I started my Journey into crypto last summer around June-July. After reviewing some crypto projects, 7 months ago I decided to Invest in 5 different projects: My picks were XRP, ADA, Ethereum, VET and LINK.
A lot has happened since then and I saw my portfolio rise and fall many times.
My initial plan was just investing in these projects and holding them, but along the way I saw other opportunies, like trading and even other projects, which I had not reviewed in the beginning.
Some of those relatively not so developed crypto projects have been described in my posts.
While it is not hard to call trades in a bull market or to pick projects than will 10X, there are a couple of points that I have realised along the way:
- Fundamentals play a very important role: Look for partners and investors, have a look at the engagement of the team of a project, spot the problems of the cryptoworld (example: high fees of Ethereum) and look what are the proposals to solve those (example: Layer 2 protocols like LRC, Matic ect.) Look at roadmaps, phases, how much work has been done and how much more is to be done and when.
- People keep talking about altseason, but this could be a thing of the past. If speculation drove prices higher 3-4 years ago, doesn't necessarily mean that it will happen again in the same way.
- Don't focus so much on the price of a crypto, while choosing where to invest in: The lower the price, the better. It just means that gains could be greater.
- Understand where the global trends are going:
- There is so much talk around green energy. Some projects worth noting on the distribution of energy: Energyweb, Powerledger, Lition.
- The decade of AI is upon us. Projects worth mentioning: AGI, Fetch.ai, VXV.
- Buy low. Make a list of the projects you are interested in. Add them to favourites (using Coingecko as example) and decide to buy when you see -15% or -20%. I have been doing this and it is exactly when coins are not in the radar of people that it is best to invest in.
- Understand risk and act to mitigate it: In my case, I have pulled out profit these last days since beginning mid January. While I could have made more profit by lets say holding ADA until now and not selling at 30, 40, 50 cents, I have managed to get my initial investment out of the market.
Positive side: For me it is a very good position to be in because half my main investments are still running and it is as if I had received them for free. If the market pulls back, and I expect it to pull back hard, I can reinvest this amount and I am not emotionally attached to my holdings losing value, because I am covered in both ways.