Where you place your focus and attention will determine your investing success, and with cryptocurrencies, that focus and attention will constantly be tested.
There are always going to be meme coins that cause a twinge of FOMO when you first hear one skyrocketed 1,000% in 24 hours.
There are going to be quality coins that make you a lot of money. But instead of focusing on the decision-making process that brought you your gains so that you can use what you learned to make money on new investments, you will still naturally feel inclined to say, “I should have bought more.”
Then there’s the flip side…
Fear, uncertainty, and doubt can creep in when Bitcoin (BTC) prices go from $68,000 to $48,000.
Your fingers can have a mind of their own, and try to hit the “Sell” button before you realize what’s happening.
With that in mind, let me share with you the nine core principles that I use any time I make an investment…
Back to Basics: Crypto Edition
Here’s my “Back to Basics” list…
- Decide how much money you are willing to allocate towards the crypto space – for most folks, this should be between 1-10% of your portfolio. My rule of thumb is that if your crypto investments are keeping you up at night, you’re probably over-invested.
- Make a list of 5 to 7 “quality” assets based on the 5Ts: team, technology, tokenomics, timing, and the problem – which I also refer to as “why token?” You can learn all about my 5Ts framework in this guide.
- Understand each one of these projects sufficiently to explain it to your grandmother, to a small child, or to a golden retriever.
- Decide your position percentages. So, based on the amount you’re willing to spend (refer back to #1), what percent of that are you putting into each sector? For example, how much of that money goes to Bitcoin? (You can get my answer to that specific question right here.)
- Open your exchange accounts – starting with Coinbase and Coinbase Pro. Some other exchanges you may end up using are Kraken, gate.io, MetaMask, and KuCoin – which is where you can buy one of our favorite artificial intelligence (A.I.) coins, SingularityNET (AGIX). You can learn how to do that here.
- Fund your Coinbase account only. My colleague David Zeiler will show you exactly how to do that in this step-by-step guide.
- Begin to thoughtfully dollar-cost average into your chosen tokens, which essentially means don’t be an idiot and spend all your money in one place.
- Stake any of those assets that you can, the rest should be placed on a private hardware wallet. (Like the one I recently unboxed for you during American Institute for Crypto Investors LIVE.)
- Go and get some coffee, because it’s going to be a turbulent 18 months! But remember – when crypto prices drop, don’t hit the panic button. Be smart. Do this instead.
To get this kind of moneymaking advice in real time, directly from yours truly, there’s only one place to find it – right here on American Institute for Crypto Investors LIVE every Monday, Wednesday, and Friday at 11:30 a.m. E.T.
You can even add my live streams to your calendar so you never have to miss one again…
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Until next time,
Chief Crypto Strategist, American Institute for Crypto Investors