Wednesday, July 1, 2020

"Guide" to getting started in Cryptocurrency

So, I saw this comment on my last post.


I guess with all my flexing, I should offer y'all some help.

From degen senpai to fledgling degen kouhai.

But here's the thing.

I cannot teach you WHAT you should know. 

If I was an asshole, I would tell you to just buy my bags and pump me into retirement. Everyone on twitter knows what I own. It is not a secret. BTC, ETH, SNX, RUNE, CEL. Look, now you know too! But do you know why I hold them? When I will sell them? Why I would sell them? No. You know nothing. And if you copy trade me, you're just a blind man following me in the Labyrinth. What if you lose me? Do you know where to go next? Do you know how to escape before the Minotaur comes and get you? No. You will die. You are not equipped with the skills to do as I do. 

I repeat, I cannot teach you WHAT you should know. 

This is a persistent problem about crypto. The space is moving so fast that whatever knowledge you DOWNLOAD and SEAR into your brain today... will be obsolete in 6 months time. Actually, maybe even 3 months time.

So I cannot teach you WHAT you should know because even for myself, I am constantly STRUGGLING to keep up with the latest information and updates to what I think is relevant.

However, I can tell you that what you need to know is how to learn what to learn.

How to learn.... what to learn?

Sounds confusing and silly, right?

The thing about all investing (and even more true for crypto) is that you need a good strong process. You need to build up from first principles to KNOW in your bones what is right, and what is wrong.

Do you consult your horoscope before you buy stocks? No, cos that shit is useless.

Do you consult your charts before you buy stocks? Lol, touchy subject. Maybe relevant? Maybe not? These are the kind of things that YOU need to decide for yourself.

In crypto, you need to know what is right, and what is wrong. Since from those fundamental pieces of knowledge, your build up your thesis from there. 

And just like in "normal" investing, there is so much to study and learn.

Let me give you an example. Investing Hedgehog thinks that XRP has an actual use case in the future and Crypto.com has a lot of potential. 

From my personal opinion, I think XRP is a scam for brainlets that do not understand what cryptocurrency is, with sub 80 IQ and looking for a quick pump. I also think that Crypto.com is borderline a ponzi scheme. So as you can see, different people have very different takes on what is "right" and what is "wrong".

Who is actually right or wrong? Why? For what reasons? 

If XRP pumps next month, does it mean Hedgehog is right and I'm full of shit and have fundamental misconceptions of how the market works?

You need to KNOW such things yourself. 

If you are spoonfed "news" from crypto news websites or crypto gurus, you're in for some deep shit since most of them are insanely biased or have no damn clue what they are talking about.

Of course, new information can "update" what you thought was right to be wrong. Or what you thought was wrong to now be right. 

The WORST thing you can do is digest bullshit from people who have no clue what they are talking about.

The best thing you can do is learn about the TECHNOLOGY from ground up and reason out for yourself what makes it useful and valuable.

If you just jump into arbitraging or stablecoin yield farming, you'd probably do okay, but you won't be understanding what is going on, and more importantly, WHY these opportunities exist. In such a scenario, you are always a chaser. A follower. A sheep. You just follow the herd. They go where, you go where. If they go to the slaughterhouse? You also just follow lor.

If you want to rush head first into this space, no one is stopping you. Your tuition fees is just losing money instead of spending time to learn. One way or another, you will pay for it. Time or money, your choice.

My recommendation for people looking to join the space is:
- understand what the technology is
- put in $10-$50 to try it out first hand, send it around, store it, retrieve it

And only after you understand what you are messing around with, can you then start investing in the space.

You need to be able to sniff out bullshit and scams on your own. You need to know what makes things valuable, and what makes things trash.

Start from ground up.

Learn how to learn what you need to learn.

Throw out the trash.
Keep the good shit.

It's going to take a while.

But if you're going to do this, and do it right (make money, not give away money), like all other things in life, it requires some time and effort.

And anyone currently doing well in this space can attest to that.

The ones that aren't doing well? They can't tell you WHAT makes crypto valuable, why something is worse than something else, what fundamental reasons will cause their holdings to go up or down.

I'm sorry, but if you are "hodl only", the crypto journey is a long and tough one. It's not that "hodl" is a bad strategy, but it is the lowest and weakest strategy out of all the strategies that exist. Of course, it is also the simplest one. Requires very little thinking and ongoing maintenance. With the "hodl" strategy, the only 2 things you can do is (1) wait and (2) decide what to actually "hodl".

What if you pick absolute dogshit to "hodl"? Then your portfolio is going to zero. No amount of karma, good thoughts and positive vibes will change that.

The person that "hodls" is taking a very singular bet that whatever they are holding will eventually go up in the long term. 

If there was a reliable process and I can tell you WHAT to "hodl" from when to when, then I would also just buy the absolute bottom on leverage, and sell the absolute top to 100% cash.

But I do not know such things. If you can find a guru who can tell you that, I guess, that's good?

But IMO, such a thing does not exist.

Crypto is in constant flux and it requires time and effort to just stay on top of things. That is why I dropped normie investing. Time is a precious and limited resource and I wasn't going to waste it dicking around on stupid ass local stocks or REITs for piss returns. Normie investing had a tremendous opportunity cost for me. But I digress.

I stress again, you need to know "what to know".

Are you a short term trader? Go learn about market structure and "pumpamentals".
Are you an arbitrager? Go learn about exchanges and risk management.
Are you a long term fundamental investor? Go learn about the technical developments and how it affects value accrual.

I cannot tell you what you should know.

I can only point you in the rough direction and warn you of pitfalls and dangers.

There is no formula or step by step guide. When I started my journey, the optimal route for me back then is different for you now.

You just got to know, what you need to know.

If you dare venture into these dangerous lands, tread safely and do not rush into traps.

Good luck out there.

For anyone who has already done their homework and has left the beginner zone, feel free to interact with me on Twitter if you feel lost and in trouble. If you are nearby, I will head over and try to save you from monsters. But if your strategy to survive in this dangerous world is to call for others' assistance at every sign of trouble instead of training yourself to be able to deal with it on your own, you're not going to make it.

For as long as I am on Twitter, I will try my best to aid you and carry you.

But know that I will not be on Twitter or blogging forever. I am at the tail end of my journey. It has been extremely tiring grinding this crypto game for the past few years, but at least I can say that it has been well worth the effort so far - at least, financially.

If I get tired and decide to log out, don't count on me logging back in just to save your ass.

4 comments:

  1. you might actually miss crypto when you 'retire'. haha

    ReplyDelete
  2. Thank you for sharing such great information.
    It has help me in finding out more detail about best medical insurance

    ReplyDelete
  3. NNNNNOOOOOOOOO... don't logggggg offff... senpaiii!!!!!

    ReplyDelete
  4. Cannot find your twitter in your blog ...

    ReplyDelete

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