Random thoughts about crypto investing and investing in general.
Do your own research (DYOR) often sounds like something people say to protect themselves if their projections/forecast about a coin are wrong but it’s actually good advice.
These are some sites to go:
Think about taxes. If you live in countries where you file your taxes every year, you’ll need to account for your crypto gains and losses too so if you join any exchange to buy some coins, not on Binance or Coinbase, make sure you can download your order history to excel at least
During crashes like yesterday when prices dived so low on so many coins but the big exchanges couldn’t accept new money, the easier option is to use margin to buy those strong ones that you know will go back up. On my community, we did on ADA and made 50% yesterday. Free money!!!
When the market cools down, you can send in your money and pay off the margin or use the profits to pay the interest off, pocket your profit.
The issue is remembering to take advantage of these when they happen.
Obviously, this is a higher level of risk on an asset that is already regarded as high risk but its a stop gap because you can’t get your money onto the exchange. It shouldn’t be used arbitrarily. You could basically lose your equity.
Lastly, take profit. I know you want to declare that you made 500% or more on a coin. As soon as you make enough to take your capital out at less than 70% of your investment, Take it out. I think because crypto gains happen quicker than equity a lot of people keep forgetting…
it’s only because its early days. Economic theory teaches us that all markets eventually head towards efficiency and as you get closer, information asymmetry reduces, room for wild gains reduces. They may still happen on fundamental changes but it becomes more structured.
so take profit. You can leave the gains to ride out till infinity but take your capital out once you can.
As you were…
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