Thread by @santiagoroel

1/ Crypto teaches your lessons quickly. I've you've been around for a few years, you've seen compressed - but no less severe - market cycles in a span of months/years that most traditional investors only see once or twice in their careers. A 🧵on some of my crypto lessons 👇

2/ Cutting winners too early & rotating to laggards expecting them to catch up.

This catch up trade typically underperforms. I've made this mistake when my thesis is not sound and/or I don't follow the project as closely. Expect things to move non-linearly and update your model

3/ Example: your bull case has [DeFi protocol] reaching [x TVL] [y volume]. Important to keep tabs of your "exit scenario" but also key to adjust your model if things are working. Admittedly, I wasn't expecting DeFi TVL to grow from <$1 to $80B in 1 year. Lean in & understand why

4/ A few others I won't go into as much detail here:

> time is your #1 resource; laggards take up most of your time. Cut them early
> position sizing is key
> Twitter can be good barometer of sentiment but less of info
> Alpha lives in Discord
> Learn & monitor on-chain metrics

5/ In short, main reason why I've made mistakes investing in crypto is by not having a clear thesis and multiple scenarios (decision-tree). Invariably, things will change, my assumptions will be wrong, but having clarity on my assumptions helps me process new information & adapt

6/ Crypto moves fast. Open source development has compounding effects to innovation. We're in the early phases - things will move faster. It's already hard to keep track. You won't catch them all. Focus on being right, very right, about a certain theme. Monitor that like a hawk.