14 Timeless Lessons From The Crypto Market



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14 Timeless Lessons From The Crypto Market
By @route2fi • Issue #20 • View online

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14 Timeless Lessons From The Crypto Market
1) Narratives die fast
Do you remember:
-DeFi 2.0 and how much everyone talked about it?
-That everyone talked about how $BTC would reach $100K before 2021 EOY?
-That we would never see $ETH below $2,500 again?
-That $ADA would save the crypto market? (lol) 
2) Everyone won’t survive
Have you ever asked yourself why there are plenty of other tokens?
There are more than 10,000 coins. But do we need more than $BTC and $ETH?
Eg. Bitcoin as an inflation hedge and Ethereum to participate with smart contracts. 
3) About DeFi yields
If the APR in a DeFi protocol sounds too good to be true, it probably is
When you see a DeFi platform with a 1% daily APR, what’s the first thought that pops up in your head?
Where do you think the money is coming from?
In 99% of the occasions, the answer is:
4) Being early
Over and over again you see people apeing into risky bets.
They want to be early.
As you probably know already, the earlier you are the more money you can make (most often from the people coming in after you). 
5) Maxi culture
Over and over again I see people on Twitter defending their favorite coins like it was their religion.
There are maxis for every coin out there. But ask yourself what’s most important.
If you want to make money, you have to abandon ships that is about to sink. 
6) Due diligence
Look at the message below.
Imagine if I replied with 3 coins.
The problem: I don’t know the other person’s risk profile, how much he’s monitoring the market, his strategy, how much money he will bet, etc.
He could get rekt from my reply.
Sorry, ser. DYOR.
7) Long-term investing
In my opinion, there are only 2 tokens that classify as long-term investments ( $BTC and $ETH).
I’m willing to change my answer as more tokens stand the test of time.
The only reason why I invest in altcoins is that they can give me a higher upside. 
8) Confirmation bias
Don’t lurk on Twitter to seek confirmation, and never blindly follow a bet you see others post.
Instead, seek information. Get investment ideas. Connect with smart people.
It’s your job to filter all this info and make up your own investment thesis. 
9) No one knows where the market is going next
The best traders on CT are the ones who admit that they have no idea what happens next.
By having strong discipline, risking 0.5-2% per trade, and riding trends some of them consistently beats the market. 
10) Focus on income when you start out
Stop thinking that you have to get rich fast. This leads to gambling, and in most cases, you end up losing all of it.
Instead, try to earn some extra money that you can invest
A 50% return on $1K is $500.
A 50% return on $100K is $50K.
11) Airdrops
If your portfolio is small I recommend you to participate in DeFi platforms that may give you an airdrop.
This is a quick way to give you some free money.
The Cosmos ecosystem has a lot of them.
Example below:
Route 2 FI
The staking rewards in the Keplr wallet for the Cosmos ecosystem is wild:

- $ATOM 16% APR
- $OSMO 89% APR
- $SCRT 24% APR
- $JUNO 108% APR

On top of that, you are eligible for almost all airdrops in the Cosmos ecosystem by staking these 4 tokens.
12) Ride the wave in DeFi
Be where the money is. If you want to make money in DeFi, prepare yourself to rotate a lot.
You can’t just dump money into Anchor Protocol and think that you can come back 5 years later to collect it.
Narratives changes too quickly. Stay alert.
13) Prioritize security over everything
Crypto is a big boys league. If you f*ck up, there’s no one out there to save you.
There’s no customer service in crypto. You can’t call your dad.
Here are some security tips to get you started:
Route 2 FI
Some crypto safety tips:

-Laptop only used for crypto
-Several emails (Protonmail)
-MM import to a hardware wallet
-Burner wallets
-Crypto metal plates
-Seed phrases/PW stored offline
-Unique password for every wallet/exchange
-Bookmark sites
14) Will your favorite coin survive long-term?
How many of the top 100 tokens from 2018 are in the top 100 today? 10? 15?
You get my point, the probability of your favorite crypto tokens surviving long-term is small.
Never marry your bags.
Take profits. 
3 threads I enjoyed this week
1) Making money in crypto with the trifecta
Trifecta of making money in crypto: MEV, Buildoor, and NFT 🧵👇

No BS; making $10m a year is not hard in crypto if you have skills + focus

1/x https://t.co/Nb7Yz5YDvN
2) DeFi yields in the bear market
Ming Zhao
What happens to DeFi YIELDS if bear market?

Which yields are sustainable?
Which will go away?

Here’s some real analysis & examples to cut through the “buy the dip!” noise.

6 strategies to protect your profits & avoid a 2022 bust:
3) Portfolio Management
Onchain Wizard
New substack on portfolio management is out. I go through how I would run my portfolio at $5k, $50k and $500k. Enjoy!

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