Welcome to Issue #5 of Wealth Mastery
In today’s issue I look at how to manage your risk, as well as cover upcoming token sales, we have 3 big ones this week! I also got the chance to speak with the team at Bancor regarding the recent V2 upgrade. Heidi look at the benefits of using tokenized gold in your portfolio. Forrest breaks down the latest on Cardano and what comes next for this crypto titan. Jesse has a research report on the much hyped Aleph. And Rekt Capital shares his thoughts on the market cycles and gives analysis on Bitcoin, Ethereum, and Litecoin.
A quick reminder that all research and market analysis is provided for educational and informational purposes, and should not be considered as financial advice. You are ultimately responsible for your investments and trades, and they should only ever be entered by those who understand the risks, are willing to lose their entire investment, and properly understand how to manage their risk.
Also every issue will contain more information, tips, hints, and analysis than you can make use of. Wealth Mastery is a tool, you are the craftsman. We are not a signal or pump group, we are a tool shop, you decide what information shared here has value to you or not.
CRAZY WEEK
Ok, so let’s just take a quick minute to acknowledge what a crazy week it has been in the markets. Bitcoin and Ethereum have both had major breakouts, major pull backs, and are once again flirting with key price levels $12,000 and $400 respectively.
If you have entered the crypto market recently, or perhaps have been around for a while but just need a reminder. This market is wildly volatile. But we are now entering a massive up trend, and assuming that the global economy doesn’t implode crypto investors buying now stand a good chance to reap powerful profits in the coming year or two. I am sharing this chart with you as a reminder that even during the last crazy bull run that saw Bitcoin go up 20X there were 7 pull backs of 30 to 40% and dozens of pull backs of 10 to 15%.
It can be hard watching these big drops, but as this chart proves the investors who made the most money were the ones who did not get shaken out at the first sign of trouble. In an upward trending market dips are for buying, don’t get shaken out at the first sign of trouble. It is only a matter of time before the entire crypto market surpasses the 1 trillion mark and never comes back down. The mainstream investors are starting to wake up to crypto, Robinhood day trader hero Dave Portnoy is now officially pumping Bitcoin. This is the gateway drug. Very quickly these investors will click onto the reality that a complete parallel financial system exists, and that they can own a part of it. Defi in particular is a game changer, and I expect significant inflows of new money to move into it.
Managing Risk in Your Portfolio
Quite simply the crypto game, as with any investing is a risk reward game. Literally everything carries risk, it just carries different degrees of risk. You cannot avoid risk when investing, only minimize it. And of course, not investing is a big risk too. Damned if you do, damned if you don’t.
Here are some quick tips to help keep your head screwed on during these wild moves happening in the market.
Reality – Yes, some investors are making 100x gains in minutes on some obscure uniswap listing,…
