Please click the link to listen to the ninth episode of my weekly crypto chat podcast. These are intended to be short, single-topic ramblings on some aspect of the cryptosphere. Comments and critique welcome.
Welcome to Two-minute crypto, last week I focused on the role of patience in successful crypto investing. For this episode, I’d like to outline some practical steps you might take to ensure you do indeed last the course with your investments.
First and foremost, accept that the investment you have made is now out of your hands. You have set or decided on the parameters of the position in terms of acceptable loss and hoped for profit – so now it will play out- either you’ll lose some money or you’ll eventually hit profit. Accept both possibilities and move on.
Now, moving on is greatly eased by focusing on your next possible investment. It doesn’t matter if you don’t have the funds to hand – focus on new opportunities. Do your research and when you have both the right project and the means to act on it – do so and once again move on. By continually scouting for new opportunities it’s a lot easier not to fret about your current holdings. And with crypto fret you will – there’s always going to be a Mt. Gox, Tether collapse or government crackdown event somewhere on the horizon.
Another very useful practice for shoring up your commitment to your current holdings is to be aware and in control of how often you check-in on the status of your positions through a portfolio app. In general, once a month is more than enough – and each time you check price you should also take the opportunity to review the fundamentals of your investment because it’s the fundamentals that either validate or invalidate your investment thesis.
If you just can’t resist Block folio and the like, why not set up a separate wallet with one unit of each position you hold? This will give you a snapshot of how each one is doing without showing you your entire portfolio balance which may well lead to knee-jerk emotionally driven decisions.
Lastly, realize and try to accept that crypto investing is high risk, the future unknowable and whether you make a profit or a loss you are neither a genius nor a fool but probably something comfortably in-between.
Thanks for listening.