For someone with very little spare cash and a very slow growing savings, crypto commodities are starting to look like the best thing that has ever happened for low paid workers to build wealth. This week Apple CEO Tim Cook confirmed he owns bitcoin and Ether, demonstrating just how mainstream these markets are becoming. At the moment the crypto market looks like it’s at the tail end of massive bull run. Yet this can be a great time to start with a very small stake and get some hands on experience trading.
The biggest obstacle to building wealth for newbies to any sort of trading is dealing with fomo. If you’ve seen someone pumping fomo for all their worth – like GaryVee on anything he’s focused on at the time – right off the bat you need to put in a mental obstacle to that. The thing is this bull run could run for weeks or months. But it won’t be years. What usually happens for years after bull runs in sharemarkets, commodities like iron ore and crypto markets is next to nothing if you bought things at the top of the market. In crypto some commodities will lose 85% or more. Those that do may never come back. This can be like buying edgy gold mining shares during a resources boom. If you jump onboard near the top of the elevator, you do your cash. That can be very dispiriting.
Just recently there has been a terrific example of how this fomo can spread like a virus to people turning to crypto for the first time. The meme coin Shiba Inu went on a colossal run in October 2021. Someone who bought in from first minting paid $8,000 for trillions of coins in August 2020. They found their stake was worth $5.7 billion in October 2021. This type of story brings many new people into the crypto world. If you look at how stratospheric the price is in early September 2021 on the 1 year price chart, and how quickly it fell away, you can get a real time example of what happens to your money if you buy high during a bull run.
Probably the best obstacle you can put in your way turns out to be Gary Vee’s advice on getting into NFT’s. He is really pumping NFT’s at the moment but he is adamant you need to do 50 hours of homework before you invest a cent. This seems like good advice for any cryptocommodity beginners are thinking of investing, at anytime, but especially in this white hot market.
Another Shiba Inu investor who made $1 million and retired from his warehouse job did his homework. He read the 28 page white paper the company issuing the coin put out. He too spent $8000 in the coins initial offering. Unfortunately many people new to trading or investing do not do even the basic homework into what type of market they are putting their hard earned into. Very very few people who do that ever make money. Not least because as the article says the guy made an $8,000 bet. Beginners need to do their 50 hours homework so they at least know when they are making a bet not an investment.
If you haven’t turned your mind to cryptocommodities until now, there is a lot to get across. The basics of blockchain for starters. Then you have to learn how to research the commodities you chose to speculate in during the bull markets final run. If you do it right you could set yourself up with the knowledge and a modicum of experience so you can make wise investments during the crypto winter market [a phenomena that followed the 2013 and 2018 booms].
Regardless, educating yourself on blockchain, cryptocommodites, and NFT’s seems like a wise thing to do if you aren’t a programmer. These technologies look like being with us for decades and understanding their place in the world will be useful knowledge.