WATCH THIS BEFORE YOU BUY BITCOIN AND CRYPTO
What is for anyone whos new to cryptocurrency? What does dca stand for? What does it mean and what role does that play in people that are in the uh for people that are newer to the cryptocurrency space? Um yeah, dca dollar cost averaging, basically, your bring your cost average of whatever you have down. Sometimes it goes up and thats because um, if youre following a schedule, sometimes youre buying on the way up but sometimes youre, buying a way down and overall, your cost averaging your buys and it works out great. It works out great theres, so many that took advantage of this strategy. When bitcoin fell down um i mean going back all the way: 2017 people that follow this strategy bought on the way down to 2018. 2019. 2020. You know what it worked out, pretty well yeah at that time, it may have sounded stupid like why would you be buying on the way down youre trying to catch a falling knife, but we know bitcoin is not gon na fall to zero. We know lets go, find the floor and continue higher and thats exactly what it did and people that took advantage of three thousand um six thousand ten thousand, and we had multiple times that uh. That happened. You know bitcoin in 2019, fell from 14 down to 3 800.. Oh no, last year it fell down to 3 800 and people could have took advantage of that um and people that did what they ended up.
You know doing was bringing their cost average down so that when bitcoin recovered now their portfolios in the green, so dca is very important and you could do this one or two ways. A lot of people just follow schedule, and you see this on the apps too, like exchanges theyll say: hey, do you want to set a schedule? Buy a certain amount, every single you know week or two weeks or a month, yeah yeah that works that works. Theres calculators that show it had you done. It lets just say a hundred dollars every week over a course of three or four years, youre up several thousand percent, depending on which crypto that you you bought into i mean some of them are like tens of thousands of percent, so it really works um or Some people dollar cost average just on dips, if theres a major dip. 10. 20. 15. 20. You know 50 dip, you buy in a little more and you bring your average down and then, when things recover now youre in the green. So its really that simple and i think its very, very important for everyone to follow dca even to just kind of bring everything together. What would your strategy for a person whos new to the cryptocurrency space, be because it can be very daunting to get into crypto and say? Oh well, i got defy. I got all these decentralized applications. I have dexes that i have to think about and centralized versus decentralized and bitcoin versus ethereum, and what would your strategy be to make it simple for somebody: whos been in crypto for seven days and they have no idea where to start how? How would you guide somebody like lets, say your mom wanted to get into crypto or lets say you? You have a friend who wants to get a crypto.
I dont know anything about it. How would you lead them towards getting those kind of gains that people are looking for here in crypto in a responsible way, uh responsible way is key um. A lot of people also coming in is buying krypton credit cards with their credit cards and thats. Not the way to do it. First of all never invest more than what you could afford to lose, which means youre investing just with side money that is not going to affect your day to day life. You dont need that money to pay your bills to pay your car pay. Your mortgage pay! Your rent stuff, like that, so first of all people coming in, should just use extra money they have. I would still advise people to get in and start with, bitcoin and maybe not say you had five thousand dollars you want to get in. I would say spread out the buys. You know dca into bitcoin, so its really up to you. If you want to spread it out four ways: five ways and just or do a little bit every single like month, lets, say and uh and buy into bitcoin. First and then after that start researching these all coins, and i would suggest looking at whats called l ones or network protocols, and these are the easiest way to think about them – is operating systems for the future decentralized apps. So these are the ones like ethereum and cardano and solana and b chain and avalanche, and you know, terra and theres, so many that these are just the ones that are big caps but outside of big caps, theres, so many others that are serving the same purpose.
So i would suggest newcomers to look at these network protocols because all the dapps that that is being used right now, theyre all built on top of these l1 and thats important theyre, the foundation so theyre like microsoft, windows and and apple ios, all the dapps that That people use theyre riding on top of these operating systems and thats what these l1s are, and i would advise people to start researching them and get into them yeah. I think thats great one of the things that i say is um is the exactly what you just said: the fundamentals, the foundation of the entire digit of the entire future cryptocurrency economy. Are these l1 network protocols like youre talking about i look at like the interstate highway system in the united states of america, all the hotels, all the mcdonalds, all the starbuckses, they all pop up around the interstate, because everybody uses the interstate and brings the the united States together, the united states would not have a 20 trillion dollar gross domestic product if it werent for the interstate highway system. Itd, probably literally, be half that, because itd take you three weeks to get across the country that interstate highway system costs money to build. But the amount of value it brings because of the things built on top of it is so incredibly valuable that if you could invest in the interstate highway system in 1970, we cant. But if you could buy like partial ownership of the interstate highway system, you would make so much money because of how valuable it is and thats.
Essentially, what you get to do, right now by buying things like ethereum, cardano, avalanche and all the ones you just listed, is that youre, basically just buying a share in the foundation of the future cryptocurrency economy, so i think thats fantastic. Why do you think people get into the cryptocurrency space? Because when i got into the cryptocurrency space i didnt realize it at the time, but i got into crypto out of a deep hurt. I got into crypto because things werent going the way that i wanted to. I got into crypto because i want to take care of my family. You know it wasnt sure i wanted to make money in crypto, but the deeper message there was that i wanted to make money in crypto for a reason. So why do you think people really get into crypto? Obviously everybody wants to make money in crypto, but do you see a deeper reason, maybe on an emotional level, while people why people get into crypto and uh? Do you have anything to say to those people um? I think emotion for me: i think its financial freedom, i think, thats, why people get in and the purpose of it is yes to to make money, but its really for financial freedom, because people are sick of their nine to five jobs. They want something better. They want to invest in something that they believe is the future, and i think thats number one now you mentioned emotion.
I think thats important too, because some people are fed up with lets say what the governments are doing, especially right now you know in the last two years you could argue yes and pandemic. You know cause a lot of hardship, but the government, the us government, has what printed uh australia. How many trillions like how many the money supply in the u.s went up 40, i think, or even more now, in the last two years alone, think about every usd that was ever printed 40 of that came within the last year or two. So i think a lot of people are also realizing that maybe not the young people, but the older generation that have saved up so much in their bank account or 401k. But then theyre. Seeing that dilute to nothing and theyre really pissed off about it. And i think that is also playing a big part. Why theyre looking into bitcoins uh, especially maybe not so much of the all coins but theyre looking at bitcoin, because they want something to to preserve their wealth to protect their buying power. So i think that has a lot to do with it too, but i think a lot of the younger people. You know maybe in their 20s and 30s theyre just really fed up, and i think they just want to make more money achieve financial freedom. Then they could do whatever they want, spend more time with their family. Go travel more life experiences all that, so i think its a combination of both yeah.
I think you nailed it with the word financial freedom, and i use that quite a bit. I think it breaks down into two categories: number one people are fed up with not having money to put food on the table, so they want financial freedom from that yoke of poverty, but two they also want financial freedom from the financial systems that are not having Our best interest at heart, thats, what we saw come out of el salvador. We in america saw oh yeah, we had 40 percent inflation or well its not realized yet, but 40 of the money supply was just printed, but at least we got some stimulus, but at least we got some extra paychecks like at least we got something for all That money printing down in el salvador, their national currency, is the united states dollar. Now the now bitcoins alongside that, but it was the us dollar they just saw all of their currency in flight and its going to continue inflating and its only going to speed up over the next several years for what they didnt get. The benefits of stimulus and a lot of people would argue there werent any benefits anyway, so i think people absolutely want financial freedom. I think thats exactly why people are here. They want freedoms, they put food on the table, but two. They also want freedom from governments and systems that dont have their best interest at heart and, yes, obviously its nice to go, and you know get some fancy car get some fancy house.
I think that is fantastic. You go make your millions and you have your fun.