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37) 3 Quick Crypto Lessons.
🕑 Added 2023-06-13 19:51:27 +0000 UTCFirst, I have something exciting to say:
Next post I will be switching it up.
If you think this content is amazing, wait till you see what's coming.
I don't want to speak too much.
You will see what I mean.
But let's get into it:
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1) Crypto and Stocks are now best friends.
Crypto and Stocks are besties.
They go with each other, spend time together every day, and are doing their separate thing for not very long at any given time.
Crypto is now just a high-beta stock play.
High beta = higher volatility in comparison.
Crypto Whales can hold a level or area of price temporarily, but crypto's direction now depends almost entirely on stocks.
Why is this?
- Crypto is offered as an investment option on most of the traditional investment platforms.
- The Crypto market has entered mainstream consciousness.
- Large fund managers have allocated substantial investment capital to the Crypto space, meaning there are large players who follow the Stock Market and the FED very closely for buying/selling crypto.
It has never been more important to have a solid understanding of the FED, the Macro environment, and the future direction of major US Stock Indices.
These are just one of the reasons why the upcoming bull run is expected to be the last and most profitable.
The crypto market is maturing, attracting more traditional investors who view it as a valuable investment opportunity.
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2) Crypto is Poker on easy mode.
Some of the BEST Crypto speculators I know are ex-Professional Poker players.
The game of Crypto and Poker is incredibly similar because:
- Both are negative sum ($1 in is at max .99 out as the house takes its share)
- The 95% of losers are what enable the 5% of winners
- The vast majority are actually gambling, only a small few ever play with a proven edge over their competitors
- The best Poker players have a profound understanding of human psychology
- The key to being profitable is building a system that will make you money over time and STICKING TO IT.
The reason so many Ex-Poker players come to Crypto is simple:
Trying to make money in the Crypto Casino is the equivalent of turning up to a Poker tournament against a room of amateurs.
Most Crypto speculators are genuine morons, implementing nothing more than spread betting and wishful thinking.
The amount of money you are able to take from a market comes down to how much your counterparty is willing to lose.
And in Crypto, your counterparty is willing to lose A LOT.
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This is what you need to understand:
Being profitable is like attracting a Butterfly.
You can't attract Butterflies by chasing them.
Gardeners attract butterflies by gardening, allowing flowers to grow which will attract butterflies.
Profitable trading/investing works in the same way.
Those who try to chase profits will have them scared away, for they do not deserve them.
Those who build their knowledge, and their systems/strategies, and patiently wait for the correct setups (flowers), will be rewarded with profits in time (the butterflies).
There are no ifs or buts to the reality of this metaphor, it is absolutely true and there are
zero exceptions to the rule
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3) You will never TRULY understand Crypto until you’ve experienced a full market cycle.
The biggest issue new investors have who enter in the bull market is falsely believing that they are entitled to profits simply by being in the market.
That Crypto prices just continue up to ad infinitum and all they need to do is ‘buy the dip!
And ‘HODL’!
There are two distinct ‘modes’ you need to operate in to be successful as an investor:
- 1. Surviving
- 2. Thriving
Thriving is all about maximising your returns in the bull market, by understanding that prices will go higher than anyone can imagine.
Speculators always underestimate the upside in the early phase of a bull market (disbelief), and underestimate the downside in the early phases of a bear market (denial)
Speculators who have experienced a full market cycle will be able to identify which stage of this cycle they’re in, and make adjustments to which ‘mode’ they should being accordingly.
The wealthiest investors in a bull market:
Are the individuals who implemented ‘bad habits’ early (HODL, no profit taking, 100x, high risk, etc)
The wealthiest investors in a bear market:
Are the individuals who implemented good habits before they saw the decline coming, being mostly in cash, low risk, sitting on their hands, etc.
Understand the full cycle to be able to act accordingly.
With that being said.
See you at the next SPECIAL post.
@ionicX
Comments
Amazing. Thanks!
✅️💎
