# How to create Systems in Crypto By [andywan](https://paragraph.com/@andywan) · 2022-03-14 --- [https://twitter.com/thedefiedge/status/1503433574418059267](https://twitter.com/thedefiedge/status/1503433574418059267) Making too many decisions in Crypto is exhausting. I started making more money once I learned about Systems Thinking. Here's your playbook for creating Systems in Crypto: (plus it stops emotions from killing your gains!) Making too many decisions in Crypto is exhausting. I started making more money once I learned about Systems Thinking. Here's your playbook for creating Systems in Crypto: (plus it stops emotions from killing your gains!) Goal: Lose weight System: how you work out and how much you eat. Goal: Grow on Twitter Systems: How often / when to tweet, topic Selection, & the writing process. It's easy to set a goal. Having a good SYSTEM is what separates the winners from the losers. **What are Systems?** Systems are a set of behaviors & habits that, if executed consistently, will nudge you towards your goal. It's kinda like trying to find the right recipes for your goal. Everything changed for me once I applied this type of thinking to Crypto. ![](https://storage.googleapis.com/papyrus_images/e28879c574a2d7f84d0f80a5af56b96f8e553e365b5743e1df694df7bf6e183f.jpg) **Why Create Crypto Systems?** We're victims of emotions & biases. Designing systems is like creating investment software for your brain. It's simplifies everything and makes life easier. You're more objective about your decisions. Here are 10 examples for Crypto: 1. **When to Buy Crypto /w Fiat** I buy blue chips on the 1st of each month /w fiat; it's as automatic as paying my bills. I'm not looking at the "RSI". I'm not trying to time the market. Instead, I use my brainpower towards other things like research and living life. 1. **Portfolio Allocation** I have a target for each section of my portfolio. If one area of my portfolio gets too overweighted, then I sell and re-adjust. [https://twitter.com/thedefiedge/status/1500898115762544642](https://twitter.com/thedefiedge/status/1500898115762544642) 1. **Profit Taking Formulas** When do you choose to lock in profits? Instead of timing or feelings, try following formulas. ![](https://storage.googleapis.com/papyrus_images/3b89d182f651946a08a1742083c40a37e0fc61756cf33ac8966319e53de0753e.jpg) 1. **Claiming Earnings from Farms** Not all protocols have auto compounding. How and when do you decide to claim your farms? I claim everyday Monday and Thursday afternoon. I have it scheduled in my calendar, and I have a bookmark folder of my farms. ![](https://storage.googleapis.com/papyrus_images/ffae5b39154a78ab59cffb50234bc1534d51bfa1c02d286c8b89f022f6bdb600.jpg) 1. **Keeping Track of Everything** It's easy to get lost with so much data. • Create a Trading Log • Create a Spreadsheet with your cost basis • Use @zapper\_fi • Figure out how to Track Tax Obligations • Follow an influencer? Track their "calls" to see their accuracy. 1. **Investment Checklists** How are you evaluating a protocol? One system I've created is a checklist to evaluate protocols. It's easy to watch a YouTube video and get FOMO. Creating your own checklist will keep you honest. ![](https://storage.googleapis.com/papyrus_images/decd9580695bd049a6a193b8a0f784b3d2be99d5ebd73dc7d1ec4cb39d2f84fe.png) 1. **Your Content Diet** Junk food is horrible for your body. Have you thought about your mental diet? It's the information you're consuming every day. Curate your content diet carefully: your Twitter feed, podcasts, newsletters, etc. Get rid of the mental junk food. 1. **Research System** Create a formal process for research: • Read the white papers and official documentation • Research the founding team & their accomplishments • Do they have audits? With who? • Do a vibe check in the Discord • etc. Go through it EVERY SINGLE TIME. 1. **Habit Formation** It's not enough to create the systems, you must create habits to do them! • Create recurring tasks in your Calendar • Set consistent times for certain behaviors. • Make your checklists easily accessible • Re-visit & improve when you have new learnings. ![](https://storage.googleapis.com/papyrus_images/8f4f3ec6c4a653855d005734d09af13627ee7b669d10ece70f7127fc148c0ffe.jpg) 1. **Systems Protect You** I HATE taking profits. In January, I was riding high off of Wonderland & DeFiKingdom's success. I DID NOT want to take profits. But I trusted my system, so I reluctantly took profits. The prices crashed and I didn't lose as much. Thank you systems. **The Bigger Picture** Simple means LESS decision fatigue. By systemizing the smaller decisions, I can use my energy towards bigger things that have more LEVERAGE. [https://twitter.com/thedefiedge/status/1492551335446646786](https://twitter.com/thedefiedge/status/1492551335446646786) Some Homework: • What's your decision-making process when investing? • When do you take profits? • If an investment sucks, when do you cut your losses? • How do your systems change when it's bull vs. bear market? • How do you keep track of everything? "Ser, how do you keep track of your systems?" Don't overcomplicate it. You can start with a Google spreadsheet and creative different tabs. These days I create checklists and tables inside of my @NotionHQ Additional Info: If you want to learn more about systems thinking, then check out these books. • Atomic Habits by @JamesClear • Principles by @RayDalio Systems thinking doesn't come naturally for some people. But once you "get it", everything in life becomes easier. Key Takeaways: • Everything in life is a system. • Systems protect you from your emotions and cognitive biases. • Creating them and analyzing them over time will help you find weaknesses in your strategy. --- *Originally published on [andywan](https://paragraph.com/@andywan/how-to-create-systems-in-crypto)*