Former Ark Invest Crypto Lead Chris Burniske recently took to X, formerly Twitter, to offer his followers 5 tips about best practices for crypto investors to follow.
Here’s what the Placeholder partner had to say:
1) You are responsible for every investing decision you make. If you blindly follow what other people say, with no opinion or critical thinking of your own, you’re playing a fool’s game. Not only will you not hone your practice, but you’ll likely lose money in the coming yrs 🧵
— Chris Burniske (@cburniske) February 5, 2024
Take responsibility for decisions: Burniske says traders need to develop skills through both successes and failures and not blame others if things go wrong.
“You are responsible for every investing decision you make,” he says in bolded letters at the start of his thread. This ties directly into his second point.
Don’t blindly follow others: Developing your own investing practice and opinions instead of just trusting others to do the research for you is critical, according to Burniske.
He warns that “you’ll likely lose money in the coming years” by blindly following what others say.
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“All idols are false,” Burniske says, pointing to the fact that “idols” acquired their authority “not by marching in line like a lemming.”
However, many on X “approach markets too simplistically,” which leads to binary thinking and a worse success rate. Investors should remain open-minded as conditions evolve and avoid black-and-white views of complex markets.
Beware of crystal balls: Burniske puts it like this: “the less entitled you are, the more you’ll learn.”
He observed an “increasing amount of misinterpretation in my replies,” likely referring to his previous cautious price predictions for Bitcoin (BTC) in the near future, and cautions to remain open-minded in all directions.
Have a clear, defined strategy: Investors must know their investment assets, styles and timeframes.
Instead of “throwing unstructured spaghetti at the wall,” they should pick one and “refine that practice over time.”
This is both true for short-term traders and long-term investors, says Burniske.
Understand sources thoroughly: Don’t misinterpret advice due to lack of understanding roles, credentials, motivations or potential biases.
Burniske shares that he is “boring” and “cautious in a mid-cycle uptrend,” but that is due to his work for a Registered Investment Advisor, which limits what he can say.
He urges followers to consider the backgrounds of other sources they may be following for market insights.
Burniske ends on the note that he will “likely be going to dial back the market opinions” due to the “visceral reactions” he received.
The advice echoes that of crypto veteran Lark Davis, who recommended to investors to “not buy forever” and have an exit strategy.
Disclaimer: The information provided is not trading nor financial advice. Bitcoinworld.co.in holds no liability for any trading or investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any trading or investment decisions.
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Source: https://bitcoinworld.co.in/crypto-investors-follow-these-5-practices-if-you-dont-want-to-lose-money-chris-burniske/