sport football: Don’t be the Weak Hand at the Table

July 12, 2024 | Read Online

Don't be the Weak Hand at the Table

Right now, the crypto market seems completely irrational.

Despite the strong fundamentals behind it, we've seen bitcoin drop as much as 25% over the past month. That's the biggest drop since the 2022 bear market.

This current bout of volatility is shaking out the "weak hands."

Weak hands are investors who flee their positions in the face of volatility. When they see down days putting a dent in their profits, they panic and run for the exits.

I should know because I was once one of them.

In 1994, I was a young and inexperienced investor. But I knew computer stocks were the future. So I took positions in Microsoft and Oracle.

I bought these names in 1991 when they traded for the split equivalent of pennies.

But boy, did I sell way too early…

In 1994, the Federal Reserve vaporized my tech investments when it raised interest rates five times from a low of 3% to a high of 6%.

When the Fed raises rates, riskier assets like tech stocks drop in price.

And when the Fed doubled its key interest rate, the tech-heavy Nasdaq dropped about 14%.

High quality stocks like Microsoft and Oracle fell as much as 28% and 30%, respectively, during this period.

My research still suggested tech stocks had a long way to go in their respective adoption cycles of home computer ownership and internet adoption.

But I was young and inexperienced.

So despite my research telling me to hold on to these stocks, I did what young and inexperienced investors do: I panicked and sold my shares at their lows.

My mistake was that I confused short-term price volatility with a long-term change in fundamentals.

I wish I could go back in time and teach the young me that lesson… Fortunately, you can learn from my mistakes.

Don't Be a Weak Hand – Take Advantage of Them

Since I started recommending bitcoin back in 2016, I've always warned that crypto is the most volatile asset you'll ever own.

There are some mornings you'll be down 50% – even on no news – and feel like vomiting all over your keyboard.

This type of violent volatility shakes out the weak hands.

These are the people who constantly buy into strength and sell into weakness.

What's so sad about these weak hands is they ignore crypto's long-term adoption story and instead act on emotion – like I did with my tech stocks in the 1990s.

Today, I'm grateful for the weak hands. My readers have been taking advantage of their panic response for years.

We saw this back during the 2023 banking crisis… When bitcoin plummeted from a high of $24,915 in February to a low of $19,873 on March 10.

While everyone was panicking, I sent a special video update to subscribers of my flagship cryptocurrency newsletter telling them to take advantage of the weak hands.

Here's what I said back then:

These opportunistic sell-offs that we're seeing, which have nothing to do with the underlying fundamentals, are great buying opportunities… So what I would suggest is to continue dollar-cost averaging. I've said before that below $20,000, you can put opportunistic capital to work.

As I predicted, not only did bitcoin bottom just below $20,000 on March 10 – less than four weeks after my video… it blasted past $30,000.

Anyone who listened to me had a chance to make 52% in just five weeks on BTC.

But it's even worse for weak hands over the long term…

Since I first started recommending bitcoin in 2016, 27 of my crypto picks have jumped at least over 1,000%. No other newsletter editor comes close to that type of success.

But to achieve those gains, you had to sit through some jaw-dropping drawdowns. In some cases, I'm talking about 90% or more.

Take Ethereum (ETH), for example. It's the second-biggest crypto by market cap, only behind bitcoin.

I recommended ETH in 2016 at $9. Since then, it's seen peak gains of 54,103%. That's enough to turn $1,000 into $542,030.

But here's the thing…

While I've helped make more millionaires in crypto than any other newsletter editor in the business… Many of my readers bailed on ETH due the high volatility.

Unfortunately, these weak hands left hundreds of thousands of dollars on the table. And in some ways, I can't blame them.

Just look at this chart of ETH…

You can see how investing in ETH would be like riding a wild bull.

Despite my repeated pleadings to hold on to their ETH… Many weak hands just couldn't handle the volatility and got bucked off.

Friends, I don't want that to happen to you – especially since we're in the first stages of what I believe will be an epic bull market in crypto.

We're Holding a Strong Hand

The lesson you need to learn from my youthful mistake is that if you want to make life-changing gains from an adoption story like internet stocks in the 1990s… You don't throw in your strong hand at the first sign of some weakness.

The same is true for bitcoin.

We've barely begun to scratch the surface of bitcoin adoption as a mainstay asset in investors' portfolios.

A survey of 300 investment firms done by financial powerhouse Northern Trust found only about one-third (33%) of asset managers own crypto. Another one-third said they planned to begin supporting the asset class.

These aren't small asset managers, either. Of the 300 survey respondents, 90% manage more than $10 billion, with half managing north of $100 billion.

According to analysts at private wealth management firm Bernstein, crypto and its underlying blockchain technology could be a $7.5 trillion market by the end of 2025.

This includes everything from tokenizing real-world assets (RWA) on Ethereum to decentralized finance (DeFI) and blockchain games and social media apps.

As this long-term adoption trend plays out, hundreds of millions of new users will come into the crypto ecosystem.

So let me be crystal clear: HOLD ON TO YOUR BITCOIN.

Any sell-off we see won't last long. In my opinion, it'll be a sucker sell-off to shake out the very last of the weak hands.

Instead, I want you to use any pullback as an epic buying opportunity. And right now, I believe the best high-reward setup is in the altcoin market.

As we wrote in the July 3 issue of The Digital Asset Daily, the key to profiting from altcoins is to buy when sentiment in the market is negative and prices are low.

Once bitcoin breaks its all-time high again, we'll see the flow of capital switch from bitcoin to Ethereum and then to the Alts.

That's the natural progression of how capital moves through the crypto markets.

We saw that play out in January 2021. From January to May, bitcoin and Ethereum saw gains of 97% and 366%, respectively. But the average gain of Solana (SOL), Polygon (MATIC), Fantom (FTM) and Binance (BNB) was a mind-blowing 1,756%.

That's enough to turn every $1,000 into $18,557

Last week, I pulled back the curtain on a subsector of crypto coins I believe could deliver as much as a 500x return as this nascent crypto bull market begins to pick up steam.

You can click here to stream the replay. I urge you to watch it as soon as possible if you haven't already. With the market beaten down, this is the perfect time to get into these quality tokens at depressed prices.

To make this even more compelling for you, I'm keeping my special offer of two years of membership for the price of one open. That offer closes at midnight, tonight. So I urge you to act now.

Friends, volatility is never pleasant. If you want to move the needle on your net worth without putting your current lifestyle at risk then volatility is the price of admission.

We tame that volatility with rational position sizing. Those two pillars are the foundation underpinning the approach I've used to transform the financial lives of thousands of people.

Remember, we're still early in this bull market cycle. That means perfect timing isn't that important. As the bull market starts to pick up steam, any price volatility we deal with today will appear irrelevant this time next year.

Let the Game Come to You!

Big T

P.S. As I write this, there's less than 18 hours left before you completely miss out. In less than 18 hours you lose the free year, you lose the huge discount, and you lose first-access to the 53-page 500X Portfolio Report which details my top six coins you can grab today. Do it now before you close this email and forget all about it.