Who's swimming naked?
Warren Buffett may not be the pin up guy of the crypto crowd, but some of his sayings translate across all asset classes.
My favourite, which is so applicable right now in the crypto world, is along the lines of "it's only when the tide goes out that you see who's been swimming naked"-truer words were never spoken.
the crypto space is the Wild West of technology. It's a new and exciting frontier that is so new and so exciting that the rules haven't been written yet, or even been thought about. Those that hold their nerve while the rest of the world tries to bring them down will prosper, provided they play it smart.
A few basic rules-
1-don't follow every prophet and expect to profit! Youtube is full of people who will tell you 20 great coins or tokens to buy right now for future exponential growth. Tomorrow they will give you 20 more...
2-ICO's are very exciting, but they are actually generally little more than a group of enthusiasts with a (potentially) great plan. It's no different from investing in a tech start up, except it's more accessible to the general population via an ico
3-ease of access works two ways though-it also enables a start up team ease of access to your hard earned...
4-ico's with a trading track record in business that has gone beyond a great idea have far more chance of being amongst the ico's that thrive and grow.
5- even crypto should be traded on business fundamentals- a coin or token that goes up 4x because it has had a cosmetic makeover and changed its name and symbol is something to be avoided like the plague
6-keep your eye on the market cap, rather than the price of an individual coin- bitcoin at $1m is the equivalent of Ripple at $400- they both would have a market cap of $16,000,000,000,000!
7- protect your assets, by storing them on cold storage devises
8-have a trusted confident who knows all your passwords or where to find them- no point dying crypto rich if your loved ones have no means of access to your riches.
9- don't invest more than you can afford to lose-crypto are volatile assets that follow the typical risk return profile- high risk/high return.
Follow these general rules and you will survive the Wild West and prosper!
Happy trails.....