Revisiting Making Money in Crypto by@heypran

Revisiting Making Money in Crypto

May 18th 2022 3,404 reads
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If you have not read The Richest Man in Babylon, here is a refresher of 7 key rules of making money. Invest in your skills first, the better your skills and knowledge are better you will be in getting more opportunities, be it crypto or career. Don’t put more that you can afford to loose, especially not your rent, tuition fee, loan repayments. Use two factor authentication where ever possible ( avoid SMS authentication and use authenticator if possible) Use public WIFI to check your wallets or login into exchanges.
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Pran B.

Curiosity killed the Schrodinger's cat? or did it?


If you are looking for a magic wand to make crypto money from thin air, then this post is not for you.


I am not gonna share any moon math or crypto moonshot projects. But instead I am going to share few concepts from a notable personal finance book called “The Richest Man in Bablyon” so you can apply its learning in your pursuit of generating wealth through crypto.


The book lists 7 principles for generating wealth:


  1. Start thy purse to fattening: save money.
  2. Control thy expenditures: don't spend more than you need.
  3. Make thy gold multiply: invest wisely.
  4. Guard thy treasures from loss: avoid investments that sound too good to be true.
  5. Make of thy dwelling a profitable investment: own your home.
  6. Ensure a future income: protect yourself with life insurance.
  7. Improve thy ability to earn: strive to become wiser and more knowledgeable.


Here’s how you should apply those principles when it comes to crypto

Make thy gold multiply: invest wisely.

Invest only in projects that makes sense to YOU and not only to your YouTube influencers. You cannot be making money in crypto if you are not left with money to buy the dips, DCA or invest otherwise.

Guard thy treasures from loss: avoid investments that sound too good to be true.

Don’t chase higher APY with money you can’t afford to lose. If you want to chase higher APY, do so with only 1% or 0.5% of your total portfolio.

Ensure a future income: protect yourself with life insurance.

Similar to the previous point, don’t invest your entire life savings on crypto to earn a quick buck, particularly when it comes to new and non-established tokens. Only allocate those funds to crypto that you’re comfortable living without.

Improve thy ability to earn: strive to become wiser and more knowledgeable.

Invest in yourself: the better your skillset, the better the opportunities — be it crypto or otherwise. Improve your knowledge and craft, and increase your ability to earn more.

Start thy purse to fattening: save money.

Always keep some money in reserves; you will get plenty of opportunities to DCA your way into a profitable crypto portfolio or to buy low and sell high. Over the period of time, your money will accrue faster than you can imagine.

Other general tips to safe guard your crypto portfolio

  • Diversify your portfolio, including stable coins.
  • Self custody your crypto and use hardware wallets.
  • Use two factor authentication wherever possible (avoid SMS authentication and use authenticator if possible).
  • Don’t use public WIFI to check your wallets or log in to exchanges.
  • Educate yourself about projects you’re investing in; crypto markets are dynamic so stay informed on day to day events. I generally follow and have their extension installed, they provide good and timely updates from variety of news channels.
  • Validate your influencers and tweets, do your own research about the projects you are investing in, its your money and not theirs
  • Compounding interest is your best friend and cash flow is the king



Some food for thoughts from the book-


Gold slips away from the person who invests gold into purposes through which they are not familiar.


Gold flees the person who tries to force it into impossible earnings.


Stick with the plan. Money accrues surprisingly quickly and debts are gone fast with discipline and consistency.




Thats all, Savvy?


References:

https://hackernoon.com/4-must-have-crypto-browser-extensions

https://positiveaffirmations.one/richest-man-in-babylon-summary/

https://chrome.google.com/webstore/detail/think-moon/baaaoogjikmghkiefbpggookljakdfpb





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