2021 CRYPTO CRASH: Should you BUY or SELL?

So when I came in today, my plan was to do a video about Dogecoin, because I have friends and family who are asking me whether or not they should invest in it. And then literally overnight, the crypto markets fell by as much as 50% and a lot of people got washed out.

And some people will tell you, buy the dip, go all in, it's going back to 60,000, a hundred thousand, 500,000. And then there are other people who are saying, sell, sell, sell. You need to get out right now. This selling press to go way, way, send it even lower. So who's right? And more importantly, like, how do you make sense of all of the noise? How do you distill who you should listen to and who you should avoid listening to? So to explain this, let me compare this to something. I live in Austin, Texas. In Austin, Texas, housing prices are going to the moon. Housing prices are going crazy. It's hard to buy a house because there's so much demand for buying real estate here in Austin, Texas, the price of houses is going up because lots of people want to live in Austin, Texas. So because there's lots of people who want that thing, the price goes up. I don't mean to insult your intelligence, you already know this. But compare that to dogecoin or at least a lot of cryptocurrencies. They go up because they hope that other people will buy it from them at a higher price. That's the reason why dogecoin has been going up. That's why if you listen to a lot of people who will justify investing in something like dogecoin, they'll say, well, if Elon keeps talking about it or if everybody else keeps buying it, it's going to a dollar, it's going to $10, it's going to whatever. When your decision to invest in something is based on what you think other people are going to pay for it in the future, it's a bad investment. This is why I am not surprised that Bitcoin crashes 40% or 50% overnight. Because most of the people who got in during this buying cycle got in because they heard other people saying that it was going to 100,000 or 500,000 or a million million dollars per bitcoin. This is why I'm not surprised that Dogecoin goes from $0.01 to $0.70 and then back down to $0.25. Because when people are investing into something because they think the price is going to go up, they will also sell whenever the price comes down. So the rule of thumb that I like to take is never invest in anything that you don't plan to keep for at least five years. Now, look, I get it. I have actually had people make an argument to me that helped me understand something. They said, look, Ryan, you're already successful, so you don't have to take risks with things like penny stocks or with dogecoin. But for everybody else, it makes sense to bet on something that may have a chance to go up 100x. And I get that mindset. But what that person doesn't understand is that that's exactly the way most people lose money when they're investing or trying to build wealth. When you are betting on something going from 0 to 100, that is often why people end up losing money. The way that you end up getting those hundred x returns is by very boringly plugging away, taking a little bit of your income every month and putting it into things that you're not going to touch for at least five years. Because most things in normal markets, things take three, five, 10 years to compound. That's when you get 10x returns. Sometimes 100x returns, they happen over time. So when you see a lot of people pouring into an asset because they think the price is only going to go up, that's when you spot a bubble. Now listen, I wish I had bought dogecoin at $0.01 and ride it that sucker to $0.50. I have a family member who has been.

I have a family member who has heard me talk about investing for almost 10 years and then she went and bought the antithesis of everything that I stand for. She bought Dogecoin me.

At 5 cents.

And I calculated that her roi, her gain in three months was better than mine over the previous five years combined. I wish that I had bought dogecoin or bitcoin at low prices and rode it all the way up to the top. But I begged that person to sell at 60 and 70 cents. I begged that person to sell when they had a 10x return. 10x returns aren't normal. They're great when they're, when they happen, but they often take 10 years. And so if you get that kind of return, awesome. But when you can listen to other people talk about how they're just going to get in, make 10x and sell and get out, they're misunderstanding that that requires somebody else to buy it from them after it's gone up 10. And the question remains, well, who sees value in it when it has gone up 10x? What's the use for it? What's the purpose of it? Now, some people will make the argument that Bitcoin has value when it's at 2500-003000-00500,000. And I've heard, and I understand those arguments, but if we do go up to 500,000, there's going to be a lot of speculators pouring in along the way that are hoping that it goes from 40,000 to 100,000 and they're selling as soon as it gets there. So the difference in that mindset versus somebody who is actually going to make a lot of money is are you buying something that you see real value in? Is there real utility, real value, real use to the things that you are buying? And I want to offer a different strategy to you that can still allow you to have exposure to Bitcoin and all these other cryptocurrencies that you want to speculate on, but it not be so speculative. And that's why buying the businesses that are actually building the infrastructure that will make cryptocurrencies available to everyone else, Coinbase IPO'd at like $400 a share at the time of this video. They've come all the way down to 200. If you want to be in the crypto space by the business that is participating in all of this craziness because they have profits regardless of what happens to the price of Bitcoin or Ethereum, Coinbase is going to have users. Coinbase is going to create value for the people who are using that platform. Another good example is Square. Square and Visa and PayPal, these are all businesses that are profitable, that are building the systems for people to be able to use cryptocurrencies. Regardless of Bitcoin is at 50,000 or 500,000, there are still going to be people that use Square and Visa and PayPal and Coinbase. And so these companies will produce profits and growth and create value regardless of what is happening to the price of the cryptocurrency. And if you have a boom you In Bitcoin from 50,000 to 500,000, the price of those other stocks will also go up because there will be speculators that are buying those businesses, but you won't be beholden to these massive swings in the marketplace. Now, I get it. Like I actually, I have been a Bitcoin bear for a long time. I've been anti Bitcoin for a long time. And I realized I was wrong. There's a lot of utility to having a decentralized currency, but it's easy to spot bubbles when they're happening. It's easy to spot when things are about to crash because people start buying with the simple expectation that it's going to keep going up and they fail to take into account what the underlying value for something is. Personally, I relax, I get calm when things start to melt. And the reason for that is because when things start to come down in value, they're suddenly easier to judge. They're easier to analyze whether or not there's value to something. When things are going up and up and up and up, there's panic buying because you don't want to miss out. And that takes out of the equation we where the actual value is. But when the price comes down and the scared money gets out of the marketplace, you have more reasonable prices, you have more justifiable valuations. I do have a small portion of my portfolio in cryptocurrencies. I call it my mental health fund. It's my mental health fund because watching the price of things go up and up and up and up without me being in it was more painful than losing all of my money that I had in that. So I have a little bit of cryptocurrency investment, but I'm not buying and selling it regularly. If you're not willing to hold something for at least five years, you're not an investor. You're hoping to get rich quick. But the foundation of your financial strategy is to build something that serves other people and to take the profits and to put it into things that are going to be around for 10 years. Cryptocurrencies are going to be around for 10 years. That's true. But when you are hoping to sell a year from now, you're not investing anymore. You're speculating. So buy things that you believe in that are going to be around for the next 5 or 10 years. And if something goes up 10x or 100x in 3 months, get out.

And put it into things that are gonna be around for a really long time. My heart goes out to those of you who are getting crushed in the current sell off. If you believe in this sector, then you should look at this as an opportunity to buy more. If you are feeling the hurt right now, it means that you got into this with the wrong intentions in the first place. Place. If you liked Bitcoin at 50,000, you should love it at 30,000. You have to think, where is this going five years from now? Because when you think about five years from now, you can look through the temporary price adjustments and move toward your goals over the next five years. This investing is not a game that you play for where you will be in six months. It is a game that you play for where you end up over the next 16 years. That's how you get really, really rich. My name is Ryan Daniel Moran. I help entrepreneurs build businesses and invest the profits. I walk them through a three stage process that I think is the foundation of any business. Call it the grind, the growth and the gold through the three stages to having a million dollar business. Those three stages, getting clear on what you're doing, launching profitably and scaling to a very serious stable seven figures so that you've got the cash flow to be able to invest the profits. That's like that's how this game is played. And if you want to find out more about what we do, we have a little incubator called the capitalism incubator. You can just go to capitalism.com Inc. And find out exactly what we do. Thanks for watching this video. Hope you found value in it and I'll see you on the next one. Take care.