Join 76,252 users and earn money for participation

Life lessons of a crypto investor

2 30 exc boost
Avatar for aniruddhasen
Written by   201
4 months ago

 Stock, crypto currency, forex and commodity are dynamic investments where the value of our portfolio varies each day. Not only the traders but even long term hodlers also have that nagging fear on the back of the mind about their portfolio value going down. These do not give the satisfying feeling of capital protection as the savings account and fixed deposits give. On the other side these savings account and fixed deposit also don not give the return which we want to generate. This state of constant flux is akin to what we face in life.

1)      No short cuts. Once in a while you may stumble upon a crypto that will give you explosive returns, but it is more likely that you will lose the gains while looking for the next one. No one is lucky all the time. Same is with life. Some of our decisions in life may hit the bull’s eye but we are not lucky every time – If we try it every time then it becomes a gamble. The best approach is to be focusing on the long term goals of life and be methodical about it.

2)      Risk is a constant companion. Investment is always fraught with risk which is unavoidable. Even our safest saving account can vanish is the bank goes bankrupt, what to say about crypto where volatility is a constant companion. Risk in investment can off course be mitigated by diversifying. Similarly risk in life cannot be eliminated completely. That risk can come from our own mistakes or mistakes of others where we become the victim. In life also we need to have a contingency plan to mitigate our risks, like having multiple source of income, life insurance, health insurance, estate planning.

3)      Boring is good. Running after the next big crypto pump and reaping the profits is good but is not sustainable in the long run. Treating life as a casino game is a sure shot recipe for disaster. Running after the latest gadgets, fashion, car, food and luxury travel will look good for some time. But after sometime all these will start feeling stale and life will long for a simple clutter free life which may seem to be boring. A simple life will be more appealing and enjoyable.

4)      No free lunch. Everything in life extracts a cost. The cost can be in the form of money or peace of mind or anxiety etc. If we do not invest then our money will not grow, but in fact lose value to inflation. If we invest then we can have losses also. Similarly in live we have to constantly take decisions and the outcome of decisions are not always in our hand. If we take a decision then we may enjoy its reward or by indecision we have miss out the reward. No one will come and solve our problems or take decisions for us, we have to do it ourselves and bear with the outcome. Indecision may be far costlier than mistakes.

5)      De-attach. Investment is like having a baby. Once you have it, it is very difficult to let go. We tend to hang on to the good investments thinking that it will continue giving goo returns and thereby do not en-cash the rewards. We tend to hang on to the bad investments in expectation of a turn around, which seldom comes. In life it is the same case. It is easy to get attached to the things we buy and then we cannot de attach ourselves. We get attached to relations and when that relation turns sour we still want to cling on to it there by causing more pain. It is important to learn the art of moving on.

6)      Your well being is your responsibility. Investment is a personal conscious decision where we may take advice from many but ultimately the onus is on us and no one else. It is very much applicable with crypto as there are so many options and opportunities. Some may chose to be a trader and some a hodler. It is all a personal choice. So in life all our decisions and indecisions are our choice and we have to take responsibility for the outcome, No one else is going to take reap the benefit or take the burden of the outcome of our decisions. That’s why life is a constant learning experience.

7)      Persistence and discipline. These two things are more important than talent and intelligence. Without the topping of persistence and discipline, talent will surely not sustain for a long time. That’s why we see so many child prodigies fizzle out when they grow up. Investment in crypto especially requires these two qualities to survive considering the wild swings. That is why we call it diamond hands. Those who cannot digest the swings should not be in crypto. A successful and desirable life is also not possible without these two qualities. Life is also expert in throwing swings at us at regular intervals and only these two qualities can help us sail through turbulent times.  

It is all a game of mind, whoever has the mind in control wins the game of crypto as well as life.

5
$ 2.61
$ 2.56 from @TheRandomRewarder
$ 0.05 from @Jnavedan
Sponsors of aniruddhasen
empty
empty
empty
Avatar for aniruddhasen
Written by   201
4 months ago
Enjoyed this article?  Earn Bitcoin Cash by sharing it! Explain
...and you will also help the author collect more tips.

Comments

What happened Random Rewarder?

$ 0.00
4 months ago

Hilo thru BDO

$ 0.00
4 months ago