We asked crypto influencers, seasoned traders, venture fund founders and other leading figures to share their best tips, key Twitter accounts they follow, and the stories behind their best trades. In this issue, we spoke to long-time trader Ray Tong, who has lots of practical advice for new and experienced traders alike.
Ray Tong was introduced to Bitcoin in 2011 while working on a university project before many people even heard of Bitcoin. He received his first bitcoin when the value of bitcoin was only $10. To do this, he had to go to Walgreens and pay a foreigner on the other side of the world via Western Union. (Fortunately, it's much easier to buy bitcoin now.) As the price of bitcoin skyrocketed to $30, he immersed himself in cryptocurrencies. While working at Facebook in his post-university years, he became more interested in bartering. At Facebook, he was an active member of a popular in-house crypto channel. These days, her life is between a regular job as a product manager at online fashion site Farfetch, where she develops in-house tools that have nothing to do with crypto, and managing her crypto portfolio. Tong has lots of practical advice for new and experienced traders alike.
Ray Tong's favorite trade
Tong, who hasn't sold any Bitcoin since 2014, realizes that this sounds crazy to some. Initially, this was because he did not know how to manage the tax implications of his profits. However, with the emergence of Bitcoin's potential as an asset storage tool over the years, this has become a strategy. “I just kept buying Bitcoin and avoided selling it,” Tong continues, laughing. "
Resist the Fear of Missing Out
No matter how good your timing is, you can never be perfect. You'll regret that you entered the bullish coins late and didn't exit sooner than the lower ones (or exited an investment that bounced back later, and in many other scenarios). Even Tong, who got into Bitcoin when Bitcoin was less than a thousandth of its current value, remembers feeling like he missed an opportunity because he hadn't started buying Bitcoin earlier: "One of the strategies that works is to set goals. Let's say Ethereum is now $500. Your goal is when you have $1,000." Set 10 percent of Ethereum to sell. Sell another 10% when it reaches $1500. It's really helpful to have that kind of framework."
Sometimes his friends ask Tong to advise them on how much to invest in cryptocurrencies, but according to Tong, the question they're asking is wrong. Instead, they need to consider what percentage of their investment portfolio (and ultimately net worth) they want to devote to cryptocurrencies. “Once you decide on this number, you can divide it into three baskets: the percentage you want to invest in Bitcoin, the percentage you want to invest in Ethereum, and the percentage you want to invest in all other cryptocurrencies.”
Monitor your assets
Tong recommends creating a spreadsheet or using one of the free tools available online to track your holdings and make strategic decisions. He uses the web and mobile application of CoinGecko, a site that provides information on the crypto market. “They offer almost all cryptocurrencies and all tokens on the band,” says Tong. “You can manually enter how many coins you have and immediately see how they perform against each other.”
Research, research, research
Tong; Although he reads major crypto publications such as Coindesk and Mercari, he says that the only source that moves at the same speed as crypto money is Twitter. Among their top followers are names from major funds who have access to much larger analytical resources than any individual trader. Su Zhu and Kyle Davies, founders of Three Arrows Capital, and Spartan Group are among a few he suggested. "Also, I follow almost all of Paradigm's team. They are really amazing. Their posts are very technical," says Tong.
Think Bitcoin, not the dollar
While it's not easy, Tong recommends that instead of always thinking of value in US dollars (or whatever your main fiat currency is), change your mindset and make Bitcoin or Ethereum the base currency of your crypto portfolio: "Try to find the currency you believe in the most, and choose that currency. "Make it your base currency. So instead of worrying about the [day-to-day] dollar value of your holdings, focus on making swaps that will eventually make you more cryptocurrencies. A lot of big companies are actually starting to do that."