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Yesterday I met someone who sought my help to review her crypto portfolio.Her portfolio consisted only of 100% high risk assets (obscure &amp; outside Top 100) and they are down -80%.This is very common for a crypto beginner starting out. Your capital is small and you are in a rush hence you try to spot alpha and take high risk bets. You hope that with enough 100x wins, you can quickly achieve your financial goal and then start reducing risk after that.Unfortunately, the road to success in crypto is actually quite the opposite.Crypto is already high risk so your goal should be to reduce risks as much as possible and every risk you take is a calculated risk.At the present mindset, even when you achieve your first 100x, there is a high probability your mind will lull you into thinking you can score 100x easily. This is not abundance mindset at play but a trap that will lead you into a cycle of taking unnecessary high risks. And that’s why this strategy is dangerous and has the reverse effect in helping you achieve your financial goals.<h3>Additional IRL Observations</h3>When you hear people say they place 10 bets in hopes of 1 bet doing a 50x, pay attention to how they do it also. Usually, the 10 bets only constitute 1~10% of their portfolio. This means even when all 10 bets go to zero, it does not decimate their entire wealth.The people who genuinely do well in crypto hedge their bets. Some do get lucky, but statistics have shown those who get lucky in the casino lose all their money in the long run because the mindset is wrong.At no point am I saying you cannot make high risk bets. But when you do, it should not be more than 10% of your crypto wealth. This approach helps you maintain emotional stability, even during extreme volatility or market downturns. Because when a bet goes down -90% but only represents 10% of your crypto portfolio, the emotional impact is manageable. Conversely, if that 10% achieves a 100x return, the joy is still immense. This way, you minimize the pain of losses while enjoying the potential upside of crypto.Only 1% of people experience this and you should start being one too.

Beginner Mistakes

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As you trek along your own crypto journey, it's crucial to be mindful of the hype that often surround these new technologies. Since 2017, I’ve seen several buzzwords come and go from ICOs to DAOs, DeFi to NFTs. Whatever comes next (maybe dePIN or RWA), remember this is just an enormous learning curve that we are all a part of. And we are all learning at the same time. Be wary of those who claim to know everything. In a rapidly evolving field like crypto, it's impossible for anyone to have all the answers. Many are just putting on a brave face, pretending to know more than they do. Genuine experts, those who have deep knowledge and direct experience in the field, are few and far between. So, learn to distinguish the noise from the real deal, identify these true experts, and patiently learn from them. Here are some people I follow regularly on X (Twitter):- <a data-mce-href="https://x.com/ErikVoorhees" href="https://x.com/ErikVoorhees" target="_blank" rel="noopener">Eric Voorhees</a>&nbsp; - <a data-mce-href="https://x.com/CryptoHayes" href="https://x.com/CryptoHayes">Arthur Hayes</a> - <a data-mce-href="https://x.com/tayvano_" href="https://x.com/tayvano_">Taylor Monahan</a> - <a data-mce-href="https://x.com/DoveyWan" href="https://x.com/DoveyWan">Dovey Wan</a> - <a data-mce-href="https://x.com/balajis" href="https://x.com/balajis">Balajis Srinivasan</a>Pro-Tip: Do not put any of the people above on a pedestal. Learn to think independently and form your own thoughts and conclusions.&nbsp; It's perfectly okay not to understand everything right off the bat. The important thing is to keep learning, keep exploring, and most importantly, keep experimenting. Remember, there are no shortcuts in gaining knowledge. We learn by doing, by experimenting, by making mistakes, and by learning from those mistakes. The crypto space is no different. Don't be afraid to get your hands dirty and to dive in headfirst. It's all part of the process. In conclusion, here are three pieces of advice I often give myself. 1. Be patient and kind to yourself. The crypto space can be overwhelming, but remember, you're learning at your own pace. Take in what you can, and don't stress about what you can't. 2. Be brave and experiment yourself. The only way to gain true understanding is through direct experience. So, don't be afraid to dive in and to learn through trial and error. 3. Teach only from direct experience. If you have learned something valuable through your own experiments, share it with others. But remember, speak only from your own direct experience. That's the only way to ensure that what you're sharing is authentic and valuable. The journey into the crypto world can be a wild ride, but remember, we're all on this ride together. So, buckle up, keep an open mind, and most importantly, keep learning.

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Beginner Mistakes

Learning Crypto