Have you ever FOMOed at highs and sold the absolute low?
That's your brain's "factory settings" working against you.
Here are 10 ESSENTIAL mistakes you must acknowledge and avoid 🧵
1/➣ Loss Aversion
Losing money hurts more than gaining it. Winning $1000 doesn't match the pain of losing $1000.
For example, if your investment drops 50% and more bad news comes, you can sell to cut losses. However, due to loss aversion, some prefer to wait, fearing loss from selling.
2/➣ Overconfidence
"You're not a good trader, everything is just pumping" - seems familiar?
We tend to overestimate our abilities. We get lucky a few times and think we're smarter than we are.
The key to beating overconfidence is solid risk management strategies.
I've been in crypto for 7+ years and I've seen my portfolio go to 0 multiple times.
I can confidently state that by the end of this bull run, the majority will exit broke.
Here's how you can avoid it 🧵
1/➣ Keep only liquid assets
The thesis is simple: even if your $1,000 investment pumps to $100k if the asset lacks liquidity, you won't be able to capitalize on it. Acting quickly is as crucial as the investment itself.
The recent $GIGA case is a prime example of this.
2/➣ Always set invalidations
Whenever you buy a coin, always have an invalidation plan. This could be a fundamental trigger (narrative cooling down/legal issues), or a technical trigger (break of key support).
There's no shame in closing at a loss for a better entry later.
While revolutionary, Bitcoin's original architecture posed significant limitations for DeFi.
Core design elements and their limitations were the UTXO model, limited scripting, lack of Turing completeness, big block sizes, and slow transaction speed.