From ground zero
Disclaimer: This is not financial advice and everything in this post was written solely for myself.
I just bought Bitcoin for the first time since getting my entire crypto portfolio wiped out. This was especially hard because I remember how cheap I'd previously bought it at.
Combine this with the challenge of rebuilding a portfolio from zero and it makes it very easy to not want to bother at all-especially when your buying fractions of a fraction of a Bitcoin at a time.
However, the reason why I'm writing this blog post is to consolidate the harsh lessons I've learned over the years of being in crypto, so I can define a strategy moving forward.
The Strategy
DO THE OPPOSITE OF EVERYTHING BELOW.
Mindset
- Think your the next Warren Buffet.
- Always compare what you have to others.
- Feel like you need to prove yourself.
- Put your identity and belonging in your assets.
- Put your self worth in how big your portfolio is.
- Look at money as the answer to all your problems.
- Try to get rich as fast as possible.
- Make decisions when your emotionally vulnerable.
- Think short term.
- Think in numbers not percentages.
- Check your portfolio every hour of the day.
- Think about your profits before you lock them in.
- Think every dollar doesn't count.
Risk Management
- Invest so much that downturns in the market easily shake you out.
- Invest all your cash so you have nothing to live on.
- Never put money aside for taxes.
Choosing Assets
- Always speculate on the hot new thing.
- Look at token price not market cap.
- Ignore fundamentals.
Buying Behavior
- Buy inconsistently and only in huge volumes.
- Buy random amounts at a time.
- Day trade.
- Overthink your trades.
Operations
- Keep your assets in an exchange.
- Use one wallet to make all transactions.
- Don’t worry about security.
- Make more transactions than you’re able to manually keep track of.
Social Behavior
- Tell everyone about your investments.
- Tell everyone you know to buy in.
- Tell everyone about your wins.
- Tell everyone how big your portfolio is.
- Tell everyone how smart you are.
Using the framing above and painting a picture of how to become the worst possible investor helps me get a much clearer picture of what not to do and how to avoid emotional financial traps.