfolio.
Learn risk management strategies, such as using the Kelly Criterion for speculation, SWOT analysis, and probability-impact matrices.
2. Avoid FOMO (Fear of Missing Out):
Resist the fear of missing out and impulsive decisions. Avoid extremes of greed and fear by applying rational and comprehensive analysis. Good opportunities always exist in the market.
Investing in crypto involves high risk. There are no guarantees, and investors should be prepared to accept losses if they cannot control their emotions.
3. Your Portfolio Should Be Concentrated:
Allocate 70% of your portfolio to top-performing, leading, reputable, high-quality, and highly liquid assets like Bitcoin, Ethereum, and Solana.
Reserve 20-30% for potential high-growth projects or speculative opportunities.
Balance diversification with a focus on high-performance assets to avoid spreading investments too thinly across multiple positions.
4. Self-Custody:
Take control of your crypto assets by storing them outside exchanges.
5. Long-Term Perspective:
Prioritize holding high-performance assets for the long term over frequent trading, especially for projects thoroughly evaluated with clear long-term trends.
6. Enjoy a Comfortable Lifestyle:
Take profits to enjoy the benefits of your investments.
7. Avoid Common Mistakes:
Over-diversification: Avoid spreading investments too thinly across many projects.
Emotional trading: Avoid decisions driven by fear, regret, rumors, or greed.
Ignoring market cycles: Adapt to market trends.
Relying on unverified social media information: Avoid falling for hype or advertisements.
Missing market narratives: Stay updated on key trends in the market.
8. Stay Grounded in Reality:
Avoid excessive dreaming or herd behavior detached from reality. Ensure valuations align with your analysis.
9. Keep Learning:
Learn from experiences, mistakes, and successes, both your own and others'. Join crypto communities to share and gain insights.
10. Be Patient and Disciplined:
Know when to wait for opportunities, cut losses, or hold high-performance assets without selling too early.
11. Adopt Smart Investment Strategies:
Conduct thorough due diligence and identify reliable teams. Use tools to detect scams.
Align with market trends rather than fighting them.
Recognize when to accumulate assets, BTFD (Buy The F*ing Dip), or STFR (Sell The F*ing Rip).
Comply with legal regulations, including tax obligations.
Optimize exchange usage, focusing on trusted platforms and identifying promising unlisted projects.
12. Avoid Common Pitfalls:
Avoid buying cheap altcoins based on "too good to be true" promises.
Avoid projects lacking momentum, overly inflated valuations, or outdated without new narratives.
13. Stay Calm and Evaluate Options:
Always stay calm and assess situations objectively. Avoid putting all your money into one basket and have contingency plans.
14. Dollar-Cost Averaging (DCA):
Invest a fixed amount at regular intervals, regardless of asset price.
15. Understand Market Cycles:
Recognize the cyclical nature of crypto markets with periods of growth followed by downturns or stagnation.
16. Use Downturns to Improve:
Leverage slower market phases to research crypto, technology, AI, automation, DeFi, DePin, and refine your investment strategies.
17. Know Your Strengths and Weaknesses:
Develop strategies tailored to your strengths, ensuring you profit, save, and avoid losses. Recognize emotional drivers like greed, anger, or impulsiveness.
Disclaimer: The information in this article is for reference only and does not constitute investment advice. Investors should conduct thorough research before making any decisions.