My seven crypto investment theses
I have been (at least part-time) in crypto since 2014 and made over 100x return on BTC alone. Today I hold a relatively diverse portfolio including NFTs, DeFi, social tokens, and more.
Recently I have reflected on the biggest lessons I’ve learnt by investing in crypto to date. I’ve come up with my 7 Theses — which are also my guiding values when making decisions. I’m a builder at heart so I think it’s heavily coloured by that. Read on and tell me what you think -
- Be aligned on the vision. Only invest or get involved in projects you would want to see succeed even if there was no financial upside for you. Only invest or get involved in projects you are genuinely excited about.
- Play the long game. Think about how things will play out with a 5–10 year time horizon. Year-on-year performance trumps week-on-week.
- Less is more. Hold and be involved in a few key projects you strongly believe in. Never invest, hold, or get involved ‘just in case’.
- Get in early. For the bets that have not gone mainstream yet, the upside can be an order of magnitude higher. One such bet can yield more than 10x or 100x of ‘safe and late’ bets.
- Size correctly. A new position should be 2–5% of your portfolio. Anything less is not worth the mental bandwidth, anything more is too risky, no matter how much of a ‘sure thing’ it is. Exceptions may occur when eg. a smaller position is used to gain access to a community.
- Add value. Do whatever possible to help the projects you are exposed to be successful. It’s much less risky to have a lot of eggs in the same basket as long as you control what happens to that basket.
- Never fomo. Fear of missing out is never a good reason to invest. Whenever you feel pressured to make a buy, it’s usually a good sign of fomo being the driving factor in decision-making. Wait it out.
That’s it! Simple. What do you think and what theses do you follow when getting involved in this space?
These theses were first published on my ➡️ twitter account 🐦. Follow me on twitter to get my daily takes on crypto, NFTs, web 3.0 and more. #nfa
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