Why You Are Losing Money Trading Crypto...
And may not even know it (and no the reason isn't you sucking at trading...though that is probably also true)
Cryptocurrency is back to being popular now that Bitcoin teased the $100,000 price level. If you follow anyone in the crypto space or the algo pegs you for a crypto enjoyooor, you are likely seeing a lot of posts full of ‘technical analysis’ (aka ‘I drew lines on chart’), or calls for the next meme to pump or when it goes from BTC season to Eth season to Alt season.
Saylor, the mania he is, has gone back to loading up on BTC by raising money through a convertible offering to buy more. In fact, he upsized his original raise and was able to do it with a 0% interest rate on the note.
There is a lot of rumors that the Trump administration is going to be crytpo-friendly (or at a minimum, less aggressive than the previous one). The US Government has a massive pile of BTC they seized over the years and may make market purchases for more…allegedly. Plus Gensler is out at the SEC and the names floated to fill his role seem more supportive of crypto.
And the BTC ETFs are there meaning every boomer can easily buy some exposure in their favorite retirement accounts now.
In short, the excitement is growing around the crypto space again after a long dullard period.
Fortunes have been made on internet coins. And when the market is up, it is easy to get very, very excited.
However, last cycle when the markets were up, a lot of people around the space didn’t get the proverbial ‘wife-changing’ money. In fact, many ended up losing money when all was said and done.
If you think 2025 is going to be the year of massive crypto market cycle top, and you want to step up your net worth, there are some things you should get straight now. Especially if you were one of the people who did ‘meh’ or lost money during the last market up-cycle.
Remember, historically the crypto space has worked in roughly ~4 year cycles between peaks, so if you fumble getting gains in 2025 (assuming it is the cycle top as many predict), it will be 2029 before you get another shot at it.
So what fundamental things should you know about crypto trades that make them unique? And why is a strategy you actually follow so important?