Introduction
In a few months, it will mark my 10th years learning and growing my understanding of bitcoin and other crypto assets. It's been a wild journey and now more than ever, I am convinced that just like Netflix made Blockbuster vanish...so will crypto make traditional finance vanish...slowly first and then all at once.
Only now do I realize some of the huge mistakes that I made. Here are some of them:
1. Never, Ever Sell Your Coins
I guarantee you that will have seller's remorse when realize the real cost of selling your bitcoin when it goes up in average of 200% a year for the past 15 years (also, include capital gain taxes).
2. Never Sell Your Coin, Take a Loan Against It If You Need Cash
Loans are not taxed and they allow you to tap into the value of an asset without selling it. I personally use CELSIUS and they are giving me loans on my coins at 1% interest rate, I don't need to qualify (because they are collateralized) and I set the repayment terms.
3. Don't Sit On Your Coin, Get A Yield
There is a huge demand out there to borrow your coins in exchange for a return. You can get up to 10% yield without locking your coins. It's like going back to 1980's when the bank was giving you 8% on your saving account.
4. Use Blockfi or Celsius Network
I personally use both to maximize my yield on my crypto but if I were to choose one, I would say start with Celsius for the 1% loan, great yield and trust factor. Also, if you sign up through my referral code, you can get up to $500 in free bitcoin as a signup bonus.
Here is my personal referral code if you ever signup.
If you are a purist when it comes to "not your keys, not your coins" then it's probably not for you. But for the rest of us who still believe that trust can be a good thing when there are good actors in the space AND that centralization also has it's own benefits, this is a good option for you.
5. Don't Improvise Yourself As A Trader
I cannot count how much coins I lost trying to play the market...not only it takes a 1000 hours to become average, the crypto market is especially good taking your hard earned coins out of beginner traders.
Conclusion
Some of those lessons costs me a lot and I wish I knew them earlier but I am glad that I finally got them under my belt so that I can secure my financial future by being smart about how to handle my coins.
Posted Using LeoFinance Beta
These are valuable lessons and I can only say I fully agree with each and every one of your points. Thanx for sharing!
In addition to your points, I must say that being first active on Steem and then Hive allowed me to be less concerned where my first coins came from. Then I got used to dealing with it and accumulated some more with the idea of long-term hold and growth. From posts like yours, I can only learn and it confirms my current strategy. Thanx
Very nice and valueable post.
Any succesfull investor will always follow all the points you wrote.
Good tips, I'm not particularly keen to hold on an exchange... but I have been tempted many times by Celsius. I learnt that trader one as well... I'm terrible at trading!
I would add rule 0. Keep those keys somewhere safe
Tips 6 don't trade after drinking!!!