Disclaimer: This post is not advice. This post is information only.
Today, I’m focusing in on the crypto market. But what I’m going to be going over, can be applied to any market. That’s crypto, stock markets, property or whatever it is you invest in.
The markets are down and it’s very easy to panic and make questionable investing decisions. When markets are down, it’s time to hold your nerve and keep hold of your assets, if possible. An added bonus is that you can buy the dip if you have spare liquidity.
Don’t make the schoolboy error of many novice investors who buy high and sell low. They will see the markets crashing down and panic sell.
Listen to the news, listen to podcasts, YouTube videos or whatever else, it’s all negative because of what’s happening in markets around the world. I’m getting a bit numb to market ups and downs and find that reading about the technology behind BTC, money or investing helps me to focus on the fundamentals. It helps me to stick to my long-term plan of buy and hold with property, index investing and crypto.
The current system is broken
Fiat currency can be manipulated.
The share price of a company can be manipulated.
The price of gold can be manipulated.
BTC CAN NOT be manipulated.
A big focus on mine over the last 6-9 months has been inflation and hyper-inflation. It is painful to get your head into, but it helps you to understand what’s going on with world currencies. It teaches you that the fiat system is broken. It leads you to the conclusion that the dollar being the global reserve currency, won’t last forever. No fiat currency in history has survived and the dollar seems to have the same fate.
My strong belief is that a way to insulate yourself against inflation and the current broken system is to educate yourself. Then you can navigate the current system we are in and invest accordingly.
With more understanding, you would know that official inflation figures are too low and are more like 15-20% (in my opinion). Then you can do something about it. Like reducing your spending by 20%, increasing your earnings by 20% or even getting 20% returns on your investments.
The system is broken because of corrupt governments and central banks. It is good for them as inflation reduces equality. The top 1% have a lot of liquidity and put it into assets. This is harder for the other 99% and means we must work hard to get on top of our finances. It’s hard but I do believe anything is possible.
Crypto market is crashing
DYOR. Please Do Your Own Research.
Just look what’s happened recently with LUNA and UST. The price of LUNA has dropped +99% to almost nothing. I didn’t see this coming, and I don’t think anyone else did.
Many people will have lost thousands and even millions in some cases. My heart goes out to them, and I have empathy for how they are currently feeling. I lost my life savings in the stock market in 2010 and 2011 and it’s not a nice feeling.
I strongly believe in BTC and other crypto assets and feel they are going to play a MASSIVE role in the future of money. The books I have read and the research I’ve done, make me very bullish on the BTC. I finally get it.
BTC is decentralised.
BTC is scarce.
BTC is digital gold.
BTC can’t be fucked with. Read BITCOIN: HARD MONEY YOU CAN’T FUCK WITH, by Jason A. Williams and he will probably convince you of how BTC is hard money and it can’t be manipulated by governments and banks.
Anything can happen and everything in crypto (even BTC) could go to zero. I don’t think it’ll happen, and I am still very bullish as I look long-term. Like 10 years or even longer.
My opinion is that many of the thousands of cryptos will fade away. There will be some left and I feel BTC and ETH will still be around in years to come. BTC is like digital gold and ETH is like digital silver. Many people compare the crypto market to the dot.com bubble of the late 90’s and I definitely feel there are similarities..
If you chase quick easy money, you’ll be left disappointed. It’ll probably get you worked up and might even leave you stressed out and anxious.
As you start investing, you might get a bit too excited and check on your investments every 5 minutes. You might think that staring long enough and hard enough, will have the magic effect making you serious money.
You might listen to the news, social media, your favourite podcasts and it might all be negative. It’s all doom and gloom and panic’s starting to set in. The investments you have could be sold for a small loss but what should you do?
And then what about FOMO. Your scared that if you sell now, your investments will go back up and you’ll have missed out on potential profit. What about the latest stock or crypto that your mates are talking about down the pub. FOMO might force you to steam in without looking into that particular investment.
I’ve been investing for 20 years and have made similar mistakes time and time again. It took me a long-time to learn from my mistakes. Please try and educate yourself. ZOOM out and take a long-term view. My strategy is long-term buy and hold with property, stocks and crypto. I am calm and have finally started to invest with skill.
Beginners looking to invest
Investing isn’t easy and isn’t for the faint hearted. You might have to make a few mistakes along the way to cut your teeth. But why not learn from my mistakes and save yourself valuable time.
One of the things I have done over the last few years is read a lot of books. I’ve read 100s of books on investing, money, economics, business etc. A common mistake that is mentioned a lot is that novice investors or beginners buy high and sell low.
If crypto markets are up for example, people get excited and FOMO. Then as markets start going down, they will sell for a loss. This means you are locking in your losses. This has been going on for decades in the stock markets around the world.
Crypto markets have crashed in recent weeks and months and not many people are talking about it anymore. In fact nobody I know, is talking about it. But this is the time to buy IMO.
Why not buy when the price is low? Why not buy when the sales are on? People love going to the sales when JD or NEXT have 30 or 40% off. But not many people seem to like the sales when it comes to crypto or stocks.
Invest a small amount when you are just starting like maybe 5% of what you use to invest.
Invest with money you’re willing to lose.
Educate yourself and maybe start with BTC and ETH.
And if you are able, go to the sales and buy the dip. In my humble opinion, crypto has a massive role to play in the future of money. And investing now, might just be a game changer in years to come.