This Isn’t Pokemon — And Other Lessons from Crypto Trading


I was obsessed with Monopoly. I still have several editions of the game — from Euro monopoly that’s all in French and National Parks monopoly (Yosemite is Park Place) and NFL monopoly even though I never watch football.

When I was in university I would organize “Monopoly Night” on Friday nights. I would make popcorn and order beer and pizza. Instead of going to class I would practice playing monopoly online, and would plan my winning moves.

The first time I held Monopoly Night two people showed up and we had a four-hour game and got drunk. I thought it was a lot of fun. After that first game, nobody ever came to Monopoly Night again (except for me).

I started playing Monopoly again recently and realized how relevant it is to thinking about risk and reward.

You can’t play in the game if you run out of cash. I cringe when people put 99% of their assets into digital tokens — it means they have lower protection to risk, and it also means they have less ammunition to buy new investments or take new trades. It also means they’d be broke… right. about. now.

This is particularly useful advice if you are too trigger happy. Sometimes sitting on cash for a while — like, during a bear market (now) is the best strategy.

You also have to think about what properties are best to buy. A losing strategy is to buy one property from each color group and to never have a monopoly; to never be able to build on top of that and to spread yourself thin.

The same applies to crypto. You can benefit by having a Monopoly of knowledge in a certain area. What are all of the insurance or gaming or travel focused blockchain companies? Start there and go deep. Build up your “houses” on those properties, forego the others when it’s tempting.

“Monopoly is the condition of every successful business.” ― Peter Thiel, Zero to One

Crypto Lesson #2: Don’t spread yourself too thin, rather, think about getting a monopoly of knowledge (informational asymmetry) in one area of crypto to give yourself and ‘edge.’

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