Top 10 best advices by Warren Buffett that is relevant in current world cryptocurrency trading.

Let me share 10 best advices by Warren Buffett, one of my business idols, that is relevant in current world cryptocurrency trading.

#1 Buffett’s Only Two Rules For Investing…

“Rule No. 1: Never lose money. Rule No. 2: Never forget rule No.1”

It is possible for the stock market to price things wrong! You can find wonderful businesses on sale often. Buffett has this to say about the stock market. “Remember that the stock market is a manic depressive.” For any consumer of daily financial news, this will ring true. Equity markets swing wildly from day to day on the smallest of news, rally, and crash on sentiment, and celebrate or vilify the most inane data points. It’s important not to get caught up in the madness but stick to your homework. Always stay rational.

#2 The Market Can Price Things Wrong

“Price is what you pay. Value is what you get.”

In other words, don’t focus on short-term swings in price, focus on the underlying value of your investment. “Beware the investment activity that produces applause; the great moves are usually greeted by yawns.” From a man who has made a fortune on companies like Apple, American Express, General Motors, UPS, Johnson & Johnson, Mastercard, and Wal-Mart, this is sage advice.

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#3 High Returns With Low Risk is the Key

“Risk comes from not knowing what you are doing.”

Buffett says, “Never invest in a business you cannot understand.” The advice here is obvious but often forgotten, particularly after investors have had some success. The temptation to believe that success in one area you know well allows you to easily analyze another is much greater once you’ve had some good returns, but should be resisted with vigor. Buffett himself has kept out of the technology sector for the most part, given his lack of knowledge of the sector.

#4 Get Around the Right People

“It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.

#5 It’s Easier to Look Back Than to Look Into the Future

“In the business world, the rearview mirror is always clearer than the windshield.”

#6 Buy Wonderful Companies ( In this case, Cryptocurrency)

“It’s far better to buy a wonderful company at a fair price, than a fair company at a wonderful price.”

This quote is very interesting, as frequently, “value investors” will pass on anything that they cannot get for a deeply discounted price. Berkshire Hathaway has taken a different approach and instead focused on investing in the right companies. This was one of Buffett’s early lessons as a value investor, famously told as his turn away from “cigar-butt investing.”

#7 It’s OK to Dream Big

“I always knew I was going to be rich. I don’t think I ever doubted it for a minute.”

#8 Invest for the Long Term

“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”

#9 Buy It Thinking You Will Hold It Forever

“Our favorite holding period is forever.”

#10 Doing Nothing is Often the Right Thing to Do

“You do things when the opportunities come along. I’ve had periods in my life when I’ve had a bundle of ideas come along, and I’ve had long dry spells. If I get an idea next week, I’ll do something. If not, I won’t do a damn thing.

BONUS - Make Your Own Forecasts

“Forecasts may tell you a great deal about the forecaster; they tell you nothing about the future.”

Happy crypto trading!!