Market Meditations | April 8, 2021
We’ve seen some people leave the crypto market with 7 figures, others with nothing. Why is that?
Today, we’ll take a look at 3 millionaire mind tips. These traits are often what separates the winners from the losers.
As always, we’ll share our crypto insights, analysis and our latest podcast.
Did you know we send out 6 FREE letters a week? This includes our hand-picked crypto news, analysis and insights. Saving you time and helping build your edge in the market.
Crypto. Bitcoin prices remain in a stalemate. With buyers and sellers alike responding well to intraday support and resistance levels. That’s why tomorrow, we will be sharing our technical analysis on what we deem to be more interesting plays and narratives (at least for the time being).
Legacy. Stocks climbed as the Federal Reserve’s commitment to easy policy helped boost sentiment. Treasuries rose and the dollar fell.
FTX was founded with the goal of donating to the world’s most effective charities. Through the FTX Foundation, FTX, its affiliates, and its employees have donated over $10m to help save lives, prevent suffering, and ensure a brighter future.
The Millionaire Mind
Through our 4 years in the crypto space, we have come across many people. Some people are able to generate 6 or 7 figure wealth and others are forced out of the market, with nothing. What separates these two groups of people? How can we make sure we too are on the path to millionaire wealth? Here are some of our top observations, which are covered perfectly in T Harv Eker’s Secrets of the Millionaire Mind – Mastering the Inner Game of Wealth. It is important we take time to understand trading and investing education. After all, your income can grow only to the extent you do.
1️⃣Rich people believe “I create my life.” Poor people believe “life happens to me.”
If you want to create wealth, it is imperative that you believe that you are at the steering wheel of your life, especially your financial life. A simple belief can have profound impacts. For if you don’t believe this, then it follows that you must believe you have little or no control over your life, and therefore you have little or no control over your financial success.
Applied to trading and investing, it is oftentimes very telling how people respond to their failures. Will you take ownership of a trade or investment that resulted in a big loss? Or will you deflect to external factors. These tend to come in the form of blame, complaining or justification.
Blaming the influencer who suggested the trade (when in reality, you have no business trading purely off of other people’s trading suggestions).
Complaining. What you focus on expands. Complain and you focus on what is bad. Therefore you’ll get more of what’s bad. A simple challenge: don’t complain out loud for 7 days. This small exercise has transformative abilities.
Justifying the loss as unimportant.
To blame external factors is to subject yourself to a path of no growth. To take ownership of the loss is to take the first step toward understanding what went wrong and not repeating that mistake in the future. Small mental shift, big financial consequences. Don’t play the role of the victim. Instead, take responsibility.
2️⃣Rich people are willing to promote themselves and their value. Poor people think negatively about selling and promotion.
This isn’t something we’ve talked about before. Resenting promotion is one of the great obstacles to success. People who have issues with selling and promotion are usually not successful. Twitter and social media provide opportunities like never before to promote yourself. If you are not willing to promote yourself, your service and/or your product, someone else will promote theirs and bypass you. This is true for entrepreneurs and indeed people trying to climb the corporate ladder. Promotion is looked down upon by many people. Begin to use it to your advantage and see how you begin to bypass others.
Robert Kiyosaki, best-selling author of Rich Dad, Poor Dad, points out that every business, including writing books, depends on selling. He notes that he is recognised as a best-selling author, not a best-writing author. Note that all leaders also sell their ideas to people. It may be that you don’t believe in your value. In which case, you will need to recognise why and refine what you offer to society. Once you believe in your value, you will recognise it is not appropriate to hide it from people who need it.
3️⃣Rich people choose to get paid based on results. Poor people choose to get paid based on time.
Poor people prefer a steady monthly or hourly wage. This is because they are scared to test their true value in the marketplace. Note the security of a guaranteed monthly or hourly salary comes at a price and that price is their wealth. Trading your time for money sets a ceiling on income. And we never want a ceiling on our income.
Rich people have income streams such as business, commissions, stock options and profit sharing. Notice that these incomes don’t have ceilings. This builds on the earlier point, of believing in your value and ability to deliver. Poor people don’t which is why they need guarantees in the form of fixed monthly salaries. Try to get at least a part of your income to be dependent on one of the previously mentioned income streams of the rich. Moving to 100% performance based income in the coming years.
I’ll be expanding on this at the 2021 BlockDown Conference on April 15th in a ‘Building Wealth Through DeFi’ presentation. Tickets are free and available here. Would be great to have Market Meditators in the audience and even asking questions in the Q&A.
BLOCKCHAIN NEWS & ANALYSIS
10 Largest Venture Rounds in Crypto and Blockchain
We are accustomed to looking to technical and fundamental analysis to help shape and influence our trading decisions. A less looked to but powerful source of information is venture rounds. Hoards of capital are pouring on crypto start ups, minting new unicorns at a break-neck pace. There is an opportunity cost to these capital allocations. Pouring your capital in one forfeits your ability to invest in another. As such, the projects with the highest capital raises reflect those with the highest perceived value. Signalling some of the main themes or trends in the space. Forbes has recently shared the 10 largest venture rounds in crypto and blockchain.
In first place: Bitmain at $422 million. The world’s leading bitcoin mining hardware manufacturer, Bitmain also operates Antpool, one of the top bitcoin mining pools, accounting for more than 12% of bitcoin’s network hash, or computational, power. With the focus on mining and hashrates, it is unsurprising that this is number 1. We will likely see more and more on this topic, with a particular focus on difficulty and energy consumption.
In second place: BlockFi at $350 million. Founded in 2017, New-Jersey based BlockFi is now one of the leading cryptocurrency lending providers. With the astronomical growth and lucrative returns in passive income right now, this again, is unsurprising. If you are not sure how to start earning passive income, make sure to check out our guide which of course does cover BlockFi.
In third place: DapperLabs at $305 million. The Vancouver-based startup is best known as the developer of NBA Top Shot, an NFT marketplace for basketball video highlights or “moments.” Whilst we are all aware of the lucrative growth in the NFT space, it’s place at number 3 does help to solidify and quantify that exponential spread and appeal. We’ll be releasing an NFT guide shortly. Be sure to join our Market Meditations community for that free alpha.
MARKET NEWS & ANALYSIS
Banks Trading Crypto?
State Street has announced that it is working with Pure Digital to launch a high performance digital currency trading platform tailored for institutions. The new initiative set to launch in “mid-2021” will offer cryptocurrency trading settled in cash and comes off the back of heightened demand. Lauren Kiley, chief executive of Pure Digital, explained that “Banks are telling us that they can’t ignore client demand for crypto assets and they realise it’s a market they need to get into.” State Street explicitly states that they intend to leverage the technology to trade crypto and Kiley emphasized that “We’ve got a couple of banks that have signed with us and several others in the pipeline.”
Whilst it’s not new news that ever since Michael Saylor and Microstrategy’s public Bitcoin purchase, a cascade of institutions have since expressed interest in buying and holding Bitcoin on their balance sheet, this is one of the first signs that institutions are beginning to actively trade. Whether that’s scalping, daytrading, or swing trading the crypto markets, this could be the first sign that a whole new wave of participants are coming to trade the same way they do legacy markets. When institutional traders trade, they trade with such large size that they can influence the price of the asset. Retail traders who know how to leverage tools such as reading the tape or reading order flow can ride the trend with big money and profit. Interested in us writing about how to read the tape or read order flow? Leave us a comment and let us know!
The best traders can follow a chain of logic straight to the answer. In trading this comes about when we are choosing our strategy and deciding what is the logical way to refine it. This puzzle helps you pull on exactly that skill.
The Queen of Spades always lies for the whole day or always tells the truth for the whole day. Which of these statements can she never say?
A “Yesterday, I told the truth”
B “Yesterday, I lied.”
C “Today, I tell the truth.”
D “Today, I lie.”
E “Tomorrow, I shall tell the truth.”
Lessons from History’s Greatest Traders with Koroush AK
In this episode, we breakdown lessons from some of the best traders in history to provide actionable insights that you can apply to your own trading.
D (Congrats, you are a true Logician)
The table below shows a breakdown of each answer.
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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.