https://twitter.com/thedefiedge/status/1494718736175009794
Playing Poker will give you an unfair advantage in Crypto.
But you don't have to play thousands of hands to reap the rewards.
Here are 17 most important lessons:
The Whales have an Edge
Whoever has the most chips at the table can bully everyone.
Crypto:
🐳 can bully you w/o you realizing it.
• Early access to deals. • Easier access to insider info. • They can move the markets of small caps.
This is NOT an equal game.
The Whales have an Edge pt. 2
You might've seen this first hand a few weeks ago.
Whales were playing games /w @Wonderland_fi and caused liquidation cascades.
The whales made out with 💰
Everyone else got fucked. Even the people who didn't use leverage.18218
Ulterior Motives
You'll hear a lot of advice at the Poker table:
"I'd fold if I were you bro"
Do they have your best interest at ❤️?
Crypto:
Be careful who you're taking advice from. What's their incentive?
"This coin will 100x 😱 🤯" Proceeds to dump on you later
PVP Mentality
Poker is player vs. player. Someone has to lose for you to win.
Crypto: You're underestimating how PVP Crypto can be. It's NOT WAGMI.
Sometimes...
By the time you've heard about a protocol, the early players are dumping. And you're left holding the bags.
Don't Play Too Many Hands
New players get addicted to action. The pros know it's better to wait for a solid hand.
Crypto:
It's better to be patient and wait for good projects before you invest.
FOMO will cost you money.
You're investing - not playing a video game.
Play SOLID
On TV, you'll see pro poker players BLUFF and win with shit hands.
Those are what get the eyeballs and attention, but that's NOT good poker.
Crypto:
Are you new? Stick to solid projects at first. Stop chasing HIGH APY's.
There's no free lunch in this game.
Outcome Bias
You can play the hand perfectly and STILL lose. But that doesn't mean you should change the way you play.
The process is MORE important than the outcome
Crypto:
Just because someone 10x a shitcoin doesn't mean you should copy
Skill beats luck in the long run.
Table Selection
Would you rather play at a table with drunk billionaires or poker pros?
Find games you can beat.
Crypto:
I don't "get" art + culture, so I don't try to flip NFT's.
I'm good with numbers + economics - that's why I focus on DeFi.
What are you good at?
Table Selection pt 2.
Most of you won't be able to win in Crypto
You're not dumb: You're at a disadvantage with a smaller bankroll + full-time jobs.
Maybe the best table is to keep it simple. Dollar-cost average into blue chips and wait.
Better to play an easier game and win
The Small Wins Adds Up
Some ppl obsess with "big hands." - the crazy all-ins. It's easy to underestimate how the small wins add up.
Crypto:
Don't obsess over finding the 10x plays.
The stablecoin farmers and blue-chip stockers often outperform the shitcoin chasers.
Be the Tight Aggressive Player
I was a patient player. I waited for a good hand, and then I'd go beast mode.
I maximized my W's, and minimized my L's.
Crypto:
I invest in far fewer projects than most people. But when I have conviction, I'll go HARD.
Zoom Out
Profits go up, and profits go down.
Don't get tunnel-visioned on what happens day to day - what matters is the long term.
Crypto:
Stop checking your portfolio 25x a day. You're psyching yourself out.
Bank Roll Management
No matter how good you play, there will be swings and variance.
Managing your bankroll is how you prevent yourself from going busto (broke).
Crypto:
No matter how good a project is, there are black swans such as rug pulls and exploits. Bet appropriately
Bank Roll Management pt 2
This INCLUDES money outside of Crypto.
• I have an emergency fund with 6 months of living expenses. • I have investments OUTSIDE of crypto such as index funds.
I'm NOT all in Crypto.
This means I'm cool as a cucumber whenever there's a dip.
Pot Sizing
You have to wage the appropriate amount of money for each hand.
Crypto:
Don't bet the house on a risky and unknown project. Pot size = portfolio allocation.
My Bets:
Max size for a protocol is 15% Max size for a degen bet for me is 5%
This keeps me safe.
Know When to Cut Your Losses
Pocket AA's. You land Trips on the flop.
But there's the threat of a FLUSH later, and several ppl go ALL IN.
You should cut your losses & fold.
Crypto:
It could've been a good project, but things change. Cut your losses and fight another day
Fix Your Leaks
A leak is a fundamental flaw in your game. Raising /w too many hands pre-flop can get you exploited.
Crypto:
Look for patterns of why you're failing.
Do you keep getting wrecked chasing high APY's? That's a leak. Keep getting scammed? That's a leak.
Learn the Math
Math will give you an edge such as calculating Pot Odds and Expected Value.
In Crypto:
Learn the impact of impermanence loss, tokenomics, market caps, etc.
Fall in love with spreadsheets.
Handling Bad Beats
This is where you play with a STRONG hand that is mathematically favored to win, but you end up losing.
It happens, but don't let it cascade.
Crypto:
A bad beat could be a rug pull. You'll be angry, but don't let it lead to worse decisions.
Find Your Edges Pt 1.
Poker is player vs player. You have to find and hone your edges.
This could be getting better at the math aspect or learning how to read people better.
Poker is a game of skill. You can improve your skills.
Crypto Here are some skills
you can work on:
https://twitter.com/thedefiedge/status/1493359859521183747
Get the Mental Edge
Your success in Poker and Crypto depend on the quality of your thinking.
Do everything you can to get a mental edge.
• Exercise • Get plenty of sleep • Don't drink when you play • Meditate daily
Train your mind like an athlete trains their body.
I'm not trying to come off as pessimistic.
Making money in Crypto is hard.
There are far too many people who make THEIR money, from telling you how easy it is to make money.
So I'm trying to keep you grounded and humble.
The 1st step to winning is to SURVIVE.
Key Takeaways:
• Crypto trading involves more psychology than you realize
• This is an unregulated space. You're underestimating the power of whales.
• Know the math.
• This can be PVP. Tread carefully if you're new.
Anyone can get lucky, but don't confuse it for skill.