AI Summary
The video explains that successful investing, particularly in crypto, hinges not on short-term trading or timing the market but on consistent, long-term accumulation of assets with strong compound growth rates. The creator argues that Bitcoin's historical performance demonstrates that a simple strategy of dollar-cost averaging can dramatically outweigh any gains from active trading.
Chapters
No single trade can eclipse the portfolio growth achieved by consistent investing over 15-20 years due to the power of compounding on a larger capital base.
Investors use Compound Annual Growth Rate (CAGR), like Bitcoin's ~50% over 4 years. Daily price movements are irrelevant compared to this long-term metric.
Over the last decade, Bitcoin has been the top-performing asset 9 out of 10 years. A simple weekly investment of $100 consistently outperforms active trading.
Since the 2021 bull market high, Bitcoin has massively outperformed the total altcoin market. Investing in a single, strong asset is simpler and often more effective than diversifying into hundreds of altcoins.
Price is not the true value. A coin's market cap (price × circulating supply) can hit new highs even if the price lags, due to token inflation (new coins diluting value). Example: Solana's price is below its ATH but its market cap is at an ATH.
Treat crypto like an asset class with a risk/return profile. Compare it to bonds (2-3%), S&P 500 (13%), or NASDAQ (18%). Choose asset classes based on your age and risk tolerance.
Use a tool like ChatGPT or Grok to calculate the outcome of a DCA strategy. Example: $100/week at 25% CAGR for 12 years yields ~$207k, demonstrating 'retirement done' in 12 years.
Wealthy investors avoid triggering capital gains tax by borrowing against their assets instead of selling them. If the asset's CAGR is higher than the loan's interest rate, this is a net positive strategy.
The core path to life-changing wealth through crypto is not about finding the next 100x coin or perfecting trade entries, but about identifying assets with proven longevity and high CAGR, then consistently buying them for a decade or more.
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85% Legit"The title accurately reflects the content, as the video provides a foundational, long-term strategy for complete beginners, though it focuses heavily on Bitcoin's track record rather than general crypto investing."
Mentioned in this Video
Tutorial Checklist
Study Flashcards (8)
What metric do investors primarily use to evaluate long-term asset performance, rather than daily price?
easy
Click to reveal answer
What metric do investors primarily use to evaluate long-term asset performance, rather than daily price?
CAGR (Compound Annual Growth Rate) or ARR (Annual Rate of Return).
01:28
What is the key difference between investing and trading according to the video?
easy
Click to reveal answer
What is the key difference between investing and trading according to the video?
Investing focuses on longevity and long-term CAGR, while trading focuses on short-term price movements and single trades.
02:55
What three profiles must you evaluate when selecting an asset to invest in?
medium
Click to reveal answer
What three profiles must you evaluate when selecting an asset to invest in?
Growth profile, volatility profile, and longevity profile.
03:56
How do you calculate a token's true market valuation?
easy
Click to reveal answer
How do you calculate a token's true market valuation?
Market capitalization = price of the token × total circulating tokens (coins).
06:14
Explain 'token inflation' and its effect on price vs. market cap, using Solana as an example.
hard
Click to reveal answer
Explain 'token inflation' and its effect on price vs. market cap, using Solana as an example.
Token inflation is when new tokens are created and released into circulation. This dilutes existing holders, so the price may stay flat or drop even as the market cap grows (buying pressure absorbs new supply). Solana's price is below its ATH, but its market cap is at an ATH due to inflation.
07:32
What are the approximate annualized returns for S&P 500, NASDAQ, and Bitcoin (4-year CAGR) as cited in the video?
medium
Click to reveal answer
What are the approximate annualized returns for S&P 500, NASDAQ, and Bitcoin (4-year CAGR) as cited in the video?
S&P 500: ~13%; NASDAQ: ~18%; Bitcoin 4-year CAGR: ~40-50%.
10:05
What is the primary reason most people use dollar-cost averaging (DCA) as a strategy?
easy
Click to reveal answer
What is the primary reason most people use dollar-cost averaging (DCA) as a strategy?
Because they earn a wage weekly or monthly, so they are 'forced' to invest incrementally rather than having a lump sum to invest all at once.
15:03
According to the video, what is a tax-efficient strategy wealthy people use instead of selling assets?
medium
Click to reveal answer
According to the video, what is a tax-efficient strategy wealthy people use instead of selling assets?
They borrow against their assets (e.g., take a loan) rather than selling them, which avoids triggering a capital gains tax event.
18:05
💡 Key Takeaways
Time beats timing
Establishes a foundational truth: consistent, long-term accumulation is mathematically superior to trying to hit home runs with single trades.
00:51Market cap vs. price decoupling
Provides a critical insight into how altcoin inflation can mislead investors who only look at price charts, explaining why market cap is the true measure of value.
06:14Asset class thinking
Shifts the focus from picking individual winners to understanding broad risk/return profiles of asset classes, a key concept for building a resilient portfolio.
09:03Borrow, don't sell
Introduces a sophisticated, tax-aware strategy commonly used by the wealthy, offering a practical alternative to cashing out and paying capital gains.
16:58Full Transcript
[00:00] if you're brand new to investing and
[00:01] looking at crypto because that's what
[00:02] everyone's talking about right now and
[00:03] trading I just want to go back to basics
[00:05] and give you the absolute fundamental
[00:07] very simple things that you can do to
[00:09] just completely change your life over
[00:10] time Bitcoin and crypto have the growth
[00:13] and all you need to do is just
[00:15] understand that be consistent and it
[00:17] will change your life and I'll show you
[00:19] how to actually figure out what are the
[00:21] compounded returns how to think about
[00:24] that within your own uh strategy and
[00:26] what you can invest right so let's look
[00:28] at how this actually works so again I'll
[00:30] leave links to all of this down below as
[00:31] well these charts and everything uh and
[00:33] more information so you can see that
[00:36] this is the Bitcoin chart and this is
[00:37] what everyone looks at all the time and
[00:38] they get obsessed with daily price
[00:40] movements and everything like that this
[00:42] is not how investors trade or think
[00:43] about things the one thing that uh
[00:47] newcomers never uh grasp initially is
[00:51] investing takes time right everything
[00:53] takes time there is no amount of money
[00:55] that you can make in one trade with one
[00:57] purchase and one sale that will eclipse
[01:00] what you can make over time right you
[01:02] have to be consistent it's not about
[01:04] buying once it's about buying multiple
[01:06] times and so you have to identify assets
[01:09] that have longevity and growth in them
[01:11] over longer periods of time because
[01:13] there's nothing you can do this week
[01:15] There's no trade that you can make that
[01:16] can Eclipse someone else who's been
[01:18] investing consistently for 15 20 years
[01:21] they just have a much bigger portfolio
[01:22] small percentage movements for them in
[01:24] nominal dollar amounts or fat currency
[01:26] amounts can be massive right and you
[01:28] just cannot Eclipse that with one trade
[01:30] no matter how good you are and how how
[01:31] good the trade was so what investors use
[01:35] is something called kagr or ARR annual
[01:38] rate of return or compound annual growth
[01:39] rate it's pretty much the same thing you
[01:41] take a period in time right usually four
[01:43] years 6 years 8 years something like
[01:45] that this is a fouryear Kar for Bitcoin
[01:47] and ethereum so what we're saying is
[01:49] what's the growth rate that I can expect
[01:52] so over the last four years you can see
[01:53] that Bitcoin and ether have annualized
[01:55] at around 40 to 50% and people get
[01:58] absolutely caught up with a day-to-day
[01:59] Trading price and the movements and
[02:01] everything it's just so irrelevant it's
[02:03] completely irrelevant the what is the
[02:04] 4-year kagar 50% a year so 50% a year is
[02:08] the compound annual growth rate of your
[02:10] investment if you just buy buy buy once
[02:12] a week something like that and so this
[02:14] is the uh table of investment returns
[02:16] this is a fiveyear kagar this is from
[02:18] Fidelity and you can see that over the
[02:20] last decade uh Bitcoin has been at the
[02:22] top 9 out of 10 years and this thing is
[02:24] massively volatile right it's gone up
[02:26] it's gone down every sideways everything
[02:28] else but the comp pound annual growth
[02:30] rate so you invest $100 a week $200 a
[02:32] week $50 a week whatever it is again and
[02:35] again and again you're the best
[02:36] performing Trader in the whole market
[02:38] and all you've done is just put some of
[02:40] your wages to buying it every week
[02:42] that's it it's as simple as that so the
[02:44] real thing investing is identifying
[02:47] assets that have uh decent growth rates
[02:49] not just that longevity right all coins
[02:53] that go up really high 100000% up in a
[02:55] bull market and then crash back down
[02:57] that's not investing okay Trading that's
[03:00] different but investing is identifying
[03:02] assets that have that sweet spot of
[03:04] growth and Longevity so Bitcoin has it
[03:06] you can see ethereum has had it as well
[03:08] definitely a very good performer so it's
[03:09] not about the daily traded price it's
[03:11] about the compound annual growth rate
[03:13] and longevity of the asset it's the
[03:14] number one thing in investing finding
[03:15] that sweet spot and right now I think
[03:18] Bitcoin and EA but I'm not trying to
[03:19] convince you about these assets
[03:21] particularly I just want to give you the
[03:22] tools to do it yourself compound annual
[03:24] growth rate I'll leave these links below
[03:26] as well so you can go and look at this
[03:27] and try and compare it around different
[03:29] assets
[03:30] um so that you know exactly you know
[03:31] where your sweet spot is now I want to
[03:33] quickly touch on bitcoin versus altcoins
[03:35] because a lot of people say you know
[03:36] what should my portfolio look like
[03:37] should I buy some Bitcoin should I buy
[03:39] some altcoins you know what should I do
[03:41] you know a lot of people have you know a
[03:42] kind of anchor asset that thing in the
[03:44] middle that's the biggest thing and then
[03:45] they have you know some kind of
[03:46] satellite assets around it where you
[03:48] know they like the project or something
[03:50] else and they put smaller amounts in um
[03:52] I just want to you know show you the
[03:54] performance of Bitcoin versus altcoins
[03:56] because it kind of doesn't matter right
[03:58] it's an arbitrary difference here right
[04:00] there's a thing and it has a growth
[04:03] profile a volatility profile right and
[04:06] then a longevity profile it's those
[04:07] three things you need to focus on so
[04:09] over the last year Bitcoin and Orange
[04:12] versus total 3 which is the entire
[04:15] cryptocurrency market cap except for
[04:16] Bitcoin uh and ethereum so this purple
[04:19] line pink line has basically every
[04:21] single coin except for Bitcoin eth and
[04:23] stable coins um and the value of that
[04:26] has not outperformed Bitcoin over the
[04:28] last year right and so you have to look
[04:30] at Bitcoin the longevity of Bitcoin over
[04:32] time the complexity of buying every
[04:35] single coin in crypto versus just buying
[04:38] one coin right it hasn't outperformed so
[04:41] what you can see here is you know
[04:42] essentially it doesn't matter what
[04:44] you're invested in it just matters the
[04:45] performance and the volatility so
[04:46] bitcoin's outperformed then we take this
[04:48] from the lows of the previous bare
[04:50] market right the very lowest price that
[04:52] Bitcoin got to and Bitcoin has massively
[04:54] outperform the rest of the market right
[04:56] so looking at this it's not about
[04:57] Bitcoin or being a Bitcoin Maxi or
[04:59] anything else it's just simple logic and
[05:01] simple uh facts Bitcoin is outperformed
[05:05] it's a simple investment it's easier to
[05:07] make than indexing the whole entire
[05:08] Market you can't even do that it's
[05:10] outperformed by a huge amount therefore
[05:12] that is the stronger asset and you
[05:13] should probably invest in it this is
[05:15] since the high of the last bull market
[05:18] right where Bitcoin got up to 69,000
[05:20] altcoins were going crazy since then uh
[05:23] Bitcoin has massively outperformed in
[05:25] fact the entire altcoin Market is
[05:26] actually down right so if you bought all
[05:28] the altcoins You' actually lost money
[05:30] versus Bitcoin uh which has gained uh a
[05:33] lot of momentum this is even further
[05:36] back pretty much at the lows of the of
[05:38] two cycles ago uh the altcoin market has
[05:42] outperformed Bitcoin by 30% right so
[05:45] what you would have to have done is
[05:47] invested in every single coin in crypto
[05:49] to outperform bitcoin by 30% uh which
[05:52] again is an amazing performance
[05:53] considering that the amount of coins has
[05:56] increased significantly right you're
[05:58] you're you're looking at one coin in
[06:00] Bitcoin versus every single other coin
[06:02] and hundreds of coins thousands of coins
[06:04] that didn't even exist back here so
[06:06] they've just been adding adding adding
[06:08] new coins all the time versus BTC the
[06:10] other thing to be aware of also when
[06:12] looking at valuations is market cap
[06:15] versus
[06:16] price the price of a token right this is
[06:20] not the total value of that of that
[06:21] thing right the price of the token has
[06:24] to be multiplied by the amount of tokens
[06:26] in circulation and that gives you the
[06:28] market cap which is the total value of
[06:31] circulating coins and what happens in
[06:34] cryptand is that there's inflation in
[06:36] these assets right so they start off
[06:38] let's say they have a billion coins or
[06:40] 10 billion coins whatever it is they'll
[06:42] have 10% of them circulating initially
[06:44] right so if you've got a million coins
[06:46] you have 100,000 of them circulating
[06:48] initially over time that 100,000 coins
[06:51] gross so every year there might be 5%
[06:54] 10% 15% inflation which means that
[06:56] 100,000 coins grows in size so have more
[07:00] and more coins coming into the market
[07:01] over time now as people buy the coins
[07:05] right what they're doing is basically
[07:06] putting money into the market and buying
[07:09] new coin issuance and that can grow the
[07:12] market cap but the price may not grow
[07:15] and if the market cap grows it doesn't
[07:17] matter for you because you have a coin
[07:19] at a price so what I mean by this is we
[07:22] look at salana I'm just picking this one
[07:23] hour I could be anyone but it's a good
[07:25] example here we'll go over to Max here
[07:27] this is the price of salana you can see
[07:29] that had this huge price up movement
[07:31] here to a basically an all-time high we
[07:33] come down and we move up now we are
[07:35] let's say near an all-time high right
[07:38] now actually we're just underneath it so
[07:40] from a price
[07:41] perspective uh the price of salana is
[07:44] not above its previous all-time high but
[07:48] salana has had a massive amount of token
[07:50] inflation during this time which means
[07:52] people are buying the token but there
[07:54] are loads more tokens coming onto the
[07:56] market to dilute the value of those uh
[07:58] the tokens existing so you look at
[08:00] market cap which is the true valuation
[08:03] and this is at an insane all-time high
[08:06] right so this shows us that has there
[08:08] has been a massive amount of token
[08:09] inflation into the market and people are
[08:11] buying new coins and putting money into
[08:13] the market right but the price is
[08:16] getting crushed uh versus um you know if
[08:20] there weren't isn't isn't any inflation
[08:22] so when you look back here what we can
[08:24] say is well how much of this
[08:25] outperformance over two cycles is token
[08:29] inflation and new tokens that didn't
[08:32] exist before and with all of that it's
[08:34] only outperformed by 32% so again what I
[08:37] would suggest is just looking at the
[08:39] data and and logically from from a
[08:41] logical perspective you know Bitcoin
[08:42] seems very very strong right and so if
[08:44] you're looking at crypto and you're
[08:46] looking at these assets then you just
[08:48] have to look at these strong assets that
[08:49] seem to outperform I'm not trying to
[08:51] convince you to invest in Bitcoin or
[08:53] anything else I just want to get you
[08:54] thinking as to what the real valuation
[08:57] of something is the real value over the
[09:00] long term longevity and price and
[09:02] volatility that is going to influence
[09:05] what you actually invest in over the
[09:06] long term when investing you really want
[09:08] to be looking at asset classes and not
[09:10] just individual assets especially if
[09:11] you're a beginner looking at individual
[09:13] assets is going to make take you down a
[09:14] rabbit hole and it's just going to take
[09:16] you away from the very Basics which is
[09:18] there are a handful of asset classes
[09:21] they have uh return profiles and that's
[09:23] pretty much it so down here at the
[09:26] bottom these are all the kind of top
[09:27] asset classes that anyone would have a
[09:28] choice from down here at the bottom you
[09:30] have bonds okay these are really dismal
[09:32] right if you want to invest in us
[09:33] treasuries or you know whatever very
[09:35] very dismal returns right 2% 3%
[09:38] Commodities have actually lost value I
[09:40] mean obviously because they're
[09:41] Commodities right the actual word
[09:43] commodity means something that's
[09:44] basically worthless and no one wants so
[09:46] why would it go up in value so there we
[09:47] go right these are dismal As you move up
[09:49] you get a little bit more exotic you
[09:50] have real estate investment trusts here
[09:52] basically broad real estate exposure
[09:54] going up at around 7% uh you have high
[09:56] yield bonds convertible bonds these are
[09:59] kind of more exotic Securities trying to
[10:01] get a little bit more return um you know
[10:03] 5 to 8% as we move up we have the S&P
[10:06] 500 which is really the Benchmark
[10:08] worldwide for investing right which is
[10:10] 500 best companies in the States you can
[10:12] see that's annualizing around 133% a
[10:14] year if you look at the NASDAQ which is
[10:16] you know just as popular you've only got
[10:18] 100 uh companies here focused in
[10:21] technology they're 18% annualized and
[10:23] then you get get up to bitcoin 150%
[10:25] annualized right and so you know if you
[10:28] put alt coins in this list it's going to
[10:29] be around 100 150% as well right so
[10:32] they've done very well but with a lot
[10:33] more risk and volatility some coins do
[10:35] really well some coins don't which means
[10:37] if you're investing in all coins you
[10:39] probably have to diversify and get a
[10:40] basket of 10 15 20 of them or you know
[10:43] something like that which becomes
[10:44] complex and so maybe just Bitcoin is the
[10:46] answer but again it's not about the
[10:48] asset it's just about asset classes what
[10:49] growth they have and how you want to
[10:51] gain exposure right so they they have
[10:53] different risk profiles as well right
[10:54] Bitcoin is really really volatile
[10:56] compared to these and so it's volatile
[10:58] and that means well it's growing with
[11:00] volatility so you face big draw downs
[11:04] and big ball markets as well but
[11:06] annualized you're actually making more
[11:08] right if you don't want that volatility
[11:09] then you have to go down to something
[11:10] that's less volatile so you're looking
[11:12] at NASDAQ or S&P you're you're going to
[11:14] make less returns there because they're
[11:16] less volatile they're more mature right
[11:18] and so yes Bitcoin is more volatile but
[11:20] it's also gaining more over time so it
[11:23] matters about the asset class exposure
[11:25] just think how much do you want in each
[11:26] of those buckets right how much risk you
[11:28] want to take you know are you a young
[11:30] person well if you're young then you can
[11:31] stomach volatility right because you can
[11:33] work and you can make it back and
[11:35] everything so you don't care if you have
[11:37] to invest for 4 8 12 15 years if you're
[11:39] 70 years old maybe Bitcoin isn't for you
[11:42] so with investing it's not about trying
[11:44] to make money and trying to make returns
[11:45] it's just these are the asset classes
[11:47] there's volatility there you can choose
[11:49] which one is right for you at the time
[11:51] that you're investing are you young you
[11:52] middle-aged old that's going to affect
[11:54] what you invest in but I just want to
[11:56] get this over it's not about individual
[11:57] coins or anything like that just gain
[11:58] exposure to assets that have growth and
[12:00] volatility profiles that are appropriate
[12:01] for you investors have many different
[12:03] types of calculations that they can use
[12:04] to work out what an investment will be
[12:06] worth in the future and again all we
[12:08] have to do is take the compound annual
[12:10] growth rate of the asset right we can
[12:12] plug this into many different types of
[12:14] calculations I used to do this manually
[12:16] but you can go to you know AI you can go
[12:18] to chat gbt Gro or whatever you can put
[12:20] this in here um the downside here is
[12:23] that I often see them making slight
[12:24] mistakes actually so um I don't know if
[12:26] this is exactly correct but it's just
[12:28] illustr
[12:30] what you can do is you go to Gro or
[12:31] whatever and you say you know I want to
[12:34] invest x amount per week and I'm
[12:37] investing in an asset that has this
[12:38] growth profile so you can you can tell
[12:40] grock you know Bitcoin has a kagr of 25%
[12:44] now currently it's 40 to 40 to 50% but
[12:46] let's just knock it down and say the
[12:48] kagar is 25% a year so if I invest $100
[12:51] per week the kagar is 25% a year and I
[12:54] do that for 12 years what's the outcome
[12:56] right so $100 a week so the total
[12:58] investment here would be over 12 years I
[13:00] think this is I asked it yeah 25% kagar
[13:03] $100 a week for 12 years what's the
[13:05] return on invested
[13:07] Capital return on investing Capital
[13:09] annual rate of return compound annual
[13:11] growth rate right you can use these so
[13:12] the return on investing capital is
[13:14] essentially we invested 62,400 and after
[13:18] 12 years the total investment is worth
[13:20] uh total portfolio size is 206,000 920
[13:24] so it's
[13:25] $144,000 uh return if we assume this
[13:28] compound annual growth three over time
[13:30] right so you can work this out that's
[13:31] that's just makes things well easy and I
[13:33] understand there is no way that as a
[13:36] Trader if you've got a couple of grand
[13:37] to put in and you want to trade you want
[13:39] to make some money there's just no way
[13:40] you're can outperform that right you may
[13:42] make some good trades and some bad
[13:43] trades but you literally don't have to
[13:45] do anything it's literally 10 seconds a
[13:47] week to make a $100 trade on coinbase or
[13:50] binance whatever and that's it right so
[13:53] that is basically 12 years that's your
[13:55] retirement finished so in 12 years time
[13:57] your retirement I'm not saying you can
[13:58] retire but I'm saying that retirement
[14:00] bag finished because in 12 years time
[14:02] that's still going to be annualizing at
[14:04] 25 20 18 177% whatever retirement bag
[14:08] done your entire life changes now you
[14:10] have strength you have time you can quit
[14:13] your job and go and get the job you
[14:14] actually like on less money because your
[14:16] retirement's done you don't care you can
[14:17] pay the bills now it's irrelevant you
[14:19] can quit your job to start your own
[14:20] business because you have time you have
[14:22] strength that's investing so there is
[14:24] nothing you can do there's not one
[14:26] single trade you can make if you have
[14:27] $26,000 has a portfolio in BTC and it
[14:31] goes up 20% in a year that's a $40,000
[14:34] income in your Investment Portfolio
[14:36] there is no trade you can make over a
[14:37] short period of time that can Eclipse
[14:39] that right so is about time and
[14:41] investing in assets to have that growth
[14:43] over time is massive outperformance
[14:45] right so it really is important to get
[14:47] longevity in your assets to understand
[14:50] what's going to keep having growth over
[14:51] time and investing in that because this
[14:53] is this is important 12 years can change
[14:56] your entire life now I want to touch on
[14:58] Market timing and dollar cost averaging
[14:59] so for most people we work and we ear a
[15:02] wage and therefore we ear a wage once a
[15:04] month or once a week whatever we have
[15:06] hopefully some cash left over that we
[15:07] can invest that's dollar cost averaging
[15:10] right because you just buy consistently
[15:11] over time and you grow your portfolio
[15:13] it's not that dollar cost averaging is a
[15:15] better strategy it's just the one that
[15:16] most of us are forced into because we
[15:18] don't earn our entire life's wages at
[15:20] once when we're 20 years old right so we
[15:22] dollar across average and we grow our
[15:23] portfolio and you want to grow it as
[15:25] large as possible Right think about the
[15:27] assets that you can invest in for 25
[15:29] years cuz you can invest in them over
[15:31] and over and over and over and your
[15:32] portfolio grows and grows and by the
[15:33] time you're old you don't need massive
[15:35] returns because you've got a big savings
[15:36] amount right in any case dollar cost
[15:38] averaging is what most of us are going
[15:40] to do because we don't have any other
[15:41] choice we earn our wages every week or
[15:43] every month dollar cost averaging right
[15:45] you can see it's not the best strategy
[15:47] right the best strategy is to buy the
[15:49] thing at the lowest price that goes up
[15:51] the most but as in you know as investors
[15:54] really you just need to be consistent
[15:56] with savings right now you can invest in
[15:59] early opportunities or anything like
[16:01] that but the reality is early
[16:02] opportunities 99% fail anyway right you
[16:05] may have one that makes up everything
[16:07] else but we're not VC funds right we're
[16:09] not Venture capitalists we don't have
[16:11] the capital to go ahead and do that so
[16:13] we need to actually just play the the
[16:14] the game right which is playing the odds
[16:15] playing the percentages in any case
[16:17] dollar cost averaging okay it's there or
[16:19] thereabouts perfect timing is where you
[16:21] time the market absolutely perfectly on
[16:23] this and that and the other but it
[16:24] doesn't actually outperform that much so
[16:26] don't bother right play the percentages
[16:28] and you're going to make make mistakes
[16:29] if you try and do this as well bad
[16:31] timing so if you try and time the market
[16:32] and you don't figure it out you're going
[16:33] to underperform dollar cost averaging
[16:35] anyway so dollar cost averaging is away
[16:37] what is dollar cost averaging it's
[16:39] essentially when you just buy each and
[16:41] every week or each and every month and
[16:42] you just put the money in over time and
[16:45] it's going to grow your portfolio the
[16:46] main thing right is to grow the biggest
[16:48] portfolio you can so that when
[16:50] percentage growth happens you have that
[16:52] percentage growth on the most amount of
[16:54] dollars and so that means you have to
[16:55] choose assets that going to be around a
[16:56] long time the other thing that no one
[16:58] ever talks about with investing or
[16:59] trading or any crypto videos is tax and
[17:02] the way that you use assets to benefit
[17:04] yourself right investing and and is not
[17:07] about making money it's about growing
[17:10] your asset base so that you have
[17:11] strength and options in the future so if
[17:15] you sell crypto in most countries in the
[17:17] world this is this is a taxable gain
[17:19] right because they're assets and so when
[17:21] you make a profit on an asset you have
[17:23] to pay capital gains tax on it tax is
[17:26] charged on the capital gain meaning
[17:28] let's say you trade a billion dollars of
[17:30] something so you buy a billion dollars
[17:32] and you sell a billion dollars but you
[17:33] make a $1,000 profit well you're only
[17:35] charged on that ,000 profit so you're
[17:37] charged on the capital gain but around
[17:40] the world I mean the UK you can see it's
[17:41] 24% here in the US apparently it's not
[17:43] to 20% maybe different I'm not sure how
[17:45] it works in the US in the Euro Zone
[17:48] 18% so you're getting you know a 20%
[17:52] worst trade immediately on the profit
[17:53] that you make now that may be fine right
[17:56] you may have made lots of of gains so
[17:58] you know who cares you want you want to
[17:59] buy a house you want to do this pay off
[18:00] some debt I get that but all in all you
[18:02] know taxable gains aren't great and the
[18:05] longer that you hold something the more
[18:07] that it compounds the more gains that
[18:08] you'll have and then you start to have
[18:10] to think do you want to do you want to
[18:11] pay that now what do wealthy people do
[18:13] wealthy people essentially have as much
[18:15] assets as possible they don't sell their
[18:17] assets if they can what they do is they
[18:19] borrow against them so maybe you want to
[18:21] borrow against the asset because you've
[18:23] got a big portfolio and you want to buy
[18:25] a car well you don't sell the portfolio
[18:27] to buy the car right you take take a
[18:29] loan to buy the car and your income pays
[18:31] it off over time right because as long
[18:33] as the Blended interest on the car
[18:35] payment right let's say you get a 12%
[18:37] car loan but Bitcoin is going up at 40%
[18:39] a year as long as you can pay as long as
[18:41] you have an income to pay then it's
[18:43] actually going to be way better for you
[18:44] to take the loan and pay off the loan
[18:46] and wait for the Bitcoin to outperform
[18:48] it right so you can do that for Nasdaq
[18:50] or anything else if your Blended
[18:51] interest rate is lower than the uh kagar
[18:56] the annualized rate of return of the
[18:57] asset then you can take that over time
[19:00] and wait and literally the growth of the
[19:02] asset will outperform the debt and the
[19:04] depreciation of the car you can do all
[19:06] these calculations so these are the
[19:08] things that you can think about when you
[19:10] have an an asset base and it is these
[19:13] are the big decisions in your life right
[19:15] again there's nothing you can do to
[19:16] trade and make money that is going to
[19:18] outperform so you know taking debt to
[19:20] buy a car paying that off over 12 years
[19:23] right and letting the Bitcoin outperform
[19:25] right now you're basically leveraging up
[19:27] your income stream right now I'm not
[19:28] saying leverage it up I'm not saying
[19:30] take leverage to buy BTC but these are
[19:32] the things that you can think about uh
[19:34] that make a big difference to your
[19:35] overall portfolio and that's what
[19:37] wealthy people do I'm not saying do it
[19:38] I'm not saying take leverage you can
[19:40] work that out for yourself if you don't
[19:41] want to take leverage then just sell the
[19:43] assets take the hit on the capital games
[19:45] and and buy the asset but you can do the
[19:46] calculations doing the right thing and
[19:49] making the right decisions over time can
[19:50] make a really big impact over the long
[19:52] term you look at Warren Buffett like a
[19:54] crazy stat that the vast majority of his
[19:56] wealth was made you know in the last 10
[19:58] 15 years of his life because he just
[20:00] compounded and you get larger and larger
[20:02] and larger and the nominal dollar amount
[20:03] on that is huge right so that's what
[20:05] rich people do they do not sell their
[20:07] assets they do not pay tax if they can
[20:08] help it they borrow against it or they
[20:10] have an income stream that they pay and
[20:12] if you can work do work to pay uh income
[20:15] streams off into debt and let the assets
[20:18] actually outperform because they can
[20:19] demonetize the debt that you have if you
[20:21] need some more specific and Technical
[20:22] guides on how to actually go ahead and
[20:24] trade cryptocurrency like how to buy how
[20:26] to sell how to read charts how to
[20:29] analyze kagr and other types of metrics
[20:31] I've got a bunch of videos I'll leave
[20:33] them all down in the description below
[20:34] where you can get much more specific and
[20:36] Technical I'll leave some deposit and
[20:37] trading bonus links to the exchanges I
[20:39] use as well to buy crypto down in the
[20:41] description I'm James is mg cheers for
[20:43] watching and I'll see you in the next
[20:44] one