Why Is Adjustment Important In Crypto Investing?
I don’t think even the most bullish of us crypto enthusiasts could have imagined what we have seen unfold in the last 2 years. It has been amazing but also very troubling. In many ways, Bitcoin and crypto have flourished amid the chaos and unraveling of governments, economies, and society. Unfortunately, this is way more likely to get worse in the coming days.
Fortunately, we do have this asset class as a silver lining! However, simply having something available is very different from actually benefiting from it. There are many individuals who have worked hard in this industry and have already enjoyed significant success, many even life-changing success.
There are also those who have noted the tremendous potential and even spoken about it on numerous occasions, yet made no real effort to build something that can continue to contribute to their lives and their families’. That’s where the difference lies. Adjustment requires action.
What Does “More Than A Foot In The Door” Mean In Crypto?
As the craziness accelerates, so will the case for sound and hard money like Bitcoin. This is when you already want to have more than a foot in the door. You want to be well immersed in, involved with, and exposed to this rocketing sector. Once a technology advances to a point, there is no turning back. It would literally be considered unthinkable.
We are already past that point! I would go as far as to say that anyone not exposed to crypto in some way now is basically gambling with their future. That might sound a bit excessive, but not in light of what we have already witnessed since 2020! This is not financial advice but simply my perspective and how I envision the future.
Investors Are Inferior To Builders (Here’s Why)
An investor is generally quite troubled by a market sell-off, as we witnessed over the past weekend. He has put his hard-earned capital to work and does not want to see it depreciate. A builder does not sit in the same boat. Sure, nobody enjoys seeing value evaporate, but a builder is holding an ace up his sleeve. Builders have mechanisms, models, and even businesses that are constantly generating crypto.
While a market crash may cause the average investor to lose value, a builder is seeing new value being added, which can offset losses quite significantly. This new crypto income is coming in at lower levels, which, in many cases, also secures more satoshis, ultimately making it more valuable as prices appreciate.
This Is The Boat You Want To Be In (Crypto Opportunities)
It makes perfect sense that this would be the first prize. This is the best position to be in! This is made possible by passive crypto income, which initially requires significant effort. Most passive income streams require initial effort and time to build up. Yes, some avoid this step because they already have significant capital to put to work, but they are a minority. The opportunities available in the crypto space make this opportunity available to pretty much anyone. If you haven’t started building an economic construct, there is never a better time than now!
The Breakdown Of Trust In Traditional Banking Systems
For the most part, especially in the First World, the banking system is relatively safe despite the 2008 crisis and a few other incidents over the past few decades. However, in smaller countries, such as Lebanon, the banking system is barely functional. Furthermore, even if a particular banking system remains perfectly functional, many national fiat currencies are being debased at an alarming rate.
If you understand fiat currencies, you will know that this is the tendency. However, the rate at which it happens is a different story. Accelerated currency debasement is one of the leading reasons citizens shift to Bitcoin and other crypto alternatives. This is analyzed in another article, if you are interested. Essentially, in certain parts of the world, the public has very little trust in the banking system.
You might be aware of what took place in Greece several years ago. Bank account holders were allowed only a very small minimum withdrawal amount, making it very difficult to cover their living costs. This is another reason why crypto is considered a gift in troubled times by people around the world. Essentially, both have risks. However, the greatest risk is losing access to, or even worse, losing one’s capital.
It is this underlying fear that leads many to opt for a crypto alternative despite market volatility. They feel safer knowing they have access to their funds. Many consider a drop in value better than losing their assets outright. Furthermore, crypto asset prices can appreciate, making their move not only a matter of necessity but also an investment decision.
The Psychology Of Holding Assets Outside The Banking System
Cryptocurrencies are fairly well-regulated in most jurisdictions, which, to some extent, makes them part of the TradFi ecosystem. However, unlike traditional currencies and stock investments, crypto can be stored without a custodian such as a bank, exchange, or investment service. This reinforces the idea of holding crypto, especially during difficult times, particularly regarding the macroeconomy.
If your assets are stored in the traditional banking system, there isn’t much use in hedging your investments with tokenized alternatives unless they are held in a non-custodial wallet such as Trezor or Keystone. These are hardware wallets that not only provide self-custody but also a layer of protection by being cold wallets, which essentially store coins and tokens offline, making them much less susceptible to risk.
Why Bitcoin Still Has Limitations (Even In 2026)
Many will choose Bitcoin as an alternative, and they are correct to do so. However, you need to understand that Bitcoin is generally a long-term investment vehicle, meaning holders can suffer losses over a 1 – to 3-year period. Historically, Bitcoin has provided decent returns over 4- to 5-year periods, or even longer. It’s important to understand that although self-custody can be achieved, risk is not completely eradicated.
Final Thoughts
Make the most of the opportunity, especially while the prices are under pressure and at significantly lower levels. As I mentioned in a recent article, bearish trends are perfect for builders. It’s like building a house while the building materials are cheap. You don’t want to build a house when the price of materials is going through the roof. Thanks for the visit, all the best on your crypto journey!