July 11, 2021 - Crypto Myths People STILL Believe!!
There is no doubt that we have come a long way in terms of crypto awareness, adoption and general education. However, despite how much is known by the general public, there are certain crypto "myths'' that exist.
Falsehoods that are believed by far too many people - some of which are even believed by seasoned crypto traders and investors.
By believing in these myths, some investors are either not investing in cryptocurrency at all or if they are, are going about it all wrong.
So, in my video today, I take a look at the Top 10 crypto myths. I break them down and explain how they came about and why they are myths exactly.
I also dish out some top tips that could better help you guys understand how these crypto markets move and how to avoid some common pitfalls.
So, this is a video that you definitely do NOT want to miss. You can watch it here.
📊 Portfolio Update 📊
Didn’t make any changes this week. As I mentioned in my video today on crypto myths, I don’t like to overtrade. Keeping that chunk of USDC for strategic opportunities that may present itself.
Those that I currently have on my radar are INJ, & DOT. INJ because the mainnet appears to be on the horizon and they just launched staking functionality. DOT because the Kusama PLOs are going well and it’s a look at what could happen on Polkadot when they go live there.
Will of course keep you guys fully updated with my market moves in my official Telegram Channel.
ETH 31.58% | BTC 26.53% | USDC 11.22% | ADA 7.97% | SOL 5.16% | DOT 3.49% | YFI 3.22% | LINK 2.61% | INJ 2.55% | ATOM 1.94% | RUNE 1.83% | AVAX 0.80% | REN 0.62% | LIT 0.48%
🔭 Trends I have Noticed 🔭
✅ What’s Going On??
It's been a bit of a wonky week in the crypto market to say the least. While I'm sure stuff like the Binance crackdown is playing a role, there is a lot of really intense stuff going on at the macro level.
For example, the FED released minutes (fancy word for summary) of its meeting in June, and what they said seems to have spooked the markets as a whole. This is because they're thinking of increasing interest rates.
Increasing interest rates is bad news for anyone who's overleveraged (borrowed too much money to invest). I am sure that you know many people who have personally overleveraged themselves on mortgage / credit card debt, but they have also been doing this when it comes to general investing. Margin debt continues to post record highs as investors borrow to buy stocks, real estate, and yes, even crypto.
The other macro factor is one that I hate to discuss but can't ignore, and that's the apparent continuation of this pandemic thanks to the so-called Delta variant. It's looking likely that we'll be seeing more lockdowns across the board this fall, and investors are bracing for what could be another crash similar to last March.
As we saw in that last lockdown crash in March, it took the crypto markets with it. They are highly correlated and when institutional investors are fleeing to so-called “safe haven” assets, they sell everything perceived as risky. I personally don’t think we will have such restrictive lockdowns again and, even if we do, there is less uncertainty than there was in the first one.
However, even if we face rolling lockdowns in Europe / the Americas, the good news is that those government printing presses and stimmy cheques are at the ready. While I know that this decimates fiat savers and the like, it is a boon for the long term demand for cryptocurrency.
Also, before the fall comes, we've got so much bullish news on the horizon. Ethereum's EIP 1559 upgrade is set to hit mainnnet on August 4th, Cardano is supposed to roll out it's smart contracts in August as well, and I have a gut feeling we're going to see parachain slot auctions on Polkadot by that time too.
And just a quick word about all that stablecoin FUD we've been seeing from China et. al. As I mentioned in my recent video, you can't exactly ban stablecoins. They will keep trading hands regardless of what regulators do, and it's clear that not all regulators share the same negative sentiment. If they did, they wouldn't have given the green light to Circle's SPAC IPO, which is bound to turn some heads in traditional finance.
✅ The Adoption Dilemma
There is a serious dilemma that we have in the crypto sector right now. We have a situation where regulators, politicians and central banks want to tighten the screws, introduce new rules and increase oversight of the crypto sector. You need look no further than all of those exchange crackdowns that I talked about above.
Now, there are two viewpoints as to why they are doing this. The first explanation (and the one given) is that they are trying to protect consumers from scams and other nefarious activity. They are trying to provide a regulatory framework that can protect retail investors and consumers who could get financially harmed by these assets.
However, there is a more cynical viewpoint and that is that they want to control it as they view it as a threat to their centralised power.
I am personally in-between both of these. While I am not completely of the view that these individuals have our best interests at heart, they do have a point.
There are a lot of scams, hacks and other nefarious activities taking place in crypto. If newbies are not getting rekt in reckless leveraged trading, they are throwing their money at a ponzi scheme, giveaway scam or just a garden variety shitcoin.
I even have a first hand account here. You would have no idea how many of my followers still fall for scams impersonating me. This despite a disclaimer in *every single* video I push.
We cannot have mass adoption of cryptocurrency unless we make it less threatening and more beginner friendly. We cannot have a situation where users are constantly falling for these scams and needlessly losing money in the space.
However, do we need more burdensome regulation in order to achieve those ends? It seems like one of the only options being pursued at the moment. When Barclays decides to restrict all deposits to Binance, they do stop those 1% of users that are about to make a reckless financial decision.
Yet, they also restrict the ability of the other 99% who want to use it legitimately, from doing so. We are the collateral damage in their "mission" to protect beginners.
It's not just banking services though. It's everything from wallets to exchange features and payment service providers. They want to limit the functionality of cryptocurrency for these beginners so that they can't make the mistakes they would do if they had full control.
The problem is that that is exactly what crypto is about - full control of your own finances. And, this control does of course come with the responsibility and risks.
So, what is the solution? The status quo is far from ideal and the alternative is really suboptimal.
The answer, in my view, is education!
The more that people know about how to use cryptocurrency, how to invest and what to avoid, the less likely we are to have these headlines. The less likely we are to face intense calls from the regulators.
Everyone was once a beginner in the crypto space. We all have had our fair share of faux pas and mistakes. We have all learned our lesson the hard way.
So, it is our duty as seasoned practitioners to help educate those new to the space and help them avoid those land mines or pitfalls. The more we do that, the less likely we are to go down this path of overburdensome regulation and governmental overreach.
This is the primary reason why I do what I do, and I hope to continue doing so for as long as I can - but the more of us out there doing it, the better!
🔝 Top Newbie Tips 🔝
It's difficult not to be disconcerted by all of these Binance crackdowns. As one of my favourite exchanges, I was also incredibly angry when my bank (Santander) recently decided to stop deposits there. They gave the same patronising reason as to why they did this.
Now, although I am convinced that Binance will confidently bounce back (as explained in last week's newsletter), this is a good time to start self custodying and diversifying.
By self custodying, I mean you should be taking the bulk of your funds off of exchanges and keeping them in a hardware or software wallet (preferably hardware). I have a videoon the top hardware wallets which I did earlier this year.
By diversifying, I mean you should be creating other exchange accounts. Consider another fiat on or off-ramp that is fully set up and ready to go. As I mentioned in this Telegram post, a good one to consider for those in Europe and the UK is of course Swissborg. However, Coinbase and Bitstamp seem to also have strong fiat support.
Have you been reading the news lately? I can't help but notice that the view counts on CoinTelegraph articles are incredibly low. Sucks for CoinTelegraph, but it's even worse for all the people checking out of the crypto market.
I'm going to go ahead and assume you've been keeping up if you're subscribed to this newsletter, but if you haven't, I seriously recommend doing so. You need to stay up to date with what's going on because there's only so much I can cover in my weekly crypto review. Remember not to take those headlines to heart, though.
If your pocket is hurting more than usual because of the crypto market, consider finding a crypto job. The crypto job market is as hot as ever, and the other day I saw a job posting on Twitter that was pretty damn interesting.
Ethereum's Name Service is looking for a 'Governance Lead'.
Requirements? Experience participating in DAOs, mainly. That's something that I'm sure some of you have done in the past, and it's just a sneak peek at the novel jobs we're going to see emerging from the crypto market over the next few years and beyond. Keep your eyes peeled, there's opportunity out there.
Oh and if you have no idea what Ethereum's Name Service is, you should watch my video about Unstoppable Domains (who are also hiring by the way).
🔥 Deals of The Week 🔥
You have to optimize! I can’t think of a truer saying when it comes to crypto. The truth is that most crypto millionaires didn’t get there by merely throwing in a hundred thousand dollars into an altcoin. Many started with way less money and took advantage of small opportunities offered by these markets at the right time.
Those types of marginal gains tend to add up, compound and multiply over time. Indeed, I am a big fan of marginal gain theory when it comes to supercharging that crypto portfolio in the long term. Studies into this theory have shown that the result is very big gaps between those who make slightly better decisions and those that don’t - I know what side of the fence I’d rather be on!
But how can you do that? Well, here are a few platforms that you can use to get small gains and to get an edge on the markets.
💳 BlockFi Credit Card: Let’s face it; we all have boring monthly expenses that add up to a couple of thousand dollars a month. Most people whack that on a debit card and get NOTHING in return. However, smart people could use the NEW BlockFi crypto credit card and earn crypto cashback on money you would have spent anyways!
Please note, that I am not a fan of debt and personally pay off all my credit cards every month. Do that and you can enjoy those credit card perks for free!
But what should you consider that new BlockFi credit card?
- Earn 3.5% BTC cashback during the first 3 months.
- That cashback means that expenses actually become investments.
- No fees to use the card, No annual fees and no foreign transaction fees.
- Pre-approval doesn’t impact your credit score.
BlockFi is rolling out their crypto credit card in the US first and you can be first in-line to get your hands on that by joining the waitlist. It’s also the very first crypto credit card I have heard of too!
👉 Join The Waitlist For The BlockFi Crypto Credit Card Now!
But what else do these BlockFi chaps offer to help you get even more marginal gains? Well, it so happens that they are home to one of the biggest crypto lending platforms too. Here you can earn…
- Up to 4% APY on BTC
- Up to 4% APY on ETH
- Up to 8.5% on stablecoins
Most people just let those crypto holdings sit in a wallet and earn nothing. Others look to get those marginal gains whilst still getting exposure to the crypto markets by using crypto lending solutions like BlockFi.
👉 Sign Up To BlockFi & Get Up To 8.5% Crypto Interest!
🦾 CryptoHopper: Crypto markets never sleep and it can be hard to gauge how successful that crypto trading strategy really is. Most people just take shots in the dark and miss epic market moves in their sleep. However, others say no to all that and see it as an opportunity to get some marginal gains, where others do not!
CryptoHopper is a crypto trading bot that allows you to automate your trading strategies and allows you to execute those trades in your sleep. It also gives you access to features like backtesting to help you assess how good that trading strategy actually is.
Even better, you can try it out for FREE!
👉 Create a CryptoHopper account & Get A 7 Day FREE Trial!
🗞️ Crypto News Focus 🗞️
- The Banks Are At It Again - Congressman trying to shutdown crypto gets biggest donations from big banks.
- Steve Wozniak & BTC - Apple co-founder calls Bitcoin a miracle and claims it is better than gold!
- Visa & Crypto Adoption - You may soon be able to pay in crypto wherever Visa is accepted.
🔮 Video Pipeline 🔮
- Crypto trading bots: do they work?
- Bank Crypto Exchange Bans: What’s Going on?
- 101 guide to the new Binance NFT marketplace
- Top crypto partnerships of 2021
- Is the bull market over? Where are we in the cycle?
- Sentiment analysis & how to trade it?
- Harmony update: Still worth it?
🏆 What's New At CoinBureau.com This Week? 🏆
✅ Polkadot (DOT) Review: The MOAB (Mother of All Blockchains)
✅ Investing in Cryptocurrency in 2021: Complete Guide
✅ Convergence Finance Protocol: Putting Real Assets in DeFi
That’s all for this week’s newsletter guys. I just wanted to thank you for supporting me and my team's work to provide the best crypto education we can. I know that without you guys, we’d be nothing and wouldn’t be able to pursue this vision.
So, thank you for helping this crypto gent’s dreams come true.
Thank you so much for deciding to continue supporting the Bureau and I hope you get value from my latest video!
Guy your crypto guy
Disclosure: Authors may own cryptoassets named in this newsletter. These are unqualified opinions, and a Coin Bureau newsletter, is meant for informational purposes only. It is not meant to serve as investment advice. Please consult with your investment, tax, or legal advisor.
Guy is one of the founding members and face of the Coin Bureau. Like many of us, he is just an average joe who became “crypto curious” back in 2013. After recognising the potential of blockchain technology, Guy set off on a mission to create crypto educational content, working with others to start the Coin Bureau website and released our first video on YouTube in 2019. You can learn more about him in his Who is Guy? blogpost.