1. Capital management skills
Certainly, in a risky and highly volatile market like #cryptocurrencies , managing and allocating capital is an extremely important skill. You don't want to see a beautiful morning when your account is divided hundreds of times because you accidentally went all-in on a certain coin last night.
2. Basic analytical skills
Fundamental analysis helps you get a comprehensive picture of the market, grasp shifting trends to find the best investment opportunities.
Fundamental analysis also helps you evaluate the intrinsic value of the project and future development prospects. As I mentioned in another post, if you don't understand what the project is doing, you won't be able to have strong faith in the project, a small fud will turn you into a paperhand immediately.
At present and in the future, fundamental analysis is still an important job for long-term investors.
3. Technical analysis skills
For day-traders who venture into short waves, there is nothing to say, because this is a must. As for medium and long-term investors, I realize that we still need to know the basics. At the very least, you must identify support and resistance milestones and recognize trends on the chart. This will help a lot in determining the command distribution area.
4. On-chain analysis skills
This is the most different thing about the cryptocurrency market compared to other investment markets. All information is transparent on the blockchain, anyone can check.
So why not take advantage of this to support your investment decisions, or at least avoid scam projects like honeypot, lock sell, high taxes, and there is also a lot of useful on-chain information. For other benefits, you can follow @cryptoquant_com to know.
5. Emotion management skills
This is probably the most difficult skill that needs to be practiced day after day. Greed and fear are always two powerful tools to help creators manipulate your psychology. If you can't control it, your psychology will be buried in the pump and dump waves. The line between investors and gamblers is very thin.
I'm still practicing these two ways to manage emotions:
One is to research carefully, then come up with pre-existing scripts and practice discipline according to the available script, execute like a machine, go to that area to buy, go to that area to sell, fly and that's it.
Second, always wonder what you are thinking and doing. I learned this in a meditation course. If you can, you should try it too, there are many good things out there. If there is any other way, please comment below to discuss.
6. Security skills
“Not your keys, not your coins”. DeFi gives you decentralization, no one can control your assets, which means no one will help you recover if lost.
In addition to protecting your private key/seed, you also have to protect yourself against scams. Some common forms such as fake website names, twitter, tele, email, fake contracts, .. and more advanced ones such as malware, impersonating support, ... you must update continuously to prevent.
Using separate devices and using multisig wallets can help you. Above are some skills I find important for crypto investors. If you think there are any skills missing, please comment and add them!
