5 Tips to avoid losing money with Crypto
These tips will help you succeed and sustain your competitive advantage
This cycle will cause a lot of pain for many people. I can see it from a mile away.
While many boast that this cycle "is different" and there are "new narratives" like memecoins, after 7 years in this industry, I can tell you for sure that I've seen how this movie ends.
In fact, it's so obvious that many people are taking advantage of the situation.
And whom are they taking advantage of?
People who are just starting in Crypto, captivated by the exponential gains of some memecoin projects.
The newcomers are entering the market in "Greed" mode.
Today, I want to share 5 tips with you that you can apply in this cycle to:
Avoid unnecessary risks.
Prevent foolish loss of money.
Maintain long-term investments.
Increase your wealth.
Anticipate and prepare for unexpected expenses
Your biggest enemy in Crypto is Greed.
If we let ourselves be carried away, we will make emotional decisions that will negatively affect us sooner or later.
Use these tips to not get carried away by emotions:
1️⃣ Don't leverage yourself
It may seem very "efficient" to leverage, but this tool is only for advanced users who are willing to take risks. If you are just building your capital, you will save yourself a lot of stress by avoiding this tool.
2️⃣ Take Profits
I'm going to keep repeating it ad nauseam, take profits. You haven't won anything if you don't convert those cryptos into a stablecoin or fiat.
3️⃣ Rebalance your portfolio
Once you are in the green and doing very well, by taking your profits, keep your portfolio tidy and don't unnecessarily overexpose yourself to cryptos with high risk no matter how much they rise. At some point, the bubble will burst, and you don't know when. Prepare yourself.
4️⃣ Save for Taxes
Here many disagree, but this is my experience. Consult with an accountant in your country. If you take sufficiently juicy profits to raise suspicions, perhaps it is better to consult with a professional so you don't find yourself with problems a year later (fiscal year). This is not tax advice 😄.
5️⃣ HODL Bag + Moon-bag
This is my mental framework to stay in the game. Take profits, rebalance, etc., in the cryptos of your "moon bag," and keep the "Crypto Blue Chips" in your HODL bag, either for your retirement or inheritance. Remember:
Moon-bag = Short term
HODL-bag = Long term
These tips are not financial advice, and take it as a chat between friends. Ultimately, you must do what you believe is best!
This is what helped me, and I wanted to share it with you, I hope it serves you well.
If you want to know more about these topics, I talk extensively about them in this newsletter and my social media. Consider subscribing if you enjoy it!
If you have any questions, I'm at your disposal. Have a great week!
Until next time! 👋🏻