Crypto - 95% Of Traders Lose & Throw Away Free Money!

Welcome back to the channel. I hope you're having a great day. So today I want to talk about why 95% of traders, uh, lose money, um, but they throw away free money. So that's what the video is going to be about today. So I came across this article that talked about— I'm just going to read some excerpts from it so you can get an idea of what it's talking about. But, uh, a research estimate stated that 95% of traders lose money in the leading virtual currency, Bitcoin. Indeed, Bitcoin isn't immune to human emotion and the present market forces. A majority of traders are familiar with the statistics from this research. Even when you get deeper into it, you'll realize the number is probably higher than stated. So think about that for a moment. It's probably even higher than 95%. Most of them end up quitting after losing money, and that makes sense, doesn't it? So that's kind of the problem with Bitcoin. But let me finish reading a little bit more of the article, and then I'll make some points on this. Especially beginner traders that find it tough to gain ground in the market, this block contains several reasons Why Bitcoin day traders lose money. Kindly continue reading to understand better. So I want to just touch on some of these points here that I think are very, very interesting. Almost 40% of all day traders try trading for one month. 80% quit trading within the first or second year. Around 13% keep day trading in the first 3 years, but 7% will be on after 5 years. Traders recording fare for up to 10 years continues with the trade. 5% of active traders underperform annually. And the average individual investors underperform a market index by 1.5% annually. Shockingly, most of them make losses and underperform. Still, it never matters. Trading continues despite the negative sign of their ability in the market. These traders are truly underprepared for what should be done. It makes them learn the hard way using their real cash. They fail to rate psychological trading challenges and include emotions in the trade. Most of them forget trading with a defined system. Those who fail to use their established, uh, rules governing the trade. So again, this is from the startup.info website, all right. Let's talk about that a little bit. So not only does the article— and I know this to be true because I know a lot of people in the crypto industry, I know a lot of crypto traders, I know a lot of crypto day traders— and, um, this seems to be true. And we're gonna, we're gonna talk about, uh, the, the strangeness of this. Because as the article brings out, even after they underperform in the market annually, down 1.5% on average, they continue to lose money, right? And so psychologically there's something going on, but let's touch on that a little bit because this article could be talking about some of you all, uh, maybe myself to a certain degree. Um, so what's happening here? Why are they not only losing all this money but continuing to trade? So I, I have been speaking with somebody this week and they, they talked about, uh, I, I, um, on it, on it, and I was responding to a, uh, to some comments and to some posts, but they have been talking about they could see why Some crypto traders stay in the market and just want to have hope in such a dire economy, in such an imploding economy. People just want hope. It's all they got to hold on to, right? So making money or losing money, they stay in the market. They, they keep their faith in their cryptocurrencies year after year after year. They're behind And, uh, they are still at it, right? Because that hope is so strong, it's all they got to hold on to. Now, what typically has happened, many still haven't regained or recouped their losses, but they're still in this, in this stuck in this triangle. So how do psychologically what's going on? Because that's one thing that gets left out of market. A lot. And, you know, I kind of liken it to, you know how those state lotteries go on? And, uh, have you ever saw people who they constantly are buying like the lottery tickets every day? They're buying lottery tickets, they're buying the scratch-off tickets, and they're playing numbers and they're scratching, and thousands of dollars a month are going into this thing. Now they win ever so often on these tickets, and when they win, they might have a pretty sizable win. It feels like victory to them. Now unfortunately, although they may have some significant big wins throughout the course of the entire time that they've been trading these lottery tickets, they have lost a great deal more. And this happens time and time again. To me, this is similar to what's, what's happening in cryptocurrency, and it's happening to the tune of people don't even realize they're losing money. I don't think they even know. I don't think they really care because what's sustaining them at this point is the hope that the market will turn around. Now, from an investment perspective, that's a bad position to be in. And yet here we stand, and, and I think many of us are gonna find this video to hit close to home. But what's even more shocking is that the article brings out how they're underperforming at 1.5% annually, but so, so they're in the red, but they are turning down free money that can put them in profits. And so let's go into that, what we mean by they're turning down free money, what we mean by they aren't getting free money. All right, so we're— they are playing a game that they can't win at, right? Basically. Um, and, uh, it is getting close to the area of insanity. And what is insanity? You're just repeatedly doing the same actions the results are not getting any better, but you believe that they will, or you just can't bring yourself to stop. In any event, it is not a healthy investment investor perspective. Now, in Bitcoin, yes, word is true. If you start off at the beginning of Bitcoin and you, uh, You know, held all the way to the end, right? You're just holding since the beginning of Bitcoin. Um, you could be a winner because you're obviously a winner because then that means that Bitcoin would have went up something like 6 million percent and then it's right now around 4 million percent. So you obviously be a winner, but the reason 95% of people are losing is because nobody is doing that because nobody knows the market. So, um, Bitcoin was around at the, at the verge of $60,000. So you gotta account for there are people who are buying in at those stages. There are people who are selling, uh, high beyond the price we're at now. And we know how this thing works. It really doesn't matter what your balance sheet says in cryptocurrency. All that matters is what you execute the sale value at. Some people are holding multi-million dollar portfolios, but unless they are willing to part with that portfolio now, there is no guarantee that they're going to be able to liquidate their assets and their holdings for millions of dollars. That may never come to fruition. All they know is that when they sell, that is what it is. And what's happening in cryptocurrency There's a lot of these people who get jaded by the market and get shaken by the cryptocurrency market. Many of us fall weak and we're selling out of positions at losses, right? And then there are some people who are still just holding on to the cryptocurrency while sitting in losses, never to return. So then we start to get numbers like 95% of the, of us are losing money. Now, the way cryptocurrency moves, I'm almost prone to say, I know some people say, oh, well, you know, that article is talking about day traders. And that's a correction. It's not just talking about day traders. Day traders is occupying a big part of it, but it's also talking about just your average trader. Another thing, there is a strange, there's a strange happening in cryptocurrency where this tremendous amount of volatility, uh, are causing many of us to take shorter, a lot shorter hold periods. There's a lot more swing trading going on. There, there are a lot of things that, uh, because of the speed of cryptocurrency that are, I think, condensing us down to be these very short-term position traders. And sometimes you have to be because when these things go down There is no guarantee, uh, that they have to turn around to a great degree. The, the narrative that Bitcoin is going to turn around and be so much more valuable has proven to be false several times over. That is why you have right now people still screaming Bitcoin will hit $250,000, Bitcoin will hit a million dollars, and Bitcoin has went down since its peak around $60,000, it's— it went down about half its value. So that is the reality of cryptocurrency, right? But let's talk about how crypto is losing 90— at a rate of about 95%. And I know some people go, well, hey, that's not me, I'm in profits and I've always been in profits, I'm doing great. Well, congratulations if that's you, but you should also keep in mind that you're probably the exception and and not the rule, right? Uh, meaning what I've actually witnessed in cryptocurrency is years and years of people in this space and they're still not multi-millionaires. I look to the guy next to me, he's been in here for years, and if it's a matter of just being in cryptocurrency and that the values are going to be going up, it's going to be performing well, and Bitcoin is going to performing well, whereas Bitcoin does perform a great deal better than most. Um, there, there are people selling for losses in Bitcoin all the time, right? People are still losing money in Bitcoin. People, uh, just don't have the strength to hodl on, and so many are losing. And I think the numbers are a great deal more than what we're aware of. In fact, the article brings out that it is more likely that the number of people in that percentile is a lot higher, not lower. So that's all very interesting. Now we're looking here at the BitcoinNYK project, and this is a very makesense project, right? It's based on— I guess the best way to picture this is like picturing it like Facebook Libra coin. What happens is Facebook creates the Libra coin project, and unlike Bitcoin, it is the biggest threat to the world we've ever seen. Now the thing is, you would think that the biggest threat to the world would be something like Bitcoin, and that's what most of the concern would go into. It is funny that that is not what happened with the government, but it was Facebook and Libra coin that was this pressing issue, and they shut it down right away. Now a lot of people think The governments can't shut down Bitcoin, which is a false narrative. There are many things the government can do. It can go out the front end sites. It can start, uh, uh, locking people up, putting them in jail, and I guarantee you they'll change their tune quicker than you know. However, um, with Facebook Libra coin, they had to shut it down right away. They didn't even give it a chance to get out the gate. But if you can imagine something like Bitcoin meets Facebook, that's what you got with the BitcoinMYK project. Now it's a very unique project where much like how you participate in social media every day, as long as you participate, you're going to be earning this cryptocurrency. And we're not talking about, uh, you know, um, doing something that's not going to be worth your time. We're talking about a cryptocurrency that is deflationary, that as the network grows, you hold that cryptocurrency As that network grows to 10 million users, 50 million users, 100 million users, the entire value of that network is going in that deflationary cryptocurrency, just meaning that the supply is going to reduce. There's going to be a lot less of these cryptocurrencies that you can get now doing things you do every day online like social media, and you can get it free. And there are people who haven't invested a dime in BitcoinMYK and they haven't accrued a significant amount of the BitcoinMYK token, which we believe is going to be the model for the future, right? And right now it's trading, it does have value. It is not a lot of money, right? I think yesterday the trade volume for the BitcoinMYK cryptocurrency was only around something like, um, might have been something like $40 or something like that. And that is the native token that that you can earn, but you can also take that native token, put it in the Bitcoin NYK back dollar, which does a, a, a, a bit more. And this is really the, the beginning of the, uh, the start of the community in this project. But we believe it's a makesense project. We believe if you believe that a social network and products like that can grow to be worth almost a trillion dollars, like in the case of Facebook, that ideas like this make sense to you. And, uh, there it is, an automated system that is going to reward everybody for what they do on the social network, for things they do every day to bring value to that social network— posting pictures, uploading content, uh, adding friends, and so on and so forth. So what's happening in cryptocurrency is people are losing money, but— and they're throwing away the free money that they can gain on projects like BitcoinMYK. Not very smart and not very healthy for investors. That's all I want to say in this video. If you like content like this, don't forget to join or like and subscribe, but also don't forget to join the BitcoinMYK project so you can earn some of those free cryptocurrencies instead of being part of that 95%, which likely you are and losing money every year. Until next time, take care.