5 Things about Crypto Investing Tips & Hacks that Your Teachers Wouldn’t Tell You
These tips & tricks are essential parts of every investor’s toolbox. Some are time-honored investment aids; some are specific to crypto. All are important, though, no matter how big or diverse your crypto portfolio. From individual coin tracking to analyzing what’s in your whole blockchain wallet, these hacks will help you raise your game.
Have a plan for what goes into and out of your blockchain wallet! Sounds simple, maybe, but if you don’t know set your own goals, then you’ll get caught up in psychological traps such as FOMO (Fear of Missing Out). Laying out what digital assets you will focus on and what kind of coin portfolio you intend to build will prevent you from gathering a haphazard mix that “sounded good at the moment”.
Streamline information gathering and analysis. This is important in more than one way, and it includes news gathering, which is a topic for a later post. Regarding your own holding, though - in a fast-moving market such as digital assets, being able to see and respond to changes in your holdings is a requirement. This means using a portfolio manager. Kepler’s LUKRUM is perfect for this.
Technical analysis is as useful in the coin and crypto portfolio world as it is in equities, so start using it! If you’re a beginner, don’t worry. Basics like support and resistance are easy to grasp. Fibonacci ratios, Kumo clouds? They’ll come in time, but understanding market sentiment is a vital part of being your own assets manager and even a little knowledge here is a big help.
Know your limits and your appetites. This goes back to having a plan – as the industry matures, digital assets will lose volatility, but the days of a digital set-and-forget assets manager for everyday investors are still far off. Understand how much risk you’re comfortable with, the amount of time you can spend focused on these activities.
Measure your performance compared to your expectations, but also compared to the market. Coin tracking in itself can be fun, but digital assets are like any other asset class - a portfolio manager is a tool, not a playtoy. So, have you hit your goals? Now ask yourself how your crypto portfolio did compared to the market. Are there lessons to be learned, can you fine-tune your coin portfolio? Calculating your return and comparing it to the market can take some time, and is a lot easier with a tool such as LUKRUM.
Learn the language! The vocabulary isn’t difficult at a higher level, so terms like Alpha (which LUKRUM calculates) should become something that you’re comfortable with. There’s more to investing in digital assets than having a blockchain wallet and an account on an exchange, so dive in! The more you know, the more you’ll want to learn.