Encryption Investment Systematic Thinking: The Key to Improving Decision-Making Efficiency

Making frequent decisions in the encryption market can be exhausting. To achieve better returns in this field, understanding systematic thinking is crucial. This article will introduce you to how to establish a systematic approach in cryptocurrency investment, helping you avoid the negative impact of emotional decisions on returns.

The Essence of Systems Thinking

Systems thinking is a combination of behaviors and habits that, when continuously executed, can drive you towards your established goals. It’s like finding the right path for your investment objectives. When this mindset is applied to the encryption market, it often leads to significant changes.

Why is it necessary to establish an encryption investment system?

We often become victims of emotions and biases. Designing an investment system is like creating a set of investment software for the brain, which can simplify the decision-making process, making investment life easier while also keeping you objective about your decisions. Here are 10 specific examples of applying systems thinking in the field of encryption:

1. Regular Purchase Strategy Invest a fixed amount in some mainstream cryptocurrencies on a specific date each month (such as the 1st) to develop a habit. There is no need to overly focus on technical indicators or try to time the market, but rather concentrate your energy on research and other important matters.

2. Portfolio Allocation Set target proportions for each part of the investment portfolio. When the proportion of a certain area is too high, sell promptly and readjust to maintain the ideal asset allocation.

3. Profit Strategy Establish a clear profit formula instead of relying on intuition or time to make decisions. For example, you can set it to automatically reduce holdings when the price of a certain asset reaches a specific percentage increase.

4. Revenue Management For protocols that cannot automatically reinvest, establish a fixed income withdrawal plan. For example, withdraw staking rewards every Monday and Thursday afternoon, schedule these tasks in the calendar, and keep a list of staking projects.

5. Data Tracking Create transaction logs, cost spreadsheets, use tools like Zapper to track assets, understand tax obligations, follow influential analysts and verify the accuracy of their predictions.

6. Investment Assessment Checklist Create a standard checklist for evaluating a protocol, including reviewing the white paper, researching the background of the team, checking the audit status, assessing community activity, etc., to avoid blindly following trends.

7. Information Intake Management Carefully curate your information sources, including Twitter follows, podcast subscriptions, and newsletters, eliminating worthless information to enhance the quality of information.

8. Systematic Research Process Establish a formal research process, including reading official documents, investigating team backgrounds, checking audit reports, analyzing community engagement, etc. Strictly follow this process every time you research a new project.

9. Habit Formation Transform systematic behaviors into habits:

   • Set recurring tasks in the calendar
   • Schedule fixed times for specific actions
   • Simplify the checklist to make it easy to execute
   • Continuously improve the system based on new learning outcomes

10. Profit Protection Mechanism Establish a clear exit strategy. Even when market sentiment is high, adhere to pre-established systematic decisions to avoid losses due to excessive optimism.

Conclusion

Systematic thinking can greatly reduce decision fatigue. By systematizing smaller decisions, you can devote more energy to influencing larger important matters. While systematic thinking may not come naturally to some, once mastered, it will make your investment life much easier and more efficient. In a rapidly changing environment like the encryption market, establishing and following a systematic investment approach will be key to improving your investment success rate.