"He who knows not to what port he sails, no wind is favorable." - This ancient wisdom from the philosopher Seneca perfectly applies to the crypto world. How many investors have entered this volatile world without a clear compass, tossed by the market waves left and right!
When you start your investment in the crypto market with the goal: "I want to become a millionaire quickly!" you will realize after a year of losses and volatile gains that the goal was very vague... After setting realistic and specific goals, you will build your wealth steadily step by step.
Setting your investment goals is not just a formal step; it is the foundation upon which you will build all your subsequent decisions. Here’s how to set SMART goals in the crypto world:
Define your time frame: Are you investing for the short term (days/weeks), medium term (months/year), or long term (years)? The time frame dictates your strategy and asset selection.
Want a way to diversify your investments? Here's the best method proven by experts: divide your investments into: "60% for the long term in projects you believe in, 30% for the medium term that you reassess every three months, and only 10% for short-term trading."
Be specific and numerical: Instead of saying "I want to earn a lot," specify "I aim for a 20% annual return" or "I want to double my investment in 3 years."
Connect your goals to your real life: Are you investing to buy a home? To fund your children's education? For early retirement? Goals linked to real values give you the motivation to continue during tough times.
Determine your acceptable level of risk: How much can you afford to lose without it affecting your life and sleep? This will determine your asset allocation between high-risk/high-return investments and more stable ones.
Ray Dalio, founder of the world's largest hedge fund, says: "If you are afraid of risk, you should look at the bigger risk, which is staying in place and not achieving your financial goals."
Set an exit plan: When will you sell? When the price reaches a certain target? When the fundamentals of the project change? Defining exit points in advance protects you from emotional last-minute decisions.
Sarah, an accountant turned investor, shares her experience: "I set a simple rule: I sell half of my investment when the price doubles, and I let the other half grow without pressure. This strategy has given me great peace of mind."
Review your goals periodically: The crypto market is rapidly changing, as are your personal circumstances. Review your goals every 3-6 months and adjust them if necessary.
As Benjamin Graham, Warren Buffett's professor, says: "The intelligent investor is one who knows that success depends not on intelligence, but on discipline and patience."
Remember that the ultimate goal of investing is not just to accumulate more cryptocurrencies, but to improve your real life. Do not sacrifice your physical or mental health, your social relationships, and of course, above all, your relationship with God for financial gains.
