- DeFi enthusiast shares advice about crypto that “Nothing is too big to fail.”
- Deutscher warns users to “Get a ledger, and always store your own assets.”
- He added that there is more to life than crypto.
Crypto analyst Miles Deutscher tweets about the biggest lessons worth learning in 2022. According to Deutscher, DeFi is the only way forward. Most of this year’s major collapses were a reflection of human nature, not the underlying technology. FTX, Celsius, BlockFi, Voyager, Genesis to name a few. He further advocated the need for DeFi.
The DeFi enthusiast shares, “Nothing is too big to fail.” For instance, according to Deutscher, “LUNA was a top 5 L1, FTX was a top 3 exchange.” The crypto investor warns in his twitter thread that “Don’t let the size of a project mask its vulnerabilities. If the mechanism is fundamentally flawed, size isn’t going to prevent an inevitable collapse.”
He advises to make sure a mechanism is sound before investing, and not to let market caps blind you from potential flaws.
Another among Deutscher’s nuggets of wisdom is, “Not your keys, not your coins.” This famous crypto phrase has proven true once again. This year has seen the downfall of many crypto exchanges and centralised lenders, making self-custody more important than ever. Deutscher warns users to get a ledger, and always store their own assets.
The analyst talks about “Timing the top (or bottom) is impossible.” Deutscher expressed that almost everyone that tried to predict the top was wrong. The investor feels crypto is highly dependent on the macroeconomic environment. In his opinion, “no one has an edge on macro.” The crypto analyst advises to implement risk management, and stick to a plan which doesn’t require “timing the market.”
Another major lesson according to the investor and analyst Miles Deutscher was:
Don’t worship cult figures. SBF, Do Kwon, Zhu Su etc. were all lauded for their genius. This blinded many people’s views on their respective projects. When they failed, their tokens went with them. No one in crypto is untouchable.
Furthermore, Deutscher warned users to be wary “influencers”. As a caution, the crypto analyst explained how to use Twitter and YouTube to gain new perspectives.
Deutscher further explained that many creators in the crypto space have a vested interest and user must learn to snuff them out and think critically. Ending the Twitter thread, Deutcher concluded, “The more you learn, the bigger your edge. There’s more to life than crypto. It’s very easy to get caught up in the game.”