58. This Is Why 90% Of People That Invest In Crypto Lose Money

When the markets are boring, that's the time to invest because you know you're getting underpriced assets. You basically need to be in the markets early against trends. When people are telling you not to get in, when people telling you it's going to zero, that's the time to be investing because then you're in the minority. You'll be selling your assets when it goes up into the people that told you you were wrong and now are joining and catching up. And they will be losing. But easier said than done. Bergs but that is why 90% of people lose Losing Crypto welcome back to another episode of the Benneberg show with your favorite MBA in Aaron Berkuba and your favorite high school dropout in myself, yours truly, Ben Simpson. Today we are talking about why 90% of people that invest in crypto lose money now. Quick disclaimer. We can't provide financial advice on this podcast. Need to reach out to a financial planner or advisor if you want that financial advice. But we can can give you latest insights and strategies that We've helped over 2,000 people currently on our membership platform. We hear all the problems the investors have and we've pieced together a few solutions. And this is a common thread burgs that why those people that are down on their portfolio make common mistakes. And by knowing this information you're going to be set up to be in the 10% and not the 90%. So I want to really just like give a bit of context here for start to begin with, in crypto you only tend to hear the rags to riches story. You only hear about your mate that's made a bunch of money, that guy that put a bit of money in dogecoins and made a million dollars or barreled into bored apes accidentally and now he's a millionaire, right? You only hear those stories. The truth is so many people are down on their investments. Now the reason you don't hear those stories is because people are too embarrassed to share them, right? Like why on earth would you carry on about how much money you've lost, right? But the thing is the common theme between a lot of those people that are down is that they invest at the wrong time. They're investing when the market is frothy and green and pumping, right? And in crypto this happens really fast and really aggressively for three to six months out of a four year super cycle period. That crypto plays within those three or four months is when you get a lot of the growth right? For the other three and A half years we're going down or it's chopping sideways. Right now, the way that people lose money is that the only time they're ever interested in crypto is the three to six months it's going up. And that's when they invest, right? We all know it. It's happened two or three times the last five or six years where the market's going up. All of a sudden Kochi on Sunrise is interested, your local plumbers quit his job and your nan's buying dogecoin. It happens, right? That's when everyone's getting into crypto. But that's the exact wrong time. If you're investing during that period, you're buying the assets that Bergs and I have been buying for the last three years, selling them into you. And that's why you're down, because you're buying at the top. When you need to be buying is in the bear markets. You need to be buying when asset prices are low and when 90% of people leave the space because they get bored, when the markets are boring, that's the time to invest because you know you're getting underpriced assets. You basically need to be in the markets early against trends. When people are telling you not to get in, when people telling you it's going to zero, that's the time to be investing. Because then you're in the minority. You'll be selling your assets when it goes up into the people that told you you were wrong and now are joining and catching up and they will be losing. But easy said than done, Bergs. But that is why 90% of people lose in crypto.

Absolutely. And you got to think about this, like those few frothy months when you're going to dinner and your mates are telling you about fucking PI coin or some shit. I don't even know what it is, but I know it's a scam. And then, you know, or your Uber driver, like they'll hand you a card saying they've got a crypto startup now. And you think about it because what have they done? You know, they don't potentially don't invest that much or it's not their asset class and they see the number going up every single week or buy some of that. Even mates of mine that are tradies are sitting in their truck going, oh, I got on this one, I made this amount of money and they do it for a week, a month. And you know, the bull kind of goes up the stairs slowly, slowly, but then the bear comes out the window and they didn't sell. And you and I, we've, we've been accumulating, we got bags and you are the people that we are selling to.

Yep.

And you gotta remember we say that now, but like even just a few years ago, we were the other people that were buying in at the wrong time. Yeah. And that's the reason, although we didn't sell a lot of our stuff. So we've still got those bags and then we can unload them. So you gotta think about a couple of things. When you're buying or selling, who's on the other side of that trade and why? And if everyone's barreling in, everyone's saying things are frothy, everyone's on one side of the boat and you're on the other, that boat is going to tip. So you've got to think about where you want to be. Are you going with the herd or against it?

And this is where I, I actually like, you know, it fuels me up to see like the likes of, you know, you know, Jerome Powell or what's the name? Warren, Senator Warren, online, like talking about how they're building anti crypto armies and all these sort of bullshit. Like, that's the stuff that reminds me that there is a considerable amount of people on the other side of the screen. There's a lot of people that don't like this space. There's a lot of people that don't believe it's going to grow. There's a lot of people that don't understand it. And that's where you know you got the opportunity. Right. Because if everyone knows something, the opportunity is gone. Right. When everyone knows that Apple stock is valuable because Apple are going to be a major company, the stock's already out. You need to get into investments and trends and sectors before the majority of people get into it. And when there's a lot of people on the screen, that's giving you good indication that prices are going to be lower because there's a lot of people that disagree with you. Now you could be looking at an asset that's down and people talk, you know, saying they don't like it. And that could be true, you could be wrong. Right? So there's, there's two sides of the equation here. You need to have conviction and asset that you believe in. And it's hard to do that because, because, you know, especially when the market's down, especially in crypto, mainstream media are going to be telling you why it's shit and why it's Going to zero. But by having conviction and having that education and learning about assets and learning back sectors and really believing in something, it gives you more confidence to invest into something for the long term. And that's where Bergs and I have been through that cycle. We obviously have massive conviction around the crypto space. Not all of crypto. I certainly think there's a lot of crypto that is know we're going to go to zero. And that's what we do at Collective Shift, is help you sort of analyze and make sure you're getting in the right assets. But for the most part, the sectors that we like, we have conviction in and happy to continue to push it uphill until some point in time where the opposite side of the screen realize that, you know, they were wrong.

Exactly right, Ben. And people don't do this and don't buy in bear markets because it's tough. It's mentally tough. Like you're getting all this bad news, the numbers potentially going down, and you have to do the exact opposite and have conviction and nothing is free. So successful investing demands a price and that price is volatility, fear, doubt, questioning, regret, uncertainty. You have to live with that kind of mental torture while you're doing this over the years that it plays out and you have to deal with all of those in real time. And it takes a significant toll. But that is the fee for investing. And an example here is Netflix stock returned more than 35,000% from 2002 to 2018. 35,000%. But it traded below its previous all time high on 95% of days. So 95% of days you would be down on the previous all time high. And you have to stay with that. And you have to be like, you know, it's okay, I'm staying the course here because this is a real winner and I want to see this out because I have a goal and I want those profits.

Yeah. And I was there 2018 when crypto. No, 2019, when we really went into the depths of bear market territory. The 2018, 29 bear market, Bitcoin went down to $3,000. Ish. Ethereum was down $80. And the narrative at that point was like, this is literally going to zero. There was a massive narrative out there that was like basically saying that bitcoin was going to go to like, basically like a couple hundred dollars. And I remember like when, when you've been down for that long, 18, 19 months, it's completely dead. And you're like, oh my goodness, like, am I in the Right space. Is this actually going to survive? You genuinely start to consider getting rid of your crypto. And I think for a lot, a lot of you may be listening that are down or being this your first bear market, it really does get difficult to keep that money, especially if you've got these, you know, other opportunities you want to invest into or you want that money or you just don't believe it anymore. But that is the actual time to double down on your education, really get into the weeds and, and do that sort of content diet, audit who you're listening to. Audit the information that's. That's out there. Because 90% of the crap that's out there in this space is not research backed, is, is highly emotional and just like, you know, giving, giving you, you know, I guess a misdirection on what's actually going on.

Yeah. And to add to this as well, if you want to actually hear about Ben's journey, how he went through this, and also the mistakes we've bought both made because here we're talking from a point of, you know, experience and because we've gone through, we've made those mistakes. So we can kind of teach these lessons. It's one thing knowing the lessons and one thing acting them. But go back a couple episodes and Ben's episode How I Became a Crypto millionaire, starting with $0. And there's a lot of lessons in there to learn. You will learn from all of our mistakes. And again, even though we're giving you the knowledge and you'll learn it, you'll still need to experience those for yourself. But hopefully we can minimize that experience. It is cheap experience.

Another one too, like just around like the future opportun opportunity for, for bitcoin and crypto episode 42. I think you'd like that one. It's called How Bitcoin can increase from 20,000 to 1.4 million by 2030. A really interesting research report by Ark Investor Burgs and I dig into. So that's going to give you a lot of conviction. And then also episode 40, which is calling out the BS in web three, you know, the warning signs for your investment. So episode 40, episode 42 and episode 53 are ones that we recommend you listening to if you're feeling a little bit cautious about your crypto portfolio. Want to know where it's going and also the things to avoid.

That's amazing. And just think about that like what you've just said there. That's like what they put out like 1.4 million per coin by 2030. That's 7 years. Imagine now if 7 years in the future and it's 1.4 million a coin today is trading under 30k. How are you going to feel if you don't accumulate a little bit? It doesn't have to be 30k. It could be $100 worth, $1,000 worth, you know. But for those gains, how would you feel if you missed out on that? Those are the things you need to consider because buying now when things are boring and there's no price action and holding it for that period of time is the most difficult thing to do. But that is the way that people create significant wealth.

Yeah, bang on. And you might be thinking, oh, is this for me? I'm not really sure. I would just love someone to talk to. We actually at Collective Shift offer complimentary credit crypto strategy call. So if you just want to jump on a call, I'm offering them at the moment. For a limited time you can head over to CollectiveShift IO forward slash strategy. And for 15 minutes we can walk through your portfolio how you're thinking about crypto, answer any questions and help you get set up success. So you have the confidence to navigate this next cycle because we've just ended the last four year cycle. Bitcoin's up 75 year to date heading into this next cycle and it's a really important time, I think to get everything together and make sure you're set up for success.

Love it. Jump on a call with Ben. He's got a lot of experience, plus he's talked to a lot of people in this space. Crypto teaches you very, very fast. So get on a call, talk it out and just get right spot on.

Thank you everyone again for listening. We love hearing your feedback so if you have any feedback we'd love to hear from you. You can tweet at us nsimsonau on Twitter and babybackburg and if you think that there's a friend or a colleague, family member that would inform you'd be interested in this episode, we'd love for you to share with them. He's very hard to grow a podcast. We're grinding in day in day out to give you guys the best value for this podcast. We'd love for you to share with a friend. If there's anyone you think would be be be find this valuable I guess around the the episode of you know why 90 of people lose money in crypto so feel free to share to them. And bergs I will see you next time on another episode.

Catch you then. Thanks for listening, Chat.