Almost every beginner confuses investing with trading. The trader tries to predict short-term movements and is exposed to liquidations (even hundreds of millions of dollars in 24 hours is standard in crypto). The investor builds a portfolio for years, ignores the noise, and uses dips to accumulate. Understanding the paradox that one of the biggest news in BTC history (ETFs) caused a drop of 20% is key. It was a trap for traders ("Sell the News"), and at the same time an opportunity for investors.
Many of you focus on the ratio of 60 to 40 that I once provided. Once. Know that these proportions are changing. Besides, this number is the least significant element of the puzzle. It is merely a subjective speculation about the near future and often has nothing to do with action (though it helps in making decisions). It is much more important to distinguish between a wishful and a practical approach to the market. The wishful approach is my 60% chance of increases. It is just a probability, speculation based on macro data and on-chain data.
At the age of 15, it is not "too early" to learn about cryptocurrencies and investing; it is the ideal moment. The greatest advantage in building wealth is not capital, but time. The earlier a young person starts saving and investing regularly, even symbolic amounts, the more powerfully the compound interest mechanism will work in their favor. The key is not speculation, but building healthy financial habits. Understanding how money, inflation, and assets like Bitcoin work provides a foundation for a lifetime.
Yes, but not the only one and not for tomorrow... No, gold is no longer the only "safe haven".
The recent sharp drop of 8% in two days showed that gold is also volatile. Although traditionally considered a "store of value", Bitcoin has superior characteristics that make it a better investment asset in the digital age. And also better, which won't please those investing in gold, store of value.
Well, how do you define 'store of value'?
After the last drop in gold by 8% in 48h, it's probably clear that in the short term you won't find stability in gold either?
Is a 20% drop in BTC price the end of a bull market?
No, a price drop of 20% is usually a normal correction, not the end of a bull market.
Instead of panicking while looking at the chart, it's worth taking a cool look at the on-chain data, which reflects actual actions in the Bitcoin network.
This data, such as the flows of bitcoins to and from exchanges, or the average purchase prices of BTC, helps maintain calm and stick to the plan.
They show that current declines are often an opportunity for accumulation for 'strong hands', not a signal to flee.
Especially if you think long-term. What is on-chain analysis and why does it provide calm?
Is it possible to quickly earn money with cryptocurrencies? Yes, but it is also the quickest way to lose everything.
Yes, theoretically it is possible to quickly earn money with cryptocurrencies, but it is a path fraught with enormous risk and statistically, for most people, it leads to capital loss.
The vast majority of people trying to speculate and "play the market" in the short term incur losses.
This happens because the market is unpredictable in the short term of days or weeks and is dominated by professionals who have mastered traditional markets and now, in the crypto market, want to take advantage of inexperienced beginners who think they can manage.
Is there one indicator that predicts a bull market in crypto? Yes, and it is global liquidity.
Yes, there is one overarching indicator that historically has the highest correlation with trends in the cryptocurrency market, and it is global liquidity. It is the amount of capital available in the global financial system. When central banks "print" money and lower interest rates, liquidity increases, and this capital seeks higher returns in risky assets such as Bitcoin.
There are significant risks, such as being banned by governments, quantum computers, or the decline in the profitability of mining? It's a vast topic and you could confidently write about it in two books, and in fact, you can already find such books.
However, briefly, I see it this way:
Every revolutionary technology initially raises concerns.
Do you remember when it was said that the internet was just a passing fad?
How did blacksmiths boycott cars?
How people still burned candles at home because 'demons lived in light bulbs' (seriously, it was like that).
The arguments you present, I've been hearing about Bitcoin since 2017, and yet the project is becoming stronger and stronger.
"Do you share the opinion that at this stage of the bull market it's already a casino?"
"Is now a good time to enter?" This is the most common question, but at the same time one of the worst you can ask.
Why? Because it immediately puts you in the position of a player, not an investor.
If your time horizon is a few weeks or months, then yes – cryptocurrencies will be a casino for you, regardless of the market phase.
Every decision will be driven by emotions, and your portfolio will react nervously to every price change.
Real change occurs when you shift your thinking to years, not months.
Treating crypto as a form of long-term saving, rather than a way to make quick profits, is the key to peace and potential success.
Think of it as planting a tree.
If you dig it up every week to see how the roots are growing, you will never see the fruits.
A long-term investor plants a tree and patiently waits, understanding that there will be storms (corrections) along the way, but the ultimate goal is a strong, fruit-bearing tree in 10 years.
Is it worth "planting" now?
I do it regularly, adding small amounts to my portfolio as part of a DCA strategy.
As for the "casino" – let's look at the interest in the topic.
Currently, it is close to zero, literally scraping the bottom.
Worldwide, the viewership of crypto content is like in the bear market low of 2022.
Historically, the real "casino" and the peak of the bull market started when everyone was talking about crypto. Today, there is silence. This is thought-provoking, although nothing is guaranteed.
If you want to learn how to build a portfolio for years, not weeks, I recorded a free course in five steps that will help you avoid many unnecessary and costly mistakes and create a long-term strategy for yourself.
"The Street" in Crypto – Who is it and when does it enter the market?
’’The Street" in crypto is not new investors! It is capital that always arrives late. "The Street" in the cryptocurrency market does not necessarily refer to beginner investors or specific social groups. It is a universal phenomenon defined by capital entering the market irresponsibly, driven by emotions – mainly fear of missing out on profits (FOMO). This includes both inexperienced individuals and wealthy investors from traditional markets. The key moment for "the street" to enter is during the advanced bull phase when prices reach or exceed historical peaks (ATH).
How to survive the emotional rollercoaster in crypto?
Is a drop in crypto a reason to panic? On the contrary, it is a test of your true goal. The decline in the value of the cryptocurrency portfolio is not a reason to panic, but a natural element of investing in the most volatile assets in the world.
The key to survival is changing your perspective: instead of viewing fluctuations as losses, you should treat them as "tax on future profits."
The biggest mistake is mentally "materializing" unrealized gains and converting them into consumer goods.