We tend to only hear the rags-to-riches stories in crypto and we think, why isn't that me?
The truth is: Majority of people lose money in crypto.
Yes, most crypto investors are down on their investments today.
And we can see this on-chain. 80% of people buy and sell at exactly the wrong time, and the other 20% who know what they're doing, scoop everything up.
The reason you donโt hear about these stories is that people are too embarrassed to talk about their losses, especially on social media.
I talk to hundreds of investors every week about how they are 30-80% in the red.
Here are the top reasons why they're down.
If you can avoid these things you will be in the top 20%.
In a 4-year crypto cycle, the market trends up quickly for only around 3-6 months.
For the rest of 3 years, it is going down or chopping sideways.
And, the primary reason people lose money is that they invest in those 3-6 months when the markets are going up.
When the markets are blossoming, you will see your local plumbers and Uber drivers quitting their jobs and FOMOing their way into the latest alt.
When you buy crypto at that time, you are buying the asset that the sophisticated investors have been buying for the past 3 years.
You are buying when it is time for us to sell.
You become exit liquidity.
Whenever you are buying or selling, think who is on the other side of your trade.
If everyone is buying, you are already late to the party.
Instead, sell when everyone is buying and the markets are going crazy, and buy when the markets are dead.
When narratives like Crypto AI and PEPE come and get noisy, it means you have missed your chance, don't go chasing.
The right time to invest is now, while no one cares about the market.
All markets including crypto are down, and 95% of people have forgotten about it.
The US government is going hard on crypto with regulation, so people are scared to touch it.
This is where the real opportunity lies.
It's the same in every other bear market. There's always a bearish narrative which keeps people at bay.
Today, I believe Bitcoin and some of the Blue-Chips are undervalued, especially in De-Fi & Gaming.
Learn about the utility of these sectors.
Do your research, develop conviction, create a plan, be unemotional and build your portfolio.
Remember that success in crypto demands patience.
Invest and be patient.
Donโt check the price of your asset every day.
Keep dollar cost averaging into your desired assets and forget about it.
Stop listening to people online pushing fear into you.
Audit who you are listening to and whether if they are genuine and transparent.
90% of crypto content online is crap. Audit who you're following.
This is where people go wrong.
- Follow bad advice
- Invest in bad investments
- Create a bad psychology around crypto
- Buy and sell at bad periods
- End up with a bad portfolio.
Don't follow the crowd.
Get out of the 80% and into the 20%.
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