The one thing I’ve learnt during my time investing in traditional stocks, cryptocurrencies and NFTs is that you should never become overly attached to your investments.
Unfortunately for me I’ve had to learn this the hard way. During my short time investing my judgement at times has become clouded by fear and greed.
For example, when I’d previously invest and my holdings would begin performing, I’d often overextend my position at the thought of making more money. Often leading to me obsessively watching the price charts as my heart would race at each red or green candle.
If I was making money, I felt like Warren Buffet. If I was losing money I wanted to sell everything and get out while I still could.
We all know that you should buy low and sell high but it’s much easier said than done. This is because our emotions often hijack our ability to make rational decisions.
First and foremost stop trying to become a millionaire over night. Be happy with small gains and invest only what you’re willing to lose.
Learn to understand risk and set your expectations accordingly.
If you're buying a shitcoin understand that while it might 1000x, it will most likely go to zero.
Invest accordingly.
Instead of blowing your entire stack on a moonshot, make hundreds of smaller bets that should cover your losses when one finally hits.
The trick with risky investments like shitcoins or NFTs is to never care too much about your holdings. Because as soon as you do you’ll know that you’ve become overextended.
During the last NFT bull run one of the narratives that emerged was that these tokens would become your digital identity in the so called Metaverse.
Not long after this narrative caught traction thousands of people rebranded their Twitter accounts to match their investments in cartoon penguins, apes and other creatures.
Never before had we seen identity become so enmeshed with an investment vehicle. This entrapment created hardcore evangelists that would go on to recruit hundreds of new members into these cult like communities.
From memes, to discord servers all the way to community events and merchandise. These investments had entered all aspects of people’s lives.
At this point if you were turning up every day to these online communities to find meaning through online friendships and your newly formed digital identity, you had unknowingly become trapped by your emotional needs. You’ve become so indoctrinated into your investments that there’s no way you could sell off your holdings when they’ve become such an integral part of your identity.
While this might be great for project founders who want to create die hard community members. It can also become dangerous for participants who have unknowingly become a lifetime bag holder regardless of how much you've made or lost on paper.
Decentralise your identity.
Don’t put all your eggs in one basket. Make sure to maintain friendships in both the online and offline worlds.
Have hobbies outside of your work. Do things solely for you.
I’m not saying don’t ever get involved in an NFT community or shitcoin project. I’m saying don’t make it who you are.
You’re more than your possessions and the money you have in your bank account. You’re a human being living through one of the most exciting times in history.
If you lose a part of your identity you’ll be okay because you know there’s so much more to you than the communities you participate in.
I am not an accredited investor, and the information provided is for informational purposes only. It should not be considered professional investment advice. Please conduct your own research and consult with a licensed financial advisor before making any investment decisions. I am not liable for any financial losses or decisions made based on this information.