Black swans can appear in every sphere of human life. Still, they will thrive in those environments where many different variables collide: for example, in economics, and especially in crypto-economics. The main idea of Taleb was that we can’t predict the black swan events, but we can adjust to their existence. So how do we prepare for those, should they try to flock to the crypto pond?
Preparing for black swan events
The first thing you can do is follow one of the investor’s golden rules: diversify your risks. Don’t invest your money solely in cryptocurrencies or bet on one particular coin – this way, part of your funds will be safe even in the case of a large market crash.
Second, keep your cool. No investment decision, be it a purchase or a sale of assets, should be driven by your emotions. So take some time, if necessary, and act from the place of calm.
Third, in the long run, the Bitcoin rate is likely to keep going up. After all, the coin has been pronounced dead more than 400 times, but it’s still alive (and doing more than well).
Fourth, prepare for ups and downs: there’ll be a few bumps on the way. For some time, Bitcoin’s rate will reflect any large-scale sale and purchase; it is perfectly normal for it to behave this way.
And the fifth is Robert Kiyosaki’s advice; it’s rather old but still good as new. As the wise (and rich) man once said, every crisis can be an opportunity. I’ll give you an example: when the market crashes, many novice investors hastily get rid of assets, while seasoned ones buy more of those at a low price – to score high in the future.
Have you ever encountered black swans? Please share your story in the comments.