Episode Highlights:
- 00:13 – Advice You Will Receive From This Video
- 02:08 – How To More Effectively Buy And Invest Cryptocurrency
- 03:10 – The Growth Of Crypto Currency
- 03:52 – Why Is It Best To Hold Crypto Currency For The Long-Term
- 05:16 – The Reason I Day Trade Everyday
- 06:31 – The Growth Of Crypto Currency
- 09:02 – The Least Amount Of Time To Hold Crypto Currency
- 09:40 – Proof Of The Rise In The Value Of Crypto Currency
- 11:12 – The Value Of Crypto Currency Today
- 12:25 – Other Articles In Crypto Currency
- 13:06 – Crypto Currency Exchanges Registration Grows Daily
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Transcription:
What’s up guys, it’s Dan again from cryptocamacho.com where each day I talk about crypto currency and hopefully help you make more money in this crazy crypt occurrence revolution that’s going on right before our eyes.
00:13 – ADVICE YOU WILL RECEIVE FROM THIS VIDEO
Guys today I want to talk about buying and selling in the short term versus buying and holding for the long-term. I’m very curious what you guys are doing and why? Are you guys buying and selling short to make a quick profit, maybe to pay off bills, buy a car or something like that. Or are you buying and holding as an investment for the long-term hoping to cash out on retirement or something like that. The reason I am asking is because I ask myself this question many times and am starting to come to a different mindset. I’m getting a different mindset than I had in the past. In the past when I first started investing in crypt occurrences I thought that I’m going to buy and sell very quickly. As soon as I can make a profit and went to buy and then went to just sell it and I’m going to get out and take my profit and run. But then what happened is I bought more and then I sold and then I bought more and I sold. And I kept buying and buying and I kept selling. And it started to make sense. I started buying and started thinking why am I buying and selling, why am I not buying and holding? And I actually missed out on a very big opportunity in the early days of bit coin when it was trading for around $1000 or $2000. I actually ended up losing a lot of money because I bought and I would pull out. So I would buy a coin and I would wait for it to profit a few percentage, 10% or whatever, and then I would pull those profits out and put it back into US dollars versus put it back into bit coin. And so I missed a lot of the rise from the 1000 or $2000 and all the way up to the $17,000 mark because of that error or mistake I was making in my trading. And really, it was just an error in my mindset of how I was thinking about going about this. I did profit when bit coin was growing up but it wasn’t that I bought and held all the way from $1000-$16,000 or $17,000 or whatever it is. I took the money out at one point or another and put it back into US dollars.
02:08 – HOW TO MORE EFFECTIVELY BUY AND INVEST CRYPTOCURRENCY
And so the reason I am bringing this up is because I want to teach you how to more effectively make money, how to more effectively buy and invest. If you want to just buy and profit and sell in the short term because you have a debt that you need to pay off, great. Go and do it. But to actually do want to talk about why it is important to buy and hold for the long-term especially with what is going on in the crypto currency markets today.
Now guys, remember the crypto currency markets are relatively new. Bit coin has been around for quite some time, for about a decade. Etherium, a couple of years, ripple, less time and less and less. But the majority of the alt coins that you are seeing, the majority of the crypt occurrences that you are seeing are brand-new to the market, just entered the market. And there really haven’t been trading for that long. Most of them not even longer than six months. And the number of crypt occurrences that are popping up left and right, day by day and week by week is staggering. It’s astonishing to be perfectly honest.
03:10 – THE GROWTH OF CRYPTO CURRENCY
And the overall economy are size of the economy for crypto currency is growing. It’s expanding, it’s getting bigger; the pie is getting bigger. So not only is the money that is coming into the crypto currency market increasing the number of crypt occurrences that are being invented and coming out are increasing as well. So right now, if you think about should I buy and sell in the short term or should I hold for the long-term, my recommendation and my idea is now to start buying and holding in the long-term because I don’t have immediate bills that I need to pay and I can afford to just sit on that crypto currency for as long as I need to and watch it go up.
03:52 – WHY IS IT BEST TO HOLD CRYPTO CURRENCY FOR THE LONG-TERM
Why do I think that that is actually going to be the case? So I think the crypto currencies know that are in the top 50, maybe give articulate a bit there, but the main popular ones bit coin, etherium, ripple, bit coin cash, light coin; all of these coins that are in the top 50, let’s see the top 10, 20, 30, 40, 50 – these are going to have some sort of potential in the future. They are going to have some sort of utility in the next couple of years. And the people that enter the crypto currency markets in the next six months, in the next year, in the next two years, they are inevitably and inherently going to see these popular coins and tokens, they are going to see these popular cryptocurrencies and they are going to inevitably start putting money into them. And the overall size and market cap of these crypto currencies is going to expand, which is naturally going to push up the price of these crypto currencies especially when you look at circulating supply and you see a low supply of coins are tokens. That is something I want to talk about in a different episode but it is something to keep in mind. I am actually going to pause this and make a note of that.
And so if you think of those terms that the overall size of the crypto currency economy is going to grow, it starts to make a whole lot more sense to buy and hold your crypto currency versus buying and selling it in the short term.
05:16 – THE REASON I DAY TRADE EVERYDAY
So I talk a lot about day trading and how to day trade and so forth. But essentially what I am doing when I day trade, let me just jump over to a chart. This is the etherium chart guys, this is crazy. But what I am essentially doing when I am buying and day trading crypto currencies now, is I’m trying to accumulate the number of coins that I’m holding. I’m not necessarily trying to make quick money, I am trying to accumulate the number of coins that I have because I know the economy for crypto currencies is expanding. I know the prices are going up across the board. Not just with bit coin or etherium are popular coins. The entire market, the entire economy is growing, it’s expanding. And so inevitably I know that if I make the right pick and I picked the popular coins, the ones that are being talked about, the ones that are being hyped on social media, the ones that influences are talking about, the ones you see in advertisements, being advertised, these are going to stick around for a while because people have an invested interest in them. They have a vested interest to see them succeed. And the more money that you see people putting them, the more it’s gaining traction and that is happening for the majority of these top 10, 20, 30, 50 coins that you see on coin market cap.
06:31 – THE GROWTH OF CRYPTO CURRENCY
So let me show you an example of what I am talking about here. So this is a charge from coin market cap and it shows you exactly what I am talking about. We’re going back to July 2013, you see that there are very very few crypto currencies, you’ve got ripple there, you’ve got bit coin there, you’ve got etherium there and it’s fairly small. The market cap is pretty small and the overall economy is relatively small. Now you see that increasing over the years. It is getting bigger and bigger, it is expanding. Now look, all of a sudden January 2017 the size of the economy exponentially grows. It explodes. And it’s growing more and more in 2018 and is looking bigger. 2019, you can imagine the charts going to be somewhere up here, after 2018 or 2019, it’s going to be way up here. Because that is indicating that the size, the overall size of the economy is growing and expanding which means there is going to be more and more money put into the overall crypto currency economy. Meaning that the majority of folks, when they are new and they’re coming in to the crypto currency markets in general trade, they’re not going to know anything about trading, they’re not going to know anything about crypto currency, they’re not going to know what coins to buy and sell, they’re not going to know what alt coins to buy. What are they going to do? Where are they going to go? They’re going to start watching YouTube videos, they are going to start looking on Facebook on Reddit, I do know what they’re going to do, they’re going to go to a site like coin market cap. It may not be coin market cap but it is going to be a similar site to coin market cap. And they are going to go ‘oh, what coins are going to invest in?’ And they are going to look at the top 50 coins and they are going to go ‘wow, these are relatively safe or more conservative type of bets. I’m going to put my money there to hold on it’. Then we have some adventurous folks who would go through this and go ‘actually I want to put my money in some of these alt coins that are outside of the top 50 because they are cheaper. This one is $1 and I want to buy this one because it’s $1. But they are going to look at some of these and are going to ask what are the good coins? And the ones that have a solid business plan, the ones that have a solid team, the ones that have solid white papers and a solid vision and have money to back them are not going to go away very quickly. They may go away in the long long-term but they’re not going to go away very very quickly. They’re going to be around for at least a few years to try and prove out and build out the business model that they have pitched and proposed to millions of people.
09:02 – THE LEAST AMOUNT OF TIME TO HOLD CRYPTO CURRENCY
And in the meantime as they are doing this the entire crypto market currency economy is expanding and it is growing and more money is being pushed in here. Every single day, naturally more money is going to go into ever single one of these coins. And so you’re better off just holding for at least the midterm. And I mean at least a year or maybe longer to see how this pans out. Unless the entire crypto currency market goes away you can bet that many of these are going to be a safe investment for at least a year or maybe two years. I think much longer than that but I’m being conservative here.
09:40 – PROOF OF THE RISE IN THE VALUE OF CRYPTO CURRENCY
See if you need more proof of this just to go to coin market, go to the historical stat charts in the tools section and start looking at individual coins from years back, from 2014. I just go back to 2016 January and you could start to look at, this is what coin market capitalizations looked back in 2016. Bit coin was at about 6B right there. So fast-forward today, what is it today, from 6 billion to 243 billion. You could go through anyone of these coins here and you will find a similar story. In a single coin, I don’t care what it is unless it has gone out of business, unless it doesn’t exist anymore; every single coin and their market cap has expanded exponentially in the last couple of years. This is the point that I’m trying to drill home to you. If you start googling size of crypto currency market, you’re going to start seeing things like the crypto currency market is now worth more than J.P. Morgan, crypto currency markets break 300 billion mark, crypto currency markets by size in 2020. You’re going to start seeing these projections of crypto currency markets. And it is basically experts telling you straight up that the economy for crypto currency is growing as more and more people become aware of it, more money would be transferred from their bank account, from their stock accounts into crypto currency markets and that would spend the size of the economy. I could not stress that enough guys.
11:12 – THE VALUE OF CRYPTO CURRENCY TODAY
Let’s put this in perspective as some parting notes here. Putting this in perspective today, all of crypto currency is 100 billion. This is all the data because we just looked and it is actually about 300 billion. This should be more towards Amazon now, pretty staggering right. And this is growing and growing and growing and growing. So all of the money in the world is about 83 trillion. In the stock market, about 66 trillion. Physical money, $31 trillion. Gold, $8 trillion and so on. This is shifting. This one is shifting from the stock market, from physical money, from gold, from US dollars, from stocks in these companies, it is shifting to crypto currency and you see that every single day expanding. It is growing and growing and growing.
In another year this bucket is going to be somewhere up here. I don’t know how big it is going to be, it’s going to be somewhere up here. And that is a testament that the markets are growing, that alt coins are expanding, that the money being put into all these coins are expanding. Day-to-day fluctuations truly don’t matter at all, unless you’re trying to make a quick buck. Keep that in mind when investing. It’s very very very important and it’s a very important concept that you understand if you want to make a lot of money long-term in crypto currencies.
12:25 – OTHER ARTICLES IN CRYPTO CURRENCY
Let’s go to some other articles. You could Google this yourself, type in future crypto currency, crypto currency and monetary policy and you will get a ton of articles just like this. IMF, the international monetary fund, really they had of all global finance is saying that crypto currency could be the future. And you go through this article and you look at Christin Laggard who’s the head of the IMF, the international monetary fund, they’re trying to pay of a path to me crypto currency work. Whether or not they want to do this, it’s going to happen. So that getting ahead of the curb and they are trying to support crypto currency before it starts taking over everything. Read through articles like this and you will see exactly what I’m saying. I think you’re going to agree with exactly what I’m saying.
13:06 – CRYPTO CURRENCY EXCHANGES REGISTRATION GROWS DAILY
Another thing here, one other thing to point out to you guys is how quickly these markets are growing. They are growing so quickly that in the last few days binance, Bit Finex and Bitrix, three of the major and biggest crypto currency exchanges out there have temporarily said no to new users. Why? Because they can’t handle the volume. Their infrastructure is on the web, their servers are not set up appropriately to handle this volume. They are trying to fix that as soon as they can but that is why they are closing off registrations. Look at this. Throughout the last half of 2017 digital exchanges have posted record numbers of user sign-ups. Binance is reporting 250,000 users per day, while coin base has recorded on numerous days of 100,000+ user sign-ups. Cracken boasts 50,000 new user sign-ups a day. You go over here, you see the same thing for coin base right here. Bit coin exchange, coin base ads 100,000 users in 24 hours. Guys, they just can’t keep up with the demand of what is happening. And this again is another proof point that more and more people are hearing about crypto currencies. I’m sure you guys have told her friends, I’m sure you’ve talked about it with your families. All of these people are starting to get more and more interested in crypto occurrences and are starting to dabble and put money. They are starting to put little bits and dabble little bits of money in crypto currency and that is why these things are happening. Once these usability issues goes away, once these exchanges equip themselves with more technical and sound infrastructures, things are really going to start getting interesting and getting exciting.
I hope this is helpful for you guys. I’m definitely a big believer in this and my mindset has shifted from buy and sell for a quick buck to buy and hold for the long term because the size of the overall crypto currency markets is expanding exponentially. This year is going to be very very telling. It’s going to make a lot of millionaires. I hope you’re one of them. But a lot of people are going to make a lot of money this year. Please follow this advice and you will profit in the long-term. That, I’m not going to say guarantee, but I think you have a very very good shot at it.
Again, I am Dan from cryptocamacho.com. I hope this was useful for you guys. Leave your comments, we would love to know your thoughts about this. We would love to know if you guys are buying and selling in the short term for a quick buck or if you are buying and holding in the long term because you’re looking to make some serious serious cash.
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