The cryptocurrency boom is officially here. The industry is no longer a ‘trend’ or ‘fad’ doomed to fall by the wayside over the next year or less as some might suggest. And not only that but with the growing interest in digital currency and blockchain technology now at an all-time high, there are even great career prospects to be found in the industry.
But what about investment? How are the experts honing their skills in this all-too-new market? Interestingly enough, one of the best options for improving your investment skills is an age-old game that many of us play for fun with our friends. Yes, we’re talking poker and how playing it on a regular basis could be the answer to your investment woes.
Practice Makes Perfect
If you’re not all that good at poker, don’t worry, all it takes is practice. Cal Newport, a computer science professor at MIT, wrote a book about improving productivity and he maintains that deliberate practice is key to success. And this is a theory that has been put into practice by pro poker players. Yes, even the pros have admitted to being less than average players in the beginning, but with practice they became experts. So regardless of your poker experience, this is an avenue of approach that you really should consider and here’s why…
Poker and Wall Street
Did you know that there’s a distinct link between Wall Street and poker? And no, we’re not talking about high-stakes games in the offices of the world’s leading trading houses. Back in 2010, trading house Toro hired a 30-year-old online poker player by the name of Chris Fargis, and they hired him based solely on his poker skills. Then there’s former poker pro, Vanessa Selbst, who now works for Bridgewater, the world’s largest hedge fund.
The reason these players were targeted was that their skills at the tables proved that they possessed the attributes required to be a success in the world of finance. They have a rational approach towards risk and make decisions based on possible outcomes rather than feelings. They have discipline and an excellent memory both of which are essential for success in trading. You can see where we’re going with this, right?
Poker and your Crypto Investments
We know what you’re thinking,.. you’re not a poker pro, and yes, that’s true. But the fact is that playing the game can teach you these skills. When playing at the tables, whether it’s low stakes or high, you soon learn to manage risk and only take chances when you know the odds are stacked in your favour.
With the volatile nature of some cryptocurrency values (we’re looking at you Bitcoin) knowing when to fold and when to place your bet is a skill that is invaluable. And training yourself to think in this way is no mean feat especially when tempted with the prospect of doubling your money should your investment spike (yes, Bitcoin again). But by playing low-risk low-stakes poker, it’s entirely possible to adopt this mindset and then carry it over into your trading activities.
This kind of rational approach to investment is what experts the world over advise us to do with any of our financial activities. Unfortunately, the lure of instant gains can make poor decision-makers out of the best of us when it comes to cryptocurrency. And that as you can guess, is not a good thing.
So should you find yourself with a few moments to spare in the evening, try playing a few hands of poker either online or with friends. Remember though, to truly get the most out of the game; there will have to be some risk involved. Playing for pennies with family won’t get you into the right mindset, but playing for a few dollars online or in a real-world casino will. Do this for a few weeks, and before you know it, you’ll find yourself making more rational decisions based on odds as opposed to hopes and wishes. And without a doubt, your skills in cryptocurrency investment will improve.
Disclaimer: This article should not be used as an investment or financial trading advice and reflects the personal views of the author. Please conduct careful due diligence before investing in any digital asset. The views, opinions, and positions expressed within guest posts are those of the author and do not represent those of Tokens24. The accuracy, completeness, and validity of any statements made within this article are not guaranteed. Tokens 24 accepts no liability for any errors, omissions or representations. The copyright of this content belongs to the author and any liability with regards to infringement of intellectual property rights remains with them.