In a nutshell W. Buffet is considered one of the worlds best investor and built his entire fortune on investing - he has been on forbes top 10 richest since like th 90's. He is also known as the Oracle of Omaha and has over the years been known to give very thoughtful and time tested advice in investing. Here is my attempt to try and list some of his teachings in a cryptocurrency context. For those who don't know who Warren Buffet is I advice you to go to his wiki page.
Apologies if I mess something up. Below of the interesting nugget of investment advice from the Buffet. I change a few words around to try to relate more to cryptocurrency but I think some of his thinking is still relevant.
Keep all your eggs in one basket, but watch that basket closely. That is don't over diversify sometimes its better to just concentrate on a few projects and watch it very close.
In a volatile market, patience is key. Hold steady and wait.
Be fearful when others are greedy, and greedy when others are fearful. This is self explanatory, as they say here on crypto, bear markets are where fortunes are made.
Investing is laying out money now to get more money back in the future.
Never invest in a project you cannot understand or use; know what you are getting into.
I don't look to jump over 7-foot bars: I look around for 1-foot bars that I can step over ( I interpret this as don't try to make that 1000x instead go for consistent and proven coins that can be easily understood )
If a project does well, the asset will eventually follows.
For some reason people take their cues from price action rather than from values. Price is what you pay. Value is what you get.
In the short run, the market is a voting machine. In the long run, it's a weighing machine. ( this is why on the short run a token can get pump from sheer marketing/popularity but eventually the value of its utility will come into play, I know I know, shibu and what not; for the most part I think this still holds true )
The most common cause of low prices is pessimism. We want to purchase in such an environment, not because we like pessimism, but because we like the prices it produces. It's optimism that is the enemy of the rational buyer. None of this means, however, that a token is an intelligent purchase simply because it is unpopular; a contrarian approach is just as foolish as a follow-the-crowd strategy.
Risk comes from not knowing what you're doing.
It is better to be approximately right than precisely wrong.
All there is to investing is picking good projects at good times and staying with them as long as they remain good projects.
Wide diversification is only required when investors do not understand what they are doing. ( this is actually very true in crypto, don't over extend on too many projects, instead pick a few and study it hard )
You do things when the opportunities come along. I've had periods in my life when I've had a bundle of ideas come along, and I've had long dry spells. If I get an idea next week, I'll do something. If not, I won't do a damn thing. ( I bold the last part, sometimes doing nothing is best)
What we learn from history is that people don’t learn from history.
You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right.
You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ. ( being smart is not everything its diligence, patience, and following through, and all the above)
You should invest in a project that run by as much decentralization as possible, because someday a fool will.
Diversification may preserve wealth, but concentration builds wealth. ( similar to pt 1 doesn't spread yourself too thin; instead pick a few projects and study it hard )
TLDR: being smart is not everything its diligence, patience, and following through, and the above.
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