Hey all,
I thought it would be a good idea to write a list of habits I've seen draw success from people like you and me. By no means is this list exhaustive and I encourage you all to blow up the comments section to share your successful habits. Thanks for taking the time to read this and let's get started!
- $DYOR
I've had a lot of people ask me "what's your top picks for today?" or "is ___ a good investment?" While I 100% encourage people to share there findings, be it TA, FA, new technology, new partnerships, etc., you CANNOT solely rely on these words of advice to become successful. Sure, it's always fun to see the upside of someones advice, but there is just as equally a chance to witness a downside as well. That's why I always tell people to invest in $DYOR, or Do Your Own Research. Not only will this be more emotionally rewarding, you can begin to further understand the market and know what to do and how to act when need be. Which brings me to my next point:
- Always Have a Plan
Within the past few weeks, we've witnessed a both a huge bullish run and a bearish bleed. There were some people who bought at the top of the bull run and held on through the bearish bleed. There were others who bought within the bullish run and sold at a loss through the bearish bleed. This is why I say - HAVE A PLAN for whatever happens. You may be up 2x with an investment, but, and I'm sure we can all attest to this, all of those gains could be gone the next day or in the following days to come. While I believe Crypto trading / investments truly is an emotional rollercoaster, if you write out your plans, you will mitigate your risk.
- Understand the Relationship between Bitcoin and Altcoins
While I'm certain many of you know the difference between bitcoin and altcoins and how they relate to one another, many of you do not. This is by far one of the most important things to understand within the crypto-investing world. It's a hard concept to wrap your head around that the price of Bitcoin affects literally every other coin that's being traded. While it makes the most sense to say that if the price of bitcoin is going up, so does the price of the altcoins, and the whole market will be made better off. While this could be true within reason, I'm not necessarily talking about the price of the coins but rather the VALUE of the coins. You'll notice on most exchanges that most altcoins are traded in RELATION to BTC, rather USD or any other monetary asset. I like to use the example of the USD and the Euro. Let's assume the USD is trading at a 1:1 ratio with the Euro. All of a sudden you see that the European economy booms, and now we are trading at a ratio of .5:1. This shows that, although the PRICE of the USD is still valued at $1, the VALUE of the USD compared to the EURO is half as strong. The same exact thing happens when we look at the relationship between Bitcoin and Altcoins. While the price of bitcoin goes up, the value of our altcoins may be decreasing.
It takes a lot of effort to be successful in this market. While we do see these "rich overnight" success stories, that is not what this market is all about. If you do not understand the market, you will be weeded out.
In summary:
- Always do your own research, this will help on more levels than one and you will be rewarded for it.
- Know what you are going to do in every possible scenario. This will help with FOMO and taking a net profit.
- Understand the relationship between BTC and Altcoins. You will then understand the true value of your portfolio.
If you liked this post, please feel free to upvote the thread and / or follow me for more content like it. If you didn't like it, let me know what I can do to improve!
Alex