Thread by @Willbrandblock

Investing in #crypto isn't easy.
Most make big mistakes.
And many lose a lot of money.

I have spent countless hours reading & improving.
And learning from my mistakes.

Here is a simple thread with the 7 key things I have learned & you need to know 🧵👇
#cryptocurrency

1/ RESEARCH (i)
Despite being told to do you’re own research #DYOR most new investors don't! They APE in & let greed/emotions take over.

You NEED to do you’re own research & form you’re own hypothesis.

BTW watching an influencer Youtube video doesn't count.

1/ RESEARCH (ii)

Some of the most important things you need to research on a project are:

-Tokeconomics (market cap, unlocks & allocation)
-Brand story (a project many can get behind)
-Brand experience (is it easy to use + build upon)
-Does it play to a #crypto narrative

1 /RESEARCH (iii)
If you want to know more about what you should be researching & the topics I mentioned above.

Sign up for my free newsletter where I explain it in more detail. 100% free 😊

getrevue.co/profile/brands…

2/ ENTRY

I always say when you buy is often more important than when you sell.

Having a good entry on a project is the difference between a 10% gain and a 100% gain.

So you need to get in before big influencers shill a project or before it is listed on a major exchange.

2/ ENTRY (ii)
For example one of my best investments in 2021 was $GALA.

I invested in October and managed to get in ahead of most big Youtubers shilling it & before it was listed on Coinbase.

3/ PATIENCE (i)
We live in a world of instant gratification where we can get anything, almost instantly, at the click of a button. This has made many of us impatient.

This bad habit has spilled over into many people’s approach to investing. Let me explain 👇

3/ PATIENCE (ii)
Their impatience makes them expect an instant x5 on every investment 🥲

While on some rare occasions a memecoin like #SHIBA might do this, you need to realize this is a rarity & hardly ever happens.

3/ PATIENCE (iii)

It is also highly risky because a large % of meme coins are scams like $SQUID or just pump & dump, as people lose interest.

It is far better to invest in a project that you have researched & meets your criteria.

4/ COMPOUNDING (i)

Too many people hold out for a x5, x10, or even a 100x 😂 on a project. But these levels of gains are a rarity & holding out for one can be risky

Too many forget the power of compounding. Let me explain 👇

4/ COMPOUNDING (ii)

You need to realize you only need 7 x 2x to turn $10,000 into $1M.

I never get greedy & take profits along the way. I may leave some $$ if I have a high conviction on a project.

But overall the compound (x2 strategy) is far better than waiting for x10.

4/ COMPOUNDING (iii)

You need to realize the odds of a x2 are far greater than a 10x or 100x.

And you need to take profits along the way to get that compounding effect. I explain how I do it in the thread below:

https://twitter.com/Willbrandblock/status/1479110190502846472

5/ NO LOVE (i)

Too often people become married to a crypto project.

They find one with great Tokeconomics, Brand & that plays into a narrative. They make some gains from it but refuse to ever sell, expecting it to 'Up Only'.

5/ NO LOVE (ii)

You need to remember you invested in a #crypto project to make money, not for anything else.

Therefore if anything about the project changes (eg team leaves, doesn't meet roadmap targets) consider selling.

6/ GETTING EVEN (i)

One of the biggest mistakes I made was waiting for projects to get back in the green after going down a lot.

This is the wrong mindset ⚠️⚠️

Especially in #crypto where even good altcoins can go down 90% & 90% again in a 🐻 market.

6/ GETTING EVEN (ii)

You need to know when to cut a project loose and minimize losses. Good investing is as much about managing risk & downside as it is about making gains.

If you don't do this, your money will get wiped out pretty quickly.

6/ GETTING EVEN (iii)

E.g. I won't allow a loss greater than 5% of my total portfolio value, on any given trade. For example:

-If my portfolio = $10,000
-Max loss per trade 5% = $500

So if I invested $3k into project x I wouldn't allow myself to lose more than 5% ($500).

6/ GETTING EVEN (iv)

This is based on the risk/reward ratio. You can find out more about this from the brilliant video below.

7/ DIVERSIFY (i)

A lot of new investors think they have found the best project, the next "$ETH or $BTC" which will 100% go to the moon.

So they APE in and put their entire portfolio into this project.

DO NOT DO THIS ⚠️⚠️

7/ DIVERSIFY (ii)
You need to spread your bets across a number of projects, and allocate capital according to the relative risk level.

For example $BTC, $ETH are relatively low risk in #crypto, so invest more.

For risker altcoin plays, invest less.

OTHER THREADS

If you enjoyed this thread you will love my others covering:

-Tokeconomics
-Taking Profits
-And much much more

twitter.com/i/events/14885…

THANK YOU

If you enjoyed this thread, please go back to the first post in this thread and Re-tweet it & tag a friend.

This helps spread the word/educate more people.