7 Years of Crypto Advice in 26 Minutes

Summary

The speaker shares his 7-year journey in the crypto industry, emphasizing the importance of understanding risk, operating within one's edge, and the value of patience and minimal decision-making. He also discusses the significance of taking profits, avoiding emotional attachments to investments, and the benefits of networking within the crypto community for success.

Takeaways

• 😀 Consider the risks upfront: The speaker emphasizes the importance of understanding the potential for loss before investing in cryptocurrency, as the worst-case scenario is often the most likely for new investors.
• 🧠 Operate within your Edge: It's crucial to invest within areas where you have knowledge and expertise; stepping outside of this can lead to poor decisions akin to a beginner's.
• 🤖 Use algorithms to your advantage: The speaker shares that they use algorithms to identify market opportunities, highlighting the value of systematic approaches in investing.
• 🕒 Patience is key: Most of the time is spent waiting for the right opportunities rather than actively trading, underscoring the importance of patience in investing.
• 🏹 Take profits regularly: Developing the skill of taking profits is essential and should be practiced, even if it's not the end of a bull run.
• 💡 Understand the value of Delta over yield: Chasing the price change (Delta) of an asset is often more beneficial than locking money up for a percentage return (yield).
• 🔄 Avoid emotional attachment to investments: It's important to let go of past successes and remain objective when deciding whether to reinvest in a coin.
• 📉 Expect and prepare for massive drawdowns: The path to high returns in crypto is filled with significant volatility; investors should be prepared for this reality.
• 👥 Networking is vital: Many successful crypto investors are part of communities and networks, which provide valuable insights and a collaborative edge.
• 🚫 Lone wolves struggle in crypto: The crypto market tends to favor those who are part of a team or network, as they can share information and strategies to gain an advantage.
• 📈 Focus on a single coin for depth of understanding: Concentrating on one investment allows for a deeper analysis and potentially better timing of buy and sell decisions.

Q & A

How long has the speaker been involved in the crypto industry?

The speaker has been involved in the crypto industry for almost 7 years.

What was the speaker's initial investment in crypto and how much has it grown to?

The speaker started with an initial investment of $5,000, which has grown to over $6 million in their crypto portfolio.

What is the first lesson the speaker emphasizes in the video?

The first lesson is considering the risks upfront when investing in crypto, as the worst possible outcome is often the most likely for those new to the market.

Why does the speaker believe that understanding risk is crucial for making money in crypto?

The speaker believes that understanding risk is crucial because it allows investors to control potential losses, which is essential for making money in a volatile market like crypto.

What does the speaker mean by 'operating outside of your Edge'?

Operating outside of your Edge means engaging in activities or investments where you do not have a competitive advantage or deep understanding, which can lead to poor decision-making and losses.

How often does the speaker make significant changes to their crypto portfolio?

The speaker makes significant changes to their portfolio only about 18 times in 1.5 years, indicating a focus on strategic, infrequent decisions rather than constant trading.

What is the speaker's approach to taking profits in crypto investments?

The speaker emphasizes the importance of taking profits regularly, comparing it to exercising a muscle, and suggests that investors should practice taking profits even if it's not the end of a bull run.

Why does the speaker advise against buying a coin again after taking profits?

The speaker advises against re-buying a coin after taking profits because the initial success was likely due to being in the right place at the right time, and re-buying may not yield the same results.

What is the speaker's view on the role of volatility in crypto investments?

The speaker views volatility as both the price paid for outsized returns and the means through which investors get paid. Handling volatility is key to achieving significant returns in crypto.

How does the speaker describe the importance of networking in the crypto space?

The speaker describes networking as crucial for success in crypto, as it allows individuals to gain access to insider information, form teams, and work together to maximize their edge in the market.