🧘♂️DeFi, Crypto and F.U. Money
Market Meditations | March 18, 2021
What do we have in store for you today? A treat as usual ?
Let’s talk: DeFi, Crypto.com and how you can start making F.U. Money ?
Pardon the language but today feels like a great day to Build Wealth.
Read, enjoy and share with your network. Let’s all win together.
Crypto. Bitcoin stands its ground above $58k ? with recent signs that retail buying has been a key factor in supporting the market. In Monday’s newsletter, we explained how the Coinbase Premium is showing weaker buying pressure from institutional investors. This does not imply the bull run is over ? just that profit taking is happening. In other exciting news, the NFT marketplace OpenSea has raised $23 million ? in a Series A round led by venture capital firm a16z. Whilst it is unclear whether this will materialise to be the ‘Amazon’ of NFTs, it is clearly a step in the right direction ✅ for a market that (for all the hype) is still yet to mature.
Legacy. Legacy markets have not taken well to the idea that the U.S. Federal Reserve ?? will let inflation accelerate. Technology shares fell ? and Treasury yields touched some of the highest levels in more than a year. Elsewhere, oil slipped after U.S. crude stockpiles topped half a billion barrels and the International Energy Agency said global supplies are plentiful.
We are extremely grateful for our partner ? Phemex. This collaboration makes our free content production possible ?
? Check out Enter The Bitcoin Trading Competition ? to compete for a 45 BTC Prize sponsored by Phemex!
In his book F.U. Money, Dan Lok explains how we can all make ? F.U. money ?
“Any amount of money allowing the infinite perpetuation of wealth necessary to maintain a desired lifestyle without needing employment or assistance from anyone”.
? Let’s explore some of the main concepts from this book ?
1️⃣Envisage your dream lifestyle.
What’s your goal? ? If your answer is ‘getting rich’ then it is too vague ? For you cannot hit a target which you cannot see. That you can’t picture in your mind and reach out towards. Lok suggests creating a F.U.M.T (F.U. money target list) ✏️ To create this list, try to imagine what your ultimate lifestyle would look like. And then, how much would it cost you to live that lifestyle yearly? For example:
Rent costs for Meditation temple: $300k
Lavish meditation holidays: $100k
Meditation classes: $50k
Extra spending money for meditation related activities: $100k
The Market Meditations’ purple yogi lifestyle comes out as $550k a year. ? Try making your own list. Picture all that you would desire in a given year, list it and assign it a cost to arrive at your total yearly cost.
✅ You’ll notice you don’t need as much as you think to live your ultimate lifestyle. It goes from a hypothetical ‘becoming rich’ to ‘I need X amount a year to live my dream lifestyle’.
? Now you know what you are working towards, you can start focusing on how to get there. Design your trading strategies and decide your risk appetite with that target in mind.
2️⃣Get on the fast lane.
The slow way is your traditional 9-5 job and putting your money in savings until you can retire in 30-40 years ? This is the ‘proven’ method that we’ve grown up to accept. However, it is slow and you lack control ? The fast way involves a range of methods:
Becoming a skilled investor and/or trader ?
Real estate investments ?
Creating your own business?
Pick your weapon of choice and set about pursuing it. For becoming a skilled investor and/or trader, we are confident that you will achieve that as part of the ? Market Meditations community ? To get started with trading: check out our free Technical Analysis course for Beginners ?
For creating your own business, Lok identifies ? 9 characteristics of an ideal business: doing something you love, low start-up costs, low overheads, ability to work in different locations, sustainable demand, high profit margin, little to no staff, creates money while you sleep and scalability ? Now, we may be biased but we believe crypto ticks all these boxes.
Once you have picked your method, Lok believes the formula is really quite simple:
Having a great vision + delivering value + solving problems = richness
Thing is, people don’t like simple solutions. They want a magic button that will do everything for them ❌ They jump from one idea to another and never commit. It’s even true of lifestyle. All it takes to lose weight is a calorie deficit: consistently exercising and eating a good diet. Instead, people are willing to pay huge amounts of money for ‘guaranteed’ weight loss pills or products. ? Whilst there are many resources out there, at the end of the day, your fate is in your own hands ? You’re the one who needs to grab your F.U.M.T list.
? If you’re serious about making F.U. Money, consider joining our community and gaining access to the full range of insights and analysis ?
DEFI NEWS AND ANALYSIS
Bitcoin’s Dirty Little Secrets
In a report published yesterday, titled ‘Bitcoin’s Dirty Little Secrets’, Bank of America (‘BoA’) had less than kind things to say about Bitcoin. However, what is interesting to note, is that for all their bearish bitcoin tendencies, they are bullish on DeFi ?
According to BoA, it’s Ethereum and not Bitcoin that deserves the spotlight:
“Bitcoin is the most talked about cryptocurrency but Ethereum has more features, including being more flexible” in its hosting of DeFi. They go so far as to say that DeFi is “potentially more disruptive than Bitcoin”.
? DeFi refers to the fast growing area of automated, blockchain-based trading and lending platforms that challenge traditional banking and finance.
BoA is the second-biggest U.S. lender and as such, their endorsement is no mean feat ✅ Quite likely, institutional investors will take a closer look at DeFi ? off the back of these announcements. This combined with the recent Grayscale DeFi trusts which we covered yesterday.
? The story also opens up a wider debate around the relative use cases and functions of Bitcoin vs. Ethereum vs. the DeFi world ? An important consideration for investors and traders who, at the moment, may only have exposure to one.
?Note: BoA sees DeFi as a radical change to mainstream capital markets but maintains that there is still a long way to go before it can outperform traditional markets. .
Moving averages are one indicator traders use for analysis. But how many of us actually know how they work? This puzzle will test your knowledge.
The mean age of the 4 members of Market Meditations boy band is 23. What is the mean age when an extra member who is 18 years old joins them?
Scroll down for the answer?
CRYPTO NEWS & ANALYSIS
Visa Partners with Crypto.com
Earlier this morning, the crypto payment platform Crypto.com announced a partnership ? with Visa. ? Having launched in Singapore in 2018 and later to Europe, U.K. and Canada in 2019, Crypto.com’s prepaid Visa card is currently in 31 markets and empowers fiat lending and withdrawals against crypto.
This is a good opportunity to remind our audience that one way to build wealth is through a Dollar Cost Averaging (DCA) strategy through the Crypto.com app. How do you do this? ?
? Invest a fixed amount of capital at predetermined, regular times.
? For example, take 15% of your salary on the last Friday of every month at 2:00PM and buy 8% Bitcoin, 5% Ethereum, and diversify the other 2% across altcoins (note this allocation is just an example and is not financial advice).
✅ DCA’ing guarantees an averaging purchase price which means you can benefit from longer term price appreciation without worrying about short-term volatility.
There’s no doubt this partnership accelerates adoption bringing real world impacts for you. If you want to spend crypto without the friction of converting it to fiat, you can do so.
If you view crypto as a longer-term investment, the news that Visa’s ? 70 million merchant network will now have access to dive into the crypto ecosystem is clearly bullish ? for the asset class. Particularly given it squashes one of the main challenges to the rise of cryptocurrencies: that it can’t be used as a medium of exchange (aka for payments).
How to Survive Volatile Markets with Koroush AK
In this episode, we explore everything you need to know about surviving and thriving in volatile markets. This is critical because trading isn’t about waiting for the storm to pass, it’s about learning to dance in the rain ☔️
To calculate means we use this general formula of mean = sum of values/number of values
First we find their total age 4×23=92. Then we add the age of our new member 92+18=110
Then we divide through by our new number of members 110/5=22
If you managed to get this very well done! It’s important for every trader to know the reasons behind the tools we use.
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Disclaimer: The content in this newsletter is for informational purposes only. Nothing in this email is intended to serve as financial advice. We are not financial advisors. Every investment and trading move involves risk. Do your own research when making a decision.