Money Printer Issue #6: The memecoin frenzy and how to retire in the next bull.
The Money Printer is a new newsletter focused on market strategies, opportunities, and resources in the crypto space. The first edition discusses navigating the complex world of cryptos and NFTs.
Dear readers,
I want to start by apologizing for the delay in sending out the latest newsletter. I know you all have been eagerly awaiting the latest issue, and for that, I am sorry.
The reason for the delay is that I've been working on several things for the past couple of weeks.
I can't reveal it just yet, but I promise it will be worth the wait.
I'll be sharing it with you soon, so stay tuned.
In the meantime, let's talk about what's been happening in the world of crypto. As you all know, there's currently a memecoin frenzy in the crypto markets, and it's minting a lot of new millionaires.
Here I’m talking about $PEPE and $TURBO.
But let's not get carried away by all the frenzy and hype.
The fact remains that we are still in a bear market.
However, as always, I am here to provide you with strategies and advice on how to navigate this bear market to be able to retire in the next bull.
So, keep reading this newsletter, and let's make the most of this bear market together.
Thank you for your patience and support, and I look forward to bringing you my latest issue.
We're in the middle of a frenzy, but we're still in a bear.
It's not an easy market to navigate especially if it’s your first.
If you look at the market right now, things aren’t looking good. (Except for memecoins)
Those who’ve been in crypto for a while have seen it all.
Cryptos are extremely cyclical, and they are characterized by endless cycles of bear and bull markets.
Despite all of this, many still managed to build huge amounts of wealth during turmoil.
The key element in thriving is building a strategy.
Amongst those who made it today, most were crypto newbies when they began, but today they are deeply embedded into crypto as investors, developers, and traders.
Here are some alpha concepts for navigating a bear market:
• Profits
• Panic Selling and greed
• Solvency
• Research
• Getting involved/Community
• Ape Fund
To HODL or not to HODL.
This is something that has been coined for the longest and usually only benefits the people who joined on the opportunity early.
Resistance to selling despite a gloomy outlook is a widespread behavior in CT.
Don’t risk your profits and livelihood because of a silly meme.
I’ve seen many newcomers fall into that social pressure and that’s the fastest way for you to lose all your profits.
As they say, no one ever went broke taking profits, but I’ve seen many go REKT by holding too long.
When you make profits, it’s important to sell a percentage of your gains.
It doesn’t mean that you’re out of the game, it just means that you’re making sure that you get some returns on your investment.
Look out for yourself as soon as you start and not when you make it big, because that might never actually happen.
Panic Selling and Greed
Now, this is closely related to the first point.
Avoid panic selling unless you’re in urgent need of money.
One of the worst decisions you can do is panic sell and lose out on a huge part of your investment because of that.
On the other side of the coin, avoid being too greedy. You risk too much by being greedy.
I've seen financial empires fall because of greed.
Trust me, it's extremely ugly to see.
Solvency
Stay solvent at all costs.
This isn’t as difficult as it seems, however it looks like something that CT investors struggle with, even the most experienced traders and biggest firms in the space (FTX, 3AC, etc.…).
Insolvency is a direct result of mismanaging emotions such as greed.
You get too hungry; you start to take bigger risks.
Risks that you shouldn’t necessarily take.
You should make your buying and selling decisions based on data and not on emotions, influencers, or social media.
For instance, don’t trade or invest with the mindset of making back whatever you lost in the bull run.
It’ll cause you to be too aggressive.
People who usually go down that route tend to try to make it all back in one trade by entering highly risky trades.
This will backfire massively, especially if:
• You’re not an experienced trader
• You’re betting money that you can’t afford to lose
• Make use of leverage that you don’t know how to use
If you miss, it will erode your mental capital.
I’ve seen it happen to countless individuals who were ‘too smart’ for the market.
Research, Research, Research
Crypto and NFTs are the lands for innovation.
99% of the things you invest in have a high chance of not making it.
However, those that will, will grant you life-changing profits.
Many projects go through the process of popping up, dying, reinventing themselves, and then either vanishing or succeeding.
If you’re an investor, it’ll be a roller coaster ride and if you don’t know how to manage and evaluate great projects, it’s going to be strenuous on your mind.
Look for projects who are reinventing user experience and redefining entire industries.
Keep on re-investigating and researching the project as they pivot, and build new mechanisms and new rollout plans.
In terms of what to look out for in a great project:
• Good community (Real users, not bots)
• Innovative user experience
• Technical aspects and smart contract legit?
• Solid and experienced team?
• What makes the project valuable?
• Is it decentralized?
Make sure that the project and asset you’re investing in were generated by real people and by the right project.
Nobody knows what the narratives of the next bull cycle will be, but If you do this, you’ll already be miles ahead of the competition and could win big.
Getting involved with projects and building a community
When I first started out, I knew nothing about crypto and nfts, like many of you.
I had to go through endless hours of consuming content and building connections with OGs and knowledgeable people.
These first connections are the reason I’ve survived every bear market and the reason I still manage to thrive in this economy.
Your first step when entering any ecosystem is to focus on building and contributing, understanding the core underpinnings of the ecosystem.
It’ll allow you to understand the ecosystem a lot better and help you make wiser investment decisions.
As of writing this, there are currently multiple Layer 1 and layer 2 protocols in testnet looking for people to join and test their protocols.
Being early and contributing to the ecosystem can rewards you with thousands of dollars worth of Tokens.
Most are free to participate in.
One final piece of advice: Be mindful of who you connect with and the type of content you consume.
There are still a lot of scammers and people with bad faith out there. Be careful.
Have liquidity available (Ape fund)
Aping is a term used to go all in without due diligence simply because of hype.
My Aping consists of going ‘almost’ all in but with due diligence.
Always keep some money/liquidity on the sidelines.
Never go all in.
Bear markets are made for people who have money waiting on the sidelines.
Contrary to most, I think Aping is a strategy that works extremely well in a bear market instead of a bull.
Bear markets allow you to buy good projects at a discount and allow you to be involved in a lot more projects.
The quality of projects in bear markets are also usually better since money is scarce and the project who manage to still build and deliver are gems.
The upside of Aping during a bear market is tremendous.
Finally, choose a project that aligns with your long-term convictions and invest in it.
Good luck.
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I'm looking forward to bringing you more exciting updates on the next issue.
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