If you invest in crypto, and if you check coinmarketcap several times a day todays crypto 101 tip is for you.
Patience is a Virtue:
It takes time for any investment to mature and grow into its potential. That doesnt happen in an hour so after buying crypto, and storing it safely, forget about it for a while.
If you invest in projects you have long term faith in, then you can buy and forget it, leaving it to grow naturally, with less stress and worry on your heart and mind.
How to set it and forget it:
- Start with education:
A) Determine your own financial risk tolerance.
B) Investigate the crypto you might invest in, by:
i) Learning their use case and function.
ii) Read the white paper
iii) Watch coin reviews from multiple trusted advisors.
iv) Investigate the development team, do they seem professional, talented, and honest?
v) Review Coinmarketcap for facts about the project: circulating supply, total supply, market cap, 24 hour trading volume, price, previous all time high price.
vi) review competitors to your coin, on all these spectrums. - Learn more about tax law: short term investment gains are taxed much higher than long term investments.
- Follow your investment teams on Social Media: twitter, facebook, and sign up for their blogs and email lists. Following them will reassure you that if meaningful news develops, good or bad, you will hear about it.
As you can see the education acquisition step is the most complicated. In fact, each step may require smaller pieces of knowledge, to fully grasp the weight of the data, and we can discuss that more closely another time. For now, suffice it to say, time exploring coinmarketcap, and your crypto project, will help you have stronger hands and become a knowledgeable investor.
Once you have a sense of your own risk portfolio, data and confidence in a particular crypto project, make a plan, implement it and then step away to allow your plan to unfold.
If news breaks that changes the fundamentals of course take action. Otherwise stay out of your own way.
Summary:
If you have taken the time and performed the hard work before buying crypto todays tip will be easy.
Buy great projects, with high potential and hidden value, by using your investigative skills, time and effort, and then forget about them.
If you really believe they will go up, and if that belief is founded on reliable data analysis then price movement over the short term shouldn't concern you.
Why?
Because price dips and FUD will come, but you already know the long term will bring gains. And even if its price does spike today, do you really care? You said you believed in the long term potential, so you arent selling now. Right?
Conclusion:
This tip is about buying crypto you believe in and holding for a long time but its also about putting in hard work to design an investment strategy for your money and then stepping back to let that plan unfold.
Unless you are day trading, the only time you need to check the price regularly is before you plan to sell or buy, and perhaps if your are hearing rumors that might change your fundamental faith in that crypto.
This attitude is something I bring to crypto investing and it gives me a lot of peace. I am not ruled by my investments. I am not stressing about price because I am a long term investor with faith in long term growth. This approach is liberating and I think most people will benefit from this approach.
Disclaimer:
As always, I am not an expert, I am just a guy talking about my interests on the internet. Please do not invest anything unless you are prepared to lose it, crypto investing is very high risk.
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