Earlier this week I had a call with a friend of mine. He had a few hours a day free, and like a lot of my friends, wanted to know how I’d built decent wealth trading early-stage crypto assets.
I sat him down and explained how to do it.
As I was explaining it (not for the first time to a friend), I realised how bloody complicated the whole thing is. From setting up your crypto wallet to getting your dry powder, to finding projects to invest in, to deciding when to sell.
After the call, I decided I was never going to explain all this to a friend over the phone again. It’s inefficient and definitely sub-optimal for understanding.
Core Principles
Before you get started with early-crypto trading, you should understand some core principles.
Only invest what you can afford to lose. Early-crypto is perhaps the highest risk asset you can put money in
Early-crypto is 100% speculation
I use the term investing very loosely here, it’s more like gambling
The difference between gambling in early-crypto and at a casino, is in early-crypto there is no ‘house’. If you know what you are looking for, you can beat the odds and see insane returns.
The only advantage you have is being earlier than other investors. Getting ahead of the herd is everything.
Never invest more than 5% of your overall allocated cash into a single asset. Your attitude needs to be that 9/10 of your positions will go to 0. The 1 that succeeds will succeed so massively it will make up for the losses.
ADHD is an advantage in early-crypto. You need to be constantly checking your positions, digging out new coins. Rabbit holes are your friend.
To do well in early-crypto you need to dedicate a few hours a day to it.
Teaming up can be a fun and efficient way of navigating this space. We’ve seen success with splitting up roles. One hunts, one checks and one trades.
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