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Building Confidence in Blockchain: Investing in Cryptocurrency and a Decentralized Future
261 pages, Kindle Edition
Published July 28, 2020
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January 22, 2022
Some question for reflecting after reading:
- Why is blockchain valuable?
- How does blockchain work?
- How should I invest in cryptocurrency and a decentralized future?
- Why should you care?
What is a ledger?
- Ledger is a living record of financial transactions.
What is blockchain?
- Blockchain is a decentralized ledger of transactions, accounts, and data secured by a decentralized ownership of the ledger.
- Cryptocurrency is the medium of exchange, and it incentivizes those who maintain the ledger.
- Transactions are recorded into blocks. When a block is created, the hash of the previous page of data is stamped onto that new block.
The most difficult investment decision you will have to make is running against the herd.
Investment journal should consist:
- The date of buying/selling
- The asset
- Why you are invested?
- How much you own?
- Target sell price/buy price.
- Any news & developments?
“**House money effect**”: if you are profit, you are more likely to take risks at a disproportionate rate than when you are not in the green.
- For me when I receive Chihuahua airdrop, I thought I would stake forever and run a node from the airdrop. But rationally, I have to cash out and rebalance my portfolio since the airdrop worth 1/3 of by current portfolio.
“**Financial discipline**” means being able to walk away from the charts if you have the impulse to immediately buy or sell sth. If your gut instinct is telling you to make a decision right this moment, this should give you immediate pause.
- Today (22/01/22) I had a strong feeling to cashout in the market crash. But after all I decided to stick to my plan, purchase tokens on my wishlist as a reasonable price.
- If you still want to make the impulse purchase, wait at least 24hr before doing it.
- Trust your analysis and plan, don’t trust sudden inspirations.
- “Know what you own, and know why you own it. Knowing why own sth cannot be repeated enough. Do your homework before deciding.” Peter Lynch.
- Warren Buffet “ Only buy something that you’d be perfectly happy to hold if the market shut down for ten years.”
**Discipline** in investing:
- Refusing to “chase” gains (All these OHM fork and high yield farming projects)
- Rebalancing portfolio if it change too much (example 5-10%) from your strategy. (ex: 30% cash. 10% bond, 30% stocks, 30% crypto)
- For my case is Huahua airdrop which quickly become 30% of my portfolio.
- Stick to your money allocation plan. (no impulse purchases)
-
Re-evaluate the tokens you hold after a while:
- Have the fundamentals of the asset changed? For example layer 1 blockchain like NEAR, like if there are new dapps that trigger the grow of NEAR. Like recently more venture came to NEAR, launch of sharding and shilling from market maker (Taschalab, suzhu).
Diversify a portfolio to include a high risk/high return asset class as a small percent of the portfolio’s composition.
Enter strategy:
- Dollar cost average.
- Value average.
How to analyse a Blockchain:
- Fundamentals:
- What is its use case? (I focus mainly on layer 1, interoperability)
- Its price compare to other similar projects. (Transactions, marketcap, TVL, users, community, backers, dapps built on top of it)
- Is the team (Dev) communicate with the community or they let a community manager communicate (bad - sifchain).
- Project complexity: on going research (immature technology) like ADA, which focus on research/marketing rather than the adoption of the platform by users and dev.
- I think at this point Juno make a good sense.
- TEAM, are they good enough?. “A company is only as good as its people. The hard part is actually building the team that will embody your company culture and prople you forward.” - Kathryn Minshew
- Community? Discord, telegram, twitter, shiller on twitter? I can see AVAX, FTM, LUNA and also from Atom, secret.
- Is the storyline from the blockchain convince enough for people to understand and inspired by?
“Money is just sth you need in case you do not die tomorrow. Let this be a reminder for you not to obsess over profits and losses. In whatever you do, strive for enjoyment, focus, contentment, humility, openness.”
Some question for reflecting after reading:
- Why is blockchain valuable?
- How does blockchain work?
- How should I invest in cryptocurrency and a decentralized future?
- Why should you care?
What is a ledger?
- Ledger is a living record of financial transactions.
What is blockchain?
- Blockchain is a decentralized ledger of transactions, accounts, and data secured by a decentralized ownership of the ledger.
- Cryptocurrency is the medium of exchange, and it incentivizes those who maintain the ledger.
- Transactions are recorded into blocks. When a block is created, the hash of the previous page of data is stamped onto that new block.
The most difficult investment decision you will have to make is running against the herd.
Investment journal should consist:
- The date of buying/selling
- The asset
- Why you are invested?
- How much you own?
- Target sell price/buy price.
- Any news & developments?
“**House money effect**”: if you are profit, you are more likely to take risks at a disproportionate rate than when you are not in the green.
- For me when I receive Chihuahua airdrop, I thought I would stake forever and run a node from the airdrop. But rationally, I have to cash out and rebalance my portfolio since the airdrop worth 1/3 of by current portfolio.
“**Financial discipline**” means being able to walk away from the charts if you have the impulse to immediately buy or sell sth. If your gut instinct is telling you to make a decision right this moment, this should give you immediate pause.
- Today (22/01/22) I had a strong feeling to cashout in the market crash. But after all I decided to stick to my plan, purchase tokens on my wishlist as a reasonable price.
- If you still want to make the impulse purchase, wait at least 24hr before doing it.
- Trust your analysis and plan, don’t trust sudden inspirations.
- “Know what you own, and know why you own it. Knowing why own sth cannot be repeated enough. Do your homework before deciding.” Peter Lynch.
- Warren Buffet “ Only buy something that you’d be perfectly happy to hold if the market shut down for ten years.”
**Discipline** in investing:
- Refusing to “chase” gains (All these OHM fork and high yield farming projects)
- Rebalancing portfolio if it change too much (example 5-10%) from your strategy. (ex: 30% cash. 10% bond, 30% stocks, 30% crypto)
- For my case is Huahua airdrop which quickly become 30% of my portfolio.
- Stick to your money allocation plan. (no impulse purchases)
-
Re-evaluate the tokens you hold after a while:
- Have the fundamentals of the asset changed? For example layer 1 blockchain like NEAR, like if there are new dapps that trigger the grow of NEAR. Like recently more venture came to NEAR, launch of sharding and shilling from market maker (Taschalab, suzhu).
Diversify a portfolio to include a high risk/high return asset class as a small percent of the portfolio’s composition.
Enter strategy:
- Dollar cost average.
- Value average.
How to analyse a Blockchain:
- Fundamentals:
- What is its use case? (I focus mainly on layer 1, interoperability)
- Its price compare to other similar projects. (Transactions, marketcap, TVL, users, community, backers, dapps built on top of it)
- Is the team (Dev) communicate with the community or they let a community manager communicate (bad - sifchain).
- Project complexity: on going research (immature technology) like ADA, which focus on research/marketing rather than the adoption of the platform by users and dev.
- I think at this point Juno make a good sense.
- TEAM, are they good enough?. “A company is only as good as its people. The hard part is actually building the team that will embody your company culture and prople you forward.” - Kathryn Minshew
- Community? Discord, telegram, twitter, shiller on twitter? I can see AVAX, FTM, LUNA and also from Atom, secret.
- Is the storyline from the blockchain convince enough for people to understand and inspired by?
“Money is just sth you need in case you do not die tomorrow. Let this be a reminder for you not to obsess over profits and losses. In whatever you do, strive for enjoyment, focus, contentment, humility, openness.”
August 15, 2020
Cryptocurrency might just be the way of the future. The author does a wonderful job of detailing this technology in a way that is easily accessible and relatable to the reader. His passion for the topic is evident throughout the book, and I can't wait for more and more people to hear his message!
August 5, 2020
Equal parts informative and thought-provoking
This book does a fantastic job making a statement regarding Blockchain. Must read for anyone who has ever had interest in the subject.
This book does a fantastic job making a statement regarding Blockchain. Must read for anyone who has ever had interest in the subject.
Displaying 1 - 3 of 3 reviews