From Ground Zero

Disclaimer: This is not financial advice and everything in this post was written solely for myself.

I’ve recently started buying up Bitcoin again for the first time since getting my entire crypto portfolio wiped out. This was especially hard because I remember how cheap I’d previously been buying it at.

Combine this with the challenge of rebuilding a portfolio from zero and it makes it very easy to not want to bother at all-especially when your buying fractions of a fraction of a Bitcoin at a time.

However, the reason why I’m writing this blog post is to consolidate the harsh lessons I’ve learned over the years of not only being in crypto but investing in general, so I can define a strategy moving forward. The Strategy

DO THE OPPOSITE OF EVERYTHING BELOW:

Mindset

• Think your the next Warren Buffet.
• Always compare what you have to others.
• Feel like you need to prove yourself.
• Put your identity and belonging in your assets.
• Put your self worth in how big your portfolio is.
• Look at money as the answer to all your problems.
• Try to get rich as fast as possible.
• Make decisions when your emotionally vulnerable.
• Think short term.
• Think in numbers not percentages.
• Check your portfolio every hour of the day.
• Think about your profits before you lock them in.
• Think every dollar doesn’t count.

Risk Management

• Invest so much that downturns in the market easily shake you out.
• Invest all your cash so you have nothing to live on.
• Never put money aside for taxes.

Choosing Assets

• Always speculate on the hot new thing.
• Look at token price not market cap.
• Ignore fundamentals.

Buying Behaviour

• Buy inconsistently and only in huge volumes.
• Buy random amounts at a time.
• Day trade.
• Overthink your trades.

Operations

• Keep your assets in an exchange.
• Use one wallet to make all transactions.
• Don’t worry about security.
• Make more transactions than you’re able to manually keep track of.

Social Behaviour

• Tell everyone about your investments.
• Tell everyone you know to buy in.
• Tell everyone about your wins.
• Tell everyone how big your portfolio is.
• Tell everyone how smart you are.

Using the framing above and painting a picture of how to become the worst possible investor helps me get a much clearer picture of what not to do and how to avoid emotional financial traps.