To the recent big earners in crypto…
I'm really happy for you 🙂
If you'd like a little unsolicited advice, read a bit further.
- Don't HODL. This is life changing money you have right now. But it won't do anything sitting in a wallet. HODLing is a meme and only applies to bear markets, not bull markets. If it's only paper gains, it doesn't matter. Unless it's secured, it's meaningless. Most financial firms have made their money selling too early.
- Diversify. Crypto is great, but some projects actually are just better than others. If you like doge, check out LTC! If you want to kick it old school, maybe buy some BTC, if you want to change to medium term growth look into ETH, and if you want some long term holders, look into ALGO, ADA, DOT, etc… These later coins were all invented for a reason. They really just are better than the old coins in almost every way.
- Don't blow it. Lambos are actually kind of shitty cars, and as someone who has owned some very nice cars, I can tell you right now I had more fun out of my miata and my MR2 Spyder than I did anything else. Figure out what you want, what purpose it serves in your life, and what the upkeep and maintenance costs are. Turns out that even if you can afford to buy a lambo, that doesn't mean you can afford to maintain one.
- Don't tell you friends and family too much, and definitely don't give them money. It's tempting to brag, but mixing relationships and money is a bad idea.
- Get a financial advisor. Even if all you did was pick up a cool 100k. Get a god damn financial advisor. I can't press this point harder. We're all financial morons around here who think we're geniuses. Go to someone who knows how to manage money.
- Don't make any decisions about how to spend 95% of your money or what lifestyle changes might happen in the next 3 months. Life decisions shouldn't be made when you're experiencing extreme emotions. Blowing 5% is probably inevitable. But I swear to god, if you can't stop spending at 5%, you'll never stop spending and then it's all for nothing.
- You're not a crypto genius. It's actually kind of hard to lose money in a halvening cycle.
- Don't give other people financial advice, even if they ask for it. Friends and family might want to make some cash too. If they're successful, they'll take all the credit, but if they fail, you'll be the one they blame. Not worth it.
- learn as much as you can about crypto. This is the future of currency, not a meme lord hype train. Think long and hard about what decentralized economics means to the world. No more dictators raiding the banks, no more banks writing laws that cause a financial crisis like in 2008, a more secure and trustworthy system of contracts and economics, a financial system which puts the power in the hands of the people instead of a select few who just use their money to make more money.
- Don't grieve money you never had, dont day trade, learn how to spot a pump and dump, remember that DCA is the Way, etc…
Oh. And think about donating some of that money. There's a lot of people in the world who need it more than you do. The red cross, animal shelters, clean water efforts, etc… Would love to suddenly get a few extra bucks. And they'll probably do more good with it than you will.