Brian Armstrong of Coinbase singlehandedly derailed the march to a BTC ATH with a crybaby tweet about the Trump administration trying to regulate his shitralized business. Although it was an annoyance and spoke to the fragility of today's breed of crypto investor, it taught me a few things about how to make money in crypto.
1. Always have some powder on the side. I was hypercompounded on Cream and borrowed to the hilt to purchase all the shitcoins I could before the dump hit. When it did, I had to sell back some of my shitcoins at a loss to keep my Cream bank from getting liquidated. I did take some hits, but I used my coin jumping strategy to minimize them and set myself up to profit when things come back. But I didn't get to buy much at the low point of the dip. I learned that I should always have some stablecoins on the side to take advantage of big dips and flash crashes. Don't ever borrow everything or be 100% all in, even when the bull looks unstoppable. Especially when the bull looks unstoppable.
2. Expect a congested network during key moments. Unfortunately, most of my speculative plays are still on the Ethereum network. (I'm actively looking elsewhere.) But when stuff like this happens, good or bad, you can expect failed transactions and ridiculous fees. That's why you have to anticipate moves, not react to them. I saw the dump beginning to happen and alarm bells went off when BTC crashed through the 19k floor. I didn't move until later, though, and I paid for it.
3. Don't listen to shills. I have now completely stopped listening to shills like Elliotrades — 100% completely. I used to give myself the excuse of, "well, he's talking about a new low cap gem, so I have to at least listen to that part and try to catch the pump from his followers." No. His research is shit, and I found that when I REALLY do my own, I outperform him. I also get into projects I actually like rather than those I think the community likes. Plus trying to catch an influencer pump is fucking retarded. Just use the chart techniques that you'd normally use to anticipate a runner. When the shills go super bullish, that's usually time to sell, sell, sell!
4. It's ok to get rekt. Using coin jumping helps to negate the sting of having to sell at a loss, because I knew I could catch the ride back up. To keep my banks from getting liquidated, I had to snatch back a couple of farms. The farms weren't performing anyway, and I should have reorganized them a long time ago. I didn't follow my own strategy of farming in a dove market, not a bull market. The restructuring was forced because of the collateral drop in the bank, but because I now no longer have to think about those shitfarms, I feel much better.
5. Just stay in the game. Profits, I've noticed, tend to take care of themselves in crypto. What the investor must do in this environment, early stage speculation market, is cover the downside and ensure he stays in the game. One of the lessons I learned was from my success in doing this. I didn't get liquidated. I felt happy that my strategies were at least good enough to keep me in the game. You don't learn everything from failure. Some things you learn from success as well.
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Leverage is great, until things turn against you. I hate to borrow, and even more so to borrow to invest. Glad it didn't hurt you too badly.
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