A lot of users come into crypto with extremely outrageous expectations.
They want to turn $10 into $1000000.
I mean, that’s why we see shitcoins have their moment. A stark noob knows ‘Safemoon’ or ‘Elongate’ more than LUNA or EGLD.
Some with financial means go ahead to allocate a huge portfolio to these coins without due research.
Just like the Twitter algorithm favors controversy, so does it for Analysts who speak in ‘certainties’ than ‘probabilities’ because people love hopium.
They want to see bullish charts and projections.
They want to hear that their investment is going 10x in 10 days. But we can never know for sure.
This piece isn’t about shitcoins by the way! …so read on.
You could lose a lot of money buying what you call quality coins. This is crypto, and just like anything that involves financial markets, it’s highly unpredictable; albeit rewarding. We don’t know which projects will eventually outlast the other in the next decade.
Lately, you know the crypto market has shredded quite well and maybe prepping for a reversal. But you must admit that it can still shed another 20-50%. Don’t be irrational with your financial decisions.
The point is to always make plans to be liquid enough for when the market brings opportunity.
Your financial goals won’t matter if you don’t make these plans.
You need to deal with the market turmoil in such a way that whichever direction the market goes, you’re never getting wiped out completely.
As a Trader/Investor, you want to be able to keep playing till the odds fall in your favor.
Everyone loves high returns. That’s why proven secure platforms with significantly higher returns will always get more traction.
However, more than your desire for high returns, you should seek to be financially invulnerable - ‘rugged’ if you’d let me use that street word.
This would require being in cash and/or staking for minimal returns than going all-in on volatile tokens and clinging to hope. HOPE has never been a strategy!
Have sufficient exposure but never beyond what will financially break you.
Look, it’s easier to sell the bottom of a bear than the top of a bull market! And it’s easier to buy green candles than the bear bottoms where you get them way cheaper!
You hear “buy buy buy” screams, but you can’t tell what people are actually doing with their money.
Never underestimate the extent of emotional wreck losing a lot of money can do to your psyche.
Trading is a game of odds.
Investing is a game of odds.
You must learn to give room for error.
What happens if your plan doesn't go according to plan?
Be humble enough to acknowledge that you don't know what's going to happen next, even if you're so confident in your strategy or setup.
Financial invulnerability means you’re protecting yourself from going to zero, & at the same time staying prepared to capitalize in worst-case market conditions.
Cheers to our golden decades ahead!