“An investor needs to do very few things right as long as he or she avoids big mistakes.” Warren Buffett
To all the people in the world, that look out to invest in trustless, borderless, open and censorship resistant currencies and assets. There are five simple and timeless ground rules. If you follow them, you can avoid big mistakes.
Rule #1 Go down the rabbit hole
Cryptocurrencies are the intersection of Cryptographie, Game Theory, Network Technologie and Financial Economics. Each field is complex on its own as Cryptography for example is based on higher mathematics. To understand the implications and mechanics of the intersection of these fields is fun to discover and essential if you plan to invest in cryptocurrencies and assets.
It helps you the know the difference of Blockchain and Bullshit. Get to know the local crypto community and read, read, read, read.
Rule #2 Use CryptoCurrencies
Ask others to pay you in bitcoin. Pay others in bitcoin. Get active on SteemIt. Using and especially earning helps to understand CryptoCurrencies on a deeper level, because you experience CryptoCurrencies.
Rule #3 Become a Hodler
Cryptocurrencies are driven by fear and greed, like any other market, but CryptoCurrencies are driven by these human emotion by a far greater extent than any other market, because the market is so new and the knowledge of the market participant is very thin.
Nobody can time the market, but the idea that it would be possible is very seductive. When you become a hodler you become a believer and you become resistant to buying the highs and selling the lows. When you become a hodler you start to think long term, which is the mindset of the most successful investors and entrepreneurs in the world. When you become a Hodler you learn that FOMO and FUD are your enemies and you are not getting trapped on acting on these deceptive tactics and emotions.
Rule #4 Own your keys
Having cryptocurrencies in an exchange means, you do not have cryptocurrencies. So get to know the concepts of cold storage and invest time to do this in a safe and careful way.
Rule #5 Question everything
In the crypto space people are biased and people have an agenda. When you read and talk to others question everything - also this post - , check facts and think for yourself.
These are the basic five rules. But to follow them takes great effort. You know, there is no such thing as a free lunch.
And also as you know, my aim is to teach and educate on this new New Economy. So I plan to go into the details of these rules here. Any question or comment is highly appreciated.
Stay tuned & enjoy the last meme for this post #scnr!
This is like the 5 commandments of cryptocurrency. HODL and preach on!
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War cool dich mal wieder zu sehen ;) - LG, Liz
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