Cryptoassets: The Innovative Investor's Guide to Bitcoin and Beyond

by Chris Burniske

One of the keys to Graham’s book was always reminding the investor to focus on the inherent value of an investment without getting caught in the irrational behavior of the markets.

Man, as part of a multitude, is a very different being from the same man as an isolated individual. His conscious individuality vanishes in the unconscious personality of the crowd… .

The investors who got burned were the ones who bought because everyone else was buying, and then sold because everyone else was selling. The best way to avoid getting burned in this manner is to do proper due diligence and have an investment plan that is adhered to. If the urge is to buy the asset because everyone else is buying it and it keeps going up, then it’s likely best to walk away from any consideration of that investment.

Here’s another Burniske-Tatar Rule: Don’t invest in bitcoin, ether, or any other cryptoasset just because it’s doubled or tripled in the last week. Before investing, be able to explain the basics of the asset to a friend and ascertain if it fits well given the risk profile and goals of your investment portfolio.