Draper believes the market must be free of limiting restrictions and excessive regulations. He says that Bitcoin and the entire cryptocurrency ecosystem will make the world borderless.

Venture capital investor Tim Draper recently revealed five rules to invest and predict if something will be successful. In that way, he discovered assets like Bitcoin (BTC) before anyone started to talk about them, and he made a fortune of USD 2 billion.

When almost no one knew the word cryptocurrency, he dared to invest his savings in Bitcoin in 2014. He has also bought shares from Twitch, Hotmail, Skype, Twitter, Tesla, Coinbase, Robinhood, and SpaceX.

Draper provides all those wanting to invest successfully with advice that he has used to become a billionaire. They can apply those rules in both the cryptocurrency ecosystem and other technology industries, his specialty.

An Investor Should Believe in the Project

According to Tim Draper, the most crucial factor when investing in an asset is believing it will work. For that reason, he considers that the person should research and study the information on the project.

For instance, he says that the investor should know about those behind its development and the possible rivalry between managers. He also recommends learning whether it is a scam, makes false promises or regulators limit its growth.

Draper Advises Not Investing All Savings or Too Much Money

Tim Draper agrees with Bitcoin investor Elon Musk in that it is a bad idea to put all one’s eggs in one basket. He advises having a diversified investment portfolio and not putting too much money at once. He highlights that it is best to analyze how each project develops to invest more in the most promising ones.

He Recommends Forgetting About Making Quick Profits

Investor Tim Draper specializes in long-term holding/investments. Therefore, he recommends not thinking about making much money but how a project could change the world. He notes that he did that to invest in Bitcoin, which he predicts will eliminate borders and the US dollar. Spanish economist Gael Sánchez Smith agrees with the investor in that respect.

He Believes that What Is New and Strange Is a Good Sign

Draper has always decided to invest in businesses that propose an innovation beyond any creation so far. Among them is Bitcoin, which Satoshi Nakamoto created in 2008 when it was an unknown decentralized technology. However, around 300 million people worldwide use it to pay for products and services and as a store of value.

Draper Considers that Investors Should Invest Driven by Emotions

Tim Draper believes that doing business should involve a series of emotions, contrary to traditional investment. Beyond the activity itself, the person desires to invest in projects that would build anything he wants, such as Bitcoin. He advises not being afraid of that passion, but he argues that the investor must do carefully and know how to withdraw when it fails.

Bitcoin plays a relevant role in the economy, and many analysts and investors think it will replace fiat money. The rules that Draper shares to do business successfully are an example of what the first cryptocurrency in the market can do.

By Alexander Salazar

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