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What crypto to buy? The Question That Will Lose You Money


In this video, I'm going to try to share a few ideas about a question that friends are asking. What coin should I buy, meaning cryptocurrency coin. So in order to do that, I will tell the story of two friends of mine that both started, buying coins and trading. One of them actually was trading cryptocurrencies this year 2021, Spoiler alert - both of them made money, but we will see how those two guys are different. So the first person has a great job and everything and subscribed to Lark which is a newsletter paid subscription, where he heard about every single coin. and then he had to Google it and search it and everything and bought a couple of coins. and then he was trying to time the market and sold the coins and also subscribed to, Alex, nuggets videos and watched all on YouTube and joined the communities.


So this thing started taking lots of time for him and he was always a little bit stressed. So he was like, with this urgency all the time, like, Hey, you know, what's going to happen. This will it go up, will go down the latest technology. So we're talking about lots of stress and he was projecting that right? In his relationships, at home. And to me as a friend of course, and all the time, Hey, what do you think about this? What do you think about that? So later in the year, things went up and he was happy. Things then went a little bit down and then he was less happy. He made some money. Then Alex himself, like the newsletter, guy, the video celebrity on YouTube approached him, asked him for money. The guy sent him money, because it was the new, great thing that Alex was about to build and actually who wouldn't trust a crypto celebrity.


And of course, Alex disappeared became a scam along with, his decentralized banks or whatever, took the money away. He had a gambling addiction and everything so it seems to me money lost there, there were rug pulls, money lost there. all of this money at the beginning of the year were made out of the thing, which was called decentralized finance DeFi, which is a thing pretty old, so it started in 2017. But right now this year, it seems like it has made quite a bit of money, but also in the meanwhile there were NFTs, and the guy feels that he missed out on of NF because he was not exactly getting it. And then there is now gaming and metaverse coins. And again, like, it feels like he's always two generations behind on what's going on in the crypto world. and always late buying the scam the rug pull on the liquidity pool.


Lots of ups and downs following the latest coin and being constantly dissatisfied with the performance, which was about 2x So if he has put $1,000 at the end of the year, he got $2,000, out of it. Now the thing is with the good job that this person is having and the energy that he put into this you know, endeavor probably the time was not well spent. So he could make an extra thousand dollars just by tidying up, the credit cards he he has or, or something else you know. But certainly he doubled his money. That's much better as a financial performance than the S&P but trading is a job and when somebody starts a new job, he or she is the small little fish and the big fish like the exchanges, and the Larks and sharks and the Alexes and the newsletter guys, they will all be the big fish that will eat your money, right?


That's the beginning of any job. And that's exactly what, this friend did. And here comes December 4th and the price is crashing and the market loses almost 20% in a single day. And he's devastated because he was using lots of leverage on his positions. And you can exactly see what little fish means, so maybe this was a temporary crash of the price, but still this forced many people who had leverage to be liquidated. And when a person put a hundred a dollars for example, in a cryptocurrency, obviously even if it doubles the money that becomes $200, probably it doesn't solve any real problem, but with a 100x leverage, the person can make potentially 20,000 out of those hundred dollars and this is quite tempting. And so you have centralized exchanges who see all those people who are leveraged. And I very least of course, I cannot prove it, but at very least they have lots of motive to cause crashes in the market.


So they can cause the liquidation, which is free money for them. and it's not illegal because the market is not regulated in any means. So if they can do it, I guess they would do it right. And so that's exactly what it is to be a little fish, the big fish eat the trader, especially the person who doesn't have like five years experience, in that market. So this other friend of mine also has a good job and everything, but, he was getting the fact that trading is complicated and what he did is just go and do a very little research and, started the year bought some Ethereum and did absolutely nothing, nothing at all. Actually his job was helping him because he couldn't obsess over the market. He actually didn't have enough time to even watch that, which turned out a good thing for him because with zero effort actually he made six times his money.


He bought Ethereum at the beginning of the year, right now, Ethereum costs six times more. And he had to do nothing, which is pretty much what the promise of all these financial instruments is that you will take your capital and the capital will work for you. So I just say he put $1,000 at the beginning of the year. Now he has six and he didn't need to try at all, no stress, no research, no hours in all those activities like watching YouTube. So he got a pretty good deal. He might not have all the ego and all the adventures and the stories to say, and he cannot say, oh, I did better than the market, because I'm a great trader or something like that. So his ambitions were not there. So he certainly lost that part, the gambling part, but still, he was able to make certain money out of crypto and without trying at all.


And that doesn't sound like a bad deal at all. So as it's always the case with the two friends stories, those two people are kind of imaginary, but myself, being in this industry since 2014, actually this year, I was both those people, to some extent. And I have to say that if I had to choose one of those two people, I would certainly choose the boring investor. Why did they both make money? They made both money because the crypto market is growing, right? So the market is growing In contrast to other more established markets that have already exhausted themselves. and, you know, they have small margins, maybe the S&P represents one of those markets. Crypto was a very small market. It becomes larger year by year and you can see this with the charts. So if people have bought anything back in 2013, which pretty much meant Bitcoin, they would right now have 64 times more money


and that means, 6400%, growth for those people. If they were managing to buy some Ethereum, they would have made even more, and all this is without actually spending the time to understand the market deeply or trade. It's just a growing market and now you have to compare this to the returns of all those traders. Have you really made that much return by over-trading and picking specific coins or not? And the answer for most people is absolutely not. They lost their money by trading coins and, you know, buying scams. And not only that, but they also put lots of effort into that. So I believe that if you're asking, what crypto should I buy? you are already in the wrong direction. You are trying to become a trader, which is a full-time job and will possibly lose you lots of money.


If you believe that the crypto market will keep going up, which is not certain, it's already quite a bit of risk, then you shouldn't be asking what coin to buy. It's straightforward, what coin or coins you should buy. It's very little choice there is, but yeah, just go and as much as you need to make a difference for your life, if it goes up and that's all, it's a very easy game. If you try to pick the right coin, I certainly cannot help you because I do not want to exploit you at any way. Right? So you will find people, that will gladly take your money to tell you what the right coin is. But yeah, my advice is stay away from that game. It's not a game that will make you money in the long run. So that's all for today. I hope you find it useful. And thanks for watching.

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