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RE: Crypto & Cardio #8 - Three Poker principles for investing in Cryptocurrencies

in #dlive6 years ago (edited)

Your list is good. I would add the following:

  1. Don't gamble/invest more than you can afford to lose. I've always been a recreational poker player with a job, so I've never relied on my poker winnings to support myself or my family. Losing is not fun, but if I lose, my family's standard of living is not affected one iota. When I've play in Las Vegas, I often play with young men and women who are trying to make a living at poker. When they suffer the inevitable bad beat, it often puts them on tilt, causing them to lose their composure and compound the loss by playing an undisciplined game. Sometimes in their determination to get revenge, they go from being a disciplined player to one making the errors you noted above - i.e., playing every hand and never folding. A lot of this would be avoided if players did not play above what their bankrolls can comfortably afford. The same applies to crypto investing. If you're only investing what you can afford to lose, you're less like to panic sell quality assets during a market correction.

  2. If you're going to play to win, study and preparation is absolutely indispensable. Many people think poker is an easy way to make money, perhaps from watching TV. They fail to realize that poker has become much more sophisticated over the last couple of decades and continues to evolve. The game has attracted more players who want to pursue their dream of making a lot of money without a job, and many of those players are willing to spend A LOT of time studying poker theory, mathematics and statistics to improve their poker skills. Very sophisticated software and coaching services are also available to serious players. Unless you're willing to put in the time to even the playing field, you are highly unlikely to be successful over the long term in modern poker. There may have been a time when it was possible to invest in any crypto asset and make money, but those days are largely over. We also saw a similar dynamic during the tech bubble of the 90s - it was easy to make money in vitually any tech stock on the way up, but most companies failed after the market crashed, causing the bagholders to lose everything. Conducting proper research and knowing what you're doing will be essential for success in the coming years in the crypto market, but in my view will be richly rewarded over a sufficiently long timeframe.

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