Author: Capri

May 17th, 2022

Preface: It is important that we preface this blog with the usual: this is not financial advice, we do not know your financial story and thus cannot tell you whether you should or should not invest. Always do your own research in everything you put money into and never trust the words of a stranger.

1. Be willing to lose it all. The first and foremost thing I have learned after years of investing (not just in crypto) is you cannot expect every investment choice you make to be a home run. The old saying, “only invest what you are willing to lose” is the greatest piece of advice anyone just starting out in investing can hear. Never invest the money you need to keep a roof over your head, or food on your table.

2. When in doubt, don’t zoom out. This sounds like a reasonable piece of advice, except you are comparing apples to oranges. Yes, Bitcoin has always gone up, however, comparing what the OG has done to “____”(insert any other coin here) is unrealistic. And No, I am not a Bitcoin Maximalist, I just understand (and want you to as well), that there is plenty of reasons why Bitcoin will always be number 1 on the list, and will always go up in value. That doesn’t mean there isn’t room for other coins, it just means that 95% of the coins out there will end up being worthless regardless of what they have done in the past, and deciphering which one isn’t as easy as “When in doubt, zoom out”.

3. Bear Markets are good for the entire ecosystem. Yes, we all want our investment money to grow continually. However, sometimes a market needs a cool down before it can go back up. When a market is red hot, it’s like a monkey throwing darts. You can make money on just about anything, and because of this a lot of investors will throw money they don’t have into coins that shouldn’t exist. This is when rug pulls are at an all time high, and scammers are everywhere trying to gain access to your wallets. Bear markets will help you narrow down your cryptocurrency choices to the coins that might stand a chance and the ones that will eventually wither away. When the market cools off, scammers tend to move on, shit coins die out, and you can see what coins are most promising to invest in. What is even better, these more promising coins that you have done your research on are now at a discount.

4. Leave your emotions at the door. Before you even think about investing into anything, come up with a strategy and STICK TO THAT STRATEGY. It’s okay to have more than one. Ragnars strategy has always been, once he doubles his money he pulls it all out and waits until a market cool down happens to put it back in. Aerith is the HODL type that takes profits when she feels like it. As for me, I am a mixture. Some things I HODL (Bitcoin, Shiba Inu, Litecoin, Ethereum), while other tokens I pull out my initial investment after it doubles and HODL the rest to see what happens. That initial investment is then placed in either another speculative coin, or back in BTC, Shib, Eth. These are just a FEW different strategies, there are several to choose from. The main take away though is have a strategy and stick to it. Did I lose out on some larger earnings by selling half after “X” coin doubled, yes, but I also could have lost it all. I can give you plenty of examples from my early years where I lost it all because I didn’t stick with my plan. I let my emotions trick me into thinking “this coin will definitely 10000x in this cycle”, and then it crashed.

5. Don’t jump on a rocket ship. Seriously, do not do it. If the coin you are looking at jumping in on has gone up more than 30% in 12hours, there is a really good chance you will see it come back down. Smart money knows to take profits along the way and a 30% increase will warrant profit taking to a lot of investors. If it has doubled/tripled/quadrupled/etc. in the last week, you missed the boat. You might can still make some money, but don’t jump unless you just really like giving other people your money.

Be Smart, Do Some Research, and Ask Questions,

-Capri