“You Gotta Spend to Earn.”
As the market heats up again, I think it’s a good time to look at what happened in the first half of 2021. This should help you get prepared in case the market has another substantial leg up.
January 2021 feels like years ago for those active in crypto because there’s so much information flowing into your feed every day. That’s why it’s important to occasionally look back so that you don’t lose track of important things.
Let me share my story. By the end of 2020, I was pretty reserved about how I invested in anything. Like many, I was put off by high fees on Ethereum, which is why I completely missed DeFi summer. For the same reason, I had no NFTs.
It was another cold evening when we hopped on a call with Alex and Jay from research. Alex said there was an NFT sale ongoing, and it looked interesting. He was optimistic but cautious. I was pessimistic. Then, Jay spoke: “I just bought three.”
I was stunned. Jay was so quick to ape into a “worthless JPEG.” But, since he’s more experienced, I followed his example. The NFT was Hashmasks.
Initial prices of The Hashmasks were well under 1 ETH.
That wasn’t the only time I aped into something after Jay. I did that blindly for a while, but then in some conversation, he said: “You gotta spend to earn.” That was a revelation for me.
Since then, I have started being more active everywhere. Using protocols, buying NFTs, even stepped into degen territory a couple of times. Sometimes, the fees were just a pain to watch.
Still, Jay’s philosophy worked. I wouldn’t say I made some exuberant amounts of money, but the gains eventually offset losses. Not being afraid of spending money to get into something is a key ingredient of increasing your chances to win, in my opinion. But, it’s not the only one.
The second ingredient is the ability to take money off the table. I keep drilling it into your minds almost weekly, but without it, the first component may lead you to the wrong place.
I don’t want to sound boring. When people start making life-changing money, they become overly optimistic about the future. With big enough bags, you can afford it because even if you lose 90% of your wealth during the bear market, you will still be able to put money on the table.
Ironically, whales who made wrong decisions will be bailed out by each subsequent bull market. They are so rich, they can throw money at everything, essentially employing Jay’s philosophy, and some of their investments will offset all the losses and bring more every time.
However, if you aren’t a whale, you need to survive. You probably shouldn’t avoid fixing gains in hopes of 1000x, even if eventually your pick goes to that level.
To sum this all up, if we are moving into a bullish Q4, 2021, remember two things: try to be more active in the crypto space and fix profits. It’s a simple strategy, but it’s the essentials of what I learned this year.
SIMETRI Portfolio–BTC Szn Continues
As I said last week, the growth of BTC will suck liquidity out of altcoins and suppress their prices. Right now, BTC dominance is up-trending, but it potentially has more upside.
BTC Dominance. Source: TradingView.
Altcoins will shine only when BTC stops. Hence, we’re still in waiting mode. Now, let’s look at the Portfolio’s performance.
