Three Lessons for Crypto Turnips

Photo by Vanessa Bucceri on Unsplash

In Argentina we would say the owners of the ‘dumb money’ are turnips (nabos). They did not want (or cannot and do not want) to learn from the lessons of history, they did not heed the most basic common sense and they forgot the basic teachings of homemade finances (which apparently have nothing to do with biology): Don’t put all your eggs in one basket!

Three suggestions for Crypto turnips:

  • Risk management
  • Common sense
  • Failure tolerance

Risk

Knowing how to manage risks implies having the ability to identify and evaluate dangers and plan a strategy to reduce or control the possible consequences of one’s own actions or those of others. The more risk there is, the less likely something will happen, albeit with more benefit.

You need to be patient and have time to reach your destination. Shortcuts are usually more dangerous.

Common sense

The annual interest of a fixed term in dollars of a Luxembourg bank is on average 1% per year. If a crypto project promises 20% APY I must raise an eyebrow and suspect of the sustainability of the business. LUNA, ANCHOR Protocol and Celsius were in the category of the usual suspects.

It’s full of wolves in sheep’s clothing. With a bit of brains and a careful look they can be discovered.

Failure

It is the conclusion of a process, but it is not the end of the story. You must learn from what happened, take note of the mistakes and embark on the adventure again. The turnips are the unsuccessful ones who stay lamenting their mistake. Success necessitates failure, but the winner picks up where the turnips end and gives up.

Gone wrong? Good. Lesson learned. Time to try again, but better and more attentive.

Beware of false prophets, who come to you in sheep’s clothing, but underneath are ravenous wolves*

  • *Matthew 7,15–20.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store