00:00most of us know that cryptocurrency
00:02investing can be risky from famous
00:04people getting sued for promoting scams
00:07to the small scale scammers here on
00:08youtube and let's not forget about the
00:10crypto queen that scams her sim fanbase
00:12with endless pump and dumps but those
00:14are rookie numbers compared to the other
00:16crypto queen that scammed people for
00:18billions with a b i think you get the
00:20point there are a lot of scams in crypto
00:23they scammed you see they tricked your
00:25ass but while these do seem like pretty
00:27obvious scams there are many mistakes
00:29that i see beginners making over and
00:31over again and that is what this video
00:33is all about we're going to be going
00:34over what those mistakes are and how you
00:37can avoid them so the first mistake is
00:40not investing at all and it's very
00:42important that you start investing while
00:44you're still young even if it's just a
00:46little bit now with many stock
00:47brokerages they require you to invest
00:49quite a bit just to get started
00:51investing and it actually used to be a
00:53lot worse ten years ago you'd probably
00:55need at least ten thousand dollars to
00:57get started investing and because of
00:59this most normal you know lower middle
01:01class hard-working people wouldn't start
01:03investing until they were in their 30s
01:05and because of this they would literally
01:07lose out on millions of dollars in
01:10compound interest and if you don't
01:11believe me go look at a compound
01:14interest calculator and start investing
01:16say like a hundred dollars a week at the
01:18age of 18 versus 100 a week at the age
01:21of 35. and you will see that by the end
01:23of their life the difference is going to
01:24be in the millions of dollars but with
01:27cryptocurrency you really don't need
01:29much you can get started with a hundred
01:30dollars or less in fact there are
01:32promotional opportunities where you can
01:33win up to ten thousand dollars in free
01:35krypton stocks you've probably heard of
01:37these um if you haven't signed up yet
01:39you can find my links down in the
01:40description below but yeah it is easier
01:42than ever to get started investing and
01:44you should start even if it's just five
01:46dollars a month first of all you're
01:47gonna build the habit of investing
01:49because investing is a habit you're also
01:51more likely to make a mistake of course
01:53when you first start so you want to make
01:55those mistakes when you're not investing
01:56that much money and not later on when
01:58you have much more plus you can only
02:00learn so much from watching content
02:02eventually you actually have to jump in
02:04and start investing yourself think about
02:06it like riding a bicycle you can watch
02:07videos on how to ride a bike you could
02:09read books about it you could even hire
02:11an expert but eventually you're just
02:13gonna have to jump on the bicycle and
02:15try to write it there's really only so
02:16much you can learn without actually
02:18trying to write it yourself and the same
02:20thing goes for investing and just from a
02:22human perspective the fact that you
02:23could potentially get incredible returns
02:25from something like cryptocurrency at a
02:27young age where you don't have that much
02:29money makes it pretty enticing and later
02:31on you might decide to invest your money
02:33into a lot less riskier things like
02:35stocks or maybe index funds and that's
02:37great but the fact that you started at a
02:39young age is what matters it's better to
02:41dip your toe in now than to wait until
02:43you're 35 before you start investing
02:45number two on the list is going to be
02:47not having a goal a plan and a strategy
02:51now there's a lot of different investing
02:52strategies out there every youtube
02:54channel is going to have their favorite
02:55you know some people think you should
02:56just put all of your money into index
02:58funds i happen to think that's a pretty
03:00good strategy but a lot of other smart
03:02people think that you shouldn't just
03:03invest in index funds and stocks because
03:06of the fact that the government has so
03:07much control over those industries and
03:10if the government is extremely
03:11irresponsible and they print too much
03:13money for instance a lot of those
03:14industries might suffer but this is not
03:16going to be a video discussing
03:18strategies the important thing is that
03:20you do have a strategy yourself so the
03:22best way to do this is to start off with
03:24a goal and you need to kind of evaluate
03:26your life situation and things that are
03:28specific to you so for instance some
03:30people are minimalist they don't really
03:32need much to live and so they would be
03:33able to very comfortably retire on less
03:36than a million dollars others might want
03:37to live in really expensive cities drive
03:39really nice cars and for that you're
03:41going to need several million dollars at
03:42least to retire after you've figured out
03:44what your goal is you need to figure out
03:46a plan in order to get to that goal so
03:48how much do you need to invest every
03:50single year how long would that take in
03:52order to get to your goal maybe you want
03:54to retire when you're 65 or you want to
03:56retire early maybe you know where you
03:58want to retire so it would be a good
03:59idea to buy a bunch of real estate there
04:01because it would be a lot easier to
04:02manage or maybe you have no idea you
04:04want to travel the world and you know go
04:06to a bunch of different places in order
04:08to figure out where you want to live
04:09eventually these are all things you need
04:10to keep in mind now after you've figured
04:12out what your plan is then you want to
04:14make a strategy in order to get there
04:16some people really like real estate
04:18index funds cryptocurrency there's a lot
04:20of different strategies out there but
04:22the important thing is that you have a
04:24strategy that you really believe in
04:25because you've researched it and that
04:27will bring conviction and without
04:29conviction you are going to panic sell
04:31anytime something goes slightly wrong
04:33and i know a lot of people out there
04:35probably think i know this already i
04:37know this is super important but i have
04:39seen experienced investors in fact some
04:43think that they have conviction and then
04:45they panic sell at the worst possible
04:47time and me and this friend would laugh
04:49at other people who did this and then
04:51something happened in the market he
04:52freaked out and he panic sold and of
04:54course it wasn't the right call and if
04:56you look at the youtube landscape and
04:58the influencer landscape we are seeing a
05:00lot of people doing this right now where
05:02they are panic selling i sleep really
05:04well every night i pretty much never
05:06worry about the markets and the reason
05:07for that is because my investing
05:09strategy is long term now for conviction
05:12it really does help to have good
05:13information guidance and a support group
05:16and that's exactly what you'll be
05:17getting with my patreon you can find
05:19that link down in the description below
05:20where you will get access to my buys my
05:22cells and a group of private investors
05:25as well as a private discord now when it
05:27comes to formulating a goal plan and
05:29strategy it really helps that you do
05:31what's known as your own due diligence
05:34and this is number three on the list is
05:37where i see people getting bad
05:38information and not doing due diligence
05:42so i don't think there's anything wrong
05:43with listening to other people's
05:45opinions and in fact i actually listen
05:47to people who have opposite opinions on
05:49things because i basically want to play
05:51devil's advocate and see if there's any
05:53problem with my personal investing
05:55philosophy so for instance i listen to
05:57really smart people who think
05:59hyperinflation is coming and it's going
06:01to be a huge deal it's going to wreck
06:03the economy and then i also listen to
06:05people who think that inflation isn't
06:07that big of a deal now i am definitely
06:09more on the hyperinflation side i think
06:11it's getting really serious and out of
06:12control but if you honestly listen to
06:15the opinion of people that think
06:16inflation is not that big of a deal
06:19you'll see that it's not as crazy as it
06:21might sound you know people like kathy
06:22wood for instance are incredibly
06:25intelligent and you should listen to
06:26what they have to say so what i
06:28personally recommend you do is when
06:30you're thinking about investing in
06:32something or not investing in something
06:34what you want to do is do your own due
06:36diligence first and then listen to what
06:38everyone else has to say this is almost
06:40like with multiple choice questions
06:42where after you read the prompt you want
06:44to actually try to answer the question
06:46yourself before you look at a b c and d
06:48and usually the answer that you come up
06:50with if you studied is going to be the
06:52right answer whereas if you read the
06:54answer choices first you might psych
06:55yourself out and convince yourself that
06:57a wrong answer is the right one but
06:59let's say you find someone who is spot
07:01on with their assessments they have
07:03access to really good tools they present
07:05really good information and they're also
07:07able to educate and explain things in a
07:10way that is really easy to understand
07:12you still need to do your own research
07:15which is number four on the list a huge
07:17mistake i see people make is not doing
07:20their own research doing your own
07:22research is difficult and time consuming
07:25but it's also very important for any
07:27investment that you make and this is why
07:29i like long-term investing because i do
07:31my research on some type of index fund
07:34stock or cryptocurrency and then i just
07:36hold it for the long term so i don't
07:38have to do the research all that often
07:40whereas if you're trading you're
07:41constantly going in and out of the
07:42markets you're gonna be spending
07:44basically all day researching if you're
07:46making smart trades and even if you
07:48think your source of information is good
07:50always make sure to double check that
07:52info so for instance the other day i was
07:54on coinbase i was looking at one of my
07:55investments and i noticed that the price
07:57was half of what it should have been and
07:59for a split second i panicked i thought
08:01that something huge some news came out
08:02and my investment flash crashed but it
08:04turns out it was just simply a ui error
08:06with coinbase they were just simply
08:08wrong now i could have maybe not had
08:10strong conviction or freaked out and
08:11panic sold it now coinbase is usually a
08:13reliable and trustworthy source and if
08:15someone like them can be wrong about
08:17something as simple as the price of an
08:20asset imagine what else they could be
08:22wrong about so this is why you always
08:24want to check multiple sources and if
08:26you look at other people's due diligence
08:28always make sure to double check their
08:29work as well even if they've been right
08:31and they've been amazing in the past a
08:33really good saying that i like to live
08:34by when it comes to investing and kind
08:36of just life in general is trust but
08:38verify now this video is not about how
08:40to do analysis but the three main types
08:42are going to be fundamental analysis
08:45sentiment analysis and technical
08:47analysis in my opinion the most
08:49important one especially when it comes
08:51to stocks is fundamental analysis but
08:54i'm not one of those people who totally
08:56discounts technical or sentiment
08:58analysis either i think they're very
09:00important to understand as well the next
09:02one on the list is going to be fud and
09:04fomo fudd stands for fear uncertainty
09:08and fomo stands for fear of missing out
09:11and these are two very common emotions
09:12that you'll see time and time again in
09:14investing that result in you doing the
09:16exact opposite of what you want to so in
09:19investing you want to buy low and sell
09:22fud and fomo cause you to buy high and
09:26sell low fomo in my opinion is the most
09:28dangerous one because realistically
09:31speaking you're much more likely to hear
09:33about an investment after it's already
09:36had most of its gains so if an
09:38investment goes up like three times or
09:40five times something like that you're
09:42probably going to hear about it because
09:44news outlets are going to be writing
09:45about it people are going to be talking
09:46about it and that is usually the worst
09:49time for you to invest thud is also
09:51dangerous as well because you might
09:53think that your investment is gonna go
09:54to zero when in reality it's just a
09:56slight correction and often times if
09:58your investment has gone down quite a
09:59bit that might actually be the best time
10:01for you to buy now one way you can
10:03totally avoid having to worry about this
10:05that i highly recommend is doing what's
10:07known as dollar cost averaging this
10:10means that if you have ten thousand
10:11dollars to invest instead of putting it
10:13all in right now you can put one
10:15thousand dollars per month over a 10
10:17month period and because of this it's
10:19going to reduce your risk you're not
10:20going to be trying to time the market
10:21and it won't matter all that much
10:23whether the stock goes up or down as
10:25long as you did your research on it you
10:27know that it has solid fundamentals and
10:28over the long run it's likely going to
10:31go up the next mistake that i see all
10:33the time is not understanding supply and
10:36how it relates to value so a lot of
10:38people remember how bitcoin used to be
10:40one cent and now it's well into the tens
10:43of thousands of dollars and they think
10:45you know what i miss the boat on bitcoin
10:47but there's a lot of other
10:48cryptocurrencies that are less than one
10:50cent and they might do the same exact
10:52thing so i'm going to invest in those
10:54now this usually isn't the case and all
10:56you really have to do is look at the
10:57market cap of the coin and how that
10:59relates to the different types of supply
11:02now there is a max supply a total supply
11:04and a circulating supply and let's go
11:06ahead and look at bitcoin so you can see
11:08which one is which so with bitcoin when
11:10i was writing the script for this video
11:12the circulating supply was 18 million
11:15922 000. the max supply was 21 million
11:19and the total supply was 18 million 922
11:23000 as well the max supply is the
11:25maximum amount of coins that will ever
11:27exist so in bitcoin's case there will
11:30only ever be a maximum of 21 million
11:33bitcoins the total supply is the amount
11:35of coins that have already been created
11:37so in bitcoin's case it's 18 922 000.
11:41and then the circulating supply is the
11:42amount of coins that are circulating on
11:44the market so in bitcoin's case the
11:46total supply and the circulating supply
11:48are the same 18 million and 922 000.
11:51with many coins those are not going to
11:53be the same because the creator of the
11:54coin will decide to withhold a certain
11:56amount and then some coins have a total
11:59supply that is in the trillions
12:02and that's about 28 million times higher
12:04than the supply of bitcoin so basically
12:07what that means is this coin will never
12:08get anywhere near the price of bitcoin
12:10unless its market cap is 28 million
12:13times larger than bitcoin is and
12:15realistically speaking it's much better
12:17to just look at the market cap of the
12:20coin in order to determine its value and
12:22this brings me to the next mistake and
12:24that is investing in random altcoins to
12:26try to get 1000 x returns now at the
12:29time of creating this video there is
12:30over 16 000 different cryptocurrencies
12:34and for every one crypto that 1000 x's
12:37there are hundreds that end up losing
12:39money but it actually gets worse than
12:41that because just like most companies in
12:43the computer boom or the dot-com bubble
12:45went to zero most cryptocurrencies are
12:47also gonna go to zero and that means
12:50that investors in those cryptocurrencies
12:52will likely lose all their money so it's
12:54incredibly risky to try to pick altcoins
12:56that are going to 1000x at the very
12:58least if you do this make sure to
13:00heavily diversify your portfolio so it's
13:03a much better option to first of all
13:04make sure to do your research on the
13:06cryptocurrency make sure you know what
13:08problem it solves and understand the
13:10fundamental underlying technology that
13:13makes this cryptocurrency better than
13:14others you also want to look at the team
13:16behind the cryptocurrency as well as the
13:18community and then after you've done
13:20that you want to invest for the long
13:22term and the best way to do it is
13:23probably just to dollar cost average in
13:26and then you also want to make sure to
13:27diversify your portfolio don't just go
13:30all in on one of them now don't get me
13:32wrong everyone throws a little bit of
13:33money in here and there at random
13:35cryptocurrencies and i've done it as
13:40but that was money that i was 100
13:42willing to lose and i truly did not care
13:44about it i was probably just gonna blow
13:46it on something that i didn't need
13:48number eight on the list is going to be
13:50buying and selling too much and too
13:53often and this is also known as trading
13:55now i'm not totally against trading
13:57especially when it comes to
13:58cryptocurrency it's a pretty new market
14:01and i think if you're really good at it
14:02you can be successful so for instance
14:04sam bankman freed worked in forex when
14:06he worked on wall street and then he
14:08used his knowledge from trading to
14:10figure out how to make a million dollars
14:13a day with cryptocurrency and basically
14:15what he did is he noticed there was a
14:17discrepancy in the price of
14:18cryptocurrency in japan versus the
14:20united states in japan it was going for
14:2211 000 in the us it was 10 000 and so he
14:25would just buy a bunch of cryptocurrency
14:27in the u.s and then sell it in japan so
14:29if you're incredibly experienced you
14:31know what you're doing you're like a
14:33professional basically sometimes that
14:35can work out and i have seen people be
14:36successful with that when it comes to
14:38cryptocurrency trading but with that
14:39being said it's basically a full-time
14:42job if you're trading this is not
14:43investing where you can do it passively
14:45and there are many reasons to invest
14:48rather than trade first of all when you
14:50trade you're going to be paying
14:52short-term capital gains tax versus when
14:54you invest over a year long-term
14:57investing you'll be paying long-term
14:59capital gains so i'll put a chart up on
15:02the screen that i found that i liked
15:03from last year from financial samurai
15:06and you can see that depending on how
15:08much you're investing it's going to be a
15:10difference of somewhere between 10 and
15:1117 percent and over the long run those
15:14taxes are really going to add up on top
15:16of that fees for trading are going to be
15:19much higher because you're constantly
15:21entering and exiting positions and every
15:23time you do that you're going to be
15:24paying fees now if you've ever spent any
15:26time around subreddits like wall street
15:29bets for instance you see that people
15:31end up losing a lot of money doing this
15:34many of them get into margin trading or
15:36option trading which can be incredibly
15:38risky and they might end up losing
15:40hundreds of thousands of dollars there
15:42are dozens of examples that you can look
15:44number nine and this is something that i
15:46have seen even experienced investors do
15:48and that is not protecting your
15:50cryptocurrency now first of all you want
15:52to make sure you write down your seed
15:54phrases you also want to make sure you
15:56write down your private key now you want
15:59to have this stored in a very safe place
16:00that only you know about and optimally
16:02you want to store it in several
16:04different places you don't want your
16:05house to burn down and you lose your
16:07seed phrase and your key because then
16:08you can't get it back on top of that you
16:10also want to have two factor
16:12authentication enabled if somehow your
16:15account gets hacked if you have
16:16two-factor authentication enabled i know
16:18it's super annoying but that is going to
16:21save you and it's definitely worth it
16:23for you to always enable that and then
16:25another thing you want to do is always
16:27double and triple check your
16:29transactions and then send a test
16:32transaction first the reason for this is
16:34because if you accidentally send like
16:36ethereum to a bitcoin wallet you just
16:39lost that ethereum so let's say you have
16:41several different tabs open and you
16:43actually click on the wrong tab and it's
16:45a bitcoin wallet instead of an ethereum
16:47wallet it's really easy to accidentally
16:49do that so how to save yourself from
16:51experiencing this especially if you are
16:53transferring a large amount of
16:54cryptocurrency is send a super quick
16:57little one dollar test transaction and
16:59again these are all mistakes that i have
17:02seen experienced investors make not just
17:04newbies so really it's it's totally
17:07worth it for you to do this
17:09always do it especially if you're
17:10transferring a large amount of money and
17:12then the number 10 mistake that i have
17:14seen many many times is no
17:17diversification or too much
17:20diversification now first of all i am a
17:22huge fan of cryptocurrency of course but
17:24when it comes to investing you shouldn't
17:26just be putting all of your money into
17:28crypto you should be diversifying
17:30outside of cryptocurrency as well you
17:32also should have an emergency fund this
17:34is basically where you can live for
17:36three to six months at least off of
17:38money that you have stored somewhere and
17:40you really shouldn't buy more than you
17:42can afford to lose as well so if the
17:43economy goes down or crypto is not doing
17:46as well as you think it is for a few
17:47years you really should keep a good
17:49amount of money stored on you so that
17:51you don't have to sell your positions
17:53because that's when the huge losses are
17:55taken if you run out of money in real
17:57life and you have to sell your position
18:00that's like throwing money into a fire
18:03now when it comes to too much
18:04diversification uh i've seen it where
18:06people will basically put their money in
18:08like hundreds or thousands of different
18:10cryptocurrencies to the point where they
18:12can't even track all of it and they also
18:14really haven't done any research on
18:15those so i'm not really a big fan of
18:17doing that i think that you should only
18:19invest in cryptocurrencies in projects
18:21that you really believe in now i have a
18:23different philosophy when it comes to
18:24stocks i really like index funds and
18:26etfs that just automatically diversify
18:28your money for you the cryptocurrency is
18:30a completely different market from
18:32stocks and the same rules do not apply
18:35now if you enjoyed my research and my
18:36content here you'll probably also enjoy
18:39this video right here so make sure to go
18:40check that out and if you haven't done
18:42already go ahead gently tap that like
18:44button hit the subscribe button ring the
18:45notification bell and i will see you
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