Lessons and Rules of the Crypto Market
Here are selection of lessons and rules of the crypto market that will help you earn more and lose less simple truths, which is useful to remind yourself sometimes
1. There is no free return — the higher it is, the higher the risk.
2. If you don't take profits, you will eventually become liquidity for someone else.
3. If there is a lot of writing about something on crypto Twitter, then, most likely, a good entry has already been missed.
4. The best alpha is on-chain. People can lie, data in the blockchain can't.
5. The best time for shopping comes when you are embarrassed to talk about cryptocurrency with your normis friends. The best time to sell is when these friends ask for advice on which cryptocurrency to buy.
6. The profitability that can be obtained for a variety of token locks often turns out to be less than the potential profit from trading. Block tokens only if you are sure that you can get significant additional benefits from it.
7. FOMO is your main enemy. If something has already flown away, it is better to look for another opportunity.
8. The more confident you are in your own infallibility, the more careful you need to act.
9. Your favorite altcoin will most likely not exist in 10 years.
10. Do not look for X's where the whole crowd is already located — instead, try to predict where it will go next.
11. If you buy a coin for a long time, it is very important to study the project's income, its margin of safety and the token's usability. Most projects will die in the long run.
12. Make an exit plan for each transaction in advance and follow it. Emotions are your enemy.
13. One of the most common mistakes is the desire to increase the position on FOMO after growth. It is often better to let go of the situation and enjoy the profit that is.
14. News makes you make suboptimal decisions. Be aware of the main events, but don't let them control your emotions.
15. If you want to learn more about the project team, watch their communities on social networks. Many conclusions can be drawn from how the project responds to feedback and how often it answers users' questions.
16. Do not force deals and do not invent false narratives. Sometimes it's better to disconnect from schedules and do other productive things.
17. People like new projects. Small-caps after a pump and dump are much more difficult to gain momentum again compared to new coins.
18. Find (or create) your own community of smart people in which you can share your thoughts, find projects through collective efforts and save time. However, beware of fraudulent groups!
19. An overabundance of information can lead to decision-making paralysis. Focus on a few factors that are important to you and navigate by them.
20. Do not spray. Personally, I concentrate on a few major projects, and I allocate only a small amount for the agency.
21. The analysis of macroeconomics is important, but it is not necessary to complicate it. In most cases, it is enough to look at the DXY chart (dollar index) and the US Treasuries yield curve to understand the position of risky assets.
22. The market is a marathon, not a sprint. It is not necessary to fuck on every green candle, even if it is a bear.
23. If the bottom was easy to catch, everyone around would be rich. When the asset reaches a price that suits you, start buying.