You know how we sometimes wish we knew somethings earlier and how life would have either been different or we would have reached certain goals much faster if we knew these things? Yeah, there are a few crypto principles/ laws I wish I had known earlier and even though these are not written rules/ principles, following them/ living by them would save us so much trauma this space could bring and would allow us reach our financial goals quickly with less drama.
1. Don't Follow The Crowd(Don't FOMO):
I see the goodness that comes from following this principle almost everyday as the crypto space is one with many events that one may be tempted to get involved with because of their performance and most people get involved with them due to the fear of not wanting to miss out. There are so many opportunities in this space and trying make your fortune from a project because everyone hss made some good money already will only get you rekt in most cases. By the time your grandma or distant cousin who isn't deeply into crypto starts mentioning a crypto project, then you're already late and really can't make so much from the project(if you even make anything at all) like those who got involved with it when almost no one knew about them or saw their potentials. To avoid being that person who provides liquidity for those who wish to opt out of the project, stay away from this project and look for new unpopular gems elsewhere.
2. Know When To Take Profits/ Cash Out:
The crypto space is highly unstable and as times goes by, new trends emerge. Whether you're investing (either long term or short term investments), don't forget to take profit or cash out when youre in profit. Greed often creeps in making us believe we can mske more and that we would lost if we took profit, but in reality, you're actually in profit and you've list nothing. To maximise your cashout or the profit you could take, using the DCA strategy where you gradually take profit over a preiod of time is the best I know and the most effective. Take profits and reinvest in better opportunities.
3. Prepare for the worst and save for the raining days:
Like I mentioned earlier, the crypto space is highly unstable and at some point, we might find ourselves caught in the middle of chaos like a rug pull, scam, crash, hack, bear market etc. One of the lessons ive learnt is to always oreoare for the worst while hopibg for the best. Anything could happen and so we always have to stay prepared. Some ways of being prepared are like having multiple means of income especially outside crypto, saving funds, keeping your keys safe, not storing funds on centralised exchanges, keeping your cryptos affairs private etc. All these would protect us to a great level in times of chaos and also not make us handicapped when opportunities present themselves.
These are just a few of the principles I currently work with that have proven so helpful and I hope you find this post helpful
Good Advice. If I may, another principle could be to be careful with crypto influencers. After a few years in the crypto space, I have come to realize that influencers tend to bring forward their successful predictions and hide their fails. New crypto users are blinded but the successful prediction and tend to trust the influencers without knowing the dark side. And many influencers are using those successful predictions to pump tokens and then sell their bags at a profit. At the detriment of those new crypto users.