🧘♂️Join the New Rich
Market Meditations | March 9, 2021
Our mission statement: Build Wealth, is not just about making money. It’s also about freedom, liberation and living the best possible life ?
So in today’s FREE newsletter, not only do we cover the hottest crypto market updates ? but we also explore how to: Live Anywhere and Join the New Rich ?
Read, enjoy and share with your network. Let’s all build wealth together.
Crypto. Whale watching from home seems to be the theme of the day ? Larger buys are more frequent than ever before in bitcoin’s history. Smaller allocations have plummeted, matching an existing narrative that institutions are scooping up liquidity on exchanges. Bitcoin’s rally has helped prop up other cryptocurrencies ?
Legacy. Risk-on in equities today with the Nasdaq’s more than 3.5% gain paving the way. The dollar weakened, contributing to bitcoin’s price rally and gold also rose from a 9 month low.
Delighted to say this article is brought to you by FTX?. You can use my link to get a discount. Not sure how to start? We have created a ? FTX tutorial ? for beginners. Simply watch and start earning money ?
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Live Anywhere and Join the New Rich
It is no secret that the age of the internet has revolutionized conceptions of wealth and becoming a millionaire ? To the disbelief of older generations, we are no longer bound by the shackles of a 9-5 job, until the age of 66. Whereby, if we have managed to create a fortune 500 company and read thousands of annual reports, we can, finally, retire as a millionaire. But, perhaps, we can’t help but wonder, or even regret, how much we had to sacrifice on the journey ⏰
The internet has provided the means to fasttrack that process and maintain more personal freedom, liberation and, well, the ability to live your life ✅ In The 4-Hour Work Week, entrepreneur Tim Ferriss (@tferriss) writes about the ‘new rich’ and how they can live and become a millionaire, the new way.
Ferriss has created a strategy abbreviated DEAL. Let’s explore each letter and who knows, you might come out the end of this article seriously reconsidering, or being further assured in, the path you have chosen ? Reflect, reassess and move forward ? That’s the way.
We must redefine our goals. Making money is not usually the end game. So we would be wiser to define our goal as that which money achieves: time, mobility and options ✅ This is where the concept of absolute and relative income comes in. An example might be helpful here. Please imagine two individuals: Banker Bob ? and Crypto Callum ?
Banker Bob ? earns $500,000 a year and works 80 hour weeks.
Crypto Callum ? earns $40,000 a year and works 4 hour weeks.
On the face of it, Bob seems to be more successful. At least in absolute income terms. However, in relative terms, Callum is living the dream. Bob earns $120 an hour whereas Callum earns $192 an hour. Bob will likely need to wait until retirement to actually spend his money ? Whereas Callum has enough time to live the desired lifestyle already ✅
We must eliminate the time spent on unimportant activities. ?Contrary to popular belief, being busy all the time is not a ‘success’ or triumph by any means. That is, there is a difference between being effective and efficient. Efficiency is only helpful insofar as you are efficient at doing the right things (effective). Ferriss draws our attention to two truisms:
“1. Doing something unimportant well does not make it important. 2. Requiring a lot of time for a task does not make it important ”
The activities that do not directly help our goal are to be eliminated ❌ It is crucial to update priorities and tackle one or two big tasks per day, rather than small ones that will get you nowhere.
Repetitive tasks should be outsourced ? Ferriss refers to this as becoming the ‘ghost’ in the machine. To join the new rich it is essential to define and delegate tasks. Outsource tasks to machines or to people (to have them automated from your own perspective). Do this enough times and you will become the ghost in the machine ? Things will run on their own, of course, with your oversight and you will only need to step in when essential.
This is about achieving your desired level of mobility. Being able to work from home if you so wish or having the freedom to work in other countries. This should follow from elimination, automation and increased time ? Liberation is the end goal really, for it allows you to live your preferred lifestyle without being retired ?
And there you have it, a 4 step strategy to achieve your dreams. We can’t do an entire book justice in one page, so be sure to check it out if you want to learn more. At the very least, we hope this has encouraged you to redefine your goals and view your current lifestyle from the extent to which you are on track to achieving these, and critically: when ⏰
If you would like to consider trading to reduce your reliance on a 9-5 job, you can check out our ? Introduction to Technical Analysis ? course.
Now, let’s make sure we are comfortable with today’s main crypto market events ?
? If you’re serious about joining the New Rich, consider joining our community and gaining access to the full range of insights and analysis ?
CRYPTO NEWS & ANALYSIS
Coinbase Valuation Nears $100 Billion
Coinbase shares changed hands at a roughly $90 billion value last week, Bloomberg reports ✏️ in what could be the final chance for investors to trade its private stock before the cryptocurrency exchange goes public in late March ?
The valuation is based on $350 a share (the price the stock was trading at on the Nasdaq Private auction). Sources have asked to not be identified, because the information is private. Some of the shares reportedly traded at $375 in the auction, which would roughly value the company at close to $100 billion ?
? A note of caution: the behind closed doors nature of private trading (more restrictive and with smaller volumes compared to public markets) does mean that these numbers are not a perfect representation of the company’s value. However, ahead of going public, the Nasdaq will need to set a reference price for investors, which is partly based on private trading activity.
To IPO in the first place is a significant achievement: the company has to be mature enough for the rigors of regulations along with the benefits and responsibilities to public shareholders. And so, the Coinbase IPO adds transparency and credibility to the cryptomarkets ✅
What’s more, the $100 billion valuation clearly shows the degree of perceived value and extent of institutional desire for exposure to cryptocurrencies. Afterall, Coinbase currently processes the second-most trading volume among centralised exchanges and was recently revealed to store coins with a value equating to 11% of total crypto market capitalisation for its customers ?
Next, we have a slightly trickier puzzle (for those who love a challenge) followed by some positive altcoin developments?
Probability is a traders bread and butter. Lets see how you fare with this deceptively tricky problem.
Three Traders Koroush AK, Rookie XBT and CryptoNekoz met for tea in their favourite café, taking off their hats as they arrived. When they left, they each put on one of the hats at random. What is the probability that none of them left wearing the same hat as when they arrived?
ALTCOIN NEWS & ANALYSIS
Mark Cuban & Dogecoin?
On Saturday, Billionaire and Shark Tank star Mark Cuban announced on Twitter that the Dallas Mavericks ? an NBA team he owns, is the largest merchant of Dogecoin, having completed more than 20,000 total transactions ? If you’re an altcoin trader and want to be on top of all the latest trends and momentum, you don’t want to miss this.
Cuban’s tweet comes on the back of his recent announcement that the Dallas Mavericks would begin accepting Dogecoin in addition to fiat for game tickets and apparel. His reasoning? He states, “sometimes in business you have to do things that are fun.” ?Although it may seem like a meme, Cuban does state that accepting Dogecoin is a good way of “teaching the laws of supply and demand and introducing people to crypto assets.”
Momentum traders (traders who seek to take advantage of short term price volatility by buying into strength and selling into weakness) can especially benefit from staying on top of news like this. In fact, Dogecoin traded 8% higher on the back of Cuban’s announcement. Similarly, when billionaire Elon Musk tweeted a Dogecoin meme, its price soared 25% ?. As traders, you can go long on coins with momentum and use a trailing stop to manage risk and maximize profit.
Check out my ? YouTube video ? where I elaborate.
Let’s take a look at the answer to the puzzle. After all that hard work, we certainly deserve to sit back, relax and enjoy today’s podcast ?
The table below shows the number of ways in which our traders can choose each hat ? Out of the 6 possible combinations you can see that there are 2 (highlighted below) that mean they are all wearing a different hat. Which would make the probability 2/6 =1/3
This puzzle contains elements of randomness, probability and chance. Your trading strategy can be the best in the world but without an understand of these 3 things you may still experience heavy losses. To stop this being you, you must have in place suitable risk management measures.
We have a full ? Risk Management Course ? and for more on random events, check out our ? Black Swan Article ✏️
Crypto Gems, Networking and Finding Happiness with CryptoMessiah
CryptoMessiah is a veteran crypto investor who has now been active in the space for over 7 years. He has built several successful communities, identified multiple successful projects and is currently working with Hxro.
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Whilst these are higher than normal, FTX rates do often spike and stablecoin rates often exceed 20%. As such, always check the margin lending rates so that you can make your assets work for you.
? For more passive income strategies, stay tuned for our passive income guide where we will share our top tips to make money while you sleep. ?
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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.