Fear & Fud in Cryptopia

On the off chance you completely slept through the last week or so of crypto market action, there was a massive correction. A 70% or so reset across the board, led by the environmental scourge that is Bitcoin, has hit just about every investor in some way.

While this crash has been costly to a lot of us it’s also an opportunity to take stock, examine our strengths and weaknesses as traders, and lay the foundations to be more successful in future cycles. In this piece we’ll take look at some observations we’ve made over at Yunt HQ:

• Profits! They aren’t real until you take them.
• Have stables? Great! Now don’t keep all your eggs in one basket.
• Have a plan? ygmi.
• Save the Emotion for Carly Rae Jepsen. We’re here to make money.

Take Profits

The average degen barely touches stables, despite public claims to the contrary. Feeling comfortable sitting in stables and waiting patiently for re-entry is difficult. Seeing your favorite shitcoin keep running after you’ve taken profits is psychologically challenging, and fomo’ing back in feels good right up to the point when it doesn’t. This is the one area I know I have a big blind spot.

Throughout this last run, I took profits occasionally, but never enough. I often lacked the conviction to keep those profits in stables and as a result, I didn’t benefit as much as I could have when the market turned. I’m sure I’m not alone here. Doing a mental postmortem of the past week or so has really cemented a lot of this for me and I’m looking forward to seeing my improvement when the market turns back up.

Split The Baby

This is one that seems obvious after the fact: don’t keep all your stables in one place. Good luck trying to catch the bottom with 1k+ gas on a decentralized exchange! If your entire stack of stables is sitting off centralized exchanges then certain moves will be more difficult. Additionally, if you’re already set up on a side chain think about whether you can purchase the alts you want there. Blue chips like Aave and Yearn trade on chains like Matic and Fantom where you won’t be subject to insane gas spikes as liquidations cascade through the network.

Strategic Planning

Having a mental model for your goals, both long and short term, before everything enters free fall can save you a bunch of time and money. At what price level should you consider taking profits, and at what percentage of your portfolio? Likewise with buying. What tokens are you looking to accumulate and where do they live? Know the rough answers to questions like this well before you need to can give you a significant edge as others panic.

Kill Your Darlings

The overwhelming odds are your favorite shitcoin is not immune from massive market movements. It’s easy to get attached to great projects with awesome communities and feel as if selling is some sort of betrayal. It’s not. Taking profits, even from the projects you love, just gives you more dry powder to scoop up a bigger stack when it inevitably goes on sale.

As always, please do your own research. This is not financial advice. Every strategy is not for everyone. While these are broad lessons that I myself and many of us at Yunt Capital continue to internalize, each investor needs to understand what is right for them.

Finally, keep your eyes on this space as we continue to share more thoughts and insights from within Yunt Capital. This is just the start. Until next time: Yunt Hard, Yunt Fast, Yunt Capital.