Bobos & Wojaks

Get rich or die tryin

Things To Learn From 2021 Crypto Market

crypto-market-2021

As the year 2021 draws to a close, here’s what we’ve learnt about crypto investment:

crypt-market

    • Avoid Sunk cost fallacy (Let’s say I invested $100 into a coin and it drops to $20. Would I buy this coin if I had $20 in cash? If not, I sell that coin and buy another)
    • Look for coins with real-life uses. Coins that have some sort of mission, other than making holders rich – those coins will disappear in crypto winter
    • Some coins might be useful for real-life use, but still, be terrible for investing – eg. Filecoin (insane inflation)
    • Always DYOR
    • Always research coin’s founder, team, who is financing them, VCs? Community?
    • Projects financed mostly by VCs are usually heavily price manipulated – eg. Solana
    • Never buy/sell on emotions
    • Instead, use Fear/greed crypto index. Buy when others are fearful, sell when others are greedy
    • Get my crypto off of exchanges to my own wallet ASAP
    • Hold at least 50% of the crypto portfolio in BTC/ETH
    • Prioritise Proof of stake coin, coins which you can stake. Even 5% APY helps you a lot, because of compounding yield
    • Extremely high %APY might have a catch – usually higher inflation
    • Check Coinbase regularly for free learn to earn crypto
    • If it has ‘Safe’ in its name, it’s usually the opposite of safe

Price action

    • If a solid coin(BTC, ETH, Luna, MATIC, ALGO imo) drops in price, buy more
    • If a meme coin drops in price, consider selling and buying a solid coin instead
    • Ignore Coinmarkecap’s daily winners, buying a meme coin which had an insane run-up is a foolish errand
    • Buying solid coins at ATH can be profitable in some cases