The magic sauce for massive returns is something I’ve been hunting for in my adventure in cryptocurrency.
I’m here to tell you that I’ve found the answer for any market, up or down.
The world of crypto buyers, investors, or gamblers is not specific. The emails shown below are what landed in my inbox this morning. Either everything is going to hell in a handbasket, or the future looks promising.
So the advice is to run away or keep investing. Not very helpful.
The other piece that tagged along in my inbox was Now That Crypto is Objectively Dead, This is the Next Big Thing. OMG, Isaiah McCall wrote a brilliant post. It made my day.
A Shifting Sand Dune of Lies and Truth
Ultimately what you need to understand as a primary truth in crypto is you have no control over what it is going to do. But this I can guarantee: The price will go up and down.
The massive glistening price peaks and cold shady valleys are here to stay. As long as you understand that, you can then decide how you will invest. More on that, keep reading.
The excitement and hype of crypto trading are manure-rich fields for hucksters and desperate victims to meet in.
There has never been a victim waiting for a scammer. The two are attracted like magnets. There is nothing I can say to prevent that. People are going to transfer large amounts of dollars to another person based on hopes and brain chemistry. You know, the kind that is triggered by gambling or addiction.
Lessons From Raven, a Brilliant Investor
Nothing sums up the world of cryptocurrency investing like the lessons taught by Raven, the 22nd most successful money manager in the USA during the internet boom.
The stocks Raven picked returned 365.4 percent and outperformed more than 10,000 professional money managers.
Raven even went on to create her stock trading index others followed.
Raven was a chimpanzee who tossed darts at a board of internet company names.
Big Returns Are Easy
It is easy to generate immediate returns in a hype-fueled bull market with values climbing. However, Raven also taught us the key to selling and taking profits because Raven’s picks eventually landed in dust and collapsed.
The excitement created by the foam of others on social media can build an irrational fever to put money into X. In this case, X is crypto.
But you know what comes with significant returns if you are holding on for maximum gains, you guessed it, maximum losses.
Big Price Drops Might be Best
Large cataclysmic plummets in the price of Bitcoin, Ethereum, or any other currency can be the worst day and the best day for crypto buyers and sellers.
If you are buying and holding Bitcoin because you believe in it and someday in the future, you will cash out and take your profits, then who cares if the value rises and falls like a Hawaiian surfing championship wave.
If you are buying into Bitcoin or some other cryptocurrency for some return in the future using a strategy like this, then who cares what the value is today.
A crash in price might be your best opportunity to buy. You can’t buy low and sell high unless you buy low.
Your hedge against fluctuating prices is the age-old strategy of Dollar-Cost Averaging (DCA). The DCA strategy is not a secret, hidden hype, or a flash in the pan. It is boring and a set-and-forget approach to future returns.
When I was a child, my mom would take me to the savings bank once a month in the 1960s, and I’d carry my paper passbook in with some cash. I’d hand it to the teller, and the balance in my account would go slowly up.
If that savings account were Bitcoin, the value would go up and down.
One day my mother held my hand, and we walked into the bank and cashed out. One day in the future, long-term Bitcoin purchasers using DCA will cash out and take their returns.
And coincidentally, that is what Isaiah McCall said, “The next big thing for me right now is to dollar-cost average my profits back into Bitcoin and Ethereum and to stop staring at my computer for so long to see whether it’s going up or down.”
The Unhealthy Tragic Carnage Along the Way
Over my many years of helping people with money troubles, I’ve seen my share of ruined lives and relationships over day trading or investing through gambling or emotional bruising.
You don’t have to search for more than three seconds to find stories of people whose lives were ruined through crypto gambling or trading addiction.
Casinos and other gambling locations are designed using proven ways to encourage people to take higher risks subconsciously and inhibit sound decision-making.
Staring at blinking screens and moving crypto pricing charts can have a similar impact on people susceptible to this kind of stimuli.
The stories I’ve heard from former day traders of different investments were not complimentary. Some lost hair from stress, others became glued to their trading screens and afraid to look away, more involved lost relationships.
This needing or demanding immediate or quick returns can be a self-fulfilling downward spiral. As one person I spoke with said, “The more I tried to follow the trading advice and what I had been taught, when the returns did not work out as expected, the more it destroyed my self-esteem and self-worth. Along with my net worth.”
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But There is Another Way to Hunt Down Weekly Crypto Profits
In this post, I talked about a strategy that can help hunt down returns in any market with a set-and-forget process.
To do this, you have to abandon all hope for the future and believe you can’t predict what the future will bring. The only guarantee anyone can give you is the price will go up and down. The time between pricing peaks and valleys can be days, years, or a lifetime.
This can be a reasonable strategy when using the money you can afford to lose.
This approach does not require you to watch charts, fret over formulas, and panic about this month’s income.
Ultimately health crypto trading or investing appears to be best achieved by either a long-term hope for the future and accumulation of value in up and downtimes or dispassionate, unemotional, mathematical trading.
Both approaches have the best odds of returning value 12 months from now. Still, only you can decide what strategy best fits your risk comfort level and willingness to participate in this insane niche of investing.
Oh, and what will returns be twelve months from now? They will be up or down. Nobody can know. That is a fundamental truth you must embrace in a set-and-forget strategy.