Crypto Investment Cheatsheet

Crypto Investment Cheatsheet


What the crypto crash reminded us about human behaviour

It’s human behaviour to think that . That’s one of tthe reasons why many people are surprised when .

The past 1 year of crypto has taught us that we’re prone to human fallacies like…

  • Analysis paralysis
  • “Bad” things won’t happen to us
  • Not knowing when to stop

You can earn loads fast, but also lose everything fast.

But it’s a whole new world that shouldn’t be ignored. How can we do better then?

Check out this cheatsheet that summarises what we discussed in our past AMA with our speakers:

  • Hubble
  • MaxxFinance
  • PlanetQuest

What to lookout for when investing in Crypto & DeFi projects

  • Understand your risk appetite & determine your Budget
    • Risk-return tradeoff. You cant expect high returns with low risk appetite.
    • image
    • Are you someone who enjoys taking risks or even competing? IF you are, you’re likely someone with a higher risk appetite – you’re willing to “gamble”
    • Imagine Worst-case scenario where you lost everything.
    • How much are you willing to “lose” if anything goes wrong?
  • Set up rational systems in place to manage emotions when trading .
    • Before you invest…
      • Diversify crypto asset classes you’re investing in
        • Types:
        • Plan your invetsemnts – not all in 1 asset basket
        • e.g. Not all stablecoins. Not all equities. Not all crypto.
      • Do your research! Every project is giving out tokens now. How do you know which one will last?
        • Team
        • Revenue model
        • Business model
          • Note: Nascent stage. Like VCs, likely have to invest in a lot of projects, and hope one of them succeed.
    • During
      • Set Stop loss.
      • Set security
        • Multisig
  • Understand your Investment style – and use the right crypto trading technique that suits you.
    • Active, short-term
      • Staking
      • dd
    • Passive, long-term
      • Buy and hold
        • Cryptocurrencies BIT or ETH
        • Equity or security tokens