Free Crypto Currency Guide
If you are new to cryptocurrency then this is something you need to pay attention to. This aspect of the crypto world was something that I discovered on my own as I studied the markets and the countless projects of the various cryptocurrencies. See there is something called a crypto cycle and a major part of the crypto cycle is something called the Bitcoin Halving Cycle. But within this I discovered seven practical laws of cryptocurrency. I call these the seven laws of Crypto. I will briefly discuss them here as in my crypto course and my upcoming crypto book I discuss this topic in great detail.
Here they are below.
- What goes up must come down but only temporarily
- Never underestimate cryptocurrency
- Nothing is impossible in the crypto world
- If a government creates it then it’s not a cryptocurrency
- Don’t treat the crypto market like the stock market
- Buy the dips or mine
- Only ever exchange a portion of your crypto into fiat or some other currency
Let me tell you how I came across each of these laws and how they helped me in my crypto journey.
The first law: To me this is the most important law to follow when I am looking at crypto. As I studied the crypto market and as I bought or mined certain cryptocurrencies, I noticed a trend that I’m sure others have noticed and subconsciously acknowledged as well. What I noticed what that every time crypto went up it would eventually shoot down, but there was something more to this.
Whenever the cryptocurrencies reached a previous all time high there would be a temporary pullback before they eventually shot up and created a new all time high. Then I noticed that after this happened it would eventually shoot down but when they did shoot down it was highly unlikely that they would return to the previous low but would sit either always above the previous all time high or the value would sit between the previous low and the previous all-time high. And eventually there would be another rise and the cycle would continue.
The second law I learned by looking at the mistakes of others. When I was first learning cryptocurrency I read many stories of people who sold Bitcoin when it was .08 cents because they did not believe it would do anything. Then I read stories of people who sold Bitcoin after it shot up to $1000 but dropped to $300 at that point some of those people thought Bitcoin was dead but it turned out to be a temporary drop. These people each time had underestimated the potential of cryptocurrency.
Even today the same story is repeated. Its because people do not have a handle over their emotions. They let the emotion of fear overshadow everything else even precedent.
Law number three is very important . You see there are many innovative minds involved in the crypto industry. These minds share knowledge and ideas with each other which creates abundance. The big names in crypto are all people who grew up in the age of America’s wars against terror. This error saw a lot of things which started for them with 9/11 and culminated in the 2008 financial disasters. Many of you remember the harsh times your parents went through and the corruption of the financial system especially regarding the banks and the policy of too big to fail.
Crypto has proven itself to be a capable alternative such nonsense. It is not controlled by a central entity or a cabal or wealthy individuals. It does not make the rich richer and the poor poorer. And it does not determine the financial destiny of any person. Instead, a person is able to control their own financial destiny and is able to participate in the exchange and creation of ideas. In the world of crypto anyone is able to do anything that has benefit to all. It is because of this that anything is possible because no matter where you are in the world you can participate, exchange goods and services with another person without worrying about needing a third party, or dealing with overbearing pressures from an out of touch central authority.
The fourth law states an obvious fact but may not be understood by people who have only seen crypto in the media. As I became more adept in the world of crypto, I noticed that there was a lie spreading in headlines. It said governments and central banks were creating cryptocurrencies. I was shocked because I knew that was impossible. Not only that but I angered me when I thought about how many poor souls would fall into this trap because they had little knowledge of crypto and those who did were manipulated by the media to see it as something to be villainized.
The reason I knew this was a lie is because of the purpose of cryptocurrency. Cryptocurrency was created to give humans control over their financial destiny. It was created to give people to chance to not be economically controlled by a central authority. If a government is creating something you better believe that they will make laws and exert a high level of control and influence. What the governments and banks who claim to create cryptocurrencies were actually creating were simple digital currencies or CBDCs. An example is the upcoming idea of the digital dollar. A government will most likely never create a true cryptocurrency because of their need to control which stifles innovation.
Law number five is something I had to learn very quickly. I quickly learned that if you treat cryptocurrency like the stock market then you will only lose money. Doing analysis of a crypto like it is a stock is ridiculous. Trying to correlate crypto to things such as the S&P 500 and others is also ridiculous you will only in the end lose your money because cryptocurrencies are not stocks. cryptocurrencies tell you what they are in the name. They are currency. If anything, the crypto market shares more in common with the foreign exchange market than it does with the stock market.
Law six is very simple BUY THE DIPS and HODL! This is something I learned from just reading books about investing and is probably the only concept that crypto and stocks have in common. I buy when the value is low so that I can obtain more units of whatever crypto I am trying to purchase. Then I hold on for dear life because I know for a fact because of the first law that eventually the currency’s value is going to rise.
The seventh law tells me something important, it tells me to never get rid of all of my crypto. There are practical reasons for this that I’m sure every person in the crypto world would agree with. As I traded crypto, I noticed that there were sometimes when my value went up that I would want to exchange a crypto for dollars for various reasons.
One reason I never exchange all my crypto is because of the first law, the other reason is because I see that soon ill be able to go to any store and buy the things I want in crypto. When that happens, it will be more advantageous to already have crypto than to wait until the transition fully happens and then get obtain some.