I. Never invest more than you can afford to lose (temporarily or permanently), if worst comes to worst:
This isn’t to say that every type of crypto you invest in is inherently risky, but hindsight is 20–20, and even the most experienced of crypto investors won’t be right about a project 100% of the time.
It’s always a good idea to manage your risk by only investing money you can afford to lose at least temporarily, and never being in a position where you’re relying on making significant returns in the short term, and diversifying your investments across low risk and high risk options. If you struggle with gambling tendencies or addiction, you should stay away from crypto!
II. Never follow hype or FOMO—Be afraid when the market is greedy, and greedy when the market is afraid:
The crypto world is filled with a specific class of investor known as crypto bros. Crypto Bros come in all shapes and sizes. While some of them are seasoned, mature investors, many of them are notoriously get-rich-quick man childs with an overabundance of confidence and an under-abundance of common sense.
Don’t follow their FOMO and hype about meme coins. They’re all bound to get wrecked in the end, but you don’t have to. Instead, follow projects based on their longterm utility. For example, a cryptocurrency that represents some revolutionary startup making a difference in crypto, or one that’s bringing blockchain decentralization to some existing industry, will always be a better bet longterm than some arbitrary meme coin that’s exclusively popular due to hype (such as DOGE).
III. Take your initial profits, and DCA (dollar cost average) into and out of projects:
NEVER buy the tops, especially when shill-happy crypto influencers are telling you to buy. This matters most for short to midterm investing strategies, and somewhat less for long term HODLers. But regardless, investing in what influencers promote without doing your due diligence will almost always be a recipe for a disaster, since influencers are known to promote projects that don’t last—if not outright scams or ponzis.
So if you’re hearing about an up and coming crypto project from a celebrity influencer on YouTube, TikTok, or Instagram, you’re 100% already too late to the project — Even if it’s a legitimate project (which it probably isn’t, given that the founders are resorting to influencer marketing).
Similarly, if you see a brand new token on Coinbase or some other central exchange that’s rapidly appreciating , don’t invest in it. Instead, position yourself to learn about these up and coming projects before they become mainstream enough to reach CoinBase by investing in your own crypto education first.
IV. Do your own research—Even if you’re referred to an investment by someone you trust, always check out the project yourself to confirm that it’s legit:
The CryptoFemme Community offers a variety of free resources, trainings, and blueprints to help you with this. We also have an invite-only paid program known as the CryptoFemme Collective, where we offer dedicated mentorship and education that covers going from zero to heroine in the wide world of web3 and crypto.
For the casually crypto-curious, CoinMarketCap and CoinGecko are great places to research all things crypto, from wallets to exchanges, and tokens to blockchains!
V. Privacy and security come first—Always use a VPN, 2FA, and password manager:
Hacking is surprisingly uncommon in crypto, but scams (especially phishing scams) are everywhere. To protect yourself and mitigate 99% of the risk, it’s highly recommended that you get into the habit of using a VPN, 2FA app, and password manager. We recommend the best free and paid ones to use in the CryptoFemme Community. We also share how to recognize and avoid the top ten most common crypto scams with our paying CryptoFemme Collective students.
VI. “Not Your Keys, Not Your Crypto”, Custodial vs. Non-custodial Crypto—Know the difference and manage accordingly:
This concept is known as self-sovereignty, which occurs when you have full-custody of your crypto in a non-custodial cold (hardware) or hot (software) wallet, as opposed to a central exchange (e.g. Coinbase) or a custodial wallet (e.g. Coinbase Wallet).
We’re writing a whole beginner’s guide to wallets in the coming weeks, but for now just know that you never truly own your crypto unless you also control the keys to your crypto, which you will when you create your very own Metamask wallet (as shown in the Community).
It’s okay to keep crypto on central exchanges in the short term, but when you do it longterm you open yourself up to the risk of potentially losing your crypto, if and when the platform goes under. In the past year we’ve seen this from centralized platforms such as Voyager, Celsius, Genesis/Gemini, and FTX. We don’t often see this from decentralized platforms, and we never see this from non-custodial crypto wallets. This is a perk of decentralization and p2p trust-less financial technology, which are very technical concepts that we’ve made fun and super easy to learn about in the invite-only CryptoFemme Collective!
VII. Being an expert in one sub-niche of crypto is better than being a generalist:
A generalist is a fancy term which, as used here, refers to someone who is rarely successful in crypto, but happens to know a little bit about a lot of things in crypto. While it’s always a good idea to diversify your investments, that doesn’t mean you have to be an expert in the many subniches of crypto (e.g. NFTs, gaming, metaverse, DeFi, privacy, IPOs, DAOs, etc.) For example, even medical doctors specialize in specific areas; when you’re an expert in one dialed down area, you’ll find exponentially more success than if you know a little about a lot of things.
In the CryptoFemme Community we offer free resources and trainings on the many sub-niches or ‘realms’ of crypto, as well as some of the best ways of making passive income in crypto.
VIII. Know your risk tolerance and investing goals before you start investing:
This will put you in a position to find investments that work for you and your goals. For example, are you trying to put yourself in a position to retire in twenty years, or are you trying to create passive income in the next few years?
Also, what is your risk tolerance — Do you have a significant amount of disposable income to test and play with, or do you live paycheck to paycheck and are more-so looking to invest in low risk/longterm plays?
Lastly, have you already picked out a sub-niche in crypto that especially interests you (e.g. NFTs, gaming, metaverse, DeFi, privacy,IPOs, DAOs, etc.)? Knowing these things will go a long way toward helping you get started right in crypto — Come join the conversation and share what you’ve discovered about your goals in the CryptoFemme Community!
IX. Know what market cycle you’re in, and invest accordingly:
What 99% of beginners fail to fully understand is that crypto is seasonal — much more so than the stock market, and like night and day compared to real estate investing.
This is partly because crypto and blockchain innovation represent such new and emerging technologies that aren’t even close to reaching full mainstream adoption (e.g. the way the internet has), and partly because there is a supply/demand pendulum effect in crypto that’s driven by a handful of factors, including blockchain halving cycles (which we also breakdown in easy to understand terms in the private CryptoFemme Collective).
X. If it’s too good to be true, it probably is:
This should go without saying, but due to Crypto Bro-driven hype…If you find some investment or staking opportunity that’s GUARANTEEING some ridiculously high APR or APY, stay away.
Chances are there will be other telltale signs not soeasily discernible to beginner investors, so if you find something that you’re unsure about, share it with the community and we’ll set you straight!