Crypto investment lessons from poker games near Tet

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2023-01-22 02:46:36

The article is narrated by Ali, a crypto investor shared with Insights. These are mere lessons in the psychology of investing through a globally popular card game. We do not encourage our readers to engage in gambling in any way.

A few days ago, in the atmosphere of preparing for the Lunar New Year holiday, I and some friends played poker together for pure entertainment. We don’t gamble, just use plastic chips as part of the game. Perhaps because we do not need to spend money to play, our mentality is very comfortable.

Poker, also known as Poker, is a card game that is played worldwide, with many genres. And the most popular genre is Poker No Limit Texas Hold’em. I see this as a “sport” for the mind and the psyche. In addition to luck, it also requires players to have bravery and steadfastness, discipline, and determination.

After stressful but equally fun battles, I – and also a crypto investor – have realized the close connection between Poker and Crypto investment, from which I have learned a lot. Lessons in investing from psychological analysis, tactics, to decision making.

I believe these are useful not only for those who are learning to invest in crypto, but also other “high risk, high return” investments.

Strong psychological management – the key to survival

In a study of Poker that I have approached, entitled: “Coding information in the management of strategic uncertainty” by Seth Frey, conducted with 35,000 different players, pointed out. that:

The majority of the winning Poker players are those who combine their two cards and the performance of their opponent to make the right decision.

That means on the table, maintaining a strong mentality, not showing emotions no matter what hand, win or lose game can help players win. Because the opponent will not be able to guess the hand they hold based on facial expressions, emotions and actions.

That’s probably why in some matches, some people will wear sunglasses to avoid psychological guessing.

With crypto too, keeping a strong mentality regardless of profit or loss can make it easier for investors to succeed. However, that is not easy. It can be seen that most investors, when consecutively profitable, will fall into a state of overconfidence leading to an increase in capital to order, and with just one losing order, their profits will also be blown away. There are people who lose in a row but the mentality of wanting to remove, being bitter, losing their temper makes it easier to make wrong decisions and lose more.


In poker, to get a good hand depends a lot on luck, perhaps it accounts for 50%. But we are not always lucky enough to have a nice hand. A good player can be the one who takes a bad hand and still wins a lot, but a good player is also someone who can patiently wait for a good hand.

A little bit from my poker matches, I find that the probability of winning from a bad hand position is very low for me, because there will be an opponent with a better, more fearless hand. But on the contrary, the probability of winning when holding a beautiful card is very high. So in the match I only played very few cards (hands), mostly folded (hands), only really good hands from the beginning joined.

Pairs of cards: AA, KK, QQ, JJ, AK, AQ, AJ, … are the pairs that are considered good positions.

Patiently waiting for a good post as well as patiently waiting for a good position in investment.

Near the end, there were 2 impressive games thanks to a good hand position (AA, QQ) that I was able to turn the situation around, eliminate opponents and change positions. It can be said that “it is better to play with a small quantity but with high quality”.

To have such beautiful hens, I waited very patiently. Sometimes you have to give up dozens of cards in a row, sitting for an hour to get a good position.

Revealing such tactics may be difficult for many to believe, but really only that way of playing can help me win against tough and experienced opponents.

In crypto too, it is always necessary to wait patiently for an opportunity and almost everyone knows this but few people do it. Most investors have been or are “swinging to the top” from the uptrend, since Bitcoin was at $40,000-50,0000 (me too). I often say to myself, if I could wait patiently, would I be able to buy a better position now?

Know who you’re up against

On the table, my opponents have many types, there are people who have played in bigger tournaments (even when I met for the first time, I felt the aura of an experienced Poker player), there are also people who New to the game, there are people who play carefully, there are people who are not careful.

For each person I define a different playstyle. In the first few games, I observed the play and determined who was strong and who was weak. Then choose to prioritize playing with inexperienced people, less careful than you. Because the rule on the table is to defeat a weak opponent, not head into a strong opponent.

With crypto investment, we can also compare it to a game of Poker, in which we have to determine who the player with us is. Are they the exchange, the Market Maker (MM) team or who? And need to further define my position is Who?

In it, we see a crypto playground consisting of players: Team & Advisors, Seed Round Investors, Private Sale Investors, Buyers on Exchange, Market Makers, Miners. mining), Airdrop/Bounty, Exchange (Exchange).

The position of most of us here is Buyers on Exchange (buyers on the exchange), as retail investors. Our competitors include strong people who are in a better position than themselves, can buy tokens/coins cheaper than themselves, buy more than themselves like investors in Seed, Private, or price makers like In the MM team, the weak are those who have fewer tokens and with higher prices or maybe free but with few tokens, which don’t have much impact on the overall price.

From there, we can learn how to act rationally, for example, not to fight or go against the strong. The rule in the competition is that the weak are not foolish to rush into the strong first. With the current Crypto, the majority of the strong are investment funds, exchanges and the exchange’s MM team.

Consider taking risks or keeping money to survive

In poker competition, there are games where you have to accept “investment” to have the opportunity to see the cards, but if the amount you spend is too much compared to the number that can be won, you need to consider carefully, whether that level is worth it. worth following or not.

If it is more than acceptable, you can consider “cutting your loss” to preserve and give the opportunity to play more games. Because in competition, you only need to run out of “capital” to be eliminated from the table, so cutting losses is a way to find more opportunities in the following hands.

In every game with many opponents, “surviving” to the end is always the top priority.

We also have such a lesson in investing, knowing how to cut losses to manage risks to a minimum is essential that has been mentioned a lot, especially with volatile markets like crypto.

We have money to invest, but even if we miss a few times of loss, our account can gradually shrink. Investing is a long marathon journey, just like a poker match lasts 4-5 hours, up to hundreds of cards is fast, not in just a few orders or a few games. post is done. Should keep the money here, there is hope for the opportunity to earn money later.

After deciding which coin/token to buy, it is necessary to set a stoploss at an acceptable loss, if there is a real loss, there is still money to redo.

I know that the above lessons are not all, just lessons learned from individuals after a period of playing and winning. I hope it is useful for you when investing, getting rich, don’t expect you to use these experiences to fall into gambling, break the law.

#Crypto #investment #lessons #poker #games #Tet

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