There are millions of people on YouTube, Twitter, and across the internet sharing their opinions on bitcoin and cryptocurrencies…
Some of them are legitimate. But many throw out unfounded ideas based on nothing.
Of course, they’ve got to generate clicks and sell ads. I get it. And yes, some of their commentaries are entertaining. So, if you want to be entertained, then watch them…
But don’t let what you see on YouTube or Twitter dictate how you allocate your capital or your long-term view on crypto.
I tell you this because there’s still a lot of noise out there about bitcoin and crypto. And much of it is nonsense.
If you’ve been with me since I started recommending crypto in 2016… you know we’ve been fighting an endless battle of ideas over whether bitcoin has value.
The latest kerfuffle involves bitcoin’s most recent pullback.
Since its recent low of $28,000 in March, bitcoin has shot up to as high as $52,000. But on Monday, it dropped to nearly $43,000. And a lot of people are freaking out.
I want to be as clear as possible: Nothing is happening in the crypto market that warrants you clicking on any headlines to dig deeper about this sell-off.
It’s the same stupid reasons. I’ll go over some of them in a moment. But most importantly, I want you to understand these pullbacks are gifts to you and me.
Thank Goodness for Fools
There are a lot of investors in the market taking incredible risks to get rich off crypto. They’re using 10–20 times leverage on their bitcoin positions. This is insane.
But there’s another group of investors who are really smart and crazy rich. And some of them have billions of dollars at their disposal.
When they catch wind of these massive, long leverage positions, what do they do?
They just smack down bids or go short to crush the leveraged longs. And when they push down the price… they can swoop in and increase their stack of bitcoin on the cheap.
Meanwhile, the trading firms providing leverage to the longs start to panic. And as soon as they see the bid collapse… they close out their customers’ trades.
This creates a vicious, self-perpetuating cycle that doesn’t stop until it burns itself out. And that’s why you can see massive 10–50% drops in bitcoin on no news.
We saw this happen in March when bitcoin got smacked from $64,000 to $28,000. We can thank the leveraged longs who got crushed for that gift.
That’s why I say thank goodness there’s a segment of the global population dumb enough to trade bitcoin with massive leverage… They give long-term holders like you and me the opportunity to buy more bitcoin at great prices.
If you’re like me and believe bitcoin will trade at $500,000 within the next five years… then buying it at a 50% discount is a real gift.
Volatility: The Gift That Keeps on Giving
It bears repeating… Assets poised for massive growth in their early days are highly volatile. So volatility is the price of admission for life-changing gains.
You can’t expect huge 100x swings to the upside… without downside volatility, too.
Look, crypto is a mental game. This market will have your emotions ping-ponging like you can’t imagine. So you need to mentally prepare yourself.
And unless you’re an experienced trader, please don’t try to trade around this volatility.
The last thing you want to do is get out of the market looking to sidestep a 25% drop… and instead end up missing out on a triple- or quadruple-digit gain.
I experienced this when I was a young executive on Wall Street and sold out of Apple, Microsoft, and Oracle too early.
I thought I was brilliant to sidestep a 10%, 15%, or 25% loss. Sure, I felt like a rock star at first. But I looked foolish later because I missed out on 50–100x gains.
That’s just insane. You don’t want to mortgage your future by sidestepping a 25% loss only to see it eventually go up 5,000–10,000%.
That’s the type of regret that really eats away at your soul. I experienced that kind of regret in the 1990s with so many life-changing ideas. I don’t want you to feel it.
Assuming it makes sense for your personal financial needs, consider buying more bitcoin during these sell-offs. Five years from now, they’ll look like a blip on the chart.
But if you’re looking to take advantage of volatility in the short term, I have another idea for you.
The Coming Hyper Boom
Bitcoin isn’t the only crypto experiencing volatility. There’s a small set of altcoins I call “Catch-Up Coins” also seeing a pullback.
But an unprecedented event in the crypto market is about to trigger a Hyper Boom in these coins.
And you don’t need much to get started…
Just $500 invested in my past “Catch-Up Coins” when I recommended them would have grown into as much as $75,500, $178,500, $242,350, and even $750,000 in as little as 10 months.
Combined, that’s a total of $1,244,350 in profits… More than enough to retire comfortably off a few $500 bets.
That’s why on Wednesday at 8 p.m. ET, I’m holding my first-ever “Catch-Up Coin Hyper Boom” event. During this event, I’ll tell you precisely what catalyst will push these coins higher than they’ve ever been before.
And I’ll discuss the details on six new Catch-Up Coins I believe can bridge the gap between the financial life you have now and the life you want in the future.
Plus, I’ll also reveal the name of my No.1 Catch-Up Coin absolutely free just for attending. (It’s a coin I’ve never released publicly before.)
When I’ve given away the name of my top coins in past events like this, you could’ve made an average of more than 17 times your money. That means just attending my event could be the best investment you’ll ever make.
Friends, like bitcoin, the pullback in these “Catch-Up Coins” is an absolute gift to us. And you have a rare shot at picking them up on the cheap.
So join me on Wednesday at 8 p.m. ET. And let me show you how to use the market’s irrationality to catch up on your financial goals in as little as 10 months.
Let the Game Come to You!
Editor, Palm Beach Daily