Module 3: INVESTING
Cryptocurrencies and Digital Assets are going to change the world but more importantly they can change you bank account (both positive & negative)! In this module I'm going to share with you EVERYTHING I wish someone had told me when I started on my journey.
Estimated time to complete
2 hours 46 minutes
Difficulty Level
Intermediate to Advanced
WHY SHOULD WE INVEST?
Q: SO...Why Should We Invest?
A: Honestly, it really comes down to your personal motivations and needs to invest. In this video I talked about why it is for me but that is not the ONLY reason. Basically, it comes down to YOU and what you feel is right for you and the people around you including friends and family.
NOTE: Chewy passed away on December 23rd, 2022 after battling lymphoma for over a year. This video is dedicated to my best friend. I miss you buddy.
MY GOLDEN RULES
Q: Is EVERYTHING a Scam?
A: Probably not EVERYTHING but if you treat all things as a scam FIRST and only accept them when you have VERIFIED, you'll be a MUCH happier person (because you won't lose your crypto!).
Video Time Stamp: 02:01 - 2:50
Q: Do Certain Exchanges Get a PASS?
A: NO! You should take AS MUCH OF YOUR CRYPTO OFF EXCHANGES as you can and as time permits. Just because you may like an exchange and how easy it is to use does NOT mean you should leave your crypto ON the exchanges. I may leave SOME (3% or less) but NEVER ALL.
Time Stamp: 5:02 - 8:38
Q: Whats the FASTEST Way to GO BROKE?
A: Trading using LEVERAGE. You might do well a couple of times or even ten times but mark my words - trading on leverage is writing checks your body can't cash. It's only a matter of time.
Time Stamp: 10:02 - 12:13
THE 80/20 RULE
Q: WHY are the ALL TIME HIGHS and LOWS important?
A: Who cares about any of this? I do, and you should, too.
We know these prices can get low which is why. i cannot stress enough the benefits of dollar-cost-averaging. When we go THIS low, it's time to start taking PROFITS! How much you say? Around 80% of your portfolio - but you hang on to that 20% for when the bull hits
Video Time Stamp: 04:27 - 05:08
Q: During ALL TIME LOW periods, is it a good idea to DCA/lump sum/Dynamic DCA?
A: Yes! This is that other 20% - the portion you keep in your portfolio to keep accruing your asset of choice
Time Stamp: 8:35- 10:07
Q: What do we do with the projects that come out of nowhere and do well?
A: Don't let yourself be enchanted by the shiny new objects! Just because they reap sucess early on, doesn't mean they'll last
HOW TO TURN $1K INTO $10K
1. As of September of 2023, where are we in the Bitcoin four year cycle ?
A: The RESET year
Q: Do you need thousands of dollars to invest into bitcoin?
A: NO! In our example, we showed what investing $5 a month into bitcoin can turn into in a couple year’s time
Q: 3. Are you still early?
A: YES! Mass adoption STILL hasn’t happened. Institutions can’t even get Spot ETFs. You are still early.
VALUABLE LESSONS FOR INVESTING
Q: The BEST lessons come from...?
A: Our failures. I know at times it can be a tough pill to swallow, but the fact of the matter is that. we become better investors, smarter investors, when we learn from our failures.
Q: What was the biggest take-away from the collapse of Mt. Gox way back in 2014?
A: GET YOUR CRYPTO OFF EXCHANGES ASAP!
Even from Bitcoin's early years, we learned that through fraud, hacks, and loose security protocols, exchanges cannot be trusted to safely host your crypto.
We, subsequently, have since endured the collapse of Celsius, Voyager, FTX, BlockFi...who knows who's next?
In order to keep your crypto safe, I recommend looking into a Nano Ledger. It's a cold storage wallet meaning it is NOT connected to the internet, so no one but you has access to the crypto data it holds. Secure link will be under the video for you to check out.
RISK
Q: What THREE words can help you assess RISK?
A:
WHAT (what is the worst case scenario?)
WHO (who is this going to affect?)
SQUEEZE (is the juice worth the squeeze)
Video Time Stamp: 01:56 - 2:50
Q: WHO determines the level of risk?
A: YOU! Your unique financial situation is different from everyone else's! If putting $20 a week into bitcoin is a huge deal for you, your risk assessment (WHO, WHAT, SQUEEZE) will look different from those how are unaffected by the loss of $20 weekly.
Time Stamp: entire video
Q: Does NOT investing pose a RISK?
A: YES!
That is due to the diminishing purchasing power of the dollar! Every year dating back before the 1970s, the USD has steadily lost what is can purchase, however, with crypto investing, THE INVERSE IS TRUE. Despite the volatility, what you could have purchased with a bitcoin back in 2011 versus right now is far greater!
Time Stamp: 05:30 - 08:39
WHEN TO BUY LESS / MORE OF BITCOIN & CRYPTO
Q: When starting at the base column, how do I determine when to buy/sell?
A: When we slide right, sell (more risky times)
When we slide left, buy (less risky times)
Q: Is there a possibility that Bitcoin can go to 0?
A: Yes. Never, ever invest more than you can afford to lose
Q: WHY Dollar Cost Average (DCA)?
A: It minimizes risk AND allows you to buy dips in the market instead of dumping into a project all at once (where it MAY or MAY NOT be a good time).
Video Time Stamp: 04:23 - 06:03
Which crypto is the SAFEST bet in the crypto asset class?
A: BITCOIN! Always Bitcoin
Q: What do you do if a specific crypto is in a risk band you don’t like?
A: Simply look at other cryptos and decide then if it’s the right time to a. Diversify your coins and b. If there are better buys out there
WHY I DOLLAR COST AVERAGE (DCA)
Q: WHEN do people USUALLY want to invest?
A: People USUALLY (not always and not everyone) have a mentality that they want to invest when the price is going UP. They don't want to invest when the price is falling and this is a mistake.
Video Time Stamp: 01:45 - 2:00
Q: How do you know when the market is at the TOP or at the BOTTOM?
A: You don't and you never will. Anyone pretending that they can tell you when the market price of an asset is at the absolute top or bottom is lying. We can make educated guesses but no one knows.
Video Time Stamp: 02:01 - 02:23
Q: WHY Dollar Cost Average (DCA)?
A: It minimizes risk AND allows you to buy dips in the market instead of dumping into a project all at once (where it MAY or MAY NOT be a good time).
Video Time Stamp: 04:23 - 06:03
Q: WHEN is ALL the money made?
A: Money is made when things are BORING and nothing is really going on. Day traders will disagree but for an INVESTOR you want to get in EARLY when the price is LOW and buy when NOBODY is paying attention. 99% of people do NOT do this and it's why YOU will be successful.
Just make sure you pick a project that has a real use case with a solid team and track record (see the "Do Your Own Research" video in MODULE 4.
Video Time Stamp: 08:40 - 09:00
Q: What is the difference between Dollar-Cost-Average and Dollar-Value Average?
A: Dollar-Cost-Average or DCA is where you buy an asset (like Bitcoin) at regular intervals. Instead of using ALL your money on ONE purchase, you spread it out over months (or in my case, YEARS). This assures an AVERAGE lower cost OVERALL to you.
Value-Cost-Average is pretty much the same thing BUT when the cost of an asset goes DOWN you can increase or decrease the regular amount you put in.
Video Time Stamp: 06:09 - 09:00
Q: How many days in a ONE year Time Frame does Bitcoin generate ALL of its profits?
A: 10 days! That's it! If you miss these 10 days you miss out on essentially ALL the BIG profits. HOLD your crypto!
HODL - Hold On for Dear Life!
Video Time Stamp: 11:21 - 13:12
THE 4 YEAR CYCLES & WHY THEY'RE RELEVANT
Q: WHAT are the 4 year cycles based on?
A: Scarcity from the Bitcoin Halving. Every 4 years BTC becomes more scarce which pushed investors into a frenzy and then causes massive sell offs.
TIME: 1:02 - 3:22
2024 / 2025 BULL RUN EXIT STRATEGY *NEW!*
Q: Can we precisely call the cycle top/bottom?
A: People USUALLY (not always and not everyone) have a mentality that they want to invest when the price is going UP. They don't want to invest when the price is falling and this is a mistake.
Video Time Stamp: 01:45 - 2:00
Q: Is the 4 year cycle still valid?
A: People USUALLY (not always and not everyone) have a mentality that they want to invest when the price is going UP. They don't want to invest when the price is falling and this is a mistake.
Video Time Stamp: 01:45 - 2:00
CYCLE TOP CALLERS
Name: Pi Cycle Top
Cycle Top Precision: 9
Name: Net Unrealized Profit Loss (NUPL)
Cycle Top Precision: 7
CYCLE BOTTOM CALLERS
Name: MVRV-Z Score
Cycle Bottom Precision: 9
Name: 2-Year MA Multiplier
Cycle Top Precision: 8
Name: Puell Multiple
Cycle Top Precision: 6-7
WHEN & WHY I'M SELLING 80% OF ALL MY CRYPTO.
Q: _____ in the market in more important than ______ the market.
A: TIME in the market is more important than TIMING the market.
History is going to be your greatest indictor when deciding to sell or buy. The longer you watch and analyze the market, the better your buys and sells can be.
TIME: 2:22 - 3:22
Q: How can you define YOUR investor type
A: Ask yourself the following:
1. How long do I want my investments to grow?
2. What are my financial goals?
3. Do my finances affect others?
4. How much am I willing to risk?
🚨Know your EXIT before your ENTRY🚨
TIME: 3:23 - 5:06
Q: How can we decipher the PI CYCLE TOP chart?
A: The Pi Cycle top essentially calls the tops of the bull runs for bitcoin almost to a T. It uses the 111 day moving average and the 350 day moving average and where the two lines intersect, it coincides with the price of bitcoin PEAKING.
What this shows us is the four-year cycle. And when we reach the top of the four-year cycle, I will be selling 50% of my crypto.
Remember, everything with the Pi Cycle Top happens AFTER the average bitcoin price is determined for that day.
TIME: 11:45 - 19:46
12/29/2022 - WHAT & WHY I CONTINUE TO BUY.
THE INVESTOR MINDSET (w/Anthony Scaramucci)
Q: Were the investors in Anthony's fund enthusiastic about investing in Bitcoin?
A: No! Sometimes you have to grab people by the face mask and make them listen to solid advice. With time, good investments are revealed.
TIME: 1:02 - 3:22
Q: How much money has been saved in El Salvador for using Bitcoin as remittance payments?
A: According to Anthony it has been >400 Million dollars as opposed to using Western Union to send money back to El Salvador from Ex-pats.
TIME: 3:48 - 5:06
Q: How many times has Amazon lost 50% of its value? 90% of its value?
A: Amazon lost 50% of its value 8x and 1x it lost 90% of its value! Early technology is HIGHLY volatile but can have a MASSIVE upside (not all, but some).
TIME: 5:08 - 9:46
Q: What does Anthony & Ray Dalio recommend as a PERCENTAGE of allocation for Bitcoin?
A: Ray Dalio says 1-2% as a conservative measure. Anthony recommends 3-5%. However, it's important to note that this all revolves around YOUR goals and risk levels. Talk to your financial advisor.
TIME: 11:12 - 13:03
THE INVESTOR MINDSET: THE STOCKDALE PARADOX
Q: At the end of the day, which type of person "didn't make it out as STRONG"?
A: The Optimist
Q: What is the biggest DIFFERENCE in OPTIMISM and SECURITY OF OUTCOME?
A: Optimists find themselves in cycles of hope and disappointment that lead to them to die of a broken heart
Those secure in their faith to prevail have the ability to see the hard truth, the hard facts, and face them. They KNOW they can persevere.
Q: "We are not getting out of here by ______"
A: Christmas
SO, YOU WANNA BE A BITCOIN MILLIONAIRE?
Q: What's the Big Crypto Change of 2021?
A: Taxes! Be sure to accurately fill out your 1040 (IRS ONLY) form for those of you who have purachesd crypto and if you're a US citizen.
Q: What's the best thing you can do when making lots of money?
A: Find your sense of purpose. If you act rashly, your hard earned investments, all that time in research and DCA-ing will be for nothing. It's never a good idea to blow your money way. Take care of yourself first, then pursue your passions!
Check out my blog posting on this topic exactly. Learn from my mistakes and the mistakes of others.
BLOG - https://danteachescrypto.com/when-money-is-not-an-issue/
BEST INVESTING ADVICE (I've EVER Heard)
Did Peter Lynch Know The Future?
Absolutely NOT and it's the prime reason why he didn't stress about the daily, weekly or even monthly volatility.
Time IN the market is more important
than TimeING the market.
HOW I PAY ZERO IN CRYPTO ASSET TAXES
Q: It's not what you MAKE, it's what you ______?
A: Keep! It doesn't matter if you make 10 million dollars in crypto assets. If you have to fork over to the government 25-45% that's a HUGE CHUNK you're giving up!
Q: What is the difference between SHORT and LONG term capital gains?
A: You've got 2 flavors of capital gains taxes:
1. SHORT Term Capital Gains are any gains you've made after selling your position in UNDER 1 years time. Ex. You buy Bitcoin at 10k in May, 2020 and it goes up to 11k in June 2020 and you sell it for a profit of $1,000. This means you'll pay taxes on that $1,000 profit you made in under 1 year and you'l be taxed as a SHORT Term Capital Gains Rate.
2. LONG Term Capital Gains are any gains you've made after selling your position in OVER 1 years time. Ex. You buy Bitcoin at 10k in May, 2020 and it goes up to 25k in June 2021 and you sell it for a profit of $15,000. This means you'll pay taxes on that $15,000 profit you made and you'll be taxed as a LONG Term Capital Gains Rate.
NOTE: There are FEDERAL Capital Gains and STATE Capital Gains taxes so BE AWARE!
Q: WHEN do you pay taxes in a TRADITIONAL IRA?
A: PRE-TAX! This means that you put money into your IRA BEFORE you pay taxes from your job or business. This means you will then have to pay taxes on WHEN you start withdrawing at age 59 1/2 (or whenever you start withdrawing).
Video Time Stamp: 09:23 - 09:55
Q: WHEN do you pay taxes in a ROTH IRA?
A: POST-TAX! This means that you put money into your IRA AFTER you pay taxes from your job or business. This means you will NOT have to pay taxes on your crypto asset GAINS WHEN you start withdrawing at age 59 1/2 (or whenever you start withdrawing).
Q: Which types of IRA's can do a ROLLOVER into a CRYPTO IRA?
A: Anyone with a Traditional IRA somewhere else or an old employer plan like a 401K, 403B, Military TSP (Thrift Saving Plan) or 457 then YOU CAN MOVE these types of accounts TAX & PENALTY FREE into a same type CRYPTO IRA account.
NOTE: Traditional Regular IRA can move to a Traditional Crypto IRA with no penalty BUT there may be penalties if you move from a Traditional Regular IRA to a Roth Crypto IRA and vice-versa. Talk to the guys at iTrust for options.
HOW TO INVEST IN CRYPTO COMPANIES BEFORE THEY GO PUBLIC
Q: What is LINQTO?
A: Linqto is a private investing company for individuals to access investing opportunities while the companies ARE STILL PRIVATE. In other words, clients can begin investing in a company BEFORE they go public, before they present their IPO
Q: Why did Linqto partner with iTrust?
A: iTrust customers had asked for other investing opportunities in their annual survey. iTrust partnered with Linqto to provide clients with those alternative investing opportunities. According to iTrust, they vetted Linqto throughly and feel they. area company iTrust customers can trust
Q: According to Joe, what is "Smart Money" doing?
A:
1. Allocating the your portfolio to have alternative assets (diversification). He recommends from 25%-50%
2. Investing in the best performing asset class - which right now is PRIVATE TECH companies
THIS ASSET CLASS IS THE ULTIMATE HEDGE (NOT CRYPTO)
Q: WHO can purchase shares of these artworks?
A: EVERYONE! No longer are these multi-million dollar pieces of art exclusive to the ultra-rich. Now, ANYONE can purchase shares of these amazing pieces.
Video Time Stamp: 00:01 - 00:15
Q: What is Masterworks?
A: Masterworks grants holders the ability to purchase fractionalized shares of artworks priced in the millions as an uncorrelated asset.
Video Time Stamp: 3:14 - 3:25
Q: How does Masterworks, work?
A: The great thing?
Masterworks does all the hard work for you!
They find the great artists and artwork, they securitize the artwork, and hold the artwork for 3 to 10 years all the while you can:
1. Allow the painting. to appreciate at an average annual rate of 14% or
2. Sell your shares in the secondary market
Video Time Stamp: 4:10 - 5:06
3 KEY QUESTIONS ON MASTERWORKS
Q: WHO can purchase shares of these artworks?
A: EVERYONE! No longer are these multi-million dollar pieces of art exclusive to the ultra-rich. Now, ANYONE can purchase shares of these amazing pieces.
Video Time Stamp: 00:01 - 00:15
Q: What is Masterworks?
A: Masterworks grants holders the ability to purchase fractionalized shares of artworks priced in the millions as an uncorrelated asset.
Video Time Stamp: 3:14 - 3:25
Q: How does Masterworks, work?
A: The great thing?
Masterworks does all the hard work for you!
They find the great artists and artwork, they securitize the artwork, and hold the artwork for 3 to 10 years all the while you can:
1. Allow the painting. to appreciate at an average annual rate of 14% or
2. Sell your shares in the secondary market
Video Time Stamp: 4:10 - 5:06
DOLLAR COST AVERAGE VS. GOING ALL IN!
Q: WHY Dollar Cost Average (DCA)?
A: It minimizes risk AND allows you to buy dips in the market instead of dumping into a project all at once (where it MAY or MAY NOT be a good time).
Video Time Stamp: (previous video) 04:23 - 06:03
Q: What are the advantages of going ALL-IN?
A: You can make substantially more return on investment IF you time the market right. Didi timed the market very well and had mostly maximum profits for that time frame.
However, if he would have waited and bought when the MAJORITY of people buy (on the parabolic spike in price) then he would have been in a bad position for quite some time.
REMEMBER: Didi bought in to the market slowly from 2013 and then went all in at the BEGINNING of 2017 when Bitcoin was valued at approximately $1,000 per BTC. If he would've bought at the HIGH of 2017, it would have been at $19,680.
Video Time Stamp: 00:10 - 02:05
Q: What are the disadvantages of going ALL-IN?
A: You can get "stuck at the top" meaning if you buy in at the TOP of the market and then the market drops by 20-50% (in crypto this can happen!) then you have lost HALF of the value of your portfolio...sometimes in less than 24 hours!!
This video was recorded on11/24/2020 when the Crypto market had reached an All Time High for the last 3 years and Bitcoin was at $19,280.
It is now only 4 days later (11/28/2020) and the Bitcoin price is at $16,898! This is bad news if you went all in but GREAT NEWS for someone who Dollar-Cost Average's!!
Video Time Stamp: 02:06 - END
CRYPTO 4 YEAR CYCLES PLUS ALTERNATIVE DCA
Q: WHY Dollar Cost Average (DCA)?
A: It minimizes risk AND allows you to buy dips in the market instead of dumping into a project all at once (where it MAY or MAY NOT be a good time).
Video Time Stamp: (previous video) 04:23 - 06:03
Q: What are the advantages of going ALL-IN?
A: You can make substantially more return on investment IF you time the market right. Didi timed the market very well and had mostly maximum profits for that time frame.
However, if he would have waited and bought when the MAJORITY of people buy (on the parabolic spike in price) then he would have been in a bad position for quite some time.
REMEMBER: Didi bought in to the market slowly from 2013 and then went all in at the BEGINNING of 2017 when Bitcoin was valued at approximately $1,000 per BTC. If he would've bought at the HIGH of 2017, it would have been at $19,680.
Video Time Stamp: 00:10 - 02:05
Q: What are the disadvantages of going ALL-IN?
A: You can get "stuck at the top" meaning if you buy in at the TOP of the market and then the market drops by 20-50% (in crypto this can happen!) then you have lost HALF of the value of your portfolio...sometimes in less than 24 hours!!
This video was recorded on11/24/2020 when the Crypto market had reached an All Time High for the last 3 years and Bitcoin was at $19,280.
It is now only 4 days later (11/28/2020) and the Bitcoin price is at $16,898! This is bad news if you went all in but GREAT NEWS for someone who Dollar-Cost Average's!!
Video Time Stamp: 02:06 - END
Q: How do you combine ALL-IN and DCA approaches (Didi & DAN)?
A: Take a lump sum of your own cash that is dedicated to just investing in crypto and use that to calculate your DCA without the risk of losing you all of your assets.
EXAMPLE: $6,000 lump sum and spread it out over a limited time frame:
Day 1: $1,000
Day 15: $1,000
Day 30: $1,000
Day 45: $1,000
Day 60: $1,000
Day 75: $1,000
TIME STAMP: 09:28 - END
Puerto Rico & NO Taxes (1 Year UPDATE!)
CLICK HERE FOR ALL LINKS
Act 60 - https://www.ddec.pr.gov/wp-content/uploads/2019/12/Codigo_de_Incentivos.pdf
ACT 60 bill - https://www.ddec.pr.gov/images/Ley_60-2019.pdf
ABOLISHACT60 Article - https://time.com/5955629/puerto-rico-tax-haven-opposition/
PR U.S. DATA - https://data.census.gov/cedsci/profile?g=0400000US72
Texas U.S. Data - https://data.census.gov/cedsci/profile?g=0400000US48
P.R. moving out because of no jobs - https://www.nbcnews.com/news/latino/puerto-rico-s-exodus-doctors-adds-health-care-strain-dire-n783776
VET CONDADO - https://www.hvc73.com/ VET CONDADO Email - GabrielTheVet@gmail.com
$10,000 Non-Profit List - https://www.impactocomunitariopr.org/news/listado-ley-60-2021-2022
ProTechos (Roof Building Non-Profit) - https://protechos.org/
Holberton Coding School - https://www.holbertonschool.com/campuses/puerto-rico
Holberton Student Non-Profit - https://scholarship.holbertonschoolpr.com/
RELOCATION SERVICES:
HANDS-OFF "WHITE GLOVE" APPROACH - http://www.aponte-parsi.com/
HANDS-ON APPROACH - https://relocatepuertorico.com/services/
RESOURCES - https://relocatepuertorico.com/resources/
LEARN SPANISH WITH PRIVATE TUTORS! - https://preply.com/en/?pref=NTI3NTQyNw==
LEARN SPANISH BY LISTENING TO CRYPTO YOUTUBERS EN ESPANOL - https://www.youtube.com/channel/UCNl17_U5cZ_dyAgGEpAJavA
HOUSING/PROPERTY
Scratch & Dent - (939) 244-0769
Ikea MAIN - Santa Rosa Mall, 1455, 402 Av. Aguas Buenas, Bayamón
FIND A HOME - https://www.clasificadosonline.com/RealEstate.asp
REAL ESTATE AGENT BRENDA SOTOMEYER - https://iconicrealtypr.com/
REAL ESTATE AGENT (Investment Properties) - Victor Alonzo - Victor2011PR@gmail.com
The Digital Dollar - WILL CBDC's TAKE OVER?
Q: What is the Digital Dollar?
A: It would function similarly to fiat currency and cryptocurrency. The biggest difference would be the wallet you need to use.
Time Stamp: 3:12 - 5:18
Q: What is the difference between the Digital Yuan and the physical RMB?
A. They're basically the same thing. They function the same way, with the exception of a few subtleties.
Time Stamp: 11:07 - 12:08
The BOT Effect
Q: Remember: Time in the market is better than ______
A: Timing the market.
Your long-term plays will better help you to decided how you manage your own portfolio
Sell in May and Go Away - 2023 Update
Q: Why is this strategy NOT a good idea?
A: In the last 13 years of crypto, there have only been 5 years where the market took a downward turn. The simple answer: this strategy has INCONSISTENT data
Q: Statistically, what is the WORST month for crypto?
A: September!
Q: So, Give it to Me Straight. What's the Conclusion?
A: For most investors, just stay. Stick around. The summer months are notoriously green and have a higher probability of yielding better returns
Q: Is this Financial Advice?
A: No, of course not! Always choose to be a well-informed investor and make decisions that best suit your personal needs and goals, always.
ABOUT
The Top cryptocurrency and digital asset news...in bite-sized pieces. Channel is for entertainment purposes only. I’m not a financial planner, or a financial analyst or anything to do with finances. I’m just a small business owner who firmly believes in cryptocurrency and digital assets.
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