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Why You Won’t Catch A 100x Crypto

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It’s highly unlikely that with a coin that you don’t have conviction in that you will ride out the 100x let alone even a 10x. If you only put in $100, you’re not going to make anything.

https://youtu.be/6dIwpjBECdg

In 2019, 1% of the adult population, or 51.9 million individuals, were millionaires. Today, there are 56.1 million millionaires making up 1.1% of the population. It takes the typical investor 32 years to get rich. The average age to make your first million is 50.

Millionaire stats: https://balancingeverything.com/millionaire-statistics/  

https://fortunly.com/statistics/millionaire-statistics/  

https://moderngentlemen.net/millionaire-statistics/

 

This next section isn’t to discourage you from investing in crypto, but to help you be more rational in your investing and expectations. I’ll attach some sources and then speak to them.

Not everyone is getting rich from crypto: https://www.investopedia.com/news/no-everyone-not-getting-rich-bitcoin/

62% of investors believe cryptocurrency will make them rich: https://www.newsweek.com/majority-crypto-investors-believe-it-will-make-them-rich-1583964

Just like how with NFTs, distributors and artists are getting rich, in crypto investing, it’s mostly exchanges and founders making the money: https://www.fool.com/investing/2018/01/28/whos-really-getting-rich-in-bitcoin-and-cryptocurr.aspx  

 

A lot of people are losing money investing in crypto because they get into rug pulls, scams, sh*tcoins, here are some examples of people losing tons of money: https://www.cnbc.com/2018/08/20/after-the-bitcoin-boom-hard-lessons-for-cryptocurrency-investors.html

The important thing to consider is dollar cost averaging versus lump sum investing, trying to buy dips versus buying when crypto rises, and only investing in cryptocurrencies with good fundamentals.

 

Here’s some startling statistics on day traders: https://tradeciety.com/24-statistics-why-most-traders-lose-money/

A few statistics that really jump out at me are:

·         The average individual investor underperforms a market index by 1.5% per year.

·         Active traders underperform by 6.5% annually.

·         Traders with up to a 10-year negative track record continue to trade.

 

https://vantagepointtrading.com/why-most-traders-lose-money-and-why-the-market-requires-it/

This article very succinctly explains the nuances of this. Crowds creates trends that continue until everyone gets on board, then it reverses. This means that only a small percentage can actually win. Also the main reason why people sell at a loss (and most do) is due to social influence.

 

You will more than likely succumb to the psychological behaviors that constantly affect your financial decisions, especially when investing. I will cover this in more depth in the future, but many in the space can understand the basics of how FOMO, FUD, panic buying, and panic selling can completely ruin an entire portfolio.

 

Approximately 60% of former NBA players go broke within 5 years of retiring while 78 percent of former NFL players have gone bankrupt or has some sort of financial stress within 2 years of retiring.

https://www.cnbc.com/2018/05/14/money-lessons-learned-from-pro-athletes-financial-fouls.html

https://www.investopedia.com/financial-edge/0312/why-athletes-go-broke.aspx

 

Do you agree? Are you looking to ger rich quick? How does stock investing differ from crypto investing? Are people’s expectations realistic? Let me know what you think about this in the comments below and don’t forget to subscribe!

 

*Disclaimer: This is not financial advice and is purely for entertainment purposes. What you see, hear, or read is my personal opinion, and any statements made are based on my views and should not be misconstrued as fact. My crypto portfolio may or may not be simulated*

 

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*This episode was sponsored by BC.Game – Sign up using my link - https://bc.game/i-4ofetk9d-n/

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People lose money in crypto because they know little about what they are getting into. They follow the trend. Just it 2018, a lot of people lost a lot of money when they joined the bitcoin bandwagon just before it crashed.

This is another informative article.

$ 0.00
4 months ago

No it’s not.

Crypto is a get-rich-quick scheme and you should treat it as such. In fact, all of the people that are constantly on the lookout for shady get-rich-quick schemes have been royally rewarded for their search.

Crypto attracts get-rich-quick guys, 8–9 out of 10 get-rich-quick schemes are scams (MLM, Lottery tickets, algorithmic trading, leveraged trading, ponzis etc.). Crypto is also a Ponzi, but it has now morphed from a Ponzi with a lot of speculation to an asset that is considered as having less risk than the dollar.

Don’t fall in love with your coins, their community are constantly trying to trick you to not sell and pump their bags, so that they can dump on you. Stay flexible, take profits frequently.

Maybe, crypto will be a long-term store of value and similar to stocks, but that is not there yet.

$ 0.00
5 months ago

I totally disagree. Treating anything as a get rich quick scheme is how you lose everything. Only sketchy projects are "ponzis"

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4 months ago

We have been lucky I suppose with 2 100x baggers ( which are currently only 50x baggers). MANA under 7 cents AUD and ADA under 4 cents AUD. Picking the bottom Jan 2019 helped and going hard DACing helped. Trading only helped in that it gave us a basic knowledge of charts, i.e. reading the mega trends. And being early is a big advantage.

$ 0.00
5 months ago

Got some tips from your article. Thanks

$ 0.00
5 months ago

Crypto is a gamble and its a win or loose but its more of lossing though.... Ever since I started crypto I haven't seen a coin that did X10 or maybe X100, even my last investment didn't go well ( wakanda inu)

$ 0.00
5 months ago

Nice article bro.... Keep it up!

$ 0.01
5 months ago

I've been trying to learn about stock and cryptocurrency investments for a while now, but it is certainly something very complex, I'm a little slow in that learning, but with your brief explanation in this publication I solved some doubts, besides I really liked how you handle statistics, it helps to understand more easily everything, I understood that social influence undoubtedly affects market trends, and that becoming a typical investor usually takes a long time, it is something like to ensure our retirement with a real financial freedom, I'm glad I stumbled upon your publication, thanks for sharing your knowledge, I will continue from now is more studying your content, greetings.

$ 0.01
5 months ago

Mostly traders lose money, exactly. Agree to you. Beautiful and lovely article

$ 0.01
5 months ago

Very well laid out and also very true. Things I have been saying for quite a long time. In summary, a fool and his money will soon be parted is really what this is all about, right? Give a fool $5 and he will lose it. Give a smart guy $5 and he'll turn it into $10.

While it is not relative to your article, the mentality that you spoke of is another reason I rail against welfare as hard as I do, because just giving someone money does not change the reason they need help. Therefore, all welfare really does is keep people poor, and to me that's just a massive waste of taxpayer money, and a massive waste of everyone's time.

$ 0.01
5 months ago

Yeah a controversial opinion these days, but any hard worker will agree

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5 months ago

generally speaking, you need be a genius and/or extremely lucky to become a millionaire overnight with crypto. It's much easier, and better, to invest steadily in btc and eth and use that as a retirement fund

$ 0.01
5 months ago

Exactly this!

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5 months ago

That's why I am really amazed with people who can play with crypto. They know how to play with its volatility and even save themselves from scams..

$ 0.01
5 months ago

Because I have panic every time when the market is down.

$ 0.01
5 months ago

Always having so many beans to spill. You're really good Scott. Now, how much do you think is ideal for a newbie like me to invest in bitcoin or any other profitable crypto?

$ 0.01
User's avatar xus
5 months ago

There's no perfect amount, it's more so how much risk you can tolerate

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5 months ago

Thanks again scott

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User's avatar xus
5 months ago

Always hitting us with revealing info. Thanks, Scott. So, how much would you advise that a newbie like me invest in cryto?

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User's avatar xus
5 months ago

Mostly traders lose money, exactly. Agree to you. Beautiful and lovely article

$ 0.01
5 months ago

Without strategy,you would find it hard to profit in crypto

$ 0.01
5 months ago

Indeed, to the point article. The realities of crypto are quite different than what people imagine it to be. Most of the traders lose money, but continue to do so. DCA is by far the best strategy to adopt for the long term.

$ 0.01
5 months ago

This speaks for no easy gains in crypto it needs strategy to profit.

$ 0.01
5 months ago