Thread by @CrossChainAlex

🧵 Setting yourself up for success in #crypto. CT would have you believe everyone is a millionaire all in on up only low caps. This is far from the truth - most are #ngmi due to poor portfolio management. Here's some tips.

#DeFi #Ethereum #Avalanche #Cronos #Metis #Cosmos 1/13

🖊️ Plan your strategy, and stick to it. This will depend on your starting bankroll, e.g. smaller size may need to take more risk, larger size can be more conservative. Learn risk management and your risk appetite. Broadly stick to your plan and stay in the game. 2/13

📓 Record and track everything (examples below). When executing your plan record data and notes. Of course you can flex the plan when you see certain things are working and other aren't. You do need to be adaptable in #cryptomarkets but don't mindlessly jump around. 3/13

📊 Position yourself according to what the market is doing. Over time crypto has generally gone up, but in the interim it also goes down or stays flat. I'm short-term bullish but still have over 50%+ with little directional risk (stables and delta neutral positions). 4/13

😅 Manage your risk. Don't go all in on high risk degen plays! Beyond my delta neutral position, my long positions are primarily still in "safer" more established medium risk plays (usually generating yield too). Very little in high risk, only about 5% in degen plays. 5/13

🧠 Define your strategies/style. How are you diversified? What is working for you and in specific market conditions? How are you optimizing profit in those conditions and hedging against directional risk? I don't touch leverage and for most it's a bad idea and unnecessary. 6/13

♻️ Spread your bets. People telling me of my opportunity cost on #Metis misunderstand that it's less than 10% of my portfolio. I'll hold and it's generating yield. But do concentrate more into high conviction plays, and cut losses and let winners run (as per your planning). 7/13

🔒 Stay secure. Another reason to diversify across chains and protocols is to manage the risk of hacks, rugs etc. I don't want to lose absolute max 10% if any of those things happen, and that 10% is only on protocols I deem to be v. secure. Way less on degen plays, e.g. 1%. 8/13

🕐 Time commitment. You don't need to be full time to make it in #crypto but it can be very time consuming. If managing a small stack how much are you really earning per hour staring at charts all day? McDonald's probably pays a better hourly rate. Give it some thought. 9/13

🎧 Block out the noise. There's great alpha on Twitter and Discord and you should hunt that out. But be selective. Everyone sounds like an expert but are they really? Don't #FOMO into new calls everyday. More often than not you are exit liquidity. Be vigilant. 10/13

🏝️ Do the above and chill. If you can set yourself up properly your stress levels will decrease and your results will improve. If you're close to having a heart attack and pointlessly checking charts all day then you are over invested in high risk plays. 11/13

💰 All successful traders I know that made it in crypto or other markets operate in ways like this. That should tell you something. I'll admit it took me a long time to get to this point and I learned the hard way too. I hope this thread helps a few on your path to success! 12/13

⚠️ It goes without saying that this is #NFA and you should always #DYOR. These are just my experiences. Never invest more than you can afford to lose and make sure you don't invest money you need for day to day living!

#investingtips #passiveincome #riskmanagement #wagmi 13/13