Warren Buffett is the most successful investor in the world.
He created his first investment fund of 105 thousand dollars in 25 years, and after seven years this amount increased to 7 million. We have identified the main ideas from the book by Jeremy Miller's “Warren Buffett Ground Rules”, which will be of use for the crypto traders.
Trade long-term
Warren Buffett was never interested in short-term investments. He considered the minimum period for investments to be three years and asked for a five-year period to evaluate its performance.
For cryptocurrency it is a very large time interval, the market is changing too quickly. Therefore, it makes sense to adjust the period to six months. You can put together a good crypto portfolio and go long-term with it, as many analysts have already done.
Pay attention to details
Warren Buffett changed his approach to fundamental analysis. He did not study the movement of the market in general but tracked only the success of small companies. He made decisions based on their news and events. And he never panicked - he was confident in his actions even if assets fell.
When studying cryptocurrency try to be objective. Resist the general opinion but look for details that are opposite to it. Collecting such tiny details will help to see the full picture of the market. If the coin starts to fall small investors will be the first to sell - they have the least amount of money and they react immediately to any jumps. They create a big panic.
Set the goal to reach particular values
Buffett wanted to reach one goal - to beat the Dow Jones index. If the Dow Jones index fell by 25%, and Buffett by 10% he considered this as a high result. If Dow and Buffett indices grew by 20% Buffett did not consider the result as an achievement. It was the constant competition that made Buffett better and richer.
You can compete with your friend or with yourself. Such healthy competition makes you beat past results, improve your skills and not relax. If you have no one to compete with then there will be no desire to become a pro in trading.