17 Cryptocurrency Investment Lessons We Can Learn from Texas Hold’em

Playing Texas Hold’em will give you more of an edge in crypto , and you don’t have to play thousands of hands to get a return.

Here are 17 of the most important lessons:

1. Whales have an advantage

Texas Hold'em:

Whoever has the most chips at the table can bully everyone else.

Cryptocurrency:

Whales can bully you without you realizing it:

• Whales get early access to trades

• They have easier access to insider information

• They can boost the market for small cap coins

This is not an equal game. You may have seen this firsthand a few weeks ago: whales playing games /w @Wonderland_fi and causing a chain reaction of liquidations.

The whales just want the money and everyone else is being fooled by it, even those who are not using leverage.

2. Ulterior Motives

Texas Hold'em:

You'll hear a lot of advice at the Texas Hold'em table:

"My friend, if I were you, I wouldn't follow suit."

Do they really have your best interests at heart?

Cryptocurrency:

We need to be careful about the advice we receive from others. What are their motivations?

"This is a 100x coin."

In fact, their purpose is to get you to take over.

3. PVP (Player vs. Player) Mentality

Texas Hold'em:

Texas Hold'em is a player-vs-player game, which means someone has to lose for you to win.

Cryptocurrency:

You underestimate the PVP level of cryptocurrency, it is not WAGMI (everyone makes money together).

Sometimes, by the time you hear about a deal, the early players have already started selling and you are left on the train.

4. Don’t play too many hands

Texas Hold'em:

New players get caught up in the action, while pros know it’s best to wait for a reliable opportunity to deliver the killing blow.

Cryptocurrency:

It is best to wait patiently for good projects before investing . FOMO (fear of missing out) will make you lose money.

You are investing, not playing video games.

5. Take it slow and steady

Texas Hold'em:

On TV, you'll see professional Texas Hold'em players bluffing and winning with bad hands.

These are all eye-catching and attention-grabbing things, but they are not good Texas Hold'em.

Cryptocurrency:

Are you a newbie? Then you should stick to reliable projects at the beginning and stop chasing high annual interest rates. There is no free lunch in this game.

6. Result bias

Texas Hold'em:

You can play your cards perfectly and still lose, and that doesn't mean you should change the way you play.

Remember, the process is more important than the result.

Cryptocurrency:

Just because someone got lucky and made 10x on their shitcoin, doesn’t mean you have to copy their investing style.

In the long run, skill trumps luck.

7. Table Selection

Texas Hold'em:

Would you rather play at the same table with a drunk billionaire or a Texas Hold'em master? Find a table where you can beat your opponents.

Cryptocurrency:

I don’t “understand” art + culture, so I don’t try to touch NFT ; I’m good at digital + economics - that’s why I focus on DeFi .

What are you good at?

Most of you can’t win in crypto. You’re not stupid: you’re at a disadvantage because of a small deposit and a full-time job.

Perhaps your best bet is to keep it simple: dollar-cost average into blue-chip coins and wait.

You're better off playing an easy game and winning.

8. Without the accumulation of small steps, one cannot reach a thousand miles; without the accumulation of small streams, one cannot form a river or sea.

Texas Hold'em:

Some people are obsessed with "big hands" - crazy all-in moves, which can easily underestimate the potential of winning with small chips.

Cryptocurrency:

Don’t get hung up on finding 10x altcoins. Stablecoin mining and blue chip coins tend to outperform those chasing shitcoins.

9. Become a tight end

Texas Hold'em:

I am a patient player. I wait for a good hand and then I go into beast mode. I maximize my wins and minimize my losses.

Cryptocurrency:

I invest in far fewer projects than most people, but when I feel confident, I go for it.

10. Take the long view

Texas Hold'em:

Sometimes profits go up, sometimes they go down. Don't be fooled by what happens on a day-to-day basis, it's the long-term gains that matter.

Cryptocurrency:

Stop looking at your portfolio in your wallet countless times a day. It only makes you feel uneasy.

11. Bankroll Management

Texas Hold'em:

No matter how well you play, there will be fluctuations and losses. Managing your bankroll is how you prevent yourself from going bankrupt.

Cryptocurrency:

No matter how good a project is, there will be black swan events such as rugpulls and loopholes, and good fund management is required.

This actually includes funds other than cryptocurrencies:

• I have an emergency fund of 6 months of living expenses.

• I have investments outside of cryptocurrencies, such as index funds.

I’m not all invested in cryptocurrencies. That means whenever there’s a dip in the market, I’m as calm as a cucumber.

12. Pot Size

Texas Hold'em:

You have to allocate the proper amount of money for each lot.

Cryptocurrency:

Don't bet your house on a project that has risks and unknowns.

Pot size = portfolio allocation.

My investment allocation:

• The maximum amount of funds for a protocol is 15%

• For me, the maximum bet for Degen is 5% of the total bankroll.

This ensures the safety of my funds.

13. When to cut your losses

Texas Hold'em:

You have two Aces and you flop a third card, but then there is the threat of a flush from your opponent and several people are all-in. At this time, you should cut your losses and fold.

Cryptocurrency:

This was originally a good project, but things have changed, choose to cut your losses and fight another day.

14. Fix your flaws

Texas Hold'em:

A flaw is a fundamental flaw in your game, and making too many moves preflop can easily leave you open to being exploited by your opponent.

Cryptocurrency:

Find out why you fail in a pattern:

• Are you constantly getting beaten down in your pursuit of high APYs? That’s a flaw.

• Keep getting cheated? That's a flaw in you.

15. Learn Math

Texas Hold'em:

Math will give you an edge, such as calculating pot odds and expected value.

Cryptocurrency:

Learn about the impact of impermanent loss, token economics, market cap, etc. Definitely learn to use a spreadsheet.

16. Dealing with bad play

Texas Hold'em:

This is when you start a hand with a mathematically strong hand, but you still end up losing. This happens from time to time, but don't let it get to you.

Cryptocurrency:

A bad play could be a rug pull. You'll be pissed, but don't let it lead to a worse decision.

17. Find your strengths

Texas Hold'em:

Texas Hold'em is player vs. player. You have to find and hone your edge. That might be getting better at math or learning how to read people better.

Texas Hold'em is a game of skill and you can improve your skills.

Cryptocurrency:

Here are some skills you can work on:

If you want to gain an advantage in DeFi, learn:
— Token Economics — Game Theory — Cryptography — Decision Making — Cognitive Biases — Macroeconomics — Trading Psychology Don’t be surprised if a 19-year-old kid holding meme coins ends up outperforming you.
This will happen.

Gaining a psychological advantage

Your success in both Texas Hold’em and cryptocurrencies depends on the quality of your mindset. Do whatever you can to gain a psychological advantage:

• Exercise

• Get enough sleep

• Don't drink when playing cards

• Meditate daily

Train your mind like an athlete trains his body.

I don't mean to sound pessimistic, but it's hard to make money in the cryptocurrency market. There are too many people who make their money by telling you how easy it is to make money. Therefore, I try to keep you down to earth and humble.

Here, the first step to victory is survival.

There are a few key points you need to understand:

• There’s more psychology involved in cryptocurrency trading than you might realize.

• This is an unregulated space and you underestimate the power of whales.

• Understand mathematical knowledge.

• This may be PVP. If you are a newbie, please be careful.

Anyone can have bad luck, but don't confuse it with skill.