Developing the traps of long -term cryptography investment requires more than surface advice. This article distills the expertise of experienced investors to avoid current errors. Armed upon knowledge and prosperting in the dynamic world of cryptocurrency.
- Regularly revise the wallet
- Build a traction before requesting investments
- Treat crypto as a diversified asset
- Considering regulatory and tax obligations
- Rooting strategy in fundamental principles
Regularly revise the wallet
One of the main errors of an investment strategy in long -term cryptography is the very idea of ”long -term” in the usual sense. The cryptography market does not work according to the conventional law market law, where you can “buy and forget”. Even the main projects lose 80 to 90% of their Valu – Recruit Polygon, Avalanche, and near, which seemed “too big to fail”, but are now in depth. At the same time, Solana was buried, and it’s back to the top. Even among the 3 best active people, the dynamics are mixed: Bitcoin increases, while Ethereum has been at its stockings since 2020. The main risk is that tokens can fall to zero, because in cryptocurrency, the bankruptcy of projects is not uncommon.
How to avoid error? The main thing is not to have assets for years without review. At least once per quarter, you need to revise your wallet, and even better – follow trends. Crypto concerns information and reaction speed. And the key question that an investor should ask is: is it ready to lose what he has invested, or does he want to make a profit (or a loss)? For example, my personal case: Polygon, bought at $ 1.5, is now at a loss of 80% – and I have to choose between fixing the balance or hoping that it will not go to zero. The cryptography market does not tolerate passive investors – those who act win here.
Dmitry Mishunin
CEO, Hashex blockchain security
Build a traction before requesting investments
One of the most effective fund collection strategies I have used is to create fields before looking for investments.
When you increase capital for my crypto exchange, I first focused on achieving measurable results: user growth, MVP validation and early income. Investors are not only funding ideas – they finance the momentum. As I entered conversations, we had already proven the request.
Another key strategy was to position the company as a “choice and shovel” player in cryptographic space – not only another trading platform, but an infrastructure so that others can rely. This story helped us stand out.
I also learned that strategic networking is cold pitching. Joining communities like Forbes Tech Council, expressing themselves during Fintech events and engaging with investors for months before real demand has helped strengthen confidence. Warm introductions and shared values have made a huge difference.
Finally, I found this transparency on risks – especially in the crypto – earns more credibility than to overdow the advantage. Serious investors appreciate the realism supported by vision.
Kirill Sagitov
Founder, COYTX Global LLC.
Treat crypto as a diversified asset
One of the biggest errors I have seen to make investors with long-term crypto strategies is to treat it as a rich leaping program rather than a disciplined and diversified asset class. Too often, people go all-in on media-focused parts without understanding fundamentals, technology or the macro environment. This kind of emotional investment leads to bad timing: buy high and panic down.
To avoid this, treat crypto as you would for any other long -term investment: with research, risk management and portfolio diversification. Invest only what you can afford to lose, pay attention to projects that have real utility and progress, and always consider cycles, not titles. The structure and patience will beat speculation each time.
Nathan Barz
Financial advisor, management expert, founder and CEO of Docva
Considering regulatory and tax obligations
A serious error in a long -term crypto investment strategy is to ignore regulations, in particular tax regulations. Many investors focus only on market analysis and potential profits without considering the legal framework. However, cryptocurrencies are subject to specific tax laws, the prevention of money laundering and the regulation of financial markets in many countries. Violations – whether by ignorance or negligence – can cause significant additional tax payments, fines or even criminal proceedings.
Before making a long -term investment, investors should learn about tax obligations and regulatory provisions in their country of residence. A specialized lawyer for tax or financial law can provide clarity. Those who pay attention to the regulatory and fiscal framework from the start will avoid expensive errors and guarantee their accumulation of long -term wealth.
Nico Glöckle
Lawyer, founder of Glöckle Rechtsanwälte, Glöckle Rechtsanwälte
Rooting strategy in fundamental principles
An error that I have seen far too often, especially in the bull markets – deals with long -term cryptography investment such as short -term trading with a longer period of detention. In other words, people buy highly on media threshing, call it a “long-term take” to justify the entry point, then panic is sold when the market inevitably corrects. I made this error myself very early, confusing the conviction with Fomo.
What I have learned is that a real long -term strategy must be rooted in fundamental principles: understanding the usefulness of the project, the strength of the community, the history of the team and how the token really accumulates the value. It is less a question of timing the following 10x and more alignment with projects which solve real problems and which remain the power.
To avoid this trap, I now deal with cryptographic investments such as venture capital bets-where you assume an illiquidity, expect volatility and stay focused on stories by playing over the years, not months. The implementation of a simple help frame: Explain why you are investing in a token or a particular project, which would invalidate your thesis and what is your calendar. In this way, when the market plunges, you make decisions according to your original conviction – not emotions or noise.
The crypto moves quickly, but the real value takes time to build. Error is not volatility – it is not honest about your strategy.
Patric Edwards
Founder and architect Main software, Cirrus bridge
