Thread by @TheCryptoLark

Risk management is the biggest factor that will determine getting wealthy investing without getting lucky.
#bitcoin #ethereum #crypto

Take profits when you see massive market pumps happen. Broken record here, but even taking your initial capital back out can make a huge difference.

Keep position sizing according to risk. High risk altcoins, and ICOs should not be more than like 1 to 3% of your portfolio. The risk of loss is too high to go higher, but the upside potential is massive.

Understand that sometimes you will invest in a loser. And yes, we were just in everything pumps season, but many of these altcoins will not make it long term. Failure rates will be high, and things can chance from the time you first invest. Don't be afraid to cut losers.

Keeping a solid anchor of Bitcoin in your portfolio can help keep risk lowered by slowing portfolio drop velocity in corrections.

Don't invest more than you can afford to lose. Like seriously. If you can't sleep because of anxiety, then guess what, you are in too deep!

Do not be afraid to rebalance your portfolio, if your ideal Bitcoin allocation is 50% then take profits on altcoins from time to time and move those profits into BTC cutting down on altcoin exposure risk.

You don't need to trade on leverage, but if you do then keep your position sizing low and ALWAYS use a stop loss to avoid liquidations.

Diverisfy out of crypto, shock gasp....
Yes, I said it, the entire crypto market moves like one big messy interconnected tech stock. You can also invest in metals, real estate, and stocks. There are many opportunities for uncorrelated wealth preservation.

Never go outside your own risk tolerance zone, the stress will screw you up. Just because your favorite influencer went balls deep on an altcoin doesn't mean you break your rules.