Capital preservation should be your primary goal

Something that I don’t think we talk about enough around here is the importance of capital preservation.

The most reliable way to grow your bag size is capital preservation, and one of the best ways to achieve that is to sit on your hands the majority of the time. It’s honestly one of the hardest things to do (especially in something as fast-paced as crypto), but every time you make a trade, you're increasing the chances of a loss. Going with a shotgun approach (putting little bits of money into a ton of different potential gambles) is a one-way trip to taking your bags down to 0, especially if those gambles are high-risk moonshots. Even if you’re only putting in a tiny amount to each one, those tiny amounts add up much faster than you think.

I know, I know. The common response to that is “I only need to hit it big one time to make it all worth it!”, which is certainly something I’ve been guilty of saying in the past. You know what that’s called? Gambling addiction. That’s literally the viewpoint that gambling addicts take.

Be purposeful with your trade decisions. Don't focus on trying to make it with one big win; rather, focus on making a lot of small wins. A 10% gain here, a 15% gain there will reliably grow your holdings much faster than gambling with nothing but moonshots.

Besides, it’s better to grow your bags steadily over time rather than a massive jump all at once. There’s numerous studies and news stories out there of people striking it big with the lottery, and losing ALL of it quickly. Having a bunch of money dumped on you sounds good in theory, but in practice you’re much more likely to actually retain that wealth and make good choices with it if it’s built steadily rather than in one big “win”.

You can’t hope to do any of that, though, if you don’t make capital preservation your primary goal. Growth requires a substrate to grow out of, and that substrate is your bags. If you piss away your holdings chasing down “the next big thing”, then you won’t have any kind of foundation to grow on.

Often times, the best thing you can do is nothing. And in the cases when you decide to do something, do it with calculated, well-thought intent. DCA, take profits, and be mindful of every action you take.

Stay safe out there <3