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Crypto JUST Crashed: How To Double Your Money - YouTube
Channel: Max Maher
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every major crypto is down between 30
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and 50 in the last 30 days and it feels
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like there's no end in sight sentiment
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is decreasing and i can feel the
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negativity creeping up again now this is
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going to be a fairly atypical video
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because it's urgent typically a video of
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mine takes one to four weeks to produce
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but given that the market is crashing
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right now and i've received hundreds of
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messages about this i wanted to put out
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something quickly because of this let's
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quickly look at why the markets are down
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whether you should actually be worried
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for the long term and some actions that
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you can take today to increase your
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profits i want to start by saying
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although crypto is down we need to look
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at other asset classes first zooming out
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will help us set the stage for what's
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going on in the world and zooming out we
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can see everything is down right now the
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nasdaq is down significantly anything
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high growth anything tech is not doing
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well even what's generally considered
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the safe bet in investing the s p 500 is
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down 10 percent in the last month that's
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a massive amount this is largely the
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result of uncertainty investors are
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waiting for earnings calls to come out
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this week and some policy decisions from
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the federal reserve that may tighten up
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monetary policy just a little bit
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basically investors are concerned that
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the federal open market committee the
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group that decides interest rates are
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going to bump up rates quickly in order
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to fight against inflation if rates do
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jump up significantly this has the
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simple downside that will be more
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expensive to borrow money this matters
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in stocks especially high growth stocks
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because they borrow money in order to
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grow at a rapid pace so it makes sense
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that growth will slow if borrowing costs
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of money increase now it's unlikely that
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the fomc will decide to all of a sudden
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hike rates dramatically as they know
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this would cause absolute chaos in the
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market instead it's much more likely
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that they set a target date in which
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rates will slowly begin increasing now
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how does this relate to crypto well in
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times of fear investors especially big
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institutional investors will move money
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to safer asset classes in anticipation
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of further drops in the market this
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means as that rebalancing occurs more
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money is pulled out of crypto and out of
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speculative assets and even
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non-speculative stocks and moved into
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more safe assets one way to track if
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money is being moved to safer assets is
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by looking at the 10-year treasury yield
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the yield of this government-backed bond
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will typically decrease in times of
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uncertainty and if we look at the charts
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the 10-year note has actually decreased
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8.5 percent since last week again this
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is big money making moves in
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anticipation of monetary policy changes
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then what we see is the fear from one
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market creep into other markets which is
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what we're seeing in crypto people tend
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to assume that if it's time to be scared
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in one asset class well we better be
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fearful in this other asset class as
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well and the funny thing is that this
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kind of ends up being a self-fulfilling
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prophecy people pull money out markets
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dip fear increases more money gets
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pulled out markets dip even further it's
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this vicious downward spiral then we
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have the added impact of russia the
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central bank of russia recently came out
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with a report titled cryptocurrencies
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trends risks measures in this report
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cryptocurrencies are compared to ponzi
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schemes and there's a call for this
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outright ban
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throughout russia by the bank of russia
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and this caused a little bit of an
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uproar throughout the world of crypto
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and hurt markets as investors who were
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already on the edge of their seats you
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know worried about crypto they received
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this confirmation that you know this may
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be a good time to go ahead and exit the
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market for a little while however
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it turned out that the opinions of the
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report were not a consensus the ban is
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not universally accepted in russia
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others have said that a ban of this
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magnitude would be virtually impossible
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which i have to agree with you i mean
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someone could just use a vpn in russia
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and still use crypto if they wanted to
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if it didn't get banned to me this is
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something to keep an eye on but it
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doesn't feel like something that should
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keep you out of the markets entirely of
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course none of this is financial advice
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in crypto another way to judge fear in
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the market besides the obvious of just
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looking at price charts and seeing
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bloody red price decreases
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you can gain some insights by looking at
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the market caps of stable coins this is
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because in times of uncertainty people
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will move some of their crypto positions
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to assets pegged to the dollar stable
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coins in fact this is a money-making
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strategy that i'm going to talk about in
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just a minute but if we look at the
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market caps of ust usdt mim usdc we can
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see that they have all had dramatic
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increases in market cap in the last
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month so this leads us to the question
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is this the end is this the long dark
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cold bear market that we've been worried
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about in order to better understand i
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think we should look at adoption instead
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of prices pretend that coin market cap
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doesn't exist and ask the question is
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blockchain technology actually being
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used more today
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than six months ago more today than a
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year ago is it trending upwards this is
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important because in the long run the
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value of crypto projects will be
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determined by the value that they
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provide is this technology actually
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being used where are the trends headed
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so let's start off with nfts trading
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volume for nfts hit 10.6 billion dollars
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in the third quarter of 2021. up 704
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from the previous quarter facebook and
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instagram are finishing a feature that
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will allow users to display nfts on
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their social media profiles coinbase
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will soon accept credit card payments
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for nfts this means you don't have to
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deal with crypto in order to buy an nft
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some say this is a double edged store
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they don't really like it but others
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think this is awesome news for the
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average investor the average person to
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get into nfts now play to earn games in
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axi infinity alone there was 5.5 billion
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dollars locked in virtual assets in
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november in a single game crypto games
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are gaining traction they're getting
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more fun they're getting more users and
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they're even gaining popularity on
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twitch and this is despite the fact that
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crypto gaming has only an 18 billion
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dollar industry market cap that's 1 6
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the size of d5 and more than 100 times
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smaller than the regular video game
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industry now what about d5 according to
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d5 lama the current total value locked
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in defy exceeds
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billion dollars now d5 2.0 was a
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fantastic innovation however it just
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simply was not user friendly enough for
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the average investor now with defy 3.0
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things like defy as a service or just
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more usability in the space means
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projects can appeal to your regular
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investor who doesn't have the time to
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learn the ins and outs of yield farming
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or just anything having to do with d5
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increasing the usability means an
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increased scope of people who can use
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these products thus increasing the
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market cap for defy and crypto as a
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whole then more broadly we're seeing
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more and more institutional investors
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embracing cryptocurrencies we're seeing
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large corporations adding crypto to
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their balance sheets and countries
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beginning to accept bitcoin as legal
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tender this has largely all happened in
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the last year so it's safe to say that
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the industry is moving in the direction
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of adoption despite prices declining in
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recent months i think we would be having
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a completely different conversation if
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we couldn't see those darn price charts
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now this isn't me saying that you should
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dump your entire life savings into
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crypto or that it's some kind of
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risk-free bet that's not what i'm saying
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at all i'm just saying actual use
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metrics seem to be increasing and that's
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what will matter in the long term now
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from here let's talk about how you can
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actually make huge profits during the
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bear market there's two strategies that
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i'd like to discuss here that i
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personally use and have seen a lot of
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success with the first is simply buying
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the dip now this is a bit obvious but
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you need to be a little bit more tactful
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than just hucking your money into
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projects and you know crossing your
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fingers that the market turns
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now in times like the current market
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buying the dip
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can feel like you're straight up
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throwing cash into a bonfire
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i've been buying and it feels like that
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and this is a bonfire that is slowly
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consuming your home but the reality is
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if you believe blockchain technology is
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here to stay if it's here for the long
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term then there's no reason you should
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believe that prices won't eventually go
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up in the long run now i have no idea
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where prices are going to be in the next
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month but i do know that buying bitcoin
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today at 35 000 is actually less risky
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than buying it at 60 000 in november
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that is if you think crypto has long
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term staying potential my strategy is to
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buy the dip and not focus on the ultra
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speculative small cap cryptos for now
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instead i'll focus on the largest
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cryptos the largest layer ones that i
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believe have the most staying potential
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the simple reason for this is
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diversification buying a layer one is
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like buying a farm with 50 cows instead
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of buying a single cow a single cow can
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die or maybe it gets mastitis i used to
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work on a farm if you can't tell but the
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point is chances are if you own the farm
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you're not going to lose all 50 cows if
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a layer one has 50 projects built on it
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then you're going to be okay if one of
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those projects goes under and when money
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begins flowing back into the crypto
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space you will be the first one to see
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gains money flowing to the space
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typically seems to go in this order
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bitcoin first see some gains then
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ethereum then other large layer one
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blockchains and then smaller cap
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projects with potential and then you see
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the speculative you know crazy type
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projects gaining steam it seems to go in
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that order most times in terms of how
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much i'm buying i've already purchased
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quite a bit but i always leave money on
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the sidelines ready to seize any massive
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dip opportunity so let's say i had one
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thousand dollars to buy the dip i may
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use 300 today and then buy 100 every
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five or so days until that money runs
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out unless i see a big dip in the market
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even further in which i may double the
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buy that day to 200
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dollar cost averaging will help flatten
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out the volatility if you'd gone all in
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on the first dip in november you
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wouldn't be so happy right now now the
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good part is you can still make money
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with the money that you have on the
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sidelines this is good either to put
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that cash reserve to work or if you're
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thinking you know buying the dip that's
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too risky for me right now i simply lend
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out my stable coins always with this you
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can earn some nice passive income and
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you don't have to worry about any 30
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corrections in price because it's pegged
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to the dollar now i do most of my
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lending on kucoin and i'm most familiar
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with how they do things so this might
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vary a little bit depending on the site
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that you use but on kucoin they add a
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layer of safety by offering an insurance
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fund so let's say you make 100 in profit
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by lending out usdt five dollars of that
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would go to kucoin for running the
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platform ten dollars would go to an
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insurance fund this fund ensures that
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you get paid back if for whatever reason
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the borrower can't pay you back now i've
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looked through thousands of transactions
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on my kucoin app and haven't ever seen
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the insurance fund actually used but
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it's a nice peace of mind to have in
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case that buyer can for whatever reason
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can't pay me back i've been using kucoin
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for about eight months now and i've
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personally made over 24 000 in profit
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just through lending i'll have them
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linked in the description if you want to
[672]
use that link you'll save some money on
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trading fees now you can also go the
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defi lending route and lend out
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something like ust for a pretty darn
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good interest rate however it's
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important to remember that this won't be
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held on an exchange so if you want to
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quickly transfer it and buy the dip
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there's going to be a few extra steps in
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doing so all in all we need to remember
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that this is an entirely new market it's
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easy to forget that the price we pay for
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massive gains is massive downside risk
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and we're going to see this and this is
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going to happen again in the future this
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is why any purchase i make is made with
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the intention to hold long term because
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i can't guess where the market is going
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to head next week or next month no one
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can but i can look at sentiment i can do
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my best to understand how the technology
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will be adopted and i can invest based
[720]
on five and ten year potential now if
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tracking all of this is too overwhelming
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for you that is totally fine you're not
[727]
alone you don't need to over complicate
[729]
things your investment strategy could be
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as simple as buying 50 a week in bitcoin
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and never looking at the news there's
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literally nothing wrong with that or if
[738]
you'd like even more up-to-date insights
[740]
you can join something like my patreon
[742]
investment community there we have a
[744]
team of researchers and investors who do
[746]
the work for you to find opportunities
[748]
and to monitor the market this includes
[750]
updates on anything that i personally
[752]
buy or sell as soon as i do it that'll
[755]
be available linked in the description
[756]
for as little as 10 a month it really is
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an awesome deal and there's a reason
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that we have more than 11 000 satisfied
[763]
members now from here if you're
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interested in lending i would recommend
[766]
checking out this video on screen that
[768]
goes more in depth on how exactly it
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works and i would like to thank you so
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much for watching and i hope you have a
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profitable day
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