After 6 years in Crypto I think this is one of the gems I learned
First I did not know what I was doing. It is normal to be lost in a new area when one first enters it. It generally takes years to get a grasp of that area and even then it is often trial and error. But there are some simple "truths" that make it a lot easier to navigate the crypto jungle. One of them is to have a strategy. It does not have to be a very complex one. Perhaps the simpler the easier to follow and the greater the potential rewards? I certainly feel that seems to be the case.
Know your project
Where are you putting your time, energy and money? If you have an answer, then your probably know the basics of a project. Like who is behind the project (team(s)), was it launched in a fair manner or did it have a VC (to raise capital in which case the user base will probably get dumped on eventually)? What is the inflation or the market cap? Is there an active community and a roadmap? What problem is the project trying to solve (store of value, feeless transactions etc.)? What is the target audience?
These are some of the questions that one first has to answer in order to make a good basic decision: should I get involved in it?
Once you identify potential projects stick to a plan
Here questions like this come to mind: How long do you want to involve yourself in it? How much are you planning to invest into it? When is it time to take some profit and/or to dollar cost average?
The simplest and safest way to approach this is to play it conservatively. Get into long positions (think in terms of years, not weeks or months). Do not invest all of your savings at once or only into one project (diversify!). Use the crypto 4 year cycle to your advantage.
Sticking to this plan is the hardest part
While all of this sounds very reasonable, it is incredibly difficult to follow it. Human emotions stand in the way. We become blinded with greed or with fear. We give up and lose hope, or overexpose ourselves into a risky project. The list goes on.
Forgive yourself when you make bad decisions. Everyone makes them and it can take several cycles to actually follow through on these simple ideas and get rewarded with a good portfolio. From personal experience I would say there are no real shortcuts here. We may think that we can learn this faster, but that generally turns out quite badly. In the worst case we get discouraged and quit.
2 year window until 2025
A lot seems to pointing towards 2025 when this crypto cycle will probably climax. This isn't set in stone, but so far this 4 year cycle has been very reliable. It is now a really good opportunity to start with a long term strategy. Personally, I am working on diversifying my portfolio a bit more. I am heavily invested into Hive, SPS and Koin. But there are so many good (and bad) projects out there. With many of them already exploding in adoption and capital inflows it sometimes feels like one is entering too late. But I think when we can answer the questions outlined above positively it is almost never to late to start investing.
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