There is no shortcut. For superior performance, it is necessary to have in-depth knowledge. On the other hand, it is possible to achieve above-average performance by applying some basic principles.
What would I say if I could only say a few sentences about crypto investing?
- Timing the market is challenging. Time in the market is the key.
- Buy when normies are not interested. Sell into the hype.
- Focus on quality.
- Believe what your eyes see, but don't neglect critical thinking.
The first two principles do not belong to me. I produced the third and fourth. These principles explain the fate of crucial crypto investment decisions I have made over the past five years.
Analysis of My Crypto Investment Decisions
I made my first crypto investment by purchasing around $20,000 worth of Steem in May 2018. As a result of the crypto rally in 2017, prices had skyrocketed. Steem dropped to around 3 dollars after seeing 8 dollars at the maximum. Since my experience in investing has been shaped by stocks, I assumed that the pullback in price was sufficient. Steemit was ahead of its time, so everything was fine in quality. So the hype about Steemit continued for some time. However, as the excessive incentives disappeared, Steemit's users decreased rapidly. By the end of 2020, the Steem price had dropped to around 15 cents. The cost of my wrong timing was that my investment had fallen to one-twentieth of its value. My Steem portfolio was $2000 in December 2020, as I made $1000 from writing on Steemit. Added to this amount the $1,500 value from the Hive airdrop, my total portfolio was at $3500.
When prices rose in 2021, I started writing again on Steemit. In the meantime, I met Hive and noticed a distinct quality difference. That's why I shifted my investment to Hive. In June 2021, the Hive price dropped below 30 cents. I bought about 10k additional Hive because I believed in the long-term potential of the Hive. By the end of 2021, the value of my portfolio had increased to $53,500 thanks to the 15-fold price increase in Hive. Moreover, I got back the investment I made during the year. I believed the growth would continue, and I was in good spirits.
In 2022, the crypto market had a different outlook. Prices plunged sharply in the first six months of the year, and the value of my portfolio dropped to a third. I bought an additional Hive for 32 cents in June. Meanwhile, significant developments were taking place in Splinterlands. Tower Defense and Genesis League Goals games were announced one after the other. I bought SPS on the hype created by this news. I should have known that expectations were bought and realizations sold. The SPS price started to decline after the hype wore off. Luckily, I sold my SPS and made card purchases without incurring too many drops.
Splintrerland's unique project Runi is among my successful investments. Runi is still worth nearly three times the price I bought it for. I made the Runi investment by focusing on quality. The Splinterlands team also stood firm behind the project, and the Runi price has reached its current level.
When I started writing at Leo Finance last year, I gradually purchased 50,000 Leos. In January, I sold 75% of the Leos I owned when the price of Leo increased 80% compared to the Hive. Now the Leo/Hive parity has returned to its former level. So I took advantage of the hype created by the Threads project.
Despite the bear market, opportunities are present in the Hive ecosystem. Genesis League Sports' (GLS) governance token, GLX, was priced almost at the Hive's level when it first launched. This price level was unsustainable, as, at that price, the GLS had a market value of Splinterlands. The children of NBA players are often shorter than them. So I sold all the GLXs I had airdropped and bought Splinterlands cards with the resource I created this way.
Not all stories about my investments have happy endings. At the beginning of last year, the Cosmos ecosystem became popular because of its airdrops. After a detailed review, I decided this ecosystem is valuable. However, I made my investment during the hype period. Cosmos became one of the fastest depreciating coins of the bear market. Recently, I turned my assets in the Cosmos ecosystem into money and realized my loss.
While telling stories about my crypto investments, I realized something. In the first ten days, I made a profit in all my investments during the hype era. Therefore, it is possible to invest in coins during the hype period. However, making these purchases by determining the stop-loss level with the logic of a trader is a must. Such an investment style still does not suit me.
TL;DR
The key to success in crypto investing is the time spent in the market. Over the years, people gain experience and benefit from the power of exponential growth. Selling during hype and buying during pessimism are helpful strategies. It is also necessary to consider the quality of investments because only well-managed digital assets grow. To believe what our eyes see means taking advantage of data. Critical thinking is required to distinguish non-organic performances.
I believe the biggest bull rally of technology-based investments has not happened yet. The value created by technology is increasing exponentially, and the next wave will likely be bigger than the previous ones.
Thank you for reading.
P.S. I am not an investment adviser. Please do your own research.
Cover Image Source: Midjourney App
Posted Using LeoFinance Beta