#1 Lesson I Learned Investing in Cryptocurrencies like Steem, Bitcoin, Ethereum, and Dash.

in steemit •  last year



What is the number one tip I have for investing in cryptocurrencies? Read this post or watch the original video from YouTube to find out! I tried to post this an hour ago and got a really weird error where the post is not available which motivated me to try again here!


Thank you very much to @gmichelbkk for converting the transcription of the YouTube video from GoTranscript into this beautiful post for Steemit, which is much faster to read than the video and has all of the highlights in screenshots!

What is my number one tip?

The number one tip I have is to just bet the market over time. Buy different currencies and just hold onto them. The opposite of doing this is trading. That involves timing the market. I learned this by reading Tony Robbin's "Money: Master the Game" book. I learned this by reading a book called "What I Learned Losing a Million Dollars," which is about investing in the stock market. Most critically, I learned this by the hard way, by trading Bitcoin and losing thousands of dollars, by trying to time the market.

As I look at the currency prices today, most things are up at the top. Bitcoin is up, Ethereum just went from $40 to $80. Ripples went way up. Litecoin is way up. Dash is up like $20 from before. It's tempting to look at these and say, "Yes, if I had sold my Dash masternode when it was a hundred thousand and dumped a bunch of that into Ethereum, now, I could have $200,000."

The problem is that you can see what's already happened, but you're totally blind. The truth is that collectively, we are totally blind to exactly the details of what's going to happen in the future.

If you are like me, you are quick to think that you're really good at investing, that you are better than other people, that you are able to play the game more effectively than others. In my experience, I found the only way I can consistently win the game is to just invest a little bit over time.

I put $600 or so into BitFinex and I'm grateful today that I currently have $1,000 just a few weeks later.

I also have a Dash masternode, which is a thousand Dash, that I'm very grateful for. On Poloniex, I put in about $600 or so the other day, and I just bought the market.

I bought a bunch of these different currencies. I bought a hundredth of a Bitcoin of several of these different currencies. One of them has gone down and I lost almost everything. A couple of currencies have dropped 50%, but another couple have also gone way up.

This one I bought 0.01 BTC and now it's worth almost five times what I paid for it.

I'm grateful now that as Bitcoin went up, I put about 0.05 Bitcoin on. I've now got more Bitcoin than I put on, and it is worth more than when I put it on as well.

I do the same thing on BitFinex. I buy $10 a day, and just as this is going up, I continue to have more value in it.

Don't play around trading! 

The thing is that I've learned the hard way: Don't play around trading!

Why?

Number one, it takes too much time. You have to obsess over it. You have to be checking the prices all the time to make the right moves. The fact is that it is very uncomfortable because you don't know what's going to happen next.

If you tell the truth and you're like me, you don't know whether the Ethereum price is going to go from $82 to $200 or from $82 to $8. Either one is equally possible in my mind. We don't know what's going to happen next. That means we're completely blind going forward.

Most of us are subject to acting stupid as a part of the crowd. How does that happen?

When everyone gets excited, we want to throw money in. When everyone else panics, we want to pull our money out.

What happens?

Most of us think we're smarter than others. We buy high, we sell low.

What do most of us do if you look at the data?

If you look at the data, the first several years, I traded cryptocurrencies, I bought high and sold low. I bought high when there was excitement. I sold low when there was a panic. Even when I was able to buy low, I was so impatient that I would sell when it made a small game.

I bought something like 20 Bitcoin when it was worth $170. I couldn't take the stress of it. I was so impatient that when it went over $200 again, I sold all of it. I felt good at the time, "Look, I made this money selling my Bitcoin," and yet, if I'd hold on to 20 Bitcoin today, you can do the math on that. That would be $28,000 I'd have today. That only cost me a few thousand to go buy.

I'm grateful I've learned to do that. I'm holding my Dash masternode, even when the idea of selling my masternode and getting $93,000 is very tempting, especially because all I have in cash right now is about $8,000 or $10,000. It's really attractive to dump that masternode and take $93,000 out of it, but that's not what I set up to do.

I made a plan and I stick with it. I buy and I hold. If you try to trade, it takes a ton of time and energy, and lots of times you miss out on the best action. If you are like me, you want to be in on the best action.

Buying a little bit every single month 

The only guaranteed way to be on the best action is to consistently buy a little bit every single month. Then, "Look, I'm in on all the action right now." As the price of Bitcoin went up, as the price of Ethereum went up, I've made money in all of it.



The nice thing, when you do a buy and hold strategy, is that you don't have to follow everyone else. When everyone else sells, for example, you can stay where you are. If the Dash price plummets to $8 or something like that, I don't need to sell. I can afford to let the price plummet and then go back up.

I'm putting money every month into these cryptocurrencies and I'm essentially just buying the market. When I do that, if there's a huge down spike, I essentially get a really good deal then because I just consistently buy every month and hold it. If there is a plummet, that's when I get a really good deal.

If Ethereum goes back down to $7, I'm going to continue buying it anyway. Then, if it goes up back up a bunch, I've got a good chance to earn. The best part of this is that I don't have to check how much it's worth. I don't have to care what the numbers are. The numbers are almost irrelevant because I'm buying and holding.

I'm buying and holding.

So what if the price goes up today?

I'm not selling.

Now for Dash, because I've got the masternode, the higher the price is, the more I am able to buy of the other currencies. I get dividends paid in Dash from the masternode. If you're not getting dividends paid from something, it's especially tempting to just trade. It's tempting to buy something and sell something, and say, "Look, I bet Ethereum's going to go up to buy a bunch of that, and then if it goes up to sell it."

What if you buy it and it goes up way more than when you sold it?

What if you buy it and it goes down?

There's all this anxiety, fear and uncertainty then, and you have to obsess over it. I just put my money in every month because I believe that these online currencies are amazing.

Believing in the long term

I believe in the long term. In 10, 20, or 30 years, I think the majority of the world will work and deal in online currencies. At some point, governments may start to actively fight it. But I think these online currencies will overcome governments fighting about them as more of us continue to put our money in.

Therefore, I buy some today and I hold. I buy more each month and I hold.

I've pulled my retirement out of everything else to make money for this. I've cashed out all my other retirement, taking the money, so that I could put it in these online currencies every month.

This way, if the price goes up, I make money. But when I buy more, I don't get to buy as much. If the price goes down, I get to buy more. Then when the price goes up, I make more money.

Then, I have peace of mind.

I'm setting up a retirement account. I'm not trying to just trade and make money. See, when you trade to try to make money, you might win, but that might be the worst thing that can happen to you.

If you are like me, any time that I've traded and made money, I got this big head. Then, I got wiped out when things went down. At first, with some of these currencies, I've traded and made a little bit of money, and I got destroyed when they went down.

I'd traded and made three Bitcoin in a few months just playing around on Poloniex, and then I lost all of my earnings in one day.

Guess what I did?

Not long after that, I sold.

If I'd held those by now, I'd have something like 10 or 15 Bitcoin. Instead, I put all of it in Dash. I then self-promoted Dash and the price went up a whole bunch.

That has worked out good.

At the same time, I'm now very vulnerable. If the Dash price goes down, I could easily lose the majority of all my online currencies. What I'm doing is consistently investing in each of the others. I'm not putting any more money in Dash because I've got a masternode. I'm consistently putting my money into most of these currencies into the top 10 on BitFinex, whatever they have there. Over time, I'm consistently putting my money into the top 50 on Poloniex.

I'm grateful today. It doesn't matter what the price is, I'm buying every month and that's simple for me. I hope this quick tip post has been useful for you and thank you very much for reading the whole thing.

Would you please upvote this post, or like the video, so that other people like you will be able to experience the same thing?

If we reach 1,000 likes on the video, or a significant amount of upvotes, I will do another live stream, and blog post, showing exactly how I make all these transactions, which I hope will be helpful whether you are beginner or whether you want to just see the exact system I use to do this every month.

I've got a class that goes into all the details on how to do this in much more depth on Skillshare. There's also a two-hour free version that has many of the same things on YouTube. It's called "Simple Cryptocurrency Investment + Retirement Plan" where I show the details of how I do all of this.

If you are a member, the Skillshare class has more depth and it doesn't have any ads. It's also more polished and organized.

Thank you very much.

I hope you have a wonderful day today and I hope this is useful for you. If you found this post helpful on Steemit, would you please upvote it and follow me because you will then be able to see more posts like this in your home feed? If you would like me to follow you, would you please read this post next?

Love,

Jerry Banfield 

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I love watching your videos. I myself have just started buying crypto coins. As an investment long term. Your suggestion of buy and hold i think is key, and not to over trade. Because of the price of fees. Keep up the good work and love your style.

I think most cryptos will fall in price still, most are still way too high. When they do, IF they do ha, then get in buy market and hold!

Buy and Hold is the best strategy to long term gains, imo.

Day Trading is for gamblers :p

Another Great Jerry post, glad you found Steemit finally man, it's so perfect for ya!

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bro I just saw your comment on @jerrybanfield s youtube video lol

Another awesome post!

What differentiate an investor from trader is patience. You need to be patience if you want to grow your money by investing.

If you are not knowledgeable about the market and want buy and sell daily then you are are gambling.

The best strategy for investor would be invest in 3-5 currencies and be patience.

Do you agree with it?

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Yes this seems to be a great strategy!

In one of your videos you say , we should ask you to follow
okay would you follow me @vbnm21 and my little brother @funnyposts ^^

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Sure @vbnm21 I followed you and welcome @funnyposts to ask also!

Great post!

@jerrybanfield 100% spot on brother.

As the old saying goes, "Pigs get fat, but hogs get slaughtered". The buy and hold system you have applied to crypto currencies seems to be the way to go. You provide so much value to this community. Thank you, and here's to your ongoing success! I'm off to read your your post you linked at the end on how to get you to follow me.

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You can try to beat the market, or you pick out a road to Follow. Just like in business there are ups and downs, bit of you are thinking of selling your business, there are not a lot out there hitting the jackpot. Aim on the long term, them you have a bigger chance on succes!

You forgott Stratis and the next is Nautilus!

Do you think Pivx will skyrock?

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It already has I think it will drop a bit more first!

FOLLOWING, RESTEEMED and voted.
AWSOME CONTENT @jerrybanfield!!!
I couldn't have said it better my friend.
Stay being you and supporting others like STEEM (me).
Appreciate all you do!!!
1 By 1.

The voice of reason among all these jokers .

Can I send you some free art?

jerry, another strategy is focus and concentration with cash recycling.

Jerry always has good input.

great! May I translate this to Chinese?

great video, thanks Jerry!

you are the best steemer here :) big thanks !

Great post! I followed you please follow me 🔙

Great post Jerry! It is a very good strategy to by a little of top 50 currencies and hold them and if 1 or 2 of them goes up several thousand of procent which is not unlikey you will still make money. Keep up the great work👍 Full Steem Ahead! @jerrybanfield
Best regards,
André

Great work Jerry, I've already listened your video in the beginning of May but it's good to have a text version as well :)

Hey.
Thank you for sharing this story and advice and more then that.
Maybe I should think about my plan and do it the way you do.
I have already made good profits, but as you said, it is hard work. Daily trading costs time and nerves..
Wish you all the best!

WOW Jerry you can talk for ever! Good content and very educational mate! Thanks

Great post. Thank you for sharing the insight.

My #1 tip for investing in Crypto-Currencies = JUST DO IT!

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yeahhh... some people are really scared

Good evening from Cologne Germany @jerrybanfield as always great post very useful content Thank you very much for your great work !! 👍
I #upvoted and #resteem ( I found your post shared on Facebook but it did not work "error" and "page does not excist" it says ? ) have a nice evening
Lars @laloelectrix

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Thank you on the first version of this there was an error I hope it is fixed on this post!

Great post, Jerry. I have been following your Youtube channel for a week now, and have found you on Steemit as a fellow user. The first video of yours that I saw was the one about the mistakes you made in cryptocurrencies.

What do you think about Golem? I have invested a bit in Golem and I believe in the technology.

Feels great that we have a Steem believer like you on Steemit!

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@snivvygreasy thank you for sharing how you started following me and for asking about Golem! I do not know anything about Golem yet except that the price is way up and I look forward to learning more and sharing what I learn thanks to your suggestion!

Nice post Jerry! Very solid points. It can be very difficult to know when not to hold anymore. Especially in the crypto market. I guess, we will never really know. Maybe in 10 years a bitcoin or ethereum is worth 1 million dollars. Maybe it is worth 50 dollars. All I know is that it is exciting. What are your prediction of the coins you value the most?

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Steem is what I am most excited about!

Just learning so awesome read, thanks.

Hi @jerrybanfield, great post. I have not heard of you until you came on Steemit. I will certainly be listening to you more carefully and more often.

And always thanks for the great posts!!! Do you have any insight on stratis and the BAT ICO?

Buying and storing will always be the best option.

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It seems to be working! The other one kept giving me errors but all seems good now!

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yes i got block timing error, then account doesnt exists, when trying to post a comment?! Found you on youtube not long ago, now following you here! thanks for all the information, keep up the great work!

ha ha ha!!! @jerrybanfild your amazing.

This is a valuable experience, and you need to post in steemit, it is very amazing and an inspiration for me and my friends. thanks very mush?

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thanks Jerry!
you're thebomb.com
👻

This tips. Will surely take a note of these :) I am glad i didn't panic when XRP price plummeted. Am a firm believer of long term investing, it minimizing aggregate risk you incur by being in the crypto market.

Hello @jerrybanfield. Another great post which i enjoyed reading. I must say that it completely conflicts with my current beliefs on trading. In the sense that i allways figured there were these "crypto pro guys" who sort of know what's going on and making a ton of money whilst doing it. Isn't that the case then?

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@rymlen there are all different types with I would guess that most think they are smarter than average but if you look at the data usually coming out behind. Then there are probably the top 1/1000 that have systems in place which consistently take money from those of us that start of and continue thinking we are smarter than others as I did until we get hit in the face with undeniable data showing we are not! In realizing I am not smarter than the others trading now, I try to stick with strategies that capitalize on my strengths (online reputation) while avoiding my weaknesses (impatience, limited time and market knowledge).

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It's so hard to learn these lessons until you've lost a lot of your own money. I've lost my fair share trading online in the 2000s in the futures markets (in fact, markets now confirmed in ongoing legal struggles to have been manipulated illegally by custodial banks), and thankfully I've been able to get a reminder of those lessons vicariously through the honesty in your videos. There's always someone with a bigger edge than you can get, so you can never truly maximize your gain. An eight-bagger is phenomenal. You shouldn't regret selling your Dash a bit early, because getting the maximum amount will only happen with dumb luck. You simply can't achieve that level of certainty over markets without potentially illegal information.

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Following and voted.
New Era of trading and new set of PROFFESIONALS knowing the SIGNS and doing due diligence.
Bottom line.
@jerrybanfield has the stories and experience to help and support, as well as myself and a select number that put the time in, the uninformed and less educated about this BRAVE new currency.
STEEM ON.
Helping Others To Help (others) 1 By 1.

Great posts and videos Jerry! I enjoy them !

Jerry, Thank you!

Solid advice, I've been pro-hold for awhile now. It's so much better than staying up all night watching candles wax and wane

Buy and hold for Bitcoin and Ethereum.
Earn steem by posting quality content.

great post ty

I Agree, and @jerrybanfield please please i will have to make a post to get your attention, i REALy want to talk about your Ad youll make using steem from your new ppost! your new youtube video is GENIUS and I just HAVE to get featured in your steemit ad that we can pay yto blast over facebook and youtube!

i will be willing to pay some money if i can get featured like as an example of someone who started at zero and earned half of a thousand bucks in a month or two and i just know my story will inspire people, who already blog, Ill show how easy it is!

I REALLY want in on this! And i feel like if i make my own video ad it will take way from yours! Maybe I can make a video that will compliment yours

Imagine steemit as a dating website! women will be able to see exactly how much money a guy has!

Really enjoying your posts! Just watched the $10 Steem YouTube video and got a kick out of your quirky sense of humour and asides - oh yeah, the advice was great too, add it brought all the Steem journey together for me. Thanks!

Most traders flame out. Great advice.

Your call was dead on in this case. I just watched your video for the first time, now over a month in hindsight. You've learned one of the most important lessons from trading - you always think you know more than you do. Even when you are right, the market can always remain irrational longer than you can remain solvent. The more specific you try to make your calls, the more likely you are to end up getting abused by the market. Better for most to bet what you know is a sure thing - the crypto market in general.

Love the content. I was just approved on Steemit today. Cant wait to learn more crypto. Thx Jerry

Yaaas Jerry! finally got approved on steemit, so now i can digitally stock...i mean follow you on this medium as well :3 I appreciate your insight - keep it up

Upvoted this, Jerry, I found out about you a couple of days ago, find your videos very funny but informative, good work! I see you dabble in music... check out some of my tracks here https://steemit.com/money/@wvm/making-millionusd-reusdelling-usdupreme

I started to follow you on facebook and now joined steemit. You have some good insight. Thanks for contribution.

Hi Jerry,
what you explain reminds me of Robert Lichello's AIM (Automatic Investment Management).
While designed for stock market, i believe it's also a good reference for money management when investing into crytocurrencies.
Thanks for sharing your experience.
Regards

Oh man, I feel like you are speaking to me. I want the quick fix. I want to make big money, but I am not really as smart as I often try to act.

Thanks for the reminder about running a long game instead of "quick and easy money."

It is quick (to lose), but never easy.

Nathan

Jerry, you have a gift. Simply amazed at your ability to keep pumping these articles out. Continue the fine work big shooter.

HaiJerry, I found your videos today, Great work.

Love the post. I am trying to learn more about cryptocurrencies and following you has been great for general knowledge and introduction. Thanks for the work. You introduced me to this great community.

Jerry your videos are great!

Thanks Jerry! Watched your whole video on YouTube. Bought some STEEM. Signed up on steemit.com. And this is my first comment. You've opened my mind to this.

Hi Jerry,

I simply love your videos and your strategies, I follow them often thank you.

Totally agree with your views and observations.

Hi @jerrybanfield! :) If you have some time, I hope you can check out my my post about the pre-ICO for Credo. It might interest you. Have an awesome day! :)

https://steemit.com/bitcoin/@jeanelleybee/credo-token-blockchain-based-spam-and-email-access-solution-pre-ico-ongoing-participate-now

very nice post, enjoyed reading this

Trading is risky. Buying and HOLDING on . Great Strategy!! Thank you~!

Nice post. Nice to see I'm not the only one who thinks like this. The coin market will be turbulent for the upcoming year(s) but I really believe in the blockchain as a technology. I was researching a way to find more info about the current cryptocoins on the market. I really advice people to take a look at: https://www.coincheckup.com I'm using this site that gives in depth reports on every tradable cryto in the market.

I believe in the long term Jerry. Thanks for all your hard work!!!