Yea, it’s a hard pill to swallow. I lost over $52,000 worth of crypto in the crash of 2022, but I’m still investing.
Some call me crazy, but that’s okay.
See, the thing is, it is in the nature of investments to be risky.
That’s the point.
No risk, no reward.
If you truly want to be successful at investing, you have to understand that, and you have to play the long game.
The reason most people lose money when investing, especially in higher-risk markets, is because they’re trend followers.
They buy when everyone else is buying (during the hype).
They sell when everyone else is selling (the panic).
This is literally the complete opposite of what you’re supposed to do.
The rule of the game is “buy low, sell high.”
But the issue is most people don’t think about buying until they’re seeing it on the news or being mentioned in their feeds.
But if you’re seeing any types of investments in the news, whether it’s crypto or other specialized industries like Space, AI, or Marijuana…
It’s already too late.
The hype is already there because enough people have already bought that it raised the value significantly enough to make people start talking about it.
The train has passed.
On the other hand, when no one is talking about it, it’s usually because something bad happened and everyone sold, which caused the values to plummet.
Take AMC and the WallstreetBets story for example.
You couldn’t go anywhere in 2021 without hearing or seeing something about the two.
That’s because the major rise-up had already happened.
After the wave, and it’s very expected inevitable downfall, no one talks about it anymore except in the context of either reminiscing, or regret.
At the moment, the same is true for the crypto markets.
We had an incredible bull run, in part thanks to the pandemic, throughout 2020 and most of 2021.
So much so, that crypto was being talked about everywhere, by everyone.
“The future is here, the future is now, diamond hands, goodbye to fiat, WAGMI!”
Even my grandparents invested when I talked to them about it with my enthusiastic excitement and expectations about the incredible never-ending gains coming my way (yea, even I get ahead of myself sometimes).
Then 2022 came, and the crypto markets tanked.
And so did my portfolios.
Then of course from the woodworks returned all the naysayers, skeptics, and crypto pessimists.
“We told you, crypto will never work, it doesn’t have real value, it’s not real, we were right!”
Okay, boomer.
Here’s the thing…
This is completely normal market behavior.
There’s a reason for the existence of the phrase, “History always repeats itself.”
People loved to dog on crypto, but it wasn’t just the crypto market that crashed.
The entire financial system went into a downward bear trend.
And as history will show you, whenever there is a down trend in the overall market, the highest risk investments tend to get the worst of it.
So when the entire market went down, of course crypto was going to crash!
It’s the newest, most volatile, and highest risk investment option there is simply because it’s the youngest and least controlled.
To think it was going to do anything else but crash is just naive.
And we’ve seen this story before.
In the early 2000’s, the internet began its boom and we welcomed the era of the dot com.
At one point, companies with no actual revenue or products were being valued at billions of dollars simply because they owned a domain name.
Everyone thought that was it…
“Dot coms are the future, they’ll define a company, if you have one you’re going to the moon!”
Well, they were partially right.
Dot coms were the future.
And they definitely help define your company.
But they guarantee nothing from a financial or business success perspective.
In the same way we saw with crypto, after a decent run and billions of dollars later, 98% of dot com companies failed and went out of business.
So, was the entire internet and dot coms a complete failure?
Of course not!!
Look where we are today.
Yes, 98% of those companies failed.
But those other 2%?
Amazon, eBay, Priceline…
They became super successful!
And the technology itself completely revolutionized the world and the way we do business.
The value was not in the companies
The value was in the technology and what it could do.
The same is going to prove true for crypto.
98% of (early) crypto projects are going to fail.
But that’s because we’re in the wild west learning phase.
And yes, we’re still in the early stage.
What comes out of this learning phase will be the power and actual, profitable, use cases for blockchain technology as a whole.
This is why, despite my large loss of unrealized gains in 2022, I still continue to dollar-cost average (DCA) into a handful of the layer ones.
Learn more about dollar-cost averaging here.
Yes, I’m also hedging my bets and DCA’ing into a handful of layer twos and layer threes as well.
The higher the risk, the higher the reward.
Now, I’m not saying you should just blindly throw your money into random cryptos and hope for the best.
(a.k.a. “spray and pray”)
You should without a doubt do 20-30 hours of research to at least get a basic understanding of the underlying technology and how it works.
You don’t need to be a subject matter expert.
But having a basic understanding helps you make better informed and educated decisions on which projects to invest in when considering the long-term game (10+ years).
It helps you to understand what to look for, to give you the best possible chance of success given the current status…
Instead of waiting to hear about “crapcoin” from the next WallStreetBets copycat.
And there has never been a better time than NOW to do it…
When the markets are still at major lows from their All-time Highs, and no one is talking about it.
- Do your research
- Get yourself a free Coinbase account.
- Pick a small handful of 2-4 cryptocurrencies that have a long enough history, track record, and development team behind them.
- Set up an automatic weekly, bi-weekly, or monthly investment so you don’t even have to think about it.
Then, when everyone is talking about it on the news:
sell high, rake in some of your profits, and thank yourself for buying low.
Empower yourself.
Warm Regards,
Zyler Kade
P.S.
Get $10 worth of free Bitcoin when you sign up for a free Coinbase account.
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