The 9 worst crypto mistakes to avoid in 2022 | The Market Report

Sa. Sam.

Hello, friends, and thanks for hanging out with us today on the Market Report. I'm your host, Benton, and we are joined again by resident experts Jordan Finiseth, Marcel Peckman and Sam Borgi, back from the Bitcoin Miami conference. Jordan uses his background in psychology and human behavior to spot emerging trends in crypto. Sam Borgi is our business editor at Cointelegraph, where he brings a decade of experience in economic analysis and financial market writing. Marcel Peckman applies his 17 years of experience trading derivatives options futures to the crypto derivatives markets. Fellas, what's going on this week? I don't know. How we feeling, Marcel? What's going on, man?

Ben, everyone's getting crazy about bitcoin dropping to 40,000 and Ethereum dropping to $3,000. But we guys have been here for the past cycle who've seen bitcoin go down from $20,000 to $3,000 and survive. We're thinking, what are those guys saying? No, no, there's no bare market. We're still at $40,000. We're doing great.

Yeah, we're coming off a hot CPI print of 8.5%, man. Bitcoin cryptocurrency is about to shine. Hopefully, at least that's, that's the theory. Right. We'll see how it goes moving forward.

Yeah, you know, crypto can't hurt me anymore. You can't break my heart anymore. I've, it's already been broken too many times. I've been around for too long. You can't hurt me anymore. You can't. But as, as Jordan mentioned, that CPI running hot, you know, they're blaming it on the, the Russia stuff, but you know, CPI was rising way before that happened. So now it's time for Bitcoin to put up or shut up as an inflation hedge. So we'll see how things go over the next, I would say three to six months.

I was going to say we got rejected from that 48k mark and kind of plummeted back down to 40k. Now Ethereum's holding right around 3k. We will see what happens and shakes out here in the days ahead. We're going up, we're going down. Marcel's got some interesting insights as to what's happening on the back end with professional traders that he's going to jump into here first. But today we're going to be talking about some mistakes that we've learned that we want to share with our audience today. So I want to thank everyone for tuning in. I see we have Vikram back. Crypto Nitros, Adrian's here. Shelter Corgi, thank you for jumping on the show today. We greatly, greatly you all tuning in. Hopefully you're able to take away some solid nuggets of information that we're about to drop on you today. But first things first, we want to cover some of our headlines and what's happening this week across the Twitter sphere. But if you haven't liked subscribed Cointelegraph on YouTube, go ahead and do so now. Drop your Twitter handles in the chat. We're going to be giving away the one month subscription of Markets Pro. We're going to talk about two coins that were our biggest movers this week. But first things first, let's go ahead and jump into our weekly roundup with some of the news from this week.

Sam, It's sam.

Big waves across all spheres this week, not only just the, the Twitter sphere, yet Tom Brady had ESPN doing deals. You got Timbaland. A lot of celebrities I think are starting to get involved with crypto. But first things first, I want to hand this over to Marcel because he's going to give you the skinny on what's going on with Bitcoin Ethereum this week from the professional trading standpoint. Again, for those who are in chat today, drop your Twitter handles in because we're giving away that one month subscription of Markets Pro. Danilo, let's go ahead and jump into Marcel's expert segment for this week.

Okay, Benton, so Bitcoin is back to $40,000, Ethereum back to $3,000. So basically crypto market capitalization reverted gains from the past three weeks. And do you know what happened to traditional finance markets? I bet you haven't been looking at it recently. Right? Because the Chinese tech stocks, for example, they're at the lowest levels in five years. So Chinese MSCI, meanwhile the US government bonds hit the lowest levels since December 2018. This means that people are selling those Treasuries at a loss as they realize that a 2 or 3% yield does not compensate for an 8.5% inflation. So you're basically losing money by holding those bonds. So I want to share a screen here please, Danilo, which is going to show the crypto market capitalization in blue versus the Chinese stock market as measured by the MSCI C. Kikiki. So the orange line, which peaked right here in February at the left scale is the MSCI China tech stocks which peaked at 108. And you can see right now it's near 45. So it's down 60% below all time high. Meanwhile, you can see there's really no correlation as the crypto total capitalization surpassed a trillion dollars right here in February. It peaked at $3 trillion in November and it's currently standing at $1.9 trillion. So we're doing way better than those traditional markets. And as I said, Chinese tech stocks are 60% down below all time high. So this correlation story, it doesn't go well with me. I don't buy that story. So thank you, Danilo, for sharing that. So first of all, do you guys understand that Bitcoin and Ethereum are doing fine? Do you see how the traditional finance markets are melting down? I want to hear from you guys first.

Jordan.

I see the correlation on the, the chart. Even with that chart, it's going down. I remember China, was it right, right around May that they announced that they were like banning bitcoin mining and everything and that caused a little bit of dip in the price of bitcoin. But seems like they just have something against their people making money off of technology things. All last year, both the bitcoin and technology stocks just been tanking all year. Crypto's going up. I do think we're starting to see like, people see the safe haven that is cryptocurrencies compared to the stock markets.

Yeah. As we mentioned, with inflation at 8 and a half percent, now is the time for bitcoin to really prove one of its, its big use cases. I think there could be more room for pain for stocks coming up, maybe in May if the Fed decides to raise interest rates. If you take a look at Fed fund futures prices, it's implying a strong possibility of a half a point percentage increase in May. So if that were to happen, I mean, we might have a, some, some more volatility in stocks leading up to that event. So overall, I mean, I, I think all of us here see that there's a clear difference between investing in bitcoin and risk assets like stocks. But we'll see whether the institutions feel that way. You know, because we all wanted the institutions to arrive and they've arrived and it seems like there seems to be more correlation. It might not be a very, very strong correlation, Marcel, but it seems to be bitcoin and crypto are trading in the direction of stocks, at least I would say, recently.

Sam, I understand that crypto traders are frustrated because as Benton said, we just hit 48,000 and everybody thought, oh, we're out of this bear market, it's over, it's going to rally to 50 to 60 thousand dollars right now. But there's a specific thing about crypto markets because those traders tend to exaggerate both optimism and pessimism. Why is that? Because they like to gamble. They use the altcoin markets. They use 100 times leverage, 50 times leverage on perpetual futures. So instead of using the traditional fear and greed metric, what I think is backward looking, I like to measure the trader sentiment using the perpetual futures market, known as the basis rate. So whenever those traders are trading quarterly futures, they will demand more money to locking in the money. Because other than that, they could be doing staking, yield farming and getting, I don't know, 10% per year on stablecoins. So whenever they're going to sell those futures premium, they're going to demand a 5 to 12% additional money. So, Danilo, can I share my screen, please? So here you guys have bitcoin premium peaking at 18% in November as bitcoin price peaked, but recently it plunged below 5%. So indicating that those traders are becoming bearish. So whenever the futures premium, the bitcoin futures premium trades below 5%, it means those traders are bearish. And that's the situation we have right now. So if you guys are right and the stock market, this traditional stock market is going down, it's going to plunge, things will get a lot worse for Bitcoin and Ethereum. So that's my goal. If you guys think that, yeah, there's a good chance that stock market crash is happening. Crypto, Bitcoin and Ethereum is not a safe haven, at least for the first couple of months. It's going down as well. There's nothing we can do about it because we're still perceived as a risk investment.

So, Marcel, I have a lot of questions for you. Number one, what would happen in this scenario if there was a massive bond sell off? Because people are like, hey, I need to cut my losses. The CPI is up at 8 and a half percent. These treasury bonds are only yielding 3%. Would that ever be a scenario? And if so, what would that kind of look like? Or what, what could potentially happen to the markets?

Okay, Benton. So I think there's a good chance that those investors are going to realize they're getting scammed by holding treasury yields that yield 3% and inflation is at 8%. Having said that, I don't think that they'll get this money and say, well, let's buy this Bitcoin asset which has like 60% yearly volatility or 90% yearly volatility. They're not going to do that, that's for sure. Maybe they're going to buy S&P 500, maybe they're going to buy real estate, maybe they're going to leave cash position at hands. So if a crisis come up they can buy assets cheaper. But I don't think it's going to be good for bitcoin and cryptos in the first moment. If there's an outside, a good flow coming out of those bond markets, it's not flowing into bitcoin in the first period. I don't think so.

Yeah, I agree that like if there isn't any major sell off on the markets, it will definitely hit the crypto market, at least at first. But when do people realize that my Fiat's learning, losing all its value? I don't want to sell my stocks into Fiat when that Fiat is just losing its value. Like at what point does cryptocurrency go like, hey guys, hey, right here, right here man.

Keep talking to me.

That's a question that we have somebody from Canada here and he's gonna give us some insight on the housing market because there's a point that you see a house on your street that was trading at $400,000 two years ago and now it's trading at 1.2 million buyers are paying 30% above the asking price. And you've got to question yourself, what is going on here? Are those houses really that hot? Is my neighborhood really that good? Or is money coming down in value? So when those investors realize that they're paying 100 times price earnings on stocks, that the house tripled prices in one year, they're going to search for other different and alternative markets. And bitcoin is going to be an option, but that can take six months, 12 months after the crash. But I want to hear from Sam.

Yeah, so I agree that if investors are selling bonds, you know, they're not going to go buy crypto. I mean it's a very different risk profile. Usually people who buy bonds are looking for a risk off. I was interviewing Mark, you know, Jusko a few, a few days ago and he, I told him who in their right mind is buying, you know, Treasuries these days? There's central banks who are buying them, you know, so I don't think that a sell off in bonds is going to be advantageous for, for, for crypto. But as was mentioned by Marcel and, and by Jordan, where do you put your money? Like so, okay, I sell everything and I put it into fiat. That is depreciating in value by 8 and a half percent according to the CPI. And the CPI doesn't measure investable asset, it measures goods and services. So the value of, of, of of your holdings is actually going to decline even further. So you actually have to hold something. And for me, I'd rather be invested in an exponential market, that is crypto exponential market, that is Bitcoin. That's what I feel comfortable investing in and saving in over time. And I think eventually more people will see that Miami was, it was a massive event. People from all walks of life came. You could see that the builders are building in this new ecosystem. I don't see that changing anytime soon. From a price perspective, you have to be, you have to be patient.

I did. So it's, I have another question. Just generally for, for anyone, if inflation is affecting the dollar inherently, wouldn't that also impact stable coins? Curious to just hear thoughts on this one and then I'm going to, I'm going to switch over to the comments section. Looks like we got some, some fire comments going on today.

Well, from a Latin American perspective, whenever I buy a stablecoin, I know that it's safer than the local currency. We've seen Argentina, Venezuela, Iran and so many countries running to hyperinflation and we had that in the past in Brazil. So whenever we buy a stablecoin, we know that it's not the best assets in the world, but at least it's better than ours.

Yeah, Eric Voorhees just, just tweeted Benton that stable coins are down eight and a half percent year over year. So. So because of the inflation number. Right. So, yeah, that makes sense.

Yeah. If the dollar does collapse, I don't see this happening like immediately, but in the future, there will be a reckoning in the whole stable coin market with any of the stable coins that are tied to a dollar. But that's a, that's a, that's something to deal with in the future, man.

Yeah, sheltered corgi in chat here says 7% inflation, but all coins can go down 99. Might be better for some people to be all in cash. Is that a hot take? All in cash. That's pretty bold there, sheltered Corky. Yeah, no thanks for everyone that's jumping in chat here. We're going to be cruising around the chat today. I see some people throwing shade today at folks in chat. Let's see. Yo, where can I go to the beach towel with the sun? I think they were talking to you, Sam. So keep those comments flowing today, folks. Love having you tuning in. And again, we're going to be giving away that one month subscription. Markets Pro, we're going to tell you reasons. We got two reasons why you should be subscribing to Markets Pro. We're going to get into that later. But next that we have up on the docket is we got some, some stories to tell you about what not to do based on each one's experience. So we have some education stuff for everyone today. But first things first, we're going to get started off with Sam in today's segment of what not to do in crypto.

Yeah, they're always picking on the Canadian, eh? Yeah, I get it, I get it. So in terms of what not to do in crypto, I think there's such a massive laundry list of what not to do in this market. I'm going to try to limit, limit it to just three. The first thing, the first issue with a lot of crypto traders is that it's called analysis paralysis. If you go on crypto Twitter right now, you're going to see chart after chart after chart. You're going to have people who are on the four year cycle, lengthening cycle. You're going to see Fibonacci, Elliott Wave theory, technical analysis, fundamental analysis on chain data, as if that's ever predicted anything. All of that information leads to information overload. It leads to analysis paralysis. You're not going to get anywhere trying to make sense of every single data point. You have to have an approach to investing. Whether you're a short term trader and you're willing to exercise discipline, or whether you have a long term approach, your portfolio has to be grounded in a thesis. For me, I like to base my investments off strong conviction. I'm in crypto for the long run. I believe it's an exponential market. My investments and my behavior mimic that. I'm not out there looking for new charts every single day to, to sway me one way or the other. Especially with the bull and bear narrative that we see in the market today. So that's one issue that I see. The second one is only looking at price when deciding to invest in an asset. Look, a lot of us here in crypto we want to make money. We want to, you know, we have visions of making, you know, a huge payout in the future. One of the worst things you can do is just looking at price. Oh well, the price is less than $0.01. I'm gonna go put $10,000 into this coin because if you can go from $0.01 to a dollar, that's a lot of money. But you actually have to look at other metrics like the market cap. How much coin is actually in circulation. You know, just because something is valued at 0.0069 but it has a quadrillion supply, it's never going to reach a dollar or a dollar fifty because its market cap will be bigger than the entire global financial system in that case. Right. So don't just look at price when deciding which asset to invest in. You have to look at the tokenomics. You have to look at the project as a whole, you know, because don't dream about hitting a dollar if you have a quadrillion supply. And the third issue that I see a lot of people face or a lot of people experience in this market is they get cute with trading. You know, getting cute with trading is a recipe for disaster because it drains you of your capital over time. As a trader you should be focusing on preserving capital. If you're a long term investor, of course you want to make money over time when you start making trades. Well, I'm going to invest in, in, you know, in Zilliqa because it went up 300. Oh look, the gains are gone. I'm going to now cycle that back into Gala, from there into Polygon. Let's go back into Ethereum. Just back and forth, back and forth. You'll end up getting wrecked over the long term, you'll slowly get wrecked. So value the high value plays. Be willing to hold and be willing to invest with conviction or trade based on a proven model. Any kind of analysis that you're doing, stick with it, have a plan and don't get cute with trading. That's it.

Love that, love that. Well said, well said all around. Marcel, go ahead. I see you have some questions.

Yeah, great tips, Canadian. But as usual, Canadians are too theoretical and not practical. So help me out here. What are the suggestions for traders to beat this information overload? There are just so many indicators, apps, influencers and that are crunching companies. So what are your practical tips?

Honestly Marcel, that's a really good question. The thing is, I mean any kind of market has the same indicators. I mean those Elliott wave guys for example, they're, they trade stocks, they trade different assets. The problem with crypto is it's dominated by this bull and bear narrative. Everyone has a bull or bear narrative. You're getting dragged one way or the other. If Bitcoin falls below this level, we're in a bare market. If it goes back this level, we're in a bull. These you should avoid the bull and bare market. Just, just remove yourself from those types of narratives. Focus on fundamentals or focus on certain technical indicators. You know, if. If you like to look at moving averages, if you like to look at momentum indicators, if you're into oscillators but have a plan, and if you like Elliott Wave, for example, use that. But don't sit there and be pulled by bull and bear narratives. This market is extremely susceptible to that. And if you keep following those, you're gonna wake up one day euphoric, then tomorrow you're going to be depressed because look at crypto Twitter right now. Last week we were in euphoria. Now we're back into gloom and doom. And the charts, you can find a chart, it'll tell you anything. So avoid those polarizing narratives when possible.

Yeah, I can attest to the, like, avoiding trading and jumping from coin to go. I remember doing that back in the day, and it's just like, like 70 to 80 of the move comes before most of us even hear about it. And then we're like, jump in. And then it starts pulling back and the next one goes. So, yeah, it's. It's a losing battle. And you just watch your. Your stack slowly deflate when you try and jump from coin to coin. So it's definitely, like, a top recommendation for me, too.

Yeah, absolutely, absolutely. It's. It's okay to, you know, cut trades if they're not performing well, but it's the constant chasing from one to the other that'll get you into trouble. Right. Because it'll. It'll drain you of your capital.

Yeah. I mean, the other thing I wanted to. To chime in with here is you bring up a great point with the analysis paralysis statement. I. I mean, my short trading career, it's like you learn to kind of really, really pick your two or three, like, solid indicators that are kind of like your bread and butter. I've tried to do the thousand different indicators and lines and charts. It's like, keep it simple, and you just kind of stick with your. Your two or three that work really well. And I see Marcel do that week in, week out, and that's like another testament to, to keeping it simple. Yeah, Marcel, go ahead.

I have a question that I'm really not a trader. I used to be. Now I'm more of a holder. But whenever we're trading in crypto markets, we got to remember their high volatility. So a 20% gain or loss in a single week, it's common. It happens quite a Lot for us. So how can a trader find a sweet spot between setting up entry and exit points and overtrading? Because if I do a 10% gain or loss, it's gonna happen in three or four days every time. So isn't that over trading?

Yeah. I don't know, Marcel. There is a sweet spot. I think if you're a really good trader, you're probably getting it right half the time. Just the reality of the matter, which means the half the time that you're wrong, you want to be able to limit your losses and prevent, preserve capital. So whether that's setting stop losses, whether it's cutting your losses early, whatever it is, that's just the reality of trading. You know, most really good traders still get it wrong half the time. That's why, like you, I'm more of a long term investor in this and I have my own narrative that I'm following and I'm, I believe in the conviction. I have a strong conviction in it and that's what I'm using. I'm investing and I'm holding for the long term, not holding. I'm not hodling blindly for, you know, 25 years, but I'm investing in an exponential market and that's what my expectation is. I'm not in it for a quick entry and exit.

And are there any sources that you trust, like for information aside from, you know, us at the market report in Cointelegraph, like where people can find good, solid information? It's kind of condensed, maybe more, just not, not so like the, the encyclopedias that are out there.

Honestly, Jordan, what I. One of, one of the people that I follow that I really like is Bob Lucas. Because Bob Lucas has a four year cycle theory and he's been on that since late 2018. And more or less everything that's happened has been expected up until the crash that we saw last year. I think for us the big thing that we were surprised at being in this market is that we didn't get the exponential blow off top. Everything else more or less has been in line. I think if you can find a few traders that you really trust and they follow a certain trading strategy that you also employ that works, but also be willing to study every project you invest in and again know what the long term value proposition is, if it has long term value, you should be okay. Holding for a longer term.

Definitely. And I see people blowing up the chat right now. It looks like balipour. I don't know what happened today, but like, I, I hope you didn't wake up on the wrong side of the bed. We appreciate you being here. You're watching. So I've been seeing the comments float around chat today. Yeah. Welcome to the show, Balapore. You're here with four different experts. So thank you for tuning in. Now, I want to get into some of the the mistakes that I've made and what you should not do. This is going to be for beginners, for folks that have been around the block who are heavily in defi, those are the waters that I typically sail around the most. So, Danilo, let's go ahead and jump in to some mistakes that you shouldn't be making. There's something else floating around right now, and it's not COVID 19. It's Moon Boy Fever. That's right. That's something you don't want to catch, especially when it comes to your trading positions. So what do I mean by Moon Boy Fever? Well, this means when you 2x or 3x your principal investment, this means to take profits. And the way that I like to do that is associate my gains with physical items, whether that be a phone, a laptop, a new pair of shoes. Associating your gains with physical, tangible items for me has made things a little bit more psychological when it comes to actually understanding where we are in particular market cycles. This is a tip Cal Toro, friend of the show, taught me a while back, and I've been using it ever since. So if I 2x or 3x, I have two new pairs of shoes or three new iPhones or whatever that may be. It helps you psychologically wrap your your brain around what's actually in front of you instead of just numbers and digits. So that's number one. Number two for me is understanding the market cycle. So I'm going to go ahead and quickly pull up what I mean by the market cycle when we're looking at this. I'm going to go ahead and show you all my screen here. Danilo, if you wouldn't mind just pulling this up. Is understanding what the market cycle is. I'm gonna go ahead and try to zoom in here. Market cycle is understanding where we are. These are all psychological things that happen during a typical market cycle. It's disbelief, it's hope, it's euphoria, it's understanding when we're going parabolic that it's not maintainable. Jordan's gonna talk about that a little bit later. But understanding where you are in the market cycle so that you are understand how to not emotionally make decisions, but rationally be able to approach your Trades. And so this is something that I constantly am always referring to is this market cycle graph of psychology. I know Jordan is a big believer in the psychological elements of trades. So this is number two is not making the mistake of saying, oh my gosh, we're here on the charts and it could actually go higher when, when we're in that euphoric state, it's gonna go down. It's just a matter of time. The last point to know you can go ahead and take that down is understanding how not to get involved with D5 rug pulls. I've. I've gotten my master's degree from the school of hard knocks and D5 rug pulls is the name of the game. So things that I like to look out for, D5 rug pulls. Typically our Twitter accounts with very high follower counts but very, very low engagement rates. So I'm going to look in comment sections, retweets, engagements across all of their content. Typically projects that are artificially inflated will have low engagement rates but very high follower counts. So that's a red flag for me. Projects that don't have roadmaps on their website, false advertising of sponsors and investors, anonymous teams is not always a deal breaker for me, but that's definitely something that can add into defi rug pulls. No liquidity, locked limits to sell orders when it comes to different defi protocols and not having an audit are big deal breakers when it comes to assessing and understanding how not to get involved in certain trades, especially D5 rug pulls. So those are my three words of wisdom for the crowd today. Hopefully it did not fall upon deaf ears.

So Benton, I've got a question for you. I've seen you saying on a lot of shows that some people get two times or three times wins gains and they still refuse to sell, thinking, well now Dogecoin is going to $3 now that he's reaching 70 cents. So I'm not gonna sell. In my mind, that's really impossible for someone to think. But yeah, you know those guys better than me. But considering that this happens, shouldn't that trader increase his position if he really believes that the Dogecoin is going up instead of selling? So what's the right answer here? If the coin has gone up like 50% and you still believe on that should be selling or buying?

I mean, it all depends on your approach. And to me what it comes down to is risk management. And so if I'm able to recover my principal investment from an investment, a shorter term investment, maybe something that I'm not long term Hodling, then, yes, I'm going to go ahead and try to get my principal back as quickly as possible. And the way that I view that is that I'm kind of mitigating a lot of risk when it comes to particular trades. And then I'm able to then ride the next wave up. If it is able to go, you know, 2x higher, 50% higher, whatever you want to look at it, I will have my moon bag associated with the rest of that trade. So I get my principal out, maybe a little bit of profit on top, and then I'll let a moon bag ride either up or down, because I don't really care. I got, I got what I needed out of it.

Yeah. To your point, Marcel, this is why, like Sam mentioned, like, trading is hard and not many people are good traders because the actual psychology of trading is almost the opposite of how most people believe. Most people do exactly what you said. They believe in a token, it goes up a little bit. They're like, holy crap, this is going to the moon. I'm gonna dump another $10,000 into this. And then, like, it tanks, which is around the opposite side. Traders are like, oh, man, I just made some profits. Sell that. Like, it's, it's really hard. That's why people don't. That's why we're not all filthy rich. Because trading is really difficult. And the psychology of it is a man.

It is. It's so hard to go against the crowd and. Go ahead, Sam.

Yeah. And no amount of, you know, trading programs out there are going to prepare you for that, Right? You know, don't go, don't go spending $2,000 on a trading program when they don't teach you these vital lessons. But, you know, Benton, I like what you said about the D5 rug pulls and what to look for. I think basically this pretty much eliminates most defi projects, right? When, when you take a look at the list of what tool. I'm just saying, right, you're.

You're considering some of those qualifications. I mean, obviously it's like you got to be able to do the research and understand what that particular protocol is, is trying to accomplish. But yeah, to Sam's point, a lot of, lot of risk associated with defi.

A couple more red flags there. I found. Like, if a project is charged, there's a fee. Like you're going to deposit your money and they're like, there's a one port, there's a 0.1% fee on this or anything like that. No, I've Never seen a project last that does that. And if they give you, if they tell you you're guaranteed to make this return run for the hills. There's no guarantees in crypto. If they're guaranteeing you, you're gonna, you're gonna triple your money in this amount of time. Be like, you're scammers. Scammers. Like, don't, don't fall for it. There's no guarantees in crypto.

Exactly right. Nothing is ever guaranteed. Only the moon. Marcel. Go ahead, Benton.

You guys speak a lot about market cycles and time in the market. But for example, back on November when there was the Bitcoin ETF approval and inflation soaring to 30 year high, I called my brothers and said, well, bitcoin is going to $200,000. Buy Bitcoin, like there's no tomorrow. And the market was like $55,000 or $6,000. And yet next month, crypto markets tanked. We all know what happened. So my question is, at what point should the trader give up on such trader? Is it a 20% loss? Is it realizing that he got rug pulled? What is the point that he should exit all markets and say, okay, I got it wrong. That's not the cycle I was expecting.

I, I'm gonna let Jordan jump in here because I, I think he's probably had a longer experience in regards to being around for four year cycles. Sam, as well, in regards to like helping answer that question. I know for me, sometimes I've had to cut losses. That's part of, I think, the, the short term trades sometimes, especially when it comes to defi. But sometimes when you're playing a lot of those high risk bets or, or trades, all it takes is one and, and you can kind of make some of that up. But Jordan and Sam, feel free to, to jump in here.

You're learning. To admit that you're wrong is one of the hardest things for any human to learn. And that's a really important lesson for a trader to learn quick. Like, man, I was wrong out. That's, it's just hard. Like what you're gonna ask, like, what's the perfect. How do I know? I'm like, there's no perfect answer. There's a reason that it takes four to 10 years for a person to get even good at trading in a market because we got to go through the, the ropes and like lose money and earn money and lose it again before we're like, man, I got to get better at this.

Yeah, I was really bullish on synthetics a long time ago. And I held that baby for a long time. And recently I'm like, you know what, man, this ain't it. This ain't it. It's like the only position in crypto, the only like long term hodl I've had that wasn't successful. But you know what happens, right? You just cut your losses and you move on. You don't dwell on it, you move on.

Yeah, exactly right. The, the chat is just in fuego right now. We got people from all over the globe. I saw people tuning in from Philippines. Wrong again is here. Welcome back Balapore. We just love to have you here. We really appreciate you chiming in today and watching because you've been here the whole time. So I gotta say, at least you're watching. Love to have you. Love to see it. We, we want you to subscribe to Cointelegraph, YouTube because we're here on Tuesdays at 12pm don't forget, drop your Twitter handles in there because at the end of the show we're going to be doing a poll and we're going to be giving away one month free of markets pro. But next things next, we got Jordan segment. He's going to drop some knowledge on our domes about what not to do. Keep your comments coming. I'm seeing all of them in here. If you have questions, comment, make sure to drop them in. If you want particular topics, drop them in chat. We're going to look at them, we're going to answer your questions. Danilo, let's have Jordan go ahead and take this away next.

All right, so if you watch the show, you hear me talk about a lot, talking about taking profits. But the biggest mistake Iva made in years of crypto trading is not taking profits, especially following exponential moves to the upside or market wide rallies and blowoff tops. Benton showed that market cycle top when it starts going exponential, man, take your profits. And I know this goes against the hoddle nature. This is like the hodl nature of crypto in the early days is probably one of the biggest disservices to some of the people because people just watch their especially those first three cycles. People watch their portfolios just skyrocket in value only to like lose 90% within a few months. And then they're sitting there like, man, I got to go back to work at McDonald's. That's a funny theme or a funny meme like the McDonald's meme. Because people are like, yeah, I'm rich. Yeah, I got to go work at McDonald's. So yeah, the Hoddle. Crypto culture. The culture of the crypto community pre2019 made it a badge of honor to hold through up and down markets. But you lost your wealth. Unfortunately, many and most crypto tokens flame out within one market cycle. Even look at something like Eos, which had like a $4 billion raise. I remember I had it and it went up to like 20 bucks and somebody's like, take profits, homie. And I'm like, nah, this is the future. What? What? Like, oh, I just get to write that one off. So if you don't take profits, you may miss your chance completely or have to wait multiple years for another opportunity. Nothing keeps going up indefinitely, just like that chart that Benton showed. So when it's like, yeah, greed buy, greed, buy. It's a greed sell. Greed, sell it. All right, sell your token. So if you want to like get ahead of the game before you even buy a token, pick your first sell off point. Like, I'm gonna sell 10 here. So I get my, my initial, my initial investment back and then I'm playing with house money. That can kind of help relate, release the psychological tension that might build up. But it's a challenging game. It's going to take you a few cycles to get it going. Also there's a major trend every time. Think meme cultures, meme cycles. Somebody put $8,000 into ship in like early late 20, 2019 or 2020, and it turned into like trillions of dollars. I don't know. Not 20 billions of dollars. I know I exaggerate, but it shows you that each cycle there's a new one that comes up. But these new trends that pop up flame out just as quick. So it's really important if you're on these new new trends, like take your profits if the, if the meme coin's going up, if an NFT, if somebody offers you like $3 million for an NFT you bought for like a hundred dollars a few years ago, like, sell it. I promise you, you'll find another deal. And like so many of those tokens have just lost all their value. So each new cycle brings a new trend in the market. New trends are fast moving, but they tend to flame out just as quickly. In these instances, I like to rotate into stable coins or other solid picks like a bitcoin or Ethereum. Those are more like my conservative long term picks. I don't even consider those like fun crypto trading. Those are like the new benchmarks or the new safe havens as far as cryptocurrencies. Are going. So if I do take profits, a lot of times I'll switch it into them or stable coins again. I'm also paying attention to the whole inflation thing and how fiat currencies are doing and mining that and keeping an eye on usdt. I'm like, man, that's just a ticking time bomb. So there's all these things to take into consideration. But take your profits, if you really like a coin, buy it back when it goes lower after you take your profits. All right.

So Jordan, let's clear something out. You're saying that holding, at least holding for long term is not the best strategy yet. Every single bitcoin buyer that has held for four years or longer are always on profit for the past 12 years. So are we talking about exclusively on altcoins or are you telling us about a one or two year timeframe?

I'm looking at the time frames and even just kind of keeping that, that market cycle picture in mind. Like, I have nothing wrong with holding bitcoin long term, but if I remember when I first looked at bitcoin, it was a thousand bucks. If you bought a bitcoin at a thousand bucks, watch it go to $20,000 and you're just like, huh? And then like, watch it go back to $3,000. You don't really care about getting more bitcoin in my opinion, because you would have sold some of it and bought it back. Because again, nothing goes up indefinitely. I've never seen a chart aside from the human population currently that just keeps going up. And I think that that's having its own little issues right now too. So like there's gonna be a pullback, pull it back like, and I like Dogecoin. I bought Dogecoin at.002003 on Robin Hood. It started going up last year. I'm like, holy crap. I took, I sold quite a bit of it at 30 cents and then it went up to 70 cents and I sold, sold it again there too. Am I at that point it was like, dang it, Jordan, you could have done better. So this, it's always a psychological game on both sides. Like you sell it at one point, it goes higher, you feel bad, you don't sell it, it goes lower, you feel bad. It's like, oh, it's just. That's why you pick a profit.

Or you're assuming that we are good traders. I, I would have bought bitcoin at thousand dollars, saw it, went to $20,000, panic sold at $5,000 and then rebought it at 20 or $40,000. Again, I've lost money both ways.

Welcome to the perfect explanation of why we're not all rich traders. Because that's the psychology of the game. It's so hard. You can't like. And this goes into even the analysis of paralysis, like dollar cost averaging, try and get into a market when you're in a bear market. So it's most likely just going to go up long term, right? When it goes, when you got like a 10x, if it's. Once it gets 10x especially, I'm begging you people, take some profits. If it hits 100x, like sell it, all of it. I promise you, you can buy it back later. It's just, it's, it's a hard game to play, man.

Yeah. When you're in huddle culture, it's important to tell yourself comforting lies. You know that. You know, most of the money is made in bear markets, right? The break even rate for miners is $6,000. You know, you, you learn these comforting lies. But you know, taking profit is always important. I, I had, I had to take a moment after you mentioned eos. You know, that just brings back a lot of really, really ugly memories, you know, that, that whole project, you know, for those of you who think that anything's a slam dunk, eos raised like $4 billion in an I, in an, in an ICO, $4 billion. And the project has really done nothing since then. So just perfect example of hype and not a lot of substance.

Yeah, and that's exactly right. That's the nature of the crypto market. Most of these tokens ain't going to be around long term. Go ahead, Vincent.

So, like Jordan, like just out of curiosity, I know next week we're going to be diving into, you know, some of our portfolio allocations, but how do you like to view, when you're looking at like what you're holding, do you have like a portion of. It's like, hey, this is long term hold no matter what. And then this is kind of like my short term, you know, trades. Like, how do you like to view that?

Even now my whole strategy is still evolving. I've definitely kind of consolidated into some coins where I'm like, these are solid projects. Like Sam mentioned earlier, I've done research on them. I think they got long term value. And even then I'm like, they could still go away, but I have a bigger holding in that. And a lot of them, my biggest holdings in my portfolio, I probably put an original less than $2,000 in and I've just held them for years. So holding is. But I like, I bought Theta at five cents, man. At this point I'm like, man, I wish I would have sold at 14 because then I could add like 7 times more theta right now. Right. But that's just the nature of the game. That's. I'm still learning it's evolving thing. But they pick, like, do your research, pick the things that you think are good long term and then kind of stick to your plan. As. As the whole market evolves, I adjust my strategy. I like this coin hasn't done anything for two years. I'm gonna sell that. What do you mean? I've been holding synthetics for this long and it has been underperforming. Time to rotate, right, Sarah? So it's always an evolving process.

Oh, I got the hell out of there. Trust me.

Yeah, we've all had the our licking our wounds moments in crypto. Wouldn't be. Wouldn't be crypto without it. And so for those today watching, just want to reiterate this. These are our personal views and opinions. These are not conducive of Cointelegraphs thoughts or feelings. So these are each of our individual thoughts and opinions. Folks, it's almost that time to get into Markets Pro and do our giveaway today. Drop your Twitter handle in the chat. People are just chiming in today. Love to see it. Love the action in the chat today. Looks like cells with dips has some thoughts, some feedback for us. You've been there, I've seen it, you know, so like, hey, we've all been there. Next things next though. We got Markets Pro coming up. We got two tokens you should have watched. You want to know what you should be doing? You got to get into Markets Pro. That's why we're going to tell you about the two biggest movers with the news, Quakes and Vortex score. So, Danilo, let's go ahead and jump into the Markets Pro report for this week. All right, fam, did you have your eyes on Zilliqa? Ooh, maybe you should have because our Newsquake service caught this one. This was a double header newsquake. And if you're not familiar with the Newsquake, what is it? Well, they're automated alerts that instantly notify the users what happens when market moving events take place. So this week we saw these two news quakes, the backto backs. Well, what happened? Well, the first announcement with a partnership crypto slate Zilliqa was followed by the launch of a Zil TR Y, which is the Turkish lira pair on Binance. When you see those listings happen on Binance, you typically see some price action afterwards. Well, what happened was this move from $0.12 to $0.13 in over just over 24 hours. That's almost a 10% gain. That's huge when it comes to these type of markets that we're in volatile times means you got to have Markets Pro to be able to spot these types of trades. So moving on to our next token that you should have been watching this week is trading under the ticker prq. That's Parsik. And this one was notified through our Vortex score this week. And the Vortex score is a comparison between its current market conditions and social conditions of those in the past. A Vortex score around 80 typically is considered confidently bullish. Well, conversely, if it's at 30 or below, it is bearish. Well, what do we see here on the chart? We see that this thing jumped up to 78. Vortex score. That's a screamer. And what happened? Well, 70, 78 lead from 26 cent gain all the way up to 37 cents in less than a day. That's the magic of Markets Pro. That's that Vortex score coming into play. And you saw what happens when that thing spikes up at 80. You typically get some price action afterwards. So that's why you want to have Markets Pro. Folks. If you're watching today, you haven't tried it out. That's why you want to drop your handle in the chat, because we're going to be giving away one month subscription so that you can try it out full blown and get the full experience of Markets Pro today. And we got a hot topic today, guys. We're going to open up the poll, I think, to see who had some of the best advice today of what not to do. And we got hot pockets. So first, if you haven't gone to store Coin Telegraph, I saw somebody in the chat earlier talk about his swag. We all got the swag. Jordan's rocking the the bitcoin shirt today. Go to store cointelegraph if you want some of the hottest swag on the market market. We got shirts, we got bitcoin, we got ethereum, you name it. Hoodies, socks, shirts, hats, we got it all. It's all there. Sometimes we'll be rocking some of that swag on show, I think. Jordan, is that a cointelegraph shirt?

No, this is a different one. But I had, I'd worn all my coin to ref Ones and they're all dirty.

The guy, he likes to do laundry. We got to respect that. You know, you got to rotate the shirts in and out. All right, the poll's live. So the question I have while we're waiting on the poll to close here, we got. We got. What are some of the things that people should look out for when investing in a token that maybe we didn't discuss today? And some of our do's and don'ts. Who wants to take this question first?

I can start. No, Jordan, you go first. Please.

Don'T fomo. Don't fomo. If it's going up. If it's going up a lot, like, just chill out, folks. Dang, man, I've lost. I've lost quite a bit of money. Fomo and be like, oh, it's nothing. Like, you put some money in, and then it just loses, like, 90 of its value. Like, oh, that's a special kind of hurt. As Sam said earlier, there's nothing more crypto can do to me. Right? That's it.

That's it.

Exactly right, Marcel.

It's always research the project, guys. Research the projects. Research getting yourself into, Please. You know, grounded in an actual thesis, you know, Know what you're getting into. That lines up with what Jordan said. I'm not fomoing. I mean, it's all part of the same package.

I'll go against the grain here, Benson. I'll say, don't listen to any influencer, to any analyst, even if it's Plan B, even if it's Michael Saylor or whatever. Just do your own stuff. If you truly believe in a coin, if you truly believe in a project, if you truly believe in whatever it is, invest in it. As Sam said, do your research. But once you believe it, just stop hearing other people's opinion. They don't care. They're not going to handle the risk for you. And if you lose money, you're on your own. So you gotta make your own decisions.

Yeah, that's. It's so true.

Speaking of that, Marcel, just at a greater level, like, we're kind of trained in society to trust the experts, whether it's a doctor or, like, a professional investment. Advice I'll attest to. Like, I would have made significantly more money if I just listened to myself and stopped getting other people's opinions over the last three or four years. Just tracking myself. I completely agree, man.

Very good points. I'm gonna chime in here, though. Things to look for. We didn't mention utility behind the token today in the narrative. I know Marcel, what's that?

Oh yeah, the actual utility of the token. Oh yeah, that's important too.

Hey, you got folks watching today that are, you know, may or may not have got into Dogecoin or Sheba or this or that. It's like I think understanding what is the real purpose behind some of the utility of these things instead of just buying a brand or kind of like aimlessly throwing money into a token, like really drill down and read the white paper, read the, the gitbook, go in and actually understand how a lot of the mechanisms work and, and what that token is being used for inside of that ecosystem. That would be the one biggie for me. But yeah, that's, those are, those are good thoughts though. It looks like we had our poll and Adrian, is that closed yet? We got Adrian, we, we closed. No. Okay. Okay. It's not closed yet but Sam's in a just massive runaway here. 67% of the votes took today. People just, they love, they love the insight, Sam. They loved it today. It's great to see any other closing.

Canadians have some things to say. So.

Hey. All right Sam, I'll let you take it away with our closing thoughts today. We got to give away our markets pro subscription. Sam though, any closing thoughts?

I mean look, this is, I'm just emotionally drained from this market having been it for the past five or six years. It's, you know, it's, it's one of those markets where the more you invest, the more risk you take, the more it's going to weigh on you. So in addition to what we said that the mistakes to avoid, you should also keep in mind position sizing. Right. Don't put all of your net worth into crypto because you're not going to be able to stomach massive volatility. Invest a, a decent portion that you can feel comfortable not having to look at the price every single day. That's one thing we didn't talk about but it's really important.

Yeah.

After being in the market, after being in the market for like several cycles now, I can appreciate the bare markets and I understand why people appreciate the bear markets because it's a sample point like this is I like I'm, I've 20 years meditating psychology background so I can deal with the stress but it's like it's, it's hard and most people can't really function in such a volatile emotion driven market that is cryptocurrency. Especially if you're spending any time on crypto Twitter. So like Unplug. Sometimes crypto ain't the only part of life. Take a step back, enjoy other aspects of life and just realize like, yeah, the crypto is going to go go up over time, but it's still an early market. So we got a decade at least of pain ahead of us. Right. So just accept that and then get, get to having some fun in life.

Real quick. I want to try it. No one has dropped their Twitter handle in chat, so first person do it today is going to win. Just saying. Marcel, any closing thoughts?

Well, I'm going to leave a message here. I've been trading crypto for five years and over these five years I had at least one long or short leverage open position. And over the past week I decided things are looking so sketchy on traditional markets that I'm going to stay out of leverage for a month or two. So life has been better. So if you're too tired of trading, sell it out. Get out of the leverage trading. Just have your long portfolio holdings and relax a bit. A week, two weeks. So getting a time off is good.

Exactly right. And I want to remind folks who've won previously for Markets Pro, make sure you send us a dm. I think was talking to one of our, one of our social media managers and they were saying that your messages were not opened so we couldn't send you the Markets Pro subscription. But looks like, yeah, I don't know if we have a winner today for Markets Pro guys. I don't see any Twitter handles in chat so I guess we will go ahead and skip that for today. But yeah, thank you all for tuning in. This has been real. Don't do the stuff that we told you today. That is non financial advice. This is just general advice. This is life advice. Guys, we're here. We appreciate everyone for tuning in today for the market Report report and we have an exciting show lined up next week about we're going to be talking about our portfolios and what is allocated where. So it should be a good show for you. Thank you all for tuning in. Until next time, this has been the Market Report over and out.

Sa. It.