With out going to deep into the small print, I‘ve checked out the previous couple of crypto occasions, that shocked the market, all of the crashing exchanges, chains getting robbed, Luna collapsing and I nearly all the time discovered 2 fundamental causes:
The primary being insiders or builders with malicious intent or not less than an enormous portion of negligence and the second being an enormous mass of individuals similar to you and me falling for his or her tips.
I‘m no software program developer myself and there‘s a lot I don‘t perceive within the crypto world, however over the past crashes I discovered, that there are a number of steps everybody can take to make their flight to the moon as secure as potential:
1. Do your analysis
I do know that every one the colourful get wealthy quick schemes marketed by crypto influencers usually appear to be to most engaging tasks to place your cash in. However attempt to discover some unbiased (!) sources shining mild on the tasks from a number of completely different angles, ask completely different communities for insights, however by no means get all of your data from the cash personal neighborhood, as a result of there‘s all the time an enormous huge bias. Seek for wholesome parameters within the performance of the venture. Excessive promised returns are largely an enormous pink flag. Steer clear of all the fellows which are clearly getting their paycheck from a venture.
2. get a tough pockets
Not your keys, not your cash. It actually is so simple as that. Chances are you’ll assume your present change like coinbase, kraken or Binance is 100% secure, however the one factor sure in crypto is that we don’t know fuck about shit. The one draw back with laborious wallets is which you can solely blame your self, whenever you lose your cash.
3. get lively
Be current locally. Many ecosystems have methods for people to take part of their present tasks. For instance with governance and staking, you may make the blockchains extra democratic, a great instance could be the cosmos ecosystem.
4. diversify your portfolio
I all the time advocate having BTC and ETH as a robust base of each portfolio, however no matter you do, don’t put greater than you’ll be able to afford to lose in some cash you don’t actually have a lot religion in.
5. completely no leverage
For the love of god, don’t use leverage. I additionally wouldn’t advocate longs and shorts, the market itself is already unpredictable sufficient.
6. depart your emotions exterior
This can be the half that’s the toughest to settle for. Deal with the cash that’s in crypto as if it was misplaced. Purchase extra cash with a way of proportion. When the market crashes, wait a number of days after which purchase extra. Don’t purchase extra of a misplaced coin, simply because it crashed the toughest.
Whenever you observe these steps, you’re ready for the following market turbulences and if many individuals try this, hopefully the market will get more healthy once more and we don’t repeat our errors with the following Crash across the nook.
In crypto similar to the standard markets, there are a lot of forces past our management, however that doesn’t imply we must always hand over and not using a combat.
14 thoughts on “Studying from our errors”
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My wallet is so hard right now
7. Invest an amount that doesn’t mess with your mental health
My biggest mistake is FOMO and not having the ability to know to sell
7. Don’t invest more than you can afford to lose
My biggest mistake was not taking profits last bull run.
If I could start over day one again, I would never stake anything and I would cash out 50% minimum on a 3x
Not your keys, not your coins is the lesson of the year
My biggest mistake this year was not selling on January 1st.
Again with the stupid fucking hard wallet bullshit.
Don’t do business with bag of shit companies who engage in massive risk. With both Celsius and FTX, their riskiness was on display. It didn’t mean they would fail but it was a great indicator to leave. The crypto community are willing idiots.
There’s all the fucking advice you’ll ever need.
You left out the most important learning / mistake, that you have to sell to make profit
Only invest what you are okay going to zero. This industry is too volatile to keep life savings or any money you need invested
Never be too greedy and don’t get caught up in yield farms promising unrealistic APY
Keep it up.