Tuesday, April 11, 2023

Farewell, Uncle CW8888

On 8 April 2023, I lost a friend.

To honour the memory of Uncle CW8888, let me share a few nuggets of wisdom I have learned from him as well as some of the awesome and inspirational things he has accomplished:

  • The importance of having a large emergency fund for peace of mind. This sounds simple but many do not practise it. Today, this nugget of wisdom has served me very well.
  • In the investment blogosphere, we are treated to success stories after success stories. What about the ugly stories where people lost their entire fortune? Uncle CW8888 has blogged about the devastation wrought by being a market participant as well. He earnestly wishes that his readers are well aware of both the heights and nadirs of investing (In his words: "chop fingers from investing")
  • When Uncle CW8888 expressed his desire to retire, his boss persuaded him to stay for yet another year. He could have retired there and then, but he graciously obliged and firmly maintained that it's only for 1 more year. It takes a man of stature to do this.
Rest in peace friend. We will miss you.

Friday, March 26, 2021

Q1 2021 Portfolio Update

Without realizing it, the last time I did a portfolio update was 9 months ago. The initial plan was to do up a year end post to make up for the dearth of portfolio updates, but my philosophical reflections got the better of me and I got lazy after that.

Moving forward, my quarterly updates will take a different format. Instead of going into the specifics, I will touch on broad generalities concerning each subsector in my portfolio.

Networth Breakdown

Cryptocurrencies as a percentage of networth has blossomed since the last portfolio update. This is attributed to capital gains, interest income, and remuneration from my 2 crypto part-time jobs. Of which, interest income contributed the most to the gains (surprise surprise! It is not capital gains).

Some friends have asked how do I manage my day job, 2 crypto part-time jobs, and my postgraduate studies. Initially, weekday nights and weekends are allocated to my part-time jobs. As I got into the groove of things, I began optimizing and tweaking how I use my time. I am also a fan of automation and have automated quite a fair bit of my day job.

What resulted from all that optimizing and tweaking is that my day job tends to run on its own. During that period, I focus on my part-time jobs, leaving most of my weekday nights and weekends free.

This arrangement has led to a faster pace in wealth accumulation, which was previously not possible for me. In my industry, there is a cap on my salary unless I am a PhD holder. My part-time jobs provides me with an alternative path to break this salary cap and to achieve a higher remuneration.

Recently, I was offered another crypto part-time job. Unfortunately, I had to turn it down because I do not have the necessary skillset for it (grrrr! one day I shall learn this skillset!).

Let's move to the portfolio update. Do note that I'm a Crypto Native, so the strategies I employ is vastly different from non-Crypto Natives and my thought process may sound extremely foreign.  

Layer 1s

I hold large positions in Layer 1s. To manage platform-related risk, around 1/3 of my layer 1 positions are kept in cold storage while the rest is out earning yield across both CEXes and DEXes. The selection of multiple CEXes and DEXes is to diversify risk from any one platform. Each CEX and DEX comes with their own risk profiles as well.

I don't spend much time valuing Layer 1s because of the myriad of contentious opinions concerning them. If one really wants to go down this, in my opinion, fruitless path, it is best to ask yourself questions pertaining to the hash rate, transaction volume, cost of transactions, the various players involved, as well as the network effects of a given layer 1.

Layer 2s

If you are a crypto native, you know that transaction fees on layer 1s have been skyrocketing due to huge demand for blockspace. Layer 2s aim to solve the issue of transaction fees by bringing it down to near-zero. This comes with trade-offs, of course.

I have been playing around with a couple of layer 2s to get a feel for them. Various layer 2s have rewarded early adopters for doing so; I received some tokens for using them.

The qualms I have concerning Layer 2s are their tokenomics (token economics). From the layer 2s that I've used, their tokenomics don't seem well thought out enough.

Just a little bit of trivia, whenever someone says that "blockchain helps the poor by reducing transaction fees", it is a straight giveaway that their experience with crypto is theoretical/minimal and they do not know what they are talking about. Plenty of crypto natives from developing countries have been priced out because it cost too much to pay for transaction fees on layer 1s. Hence, the often-asked questions of "Will there be a layer 2 solution? What layer 2 solution will your team be adopting?"

CeFi Play

Crypto is difficult enough. The technical competency required. The exploits. The learning curve. The first point of contact that people have with crypto is with Centralized Finance (CeFi) and Centralized Exchanges (CEX). There is a lot more handholding. More assurance. And if things go wrong, there is some firm to litigate against.

I got this idea from reading GMGH's tweets. When the masses come, it is CeFi that provides them with a gentle onboarding process. Some of these individuals may then develop into full-blown crypto natives. But for the large majority of them, CeFi is their first and final stop. CeFi Plays revolve around profiting from the increased onboarding of the masses to CeFi. I have a lower-mid position size in CeFi plays.


Decentralized Finance, or DeFi, is a large catch-all term that includes financial instruments from money market funds and derivatives to options, robo-advisors and crypto indices. 

The things to look out for in the DeFi subsector is the earnings, the sustainability of the earnings (aka. moat), the tokenomics of a given protocol, and the effect of competitors on a given protocol. 

Taken together, my entire DeFi exposure should be the largest in my portfolio. I maintain larger positions in DeFi projects that have proven themselves and extremely small positions in more speculative projects.

Middleware Solutions

The simplest analogy of middleware solutions is the selling of pickaxes in a goldrush. More technically, middleware gets a percentage of cashflow when real-world data is brought into the blockchain and when blockchain data is brought back out into the real-world.

Middleware solutions are targeted at enterprises. Hence, retail investors do not see the benefits they bring because they do not have to pay middleware solutions for the services they provide; it is the enterprise that has to pay for it. This would appear as operating expenses on a crypto project's income statement.

I have mid-size positions in middleware solutions.

Interoperability Solutions

Blockchains exist as individual silos. Interoperability solutions are required to get them to communicate with one another. They facilitate the flow of liquidity across blockchains and, simultaneously, capture some value of that flow.

They are blockchain-agnostic. Hence, their survivability is not tied to any particular layer 1.

I have mid-size positions in interoperabability solutions.


Blockchain gaming is a heterogenous category. Each game has to be assessed on its own merits. 

Questions to ponder on blockchain gaming include the business model of the game, the remuneration for the developers, the tokenomics of the game, the community, the accessibility of the game, the cost to play the game, the popularity of the game, and how fun the game is.

I have mid-size positions in blockchain gaming. This is the dark horse in my portfolio. It completely outperformed and crushed every single crypto asset that I have.


Blockchain art should be treated the same way as traditional art: illiquid alternative investments. I have bought a couple of pieces for both my enjoyment as well as an investment. The latter does not seem to be working out well for me though. Through this experience, I think I have a better eye for what makes a good art investment.

Virtual Worlds

Virtual worlds can be classified into one of two categories: (1) predominantly social worlds, with gaming functions that may or may not be added to them in the future; or (2) worlds that serve as the backdrop of blockchain games. I have some exposure to the latter.

The investment thesis behind them are that they are nascent form of virtual REITs. With that said, renters must derive a return above and beyond what they pay virtual landlords to make it worthwhile for them. For some of these virtual worlds, there is not only rent income, but royalty income to look forward to as well.


Stablecoins are coins that are pegged to a given fiat currency (mostly USD). The pegging mechanism differs across stablecoins, with each having its own risk profile. I have some exposure to stablecoins in my portfolio. They are spread out across various CEXes and DEXes to reduce platform-related risks.

I hope I have not missed out anything. That's all for now.

Thanks for reading!

Saturday, January 2, 2021

An extended reflection on 2020

This year has been a wild ride. It has been filled with new experiences and added responsibilities. It was also a time for deep reflection. Issues that I have never considered before surfaced. These issues are philosophical in nature and have no straightforward answers. The provisional answers I have come up with are but a reflection of the stage of life I am currently in. I will address them through the course of this post.

The first half of the year was marked by the shift to Work From Home (WFH) arrangements. All across the world, people panicked in varying degrees. In response, many institutions initiated some form of support to be delivered to the public. Of which, MOOC providers such as Coursera offered quite a number of their Verified Certificates at no cost to interested individuals. Locally, NTUC LearningHub provided something similar as well. During this period, I completed 17 MOOCs (see here for a review of some of them).

Concurrently, I was on a training programme provided by my company. I had to manage this on top of my postgraduate studies. The first half of the year ended with the end of an exam paper I had to sit for. It was one of the toughest paper I had sat for (Machine Learning) and if not for an open-book online exam brought about by COVID, I definitely would have failed the paper.

The sedentary lifestyle that I have developed came back to bite me. In my routine health check-up, I came to learn that my cholesterol level has increased quite significantly. Following the report, I started combining exercising with gaming to make exercise more palatable. So far, it has been working out.

With my studies temporarily out of the way, the second half of the year was marked by new experiences. A friend invited me to join him in his business, with me handling all things tech-related. I got to learn a bit of hands-on stuff, but gaining traction for a new business is difficult, with COVID exacerbating it further.

The next two experiences were a serendipitous surprise. Crypto firms need all the manpower and help they can get. While WFH, I thought why not give volunteering at crypto firms a try. I volunteered at two firms. After a month or so, both firms were satisfied with my performance and offered me part-time employment (one firm even wanted me to quit my day job and work full-time with them!). I took up both offers, lol. Until now, I'm not sure how I'm going to manage a day job + 2 part-time jobs + postgraduate studies, but I'll try, lol. The worst case scenario would entail taking fewer modules each year and extending the duration of my postgraduate studies.

Another whammy came from the US Internal Revenue Service (IRS). One of those crypto firms was incorporated in the US. As a foreigner, I have to complete the dreaded W-8BEN form. Yes, it's that same form where the US gov eats 30% of your dividends from US stocks. As Singapore does not have a double taxation agreement with the US, this means that I'm taxed a second time (by SG gov) after the hefty 30% tax by the US gov. Oof.

For better or for worse, my involvement in the crypto space has resulted in increased exposure for me. With exposure comes unnecessary shit. There has been a case of scammers impersonating me and going around asking for crypto. There have also been attempts to hack my email as well. So stay safe and don't trust any random "Unintelligent Nerd" that attempts communication.

Other notable events in the second half of the year include getting rejected by a high quality girl, starting a new hobby which I have been procrastinating into getting into, and building software packages to pad my CV further.

I have also grown a thicker layer of skin this year (see here). Reflecting upon the underlying motivations of these critics made me learn quite a number of valuable life lessons:

An asymmetric risk/reward strategy for every generation

One characteristic that is common across quite a number of my critics is their selection of a strategy with an asymmetric risk/reward profile that prediposes them towards financial success in life. The specific strategy varies across generations. There is still a need to take risk to embark on a given strategy and how well the individual executes determines the extent of their financial success. I do not mean that this is a sure-win strategy; it just places the individual in a position that they are highly likely to win, and win big, relative to their generational peers who do not adopt this strategy.

I will not be specifying what these strategies are for the past generations. First, they will miscontrue that I am giving them zero credit for their success. This is not true. Their success is a function of their hard work, calculated risk-taking, execution, and riding on the coattails of long-term secular trends, with the secular trend being a huge contributor to their success. Second, they will bring up the rare exceptions who fail to achieve what they did. Again, this does not invalidate my point.

I think that it may be possible that the crypto/blockchain space will be the asymmetric risk/reward strategy for my generation. Increasing digitalization, growing adoption by enterprises, and the inflow of funds into the space are some indicators that the crypto/blockchain space is a nascent and growing industry.

Take me as an example. Assuming all things equal (effort, time spent at work, etc), the financial rewards I receive from investing and working in the crypto space far exceeds that of my stock investments and my main job. Unfair? Somewhat. One unit of effort takes me much further than before.

When you live long enough, you become the villain?

In "The Dark Knight Rises", this was the infamous last words of Harvey Dent to Batman.

Success breeds confidence. There is weight and life experiences behind one's words.

This year has been an exceptionally good year for me and my multi-year efforts have finally bore fruit. My words pack more punch now. I have noticed my words have become a tinge bit more forceful. This is not ideal. I am slowly becoming the very critics whom I dislike.

It is not just me. There are others who share a similar dislike for some of these critics. The critics may have the real-world experience and success backing their words, but people dislike being talked down to. Especially so when the recipients did not ask for their advice.

I must learn to shut-up and talk only when asked.

Vicarious experiences doth not maketh a man

Similar to forceful words, name-dropping is equally grating on the ears. The curious thing about such a phenomenon is its lack of representativeness in constructing an accurate picture of reality. 

There are two layers of analysis to this. First, is your network an accurate reflection of a given sector? Often, the information provided by a contact is idiosyncratic. The listener has to isolate the pertinent information and, if need be, supplement it with the inputs of other contacts from the same sector. Second, you are not your contact. Information-seeking conversations are but a condensed droplet of the speaker's life. It is much more fuzzy than we would like to admit.

Wallstreetplayboys made it quite clear that it is unwise to speak on the behalf of another industry just because we have contacts from that particular industry. What more about making decisions on semi-solid ground? 

I have observed these conquerer types who, spurred on by their personal success, attempt to conquer adjacent fields. Some have blundered badly because they did not realize the playing field has changed.

On armchair philosophizing

For many bloggers, it is quite telling when they reach the tail-end of their investment journey. Their blog content shifts from money-making to philosophical reflections (No, I'm still a very long way from building a sufficient nest egg). 

Sometimes, philosophizing is productive. It leads to the blogger using their financial firepower, social capital, and cultural capital to effect the Grecian arete into a particular activity in society, benefiting others and society in the process.

At other times, it is mere diagnosis. Pointing out the ills of society and throwing out normative statements ("what ought to be") when one has the power to effect a positive change is such a downer. The very people who could do something about "it" (whatever "it" represents) ends up not doing anything at all.

Is this a corollary of success?

I think so.

From what I observed, many end up pontificating, but the ones that got insulted by their readers are the ones who do not use their success productively. Readers aren't stupid. Readers can tell.

I've spent quite some time thinking about the possible solutions to unproductive armchair philosophizing. The provisional solution is to be a man of action, to create increasingly difficult challenges for oneself to surmount. When there is skin in the game and the stakes are high, one will be razor-sharp focused on the task at hand and be too busy to go around airing their partially-formed views to everyone.

During the necessary times of reflection, these individuals should challenge the subject matter experts of their choosing. This introduces humility and allows them to clash swords with the elites in the chosen field. Thus, they will finally get to know whether their reflections hold water or are they just a regular dilettante whose views aren't even worth listening to.

Generativity vs Stagnation

Psychology majors will be familiar with this heading. Erik Erikson, a developmental psychologist, proposed that at every life stage, humans are confronted with a particular developmental challenge that they must resolve.

For those in middle adulthood, they are confronted with the challenge of Generativity vs Stagnation. This challenge entails contributing to the younger generation or things that may outlast them. In other words, leaving a legacy. A failure to do so results in one being a statistic, a mere cog in society's machine.

I was particularly impressed with two online friends I got to know while working part-time in crypto. Because of their enthusiasm, teachability, and positive attitude, I successfully pushed for them to get part-time positions as well. I realized I liked seeing the young, driven, humble, and capable succeed.

Is this the uncle/boomer/lao kok kok in me speaking? I decline to comment further.

What I know is that I'm no armchair philosopher. I will push for the success of those whom I deemed worthy and will cheer alongside with them.

An Economic Loser

Life isn't all bright and cheery. There is a dark underbelly to it as well. Just as there are high-flying young shoots that require nurturing and time to grow, so are there dwellers of the river styx.

These denizens of the deep bring to mind Venkatesh Rao's Gervaise Principle. Simply put, Rao's premise is that there are 3 categories of individuals within a firm: The psychopath, the clueless, and the loser.

The psychopath is upper management. The stakes are all designed in their favour. Heads they win a lot; tails, they also win (just not as much). They are smart and cunning and they run circles around others.

Next, we have the loser, with loser being defined in economic terms. They are not paid in accordance to their contributions to the organization. If they were fairly paid for their efforts, the profit margins of the firm would shrink and there is less for the taking by the psychopaths and/or shareholders. Duh!

So what can the economic loser do? They can respond in one of three ways:

1). Eat snake. Do the bare minimum since the cards aren't in your favour and there's not much upside for you.

2). Work moar! Get promoted to middle management and manage the losers! Losers will laugh at you for doing this though. The responsibilities/stress growth > pay growth. ....And you are also indicating to the psychopaths that you don't know how to value yourself. You turned an already bad deal into an even worse deal. Hence, the "promotion" from the Loser group to the Clueless group.

3). You know your own self-worth, young psychopath-in-training. You have the competency and you refrain from bringing more to bear than what you are paid. Psychopaths recognize psychopaths and up you go on the corporate ladder!

I'm a Clueless-Loser (if there ever was such a group). Losers shoot me funny looks for trying too hard and I understand their point. It makes economical sense to do less, rather than do more. Doing more means getting a lot more shit and only a slight pay increase.

Psychopaths, on the other hand, require a complete shift in mindset and modus operandi. I suck at being cunning and ruthless. Oh well.

Comparison is a stealer of joy

One advantage that the Clueless have over the Loser is their improved financial status. The next question is to ask how much is enough?

This is a seemingly straightforward question but the answers to it are buried deep within our psyche. We need to know ourselves. We need to consciously and vehemently not compare with others on things that do not matter to us.

On-and-off, I have encountered the vile and ugly side in the SG Investment Blogosphere as well as Crypto Twitter.

One blogger cursed another blogger's entire family to get cancer because the latter outperformed the former in investment.

Another blogger said their spouse is inferior to another blogger's spouse.

A third blogger emphasized that it is better to underperform the market by having a loving family (Err.......False dichotomy.....)

A fourth blogger said that those who do not follow a particular investing strategy is a fake investor/fake trader/fake speculator.

A few gloated for the impending bankruptcy of growth investors (in 2020 where growth triumphs everything else).

The thing is.........all the above-mentioned are successful individuals. What's with the envy and mental gymnastics? 

You then come to realize that worldly success and wealth are not a panacea for envy......

Contentment has to come from deep within.

Financial freedom from toxic people

In my more-naive days, I wanted to get to know more bloggers. I thought it was a good thing to have more friends. 

Now? Not so. I have a core group of wisdom bloggers as friends and my cup overflows with their goodness. I don't need many friends; I only need a few really good ones.

One underrated thing that I learned this year is that Financial Freedom (or, more appropriately, financial security) allows one to choose who they want to mix with. I do not need to keep up pretences. I can actively choose to avoid the toxic people I mentioned in the previous section. This is implied power.

A gradual disappearance

A blogger friend highlighted that COVID has worsened inequality. The gulf between the rich and the poor has widened considerably. During this period, certain insensitive bloggers continue to harp about their glorious riches from growth stocks and cryptocurrencies. For personal safety, he deleted his own blog and erased his online trail and advised me to do the same.

As a privacy-focused individual, I agree with him. However, I also said to him that there are a number of individuals in the blogosphere who would make good friends. As a result, I would be staying, but remaining low-profile. Furthermore, I don't offend with clickbait blog titles, lol. 

Anyway, my three jobs will take up much needed time for blogging. Thanks for reading friends! I'll still be around in the shadows. Cheers and let's rock it in 2021!

Friday, October 16, 2020

Aavegotchi: Making your Virtual Pets work hard for you!

Post submitted in fulfilment of Aavegotchi Mission 9.

Disclaimer: Vested in GHST Token and volunteering as an aapprentice (moderator) for the Aavegotchi project.


Remember Tamagotchi from eons ago? Those cute little handheld virtual pets that need your love and care? You have to feed them, play with them, and clean up after them. It was a joy to see them grow, as they mature from a baby to adulthood.

Then the craze ended. Zero. Zilch. Nada. Never to be heard of again except in stories of yore.

No longer do we need to reminisce about the past. Aavegotchi, a crypto gaming/savings project, is here to soothe your nostalgia.

The Aavegotchi project is a recipient of an Aave Ecosystem grant. Aave is a money market protocol on the Ethereum blockchain. Users of Aave include both depositors and borrowers, with depositors receiving interest income from lending out their cryptocurrencies and/or stablecoins to borrowers. Using smart contracts to manage borrowing/lending and automatically liquidating defaulting borrowers is a novel use case in its own right. 

The Aavegotchi project expanded on this concept further...........what if the stream of interest income could be embedded in a game?

The lines are now blurred:

  • Huh? You can now play games with your bank?
  • Wut? Your virtual pets are making your money work hard for you?

How it all works

Your Aavegotchi frens are summoned through portals. In turn, portals are purchased using the GHST Token, the native token of the Aavegotchi ecosystem. Besides the GHST token, gamers are required to provide a collateral in the form of an aToken from the Aave ecosystem. This ensures that your Aavegotchis are constantly generating interest income for you, which I have shared above.


The game is still not available yet. It will be out sometime in Q4 2020 or Q1 2021.

Investment Merits & Risks

Analysis of Aavegotchi as an investment could be approached from multiple angles. First, the aTokens themselves accrue interest income from borrowers. The interest income fluctuates depending on borrowing demand and the supply of liquidity, with each currency exhibiting a different interest rate profile. Over the long haul, yield compression will continue as the low/zero/negative interest rates from TradFi (Traditional Finance) pushes investors towards Decentralized Finance (DeFi) on Ethereum. 

Second, GHST Token price will increase in lockstep with the growth of the Aavegotchi Ecosystem. Participation in the Aavegotchi Ecosystem (be it as speculators, investors, gamers, artists, etc.) require GHST Tokens to be bought off the bonding curve. The bonding curve was mathematically programmed to increase the price of the GHST Token whenever purchases are made from it and vice versa. While it is possible to acquire GHST Tokens off the secondary markets, new issuance and subsequent circulation of the token is only possible through interaction with the bonding curve. This will facilitate a gradual rise in the token price as the community grows.

Third, Aavegotchis and their wearables (hats, sunglasses, etc.) are collector's items. Aavegotchis themselves come with randomly-and-fairly generated levels for each of their traits (aggressiveness, intelligence, transparency, etc), with each trait excelling in particular mini-games. In a similar fashion, Aavegotchi fashion are collectibles too, with some wearables available in limited quantities.

Finally, did I mention this is a game? There will be mini-games to be played by your Aavegotchis, with rewards to be earned.

Now, let's talk about the risk. With all things crypto/blockchain, there will be risks. The term "money legos" is a frequently used term in the DeFi sphere. What this means is that newer technology is built upon the shoulders of existing technology. 

This is all fine and dandy when everything is working well. What happens when problems arise at the lower layers? I will enumerate a couple of risks for each layer.

  • Ethereum: Failure of Ethereum risk, Blackswan risk, Network Congestion/Spike in transaction fees
  • Aave: Failure of Aave Ecosystem risk, Smart Contract exploitation risk, Liquidity risk
  • Underlying currency of aToken: Failure of underlying currency risk, Debasement of underlying currency risk
  • Aavegotchi: Smart Contract exploitation risk, Risk of Aavegotchi not catching on
I have some more stuff to say, but nah, don't wanna leak investment alpha. =P

I shall leave readers with two highly entertaining youtube videos by Daniel Mathieu, the CEO of Aavegotchi. Besides being a CEO, he is also a youtube celebrity:

For those who are interested in Aavegotchi, the following links will be helpful:

Sunday, August 23, 2020

On Human Nature

One piece of advice that my veteran trader friend SMOL gave me when I started out investing is to keep a diary of the emotions that I am feeling at the point of a trade. Since then, I have paused before every buy/sell trade, collected myself and recognize the emotions at play, before hitting the trigger. Over the past couple of months, I realized that my emotions were less calm than before. Not because of the volatility in crypto prices, but because of the reactions and meta-reactions of others.

1). You receive a lot of hate

Through non-public channels, I have received my fair share of hate from traditional finance (tradfi) bloggers. I was very disappointed, to say the least. I have shared what I have learned with openness and some of the questions and responses were hostile and combative. This taught me the importance of differentiating genuine enquiries from keen learners against the toxic vitriols of trolls who are out baying for blood.

Without realizing it, I bore a grudge against these bloggers and wanted to prove them wrong. With time, I realized this was pointless and that it is more important to ignore and move on. 

2). I keenly understand the arrogance of successful crypto investors

The crypto bull market has just started. Over the past 1 year, crypto investors who adopted a fundamentals-based approach ended up as the laughing stock in the investment community. This year, these crypto investors returned with a vengeance. As such, I can empathize with their need to flex their winnings. Not that this is the right thing to do, but one way or another, the pent-up frustration needs to be released. This is entirely human and normal.

3). Trolls respond by concern trolling

"What if your success is temporary?" and "Careful now, success comes before a fall" are some rather pointless statements that I have seen being made. The truth is that a discerning student of the market knows this; every asset class has its day.

4). Some trolls turned "friends"

Some of the more adaptable trolls learned that they were wrong, pretended that the past did not exist, and that they have your back all along. Beneath the facade, it is still possible to glean their bitterness and envy bubbling under the surface. Now, they want you to hold their hand and help them profit, without regard for how things work. When sentiments turn negative again, do not expect that your back remains free of stab wounds.

5). The value of time

While the above is happening, Ethereum is undergoing a Cambrian explosion. The decentralized finance (DeFi) sector has been pushing the boundaries of innovation on a daily basis. On one particularly crazy week, a few crypto personalities on Twitter mentioned that they are experiencing sleep deprivation as there is money to be made. Some of these individuals rely on speed for alpha; they need to exploit opportunities earlier than others do. While I do not practise this form of investing, the speed of the developments still mean that I have to constantly keep myself updated on developments within the space. Crypto has heightened my perception of the importance of time. Wasting time on trolls is the last thing I want to do.

6). Be careful who you pay attention to

This is particularly important for people who are new to the space. Following the "advice" of some influencers could lead to financial ruin. What has worked for me is to develop my investing competency first and then carefully curating the works of reasoned, sound, and savvy investors from the crypto space for further analysis. For those with minimal personal finance or investing background, tread carefully. Off the top of my head, I have heard of "savings accounts are a ponzi scheme" and "equity is whatever you want it to be" from high-profile influencers. Either they are ignorant of finance/investments (unlikely) or they are deliberately redefining terms and misleading people.

7). The dilemma of assisting newbies

With increasing prices come new blood. New blood differ in their abilities. Some require a lot of hand-holding and spoon-feeding while others are independent learners. When things are swell and everyone is raking in profits, no one cares. When fortunes turn, there will be finger-pointing and accusatory statements. Some influencers have started to brush off questions. Why burden yourself with the financial health of others? This is a thankless job.

8). Completely missing the point

What is the purpose of investing? To earn a return. That's it! Plain and simple. Instead of preparing for the next trade, I observed people who kept over-analyzing, writing dainty essays, have long-standing discussions with other investors and did.........precisely nothing. So-and-so stock/crypto has 5 pros and 4 cons, oh noes! What do we do? Another stock/crypto has 4 pros and 1 cons and have shot up in price. Will it come down because of that 1 drawback?!?!?

Su Zhu, CEO of Three Arrows Capital, said it best with the following:

su zhu

9). You do not have to participate in every single trade

I know. I know. There is plenty of money-making opportunities in Ethereum and new ways to make money is popping out left, right, and centre. This bears repeating again. If you do not know what you are doing, it is alright to miss out on some of these returns or take smaller returns with lesser risk. 

10). The importance of humility and opsec

Yes, yes, I know. Crypto and US Tech investors are rolling in money right now. But please be sensitive. COVID-19 has displaced many from their jobs and inequality is on the rise. There is no need to aggravate others and unnecessarily place a large target board on one's back. The following is a good reminder from Fiskantes.


Alright. Enough time has been spent writing this post. Ignore the naysayers and invest safely people!