10 Cryptocurrency investment tips that you should know
I’ve been in the crypto space since 2017. Back then I was an officer worker who spent a chunk of his wages on this 'bitcoin thing' that runs on a 'blockchain-stuff'. I made a quick 10x, then I lost a big portion of it in the 2018 January crash. I’ve seen a few things and I’ve definitely learned a lot. In this short article I'll give you my thoughts as to 10 crypto investment tips that you should definitely know.
#1 Never get emotionally attached to an altcoin
Never become so emotionally attached to any altcoin that you are unable to sell it, even if you have achieved a massive return on your your money. History shows us that any altcoin project, especially if they stop evolving, building and innovating, will eventually die out and fail. This is no different to start up ventures in the world of traditional finance.
In the altcoin arena competition is extremely fierce. Only those projects that have a good product and a strong team that is able to bring it to market will go on to be successful. Unfortunately there is too often a reliance on hype and memes rather than a solid business model and the ability to deliver on promises made.
If you take a look at one of the coin ranking sites you will see that there are currently nearly 18,000 crypto projects. Many will simply fail and the expense of the investors. I would go so far as to say that 70-80% of these will not survive the next crypto bear market. This is what happened from 2018, so I would expect it to happen again.
Just remember that while holding assets that have appreciated in value never be afraid to take some profits along the way and with the most speculative of investments only invest a very small percentage of your overall capital.
#2 Don't be afraid to take profit
This takes me onto my next tip: taking profits is completely fine. Look, I know you might truly believe the meme phrase WAGMI (we are going to make it), but somebody is going to take a loss eventually, and it’s fine if it’s your turn now, just remember when you’re riding the bull to actually take the time to take some profits out.
Ideally, if your coin has appreciated significantly and say you have doubled your investment, consider removing the initial amount, then you will have a free investment that you can just let ride if you have true conviction in the project and believe that it will continue to grow for years to come.
#3 Consider having 2 web wallets
If you are the type of crypto investor who is moving in and out of assets it's probably a good idea to have at least 2 web based wallets, such as Metamask. One that is hot, i.e. you use it to connect it to some of the more 'risky' degen stuff out there that you’re aping in. And a second wallet that you use to hodl your biggest assets, NFTs and sizeable holdings of crypto – preferably connected to a hardware device such as a Ledger.
#4 Consider using 2 PCs
Consider having a PC that is dedicated to your crypto business. Look, the internet is big, and as I have explained in a previous article on crypto scams the crypto space can be a risky place to operate in especially if you are new. Unfortunately you hear far too many sad stories of people having been hacked because they inadvertently clicked something which then sent all of their funds away. Use one PC for your crypto business ONLY and the other one for your internet browsing.
#5 "Not Your Keys Not Your Coins"
Investing and holding your own crypto assets is extremely liberating in that you are able to take ownership and control of your own assets, however with that comes personal responsibility.
The expression “not your keys, not your coins” refers to needing to own the private keys associated with your funds. The person owning private keys is the one deciding how the crypto assets associated are spent – if you don’t own this, you’re entrusting your crypto to a third party, such as a centralised exchange.
You may think that it is easier to leave your crypto on an exchange but that is tempting fate. Just remember, as long as your assets are on an exchange you effectively have handed ownership over to that third party.
If you own your keys, you then have complete control over how to use your funds. Owning your keys also means being responsible for their security. Either web based wallets or a hardware devices, if used correctly, are created to help facilitate this.
#6 Private Keys and Seed Phrases
Continuing on the subject of security, never store a private key or a seed phrase on an online storage provider such as Google Drive or Dropbox etc…In fact never store them on any device that is connected to the internet and that includes mobile phones. This is actually how a hacker couple that stole a large quantity of crypto from the Bitfinex exchange in 2018 ultimately got caught recently, believe it or not. I write mine by hand on a piece of paper (or more) and I’m also cold storing it on a hard drive which is not connected to the internet.
There are a variety of other innovative ways in which you can store your keys and seed phrase including stamping the words onto a metal plate. Just remember, your private key and seed phrase is like the key to your personal vault and you need to ensure that you look after it accordingly.
#7 Don't take investment advice from strangers
I know that this might sound stupid, but don’t listen to every person’s opinion out there, especially when it comes to social media and YouTube. People in the crypto space can be very vocal and it can get quite tribal at times and it would appear as though everyone has something to say, but the reality is rarely do they say it out of pure objective analysis.
Crypto can be extremely lucrative for "Influencers" in the space. It is a harsh reality however that far too many have selfish motives and as such far too often they will shill the coins that they hold big bags of, or are being paid to promote, or they use click bait titles to draw in unwitting viewers.
Of course you will believe in a project when you’re invested in it, however avoid taking the lazy approach to investing. Never get sucked into believing a stranger offering what is effectively financial advice online, particularly on YouTube. You will notice that their cover their backsides line is always "this is not financial advice and I am not your financial advisor" but in the next breath go on to tell the audience about a project that has the potential to be the next 100x hidden gem. Don't fall for it, use your own intelligence and be prepared to do your own research, because at the end of the day it is your hard earned money and I am sure that you want to stand a chance of making money from your investments and not just throw your money at things that will ultimately benefit someone else and probably not you.
#8 Find objectivity
Find yourself some genuine anons (anyone who posts online without using their name) that are actually reviewing either a crypto product or project, or providing an intelligent insight into the crypto space in an objective manner and in doing so they are laying out both the pros AND the cons. This however should be only part of your own research. Once you have conducted your due diligence you can then decide if it’s a good idea to invest or not.
I want to emphasize one more time that investment advice should never be taken by simply listening to strangers on the internet. For a newbie this may be seen as an easy approach to making quick money, but it is something I see far too many people do and they then wonder why they end up getting recked.
Investing should be taken seriously, so if you want to listen to people find those who are offering intelligent and definitely objective information and not just some thing that has entertainment value.
#9 Understand and recognise FOMO
Learn to feel and understand the 'FOMO' (fear of missing out). When you’re feeling it, resist it and simply don’t do anything. Sleep it off a day or two, come back and check if you’re still feeling the same about the investment. If not, then you did yourself a favour. If yes, and it fulfils the criteria of research that you should have conducted, then great, proceed. Just remember that a day or too in the grand scheme of things won't make much difference, especially if you are (and should be) investing for years instead of days.
#10 Losing money is going to happen
Investing in crypto is somewhat speculative so whatever amount of money you choose to invest you have to be prepared to lose it.
Think of investing in the crypto space as a venture capital (VC) investment, especially when it comes to altcoins. Think of altcoin investments as a asymmetrical bets where the odds are "heads you lose a little, tails you win a lot."
When making such investments never risk a lot of capital on a single project. For example, if you make 10 informed investments of $100 you only need 1 or 2 to give you a return of 100x for you to make a decent amount of money. In crypto returns of 100x or more are definitely not uncommon, if you choose right and then you're prepared to sit tight!
I’ve been in the cryptocurrency space since 2017. Back then I was an officer worker who spent a chunk of his wages on this 'bitcoin thing' that runs on a 'blockchain-stuff'. I made a quick 10x, then I lost a big portion of it in the 2018 January crash. I’ve seen a few things and I’ve definitely learned a lot. In this short article I'll give you my thoughts as to 10 cryptocurrency investment tips that you should definitely know. finitely know. initely know. nitely know. itely know. tely know. ely know. rrencyely know. ly know. y know. know. know. now. ow. w. .