According to Compounding Quality on Twitter, the importance of sticking to your circle of competence is emphasized for traders and investors, with the statement 'I don’t invest in what I don’t understand. And I don’t want to understand Facebook.' This approach underlines the necessity for crypto and stock market participants to prioritize assets and sectors where they have a clear edge, which can help avoid unnecessary risks and improve trading outcomes. For crypto traders, this principle translates into focusing on coins, tokens, and blockchain projects with transparent fundamentals and technology, reducing exposure to assets that are outside their expertise or have unclear business models (Source: Compounding Quality, Twitter, May 19, 2025).

According to Andrew Ng (@AndrewYNg) on Twitter, Warren Buffett’s 'Circle of Competence' concept emphasizes focusing trading decisions within areas where one has proven expertise, a principle Ng applies at @AI_Fund. For crypto traders, this approach can lead to more disciplined risk management and improved portfolio performance, as focusing on assets and markets within one’s competence reduces exposure to unforeseen volatility (source: Andrew Ng Twitter, May 4, 2025).