This newsletter is sponsored by Blockpit, a platform that makes my life as a crypto trader easier.My trades were automatically imported after setup and displayed nicely. The tax report was quick and easy to create in the app. I can also track the performance of my assets in the app. With Blockpit, I no longer have to worry about realizing profits or losses in time.Yesterday I was on the Funky Crypto Podcast, hosted by famous UFC fighter, Ben Askren and popular crypto personality John Kim. The conversation was hilarious and fun, which is the intention of the show since it is primarily targeted at UFC fans and "every man" (as they described it). There was a point discussed that I felt was valuable enough to share here. In talking about XRP’s recent downward spiral, John pressed harder into my beliefs around buying fear. While Ben asserted that XRP was likely "going to 0," John made a good point that conventional investing advice suggests “buying fear,” including assets that the mainstream might not agree with or see the value in. As a hypothetical, he reasoned that buying XRP now was a bargain because it was a contrarian play. My response to John was to clarify the difference between buying fear and buying irrational fear. The Warren Buffets and Benjamin Grahams of the world look for irrational fear, not rational fear, and the same goes for my strategy. Right now, XRP investors should rightfully be fearful - the threats it's facing are serious. During the March crash, the majority of fear plaguing stocks and crypto was an irrational fear - good companies fell with the entire market, even though they rationally were not worth 30% less than the week before. Hindsight is, of course, 20/20 - this is hard to see at the time.Distinguishing rational from irrational fear is the difference between finding a good and bad investment. Whenever a major CEO calls crypto a scam, my brain translates that to an irrational fear. When the SEC throws the book at a company, I run and my money comes with me. I am NOT saying XRP is going to 0 or that they will even lose their case. It's clear to me, however, that there are better and safer opportunities for investing in this market and that we are unlikely to see clarity any time soon. Why even bother?So, the next time you evaluate an opportunity to buy fear, try your hardest to separate your bias from reality and determine whether that fear is rational or irrational.Here's the conversation: https://www.pscp.tv/w/1BdGYYDegEDGXNOTE ON ALTS - I don't really say any opportunities today in the altcoin market. LINK "broke out" yesterday and now is dumping off, apparently because people believe that the XRP news will somehow effect LINK (I disagree with this). Also, YFL did not break out at all. ETH continues to look fine.This is the strangest week of the year for traders, as they close their books on the year, take profit, sell to lock in losses for tax purposes etc. I don't see any real reason to be trading this week.The XRP news is really making things shaky, in my opinion, and other coins are suffering.In This Issue:Bitcoin Thoughts And AnalysisMore Bad News For XRPCover Protocol Coin HackGrayscale AUM Up 2.5X Since November 1Russell Okung Takes 50% Of Salary In BitcoinThe Wolf Of All Streets Podcast Ft. Kevin WangMy Recommended Platforms And Tools
The Wolf Den #145 - Buying Fear
The Wolf Den #145 - Buying Fear
The Wolf Den #145 - Buying Fear
This newsletter is sponsored by Blockpit, a platform that makes my life as a crypto trader easier.My trades were automatically imported after setup and displayed nicely. The tax report was quick and easy to create in the app. I can also track the performance of my assets in the app. With Blockpit, I no longer have to worry about realizing profits or losses in time.Yesterday I was on the Funky Crypto Podcast, hosted by famous UFC fighter, Ben Askren and popular crypto personality John Kim. The conversation was hilarious and fun, which is the intention of the show since it is primarily targeted at UFC fans and "every man" (as they described it). There was a point discussed that I felt was valuable enough to share here. In talking about XRP’s recent downward spiral, John pressed harder into my beliefs around buying fear. While Ben asserted that XRP was likely "going to 0," John made a good point that conventional investing advice suggests “buying fear,” including assets that the mainstream might not agree with or see the value in. As a hypothetical, he reasoned that buying XRP now was a bargain because it was a contrarian play. My response to John was to clarify the difference between buying fear and buying irrational fear. The Warren Buffets and Benjamin Grahams of the world look for irrational fear, not rational fear, and the same goes for my strategy. Right now, XRP investors should rightfully be fearful - the threats it's facing are serious. During the March crash, the majority of fear plaguing stocks and crypto was an irrational fear - good companies fell with the entire market, even though they rationally were not worth 30% less than the week before. Hindsight is, of course, 20/20 - this is hard to see at the time.Distinguishing rational from irrational fear is the difference between finding a good and bad investment. Whenever a major CEO calls crypto a scam, my brain translates that to an irrational fear. When the SEC throws the book at a company, I run and my money comes with me. I am NOT saying XRP is going to 0 or that they will even lose their case. It's clear to me, however, that there are better and safer opportunities for investing in this market and that we are unlikely to see clarity any time soon. Why even bother?So, the next time you evaluate an opportunity to buy fear, try your hardest to separate your bias from reality and determine whether that fear is rational or irrational.Here's the conversation: https://www.pscp.tv/w/1BdGYYDegEDGXNOTE ON ALTS - I don't really say any opportunities today in the altcoin market. LINK "broke out" yesterday and now is dumping off, apparently because people believe that the XRP news will somehow effect LINK (I disagree with this). Also, YFL did not break out at all. ETH continues to look fine.This is the strangest week of the year for traders, as they close their books on the year, take profit, sell to lock in losses for tax purposes etc. I don't see any real reason to be trading this week.The XRP news is really making things shaky, in my opinion, and other coins are suffering.In This Issue:Bitcoin Thoughts And AnalysisMore Bad News For XRPCover Protocol Coin HackGrayscale AUM Up 2.5X Since November 1Russell Okung Takes 50% Of Salary In BitcoinThe Wolf Of All Streets Podcast Ft. Kevin WangMy Recommended Platforms And Tools