12-14-2021, 03:54 AM
With 2021 coming close to an end, what did you learn about crypto investing?
<!-- SC_OFF --><div class="md"><p>Some of us have been investing in crypto markets for a long time, others have joined us recently. I believe we can all learn from each other's past experiences and mistakes.</p> <p>For me some of the things I've learnt about investing in cryptocurrencies are:</p> <ul> <li>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)</li> <li>Look for coins with real life uses. Coins which have some sort of mission, other than making holders rich - <strong>those coin will disappear in crypto winter</strong></li> <li>Some coins might be useful for real life use, but still be terrible for investing - eg. Filecoin (insane inflation)</li> <li>Always DYOR</li> <li>Always research coin's founder, team, who is financing them, VCs? Community?</li> <li>Projects financed mostly by VCs are usually heavily price manipulated - eg. Solana</li> <li>Never buy/sell on emotions</li> <li>Instead use <a href="https://alternative.me/crypto/fear-and-greed-index/">Fear/greed crypto index</a>. Buy when others are fearful, sell when others are greedy</li> <li>Get my crypto off of exchanges to my own wallet ASAP</li> <li>Hold at least 50% of crypto portfolio in BTC/ETH</li> <li>Prioritise Proof of stake coin, coins which you can stake. Even 5% APY helps you a lot, because of compounding yield</li> <li>Extremely high %APY might have a catch - usually higher inflation</li> <li>Check Coinbase regularly for free learn to earn crypto</li> <li>If it has 'Safe' in its name, it's usually the opposite of safe</li> </ul> <p>P<strong>rice action</strong></p> <ul> <li>If a solid coin(BTC, ETH, Luna, MATIC, ALGO imo) drops in price, buy more</li> <li>If a memecoin drops in price, consider selling and buying a solid coin instead</li> <li>Ignore <a href="https://coinmarketcap.com/">Coinmarkecap's daily winners</a>, buying a memecoin which had insane run up is a foolish errand</li> <li>Buying solid coins at ATH can be profitable in some cases</li> </ul> <p>​</p> <p>What did you learn about investing in crypto in 2021?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Kellywasmyfirst"> /u/Kellywasmyfirst </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/rfo8l9/with_2021_coming_close_to_an_end_what_did_you/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/rfo8l9/with_2021_coming_close_to_an_end_what_did_you/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>Some of us have been investing in crypto markets for a long time, others have joined us recently. I believe we can all learn from each other's past experiences and mistakes.</p> <p>For me some of the things I've learnt about investing in cryptocurrencies are:</p> <ul> <li>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)</li> <li>Look for coins with real life uses. Coins which have some sort of mission, other than making holders rich - <strong>those coin will disappear in crypto winter</strong></li> <li>Some coins might be useful for real life use, but still be terrible for investing - eg. Filecoin (insane inflation)</li> <li>Always DYOR</li> <li>Always research coin's founder, team, who is financing them, VCs? Community?</li> <li>Projects financed mostly by VCs are usually heavily price manipulated - eg. Solana</li> <li>Never buy/sell on emotions</li> <li>Instead use <a href="https://alternative.me/crypto/fear-and-greed-index/">Fear/greed crypto index</a>. Buy when others are fearful, sell when others are greedy</li> <li>Get my crypto off of exchanges to my own wallet ASAP</li> <li>Hold at least 50% of crypto portfolio in BTC/ETH</li> <li>Prioritise Proof of stake coin, coins which you can stake. Even 5% APY helps you a lot, because of compounding yield</li> <li>Extremely high %APY might have a catch - usually higher inflation</li> <li>Check Coinbase regularly for free learn to earn crypto</li> <li>If it has 'Safe' in its name, it's usually the opposite of safe</li> </ul> <p>P<strong>rice action</strong></p> <ul> <li>If a solid coin(BTC, ETH, Luna, MATIC, ALGO imo) drops in price, buy more</li> <li>If a memecoin drops in price, consider selling and buying a solid coin instead</li> <li>Ignore <a href="https://coinmarketcap.com/">Coinmarkecap's daily winners</a>, buying a memecoin which had insane run up is a foolish errand</li> <li>Buying solid coins at ATH can be profitable in some cases</li> </ul> <p>​</p> <p>What did you learn about investing in crypto in 2021?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Kellywasmyfirst"> /u/Kellywasmyfirst </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/rfo8l9/with_2021_coming_close_to_an_end_what_did_you/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/rfo8l9/with_2021_coming_close_to_an_end_what_did_you/">[comments]</a></span>Kind Regards R