Crypto investing sounds easy. The reality is that most cryptocurrency investors fail miserably. This goes against the mainstream idea of “easy and quick wins” when investing in cryptocurrencies. Nothing is farther from the truth. Imagine if even FTX, led by the once legendary SBF, wasn’t profitable. With this in mind, we go back to the basics of crypto investing and put together his 7 investment tips for making money in crypto over time. These 7 investment tips have been a recurring theme in our premium cryptocurrency investment service since 2017.
Start by imagining what the average cryptocurrency investor’s daily life is like. Below is an overview of the “typical inputs” that the average investor is looking for when interested in crypto investing in a specific token (e.g. “Token X”).
- Bloomberg publishes an article featuring Guru Roubini’s highly negative comments about cryptocurrencies.
- A new Twitter storm where “token X” receives a lot of criticism for its proof-of-work technology.
- The SEC has warned that it will introduce regulation to the crypto market.
- The World Economic Forum warns of a global recession in 2023.
- The crypto guru’s tweet mentions the tokennomics of “token X”.
- You’ll see a blog post comparing the characteristics of multiple tokens to each other. One of them is “Token X”.
- If the Fed decides to raise rates again, the market will quickly sell.
- Consumer price index data was released, with inflation 0.1% higher than expected.
- Global Bank CEO Says Cryptocurrencies Will Disappear Over Time Because They Are Useless
The list goes on.
Good luck with these inputs. It will be a triple headache for the average cryptocurrency investor.
As if all these inputs are related. As if it were the determinant of the price of ‘Token X’.
I love KISS – Keep It Stupid & Simple.
Applying KISS to crypto investing, here are 7 strategic and simple investment tips for crypto investors. They are outlined below:
- The upcoming long-term bull market in the crypto market will be slower than the previous one. The first bull market in 2010 was parabolic, and the subsequent bull market was “gentle.”
- Bitcoin loses its edge over time as adoption (utility) begins to dominate the price of individual tokens. Bitcoin has no utility, it is an investment vehicle and a leading indicator for the crypto sector.
- The way to manage risk in crypto, the most volatile sector to date, is to get your principal back. In our own terminology, when our holding value doubles, we sell it to keep our “free tokens”.
- Leverage the power of long-term investment. Wealth can be created over a long period of time.
- We live in an inflationary system. The price will eventually go up.
- 95% of cryptocurrencies are silly, worthless, and speculative.
- Cryptocurrency is a sector where charting is the most important tool for investment decisions. Cryptocurrency chart patterns are clearer and cleaner when compared to stock market and commodity chart patterns.
One of the key issues other than too many irrelevant inputs that investors are exposed to is timeframes. Investors believe that cryptocurrency investments can be profitable very quickly, possibly due to the “big pump” that characterizes cryptocurrency price action. They forget that “the pump comes with a dump”. They forget that ‘pumps’ make it very difficult to find the ‘perfect entry price’. They forget that overcoming this problem requires a long-term vision and strategy.
Here’s the gist: Our 7 investment tips are simple and very easy to understand. Implementing them consistently is not easy.
Investing in cryptocurrencies can be one of the most difficult “easy things” to do. Long-term members of our crypto investment research service have been extremely beneficial as they have learned to take a long-term view, understand long-term cycles and be patient. We have published details about the 30 tokens we have. It contains clear short-term and medium-term conclusions: Layer1 Tokens, Web3 & NFT Tokens, Defi 2.0, Big Data & AI Tokens, Web3 Infrastructure Tokens, Meme Coins. .