Cryptocurrency investments might seem easy to an outsider. Pick the right time to buy. Pick the right time to sell. Move on. Repeat.
There is much more happening behind the scenes.
Before you can learn to make good trades, you have to learn how to manage your emotions, build a strategy, be patient, and much more. Without a high emotional intelligence or the right qualified skills, you will find yourself falling victim to FOMO, scams, overtrading, and much more.
But don’t worry, the crypto space is still young.
It’s ya boi Shill Nye here and today I’m bringing you some tips to help you become mentally prepared to invest in cryptocurrency and bitcoin. Enjoy.
Build a Strategy
The title says it all. A winning strategy can change the entire outcome of your investments.
Don’t just go all in on one coin. Ever. I see way too many people doing this. That’s not a winning strategy. Even if you get lucky once, eventually you will get rekt. And you will cry. So just don’t.
Everyone has a different trading strategy dependent upon their goals and style. I recommend you build your own.
When you build your own strategy, you will be 1000x more successful than by copying someone else’s strategy or blindly following people’s calls. You will know when to enter and when to exit coins. And you will never be able to blame anyone else for a ‘bad call’ or if you lose/make money. The responsibility will fall on you.
Strategy Example:
X% of your portfolio in short term investments
X% of your portfolio in long term investments
X% of your portfolio in fiat
Emotional Management
Most people have a low EQ. They have not learned how to properly manage or control their emotions, therefore their emotions run their lives (and usually not in a good way). Instead of being able to thinking rationally and make clear decisions, 99% of society lives their lives in accordance to other people’s belief systems and actions while never truly forming their own.
Even worse, a majority of people tend to run based off their fearful programing. Their beliefs are based in a lacking mindset and fear controls their lives.
This (especially) includes cryptocurrency investors.
For example, FOMO is a common occurrence amongst inexperienced cryptocurrency investors. Without the proper ability to manage your emotions, you will fall victim to FOMO over and over. This is why this skill, also known as self awareness, is so important.
How can you improve your EQ?
Really, there isn’t a formula to become more self aware. It takes internal practice, time, and patience. Learn to not act upon the fear. Stay strong in yourself rather than falling victim to the FOMO of the masses. This is how you will differentiate yourself as an investor and, eventually, make more money.
Patience
This is the most repeated and underrated tip that any new crypto investor can implement.
Patience.
Seems simple, but really, it isn’t. Most people do not have the skill of patience. They rekt themselves in the crypto world by over trading and chasing trades — rather than taking the time to find good entries in coins and waiting patiently for them to move.
Remember, let the gains come to you.
How can you learn to be more patient?
Practice. Find entries in solid coins and wait for them to move, instead of chasing coins that are already moving.
The more you immerse yourself in the crypto space, the more you will see there are gains to be made everywhere. When you see a coin pumping and you feel the urge to chase it, don’t. Wait.
You will be happy when your coins start moving.
Also, consider trading a demo account when you first start. Or start with a VERY small amount. You can learn a lot of these skills without losing TONS of money in the process.
Take Responsibility
Finally, you MUST take responsibility for your portfolio. No one is going to hold your hand through making tons of money. Everyone is focused on their own shit.
That being said, there are good people in this space you can bounce ideas off of. People are willing to help.
But people are not willing to baby sit you. So don’t ask ‘target’ or ‘still good entry’ because that shit is annoying. If you ask a legit question, most people will give you a legit answer.
Also, find a group of traders and chat with them. It really helps to be around other cryptocurrency investors when you first start off. Don’t blindly follow their advice/opinions, but have an open dialogue where you can learn and bounce ideas off each other. You will all learn from each other, if you are open to that.
Finally,
Good luck everyone. I really can’t teach you a lot of this shit. You have to learn it on your own. But hopefully, this can be a good guide for you to start to learn.
The more time you put into this, the more you will get out of it.
Remember, be a damn good human while you’re at it.
Disclaimer:
I do not give financial advice. I am not a financial advisor. If you are looking for financial advice, then you should go to google and look for a financial advisor in your area. The shit I write is simply for entertainment purposes. You should never blindly trust anyone on the internet who tells you where or how to invest your money.
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https://medium.com/@CryptoShillNye/4-tips-to-becoming-a-better-cryptocurrency-investor-5c01caee9a2d
