17 Tips for Cryptocurrency Investors

This article was published on March 26, 2018, on Chain News, with the original title "17 Guidelines for the Crypto World! Not Investment Advice, but Can Enrich Your Financial Life."
Cryptocurrency exists in a cold, indifferent world. Computers coolly exchange fragments of information. Programmers mechanically write endless lines of software code.

There is no place for feelings and emotions here, right?

Wrong! The crypto world is ultimately disruptive. It will not only shake the foundations of our external world, such as work and play, but also upend the inner worlds of each of us. Stepping into this new future of the crypto world can leave one emotionally disoriented, upside down, and unable to distinguish right from wrong. The old rules no longer apply. Such a transformation can be painfully overwhelming.

In physics, there is a concept called "event horizon," which refers to the area surrounding a black hole, characterized by two important features:

First, anything within the boundary of the event horizon will be completely absorbed by the black hole, including light. The event horizon is a point of no return.

Second, within this point of no return, the rules of physics no longer apply. The laws we take for granted will behave unexpectedly, such as the laws of gravity and energy.

For us, the crypto world is currently an event horizon.

Everything is being sucked in, and the old rules no longer apply. However, this is not a black hole in space, but rather a human-made phenomenon—this is the "crypto black hole."

Event Horizon: Not just like a bad horror movie from the 90s

Being sucked into the crypto black hole is a fundamental experience. In fact, the crypto world has even created a term: "falling down the rabbit hole." Just like Alice in Wonderland, once you embark on this journey, take the red pill, and pass through the looking glass, everything you see will be different.

The famous science fiction writer William Gibson once said, "The future is already here—it's just not very evenly distributed."

And I believe the crypto black hole already exists; it just hasn't sucked everyone in yet. Not yet.

To adapt to this ever-changing global landscape, you must grasp your inner world. Let’s call it the "inner game of crypto."

This journey is daunting, exhilarating, and overwhelming all at once. During the process of falling down the rabbit hole, I hope to have a paper bag to alleviate the hyperventilation caused by anxiety. I hope this article can serve as that paper bag; when you feel overwhelmed, take a moment to look back at this piece and calm down.

Gandhi said, "Be the change you wish to see in the world," so quickly become that paper bag that alleviates tension.

Now I will gently recite the mantra that all crypto thought leaders must include: The following content is not investment advice. These are just 17 guidelines for navigating the crypto world.

1 The process of falling down the rabbit hole is like an emotional rollercoaster!

You will experience many ups and downs. There will be crashes followed by breakthroughs. It’s important to realize this now; it will help you maintain sound judgment and a clear mind.

This process looks like the image above:

This is the best idea ever! ? It’s definitely going to be interesting! ? It’s harder than I imagined ? It’s going to take a lot of work ? Oh no, I don’t know what I’m doing ? #`!\&$! ? It’s okay, but still pretty miserable ? Let’s just call it a lesson learned ? Hmm… ? Hey ? Wow!

You will spend a lot of time in the green "despairing dark swamp" in the image above, and what will truly help you are faith and perseverance, along with family and a sense of humor.

2 You won't understand anything the first time you read it…

The crypto space is extremely complex, and I usually have to read sentences and articles more than five times. Once you have an epiphany about a concept, it creates a ripple effect, and other content you read months ago starts to make sense. It’s okay not to understand things the first time you read them. This is part of the entire journey.

"I can admit without shame that I recently realized that blockchain is… a chain made up of blocks."

3 Feel free to think you’re stupid—this is a superpower!

Everyone feels that this world is dissonant and confusing. The quicker you accept uncertainty and ignorance, the faster you will learn.

And the more you learn, the more you will realize how ignorant you are.

If this applies to that person, it certainly applies to us.

"The more I learn, the more I realize how much I don't know." — Albert Einstein

You will make mistakes often, so try to remain intellectually humble. The crypto wonderland will always make you feel small.

4 Approach the "chaotic" and "ambiguous" concepts you don’t understand

Many concepts in crypto are chaotic and ambiguous. What does this mean? Tim Urban explains:

"We all know what chaos looks like. It’s vague, hard to understand, and you’re unsure when you’ll start to understand or when you’ll find answers to your questions."

Additionally:

"I look for those unclear points… When someone mentions a term, my brain gets a bit sluggish, thinking 'Oh no, not this annoying term again, go away,' and 'The adults are talking about adult things again, and I’m only seven, I can’t understand what they’re saying.' Then I go look at those hazy materials. But dispelling the surface fog often reveals that what’s underneath is even more unclear. Then I go study those new fogs, often encountering deeper confusion again. My perfectionism kicks in, and I end up falling down the rabbit hole until I hit the ground."

Some of my personal chaotic terms: blockchain, Bitcoin, cryptography, ledger, mining, hashing, and currency… Damn. These are all fundamental and important terms.

It’s easy to give up, and many people do. Instead, try to delve into those chaotic and foggy areas, breaking down various concepts until you can understand them. Do what others are unwilling to do.

5 Diligently protect your most valuable resources—time and attention

Many people in the crypto wonderland will tell you that your most precious resource is the cryptocurrency you buy. This is completely wrong! Your most valuable resources are your time and attention, and they are attacked more frequently than any cryptocurrency you hold.

Security is an important factor. But the most dangerous attacks are not aimed at your private keys, but at your mind.

Major sources of information, such as Reddit, Telegram, Slack, Twitter, etc., are filled with chaos. Novelty and distractions will bombard you from all sides.

Ignorance, false expertise, hidden motives, and even outright scams are not exceptions; they are the norm.

Therefore, be very cautious about the information you accept. I still have many issues in this regard, but recognizing the problem is the first step. Some resources will be recommended later.

Of course, you should also take appropriate precautions to protect your crypto assets.

6 The Emperor's New Clothes: Everyone is actually clueless

If someone claims to fully understand crypto, they are either bragging or trying to sell you something. Usually, it’s both. We will gradually figure it out.

Here’s a simple illustration of the disciplines involved in the crypto wonderland:

The blockchain spectrum drawn by Unchained Capital

Few people are proficient in one area, let alone multiple areas. No one is born into the crypto world.

So overcome your impostor syndrome, because we are all impostors.

7 Don’t be fooled by those hiding behind jargon

In the crypto wonderland, people often use jargon to appear smart. We are at the intersection of economics, investment, law, computer science, and many other fields. You won’t find a field on the internet with more jargon than this one.

Don’t be deceived. Using jargon doesn’t mean mastery. Being able to explain complex concepts in simple terms is what mastery is about. In summary:

Explaining simple concepts in a complex way is the hallmark of a charlatan.

8 Entering the crypto space is like binge-watching a series: it’s never too late to start

You might feel like you’re too late to the game and that there’s no hope. Bitcoin has risen 30 times in the past two years. You think the opportunity has passed.

It hasn’t. Only a tiny fraction of the world owns cryptocurrency. We are still in a relatively early stage.

The "big shots" in this field have risen in just a few months, and you can become one of them.

The biggest problems in this field, such as education, user interface/user experience, and reliability analysis, remain unsolved, and you can help address these issues.

Diverse voices, backgrounds, and experiences have yet to be conveyed, and your perspective is crucial.

9 Find unique and valuable resources

In "Zero to One," Peter Thiel asks, "What secret do you believe to be true that no one else believes?"

In the crypto wonderland, you can ask: "What valuable resources are invisible to others?"

The best resources are "long-term" knowledge, not "perishable" knowledge.

Daily price fluctuations of Bitcoin are an example of "perishable" knowledge. Anyone can access it instantly, but after two days, it’s worthless to you, let alone two years later.

Long-term knowledge comes from primary sources: white papers, various books, Canonical's blog posts, and practical applications. It’s just too difficult, and most people are too lazy to put in the effort.

So, the next time you have 30 minutes of free time, consider looking at primary sources instead of browsing Twitter content about cryptocurrency trading.

If you only follow the crowd in what you read, you won’t have unique insights.

10 You will feel overwhelmed… stop, take a deep breath, and focus…

At some point, you will feel overwhelmed, as if there’s an endless amount of information to consume, and everyone seems to know more than you, leaving you far behind.

As mentioned earlier, this is a good sign; it indicates that you are truly beginning to understand.

Remember, everyone is experiencing this process. Stay sane while others lose their minds. Stay focused. Within this chaos lies opportunity.

In the crypto wonderland, you can learn anything, but not everything.

A story I recently heard illustrates this point:

A wanderer got lost in the desert for weeks and was parched, so he started digging a well for water. He dug one foot deep and felt defeated, thinking that digging nearby might yield better luck. So he abandoned the original well and started digging again. After digging one foot, he lost hope again and moved to a new spot. He repeated this 10 times, digging 10 holes. In the end, he died of thirst. He didn’t know that 10 feet underground was a plentiful water source. If he had persisted and dug one hole down to 10 feet instead of digging 10 one-foot holes, he would have been saved. Don’t be distracted by the latest flashy concepts. Dig deeper into the holes you are exploring.

11 Have your own ideas, but be ready to adjust

Balance extraordinary optimism with brutal skepticism. If you can maintain this cognitive dissonance, you will adapt very well to the crypto wonderland.

We are in a new paradigm, and much of what surrounds us is completely unfamiliar.

Borrowing a Silicon Valley mantra: Be bold in your views, but hold them loosely.

12 Spread knowledge like open-source code:

Teaching is the best way to learn and grow, and it’s also the best way to increase personal net worth.

The entire crypto revolution is based on the idea that open, decentralized systems are superior to closed, centralized ones.

Web browsers defeated AOL, Wikipedia beat Microsoft’s Encarta, and Linux triumphed over IBM.

Open systems demonstrate that transparency and sharing greatly impact most people. Make yourself an open source and share what you learn.

Morally, it’s good to help others learn; you may have benefited from others’ help as well.

Moreover: Teaching others is also the best way to grasp a concept yourself.

Even better: Money is a "shared belief." The paper or bytes we call "money" have no inherent value. They have value because many people believe so. If you help spread this shared belief, this innovation will create more value for early adopters like you.

13 "Normal" friends will think you’re crazy until you prove yourself

Embrace this and see it as an opportunity for dissemination.

Talking about crypto with friends is like this.

14 Communities are everywhere; don’t label yourself

The crypto wonderland is not dominated by one group of people, nor is it a unified tribe of ten. It is fragmented, and different tribes often fight with each other.

Tribal infighting in the crypto space is no different from any rogue behavior; it’s not much different from politics, sports, or religion.

Of course, you can join any tribe you like. However, a better strategy is not to categorize yourself into a specific type. Every tribe has something for you to learn. Learning is not a zero-sum game.

So try to familiarize yourself with those acronyms (FUD, HODL, BTFD), popular concepts, gifs, trolls, Reddit, snark, and other forms of social currency from these tribes.

15 From trusting no one to learning to trust: find your mentor

There’s a frustrating popular saying in the crypto world: "Trust no one." This is wrong. Indeed, you can’t trust everyone. You can’t just trust anyone you meet. But you have to trust some people.

Find yourself a mentor, a guide who has gone ahead of you on this journey, and it’s okay to ask stupid questions.

Also, start providing guidance to others as soon as possible. You’ll be surprised to find that you are incredibly valuable to newcomers in this field (nicknamed: noobs).

This revolution stands on the shoulders of giants, and so does our personal knowledge.

16 Most importantly, incentives matter

Whether you are analyzing a line of code, a white paper, or someone’s Twitter content, always remember:

Incentives. Are. The most important.

Crypto is decentralized. Successful projects are driven by appropriate incentives, not the results of centralized planning.

At the personnel level, incentives are equally important.

When listening to someone present their views or suggestions, consider asking them why they are making those statements. Not everyone is a fraud, but remember, people can be self-serving.

17 Try more, enjoy getting lost in it

The last and most important rule. The best way to learn quickly is through practical application. Use Bitcoin to buy something. Stumble through using decentralized applications. Try it out yourself. You might feel chaotic, but it’s like the difference between reading about basketball and actually playing the game.

Of course, have fun. You can only experience the process of falling down the rabbit hole once.

Now, let’s reiterate the 17 guidelines for navigating the crypto world:

1. The process of falling down the rabbit hole is like an emotional rollercoaster!
2. You won't understand anything the first time you read it…
3. Feel free to think you’re stupid—this is a superpower.
4. Approach the "chaotic" and "ambiguous" concepts you don’t understand.
5. Diligently protect your most valuable resources—time and attention.
6. The Emperor's New Clothes: Everyone is actually clueless.
7. Don’t be fooled by those hiding behind jargon.
8. Entering the crypto space is like binge-watching a series: it’s never too late to start.
9. Find unique and valuable resources.
10. You will feel overwhelmed… stop, take a deep breath, and focus…
11. Have your own ideas, but be ready to adjust.
12. Spread knowledge like open-source code: teaching is the best way to learn and grow (and also the best way to increase personal net worth).
13. "Normal" friends will think you’re crazy until you prove yourself.
14. Communities are everywhere; don’t label yourself.
15. From trusting no one to learning to trust: find your mentor.
16. Most importantly, incentives matter.
17. Try more, enjoy getting lost in it.