I recently heard someone mention that crypto is likely the only true remaining market with no compliance and government interference. What they alluded to are things like circuit breakers implemented in stock markets. All in an attempt to control the so-call animal spirit and reduce the chances of extreme market crashes.

The above among other things are what are called investor protection mechanisms as if anyone can truly protect you from risk.

A good case in point is crypto, where no matter how bad things get e.g., the March 2020 crash and every bear market since its inception — no one can save you from the outcome. So how the pros have survived and made money in this space, one may wonder. Here are a few pointers to help you in your journey as an investor in this space.

How You Behave Money, investing, and building wealth have very little to do with IQ. A lot of it comes down to your own character. How you behave during moments of extreme panic, stress, or greed, will determine how much you get to make or lose.

To simplify it, you can look at it in two ways, getting money vs keeping it. Almost everyone knows the basics of getting money, i.e., looking for a job, putting yourself out there, and trying to take advantage of any opportunity to make money. This process is often risky in a variety of ways. In the job search, for instance, you will deal with a lot of rejection before you secure a role.

While opportunities to increase the size of your money e.g., investing requires you to risk the money you already have. Keeping what you have made is the very opposite, it requires you to mitigate risk and manage your greed. Always keep in mind that the market is not your friend, it can take away what it gave.

Managing Emotions All life has an element of luck and risk, and so does crypto. You will miss out on stunning opportunities as I have, but you will also get others. One thing I have learned over the years being involved in crypto is that bear markets can be brutal while bull runs can be euphoric.

During this period, it’s not what you missed out on or got lucky in that matters, it’s how you handle the situation. Bull runs are the worst time to invest in anything, and crypto is no exception, yet every cycle brings with its thousands of people or more at those times.

If you entered during those periods and failed to lock in your success, then you will experience a different set of emotions as what was gained now turn into losses during the bear market. I have been there, and it’s one of the most painful experiences you will ever feel.

Hold your emotions in check and ask yourself why you got into it in the first place. Make your decisions accordingly; if need be, talk to someone from an outsider’s perspective.

Don’t Move the Goalpost Building wealth is tough and takes time. Crypto, however, can catapult you into sums that you only dreamed about in the past. My advice, be realistic, decide on your goal early enough and stick to it.

You should know when you have made a tidy sum that is worth taking some off the table. Wanting more often during bull markets can be the downfall of even the best investors. The recent story of 3AC should be a warning to all of us.

Savings are a Big Deal If you are early in this journey, simple habits like savings are a big deal. It’s how you make enough to be able to take risks that then compound into serious money. Make savings a part of your paycheck, similar to paying rent, remember to pay yourself.

The Margin of Safety — Leave Room for Mistakes Investing is a game of probabilities with different risk structures. Say, you have $5,000 dollars and that is all you have. Is it advisable to put all of that into crypto? The answer is easy, no. Things can get slightly more complex based on your individual situation, a simple example is what if you are young, less than 25, and can afford to play a riskier game.

These two scenarios highlight how investing, whether in crypto or otherwise requires you to leave room for mistakes. Nothing is ever truly easy.