Dedication That Rewards In Crypto Investing
I spent many years in the business world running businesses and sometimes managing as many as 60 staff members. Extreme dedication and long, exhaustive hours were the order of the day. When I look at my reward for dedication in the crypto realm compared to my past, it pales in comparison. I am sure you can guess which one outshines the other. However, much of this has been largely thanks to market cap expansion.
Crypto has been extremely rewarding, and even if the market were to collapse completely, I would still be ahead. This reality has been instrumental in forming my conviction to be absolutely committed to this market, regardless of price. Regardless of immediate price levels, this industry has potential upside for decades to come. Ideas such as DeFi, RWA, and tokenization are just getting started. The true advancement and development are yet to come!
One of the reasons for that is not only what I have just mentioned, but also the approach of relevance regardless of market conditions. For many, when a bear market strikes, crypto becomes irrelevant, and they hibernate like true bears. During the last multi-year bear market, I started developing strategies to benefit from them. In my thinking, if I could not ensure gain in all market conditions, then I was not making the most of the opportunity.
Why Conviction Matters In Crypto Investing
Many investment decisions are made every day, and are actually void of any true conviction. How can I say that? Essentially, conviction results from extensive research, which is something very few investors do. True unwavering conviction is simultaneously the validation that effective and thorough research has taken place and a strong indicator of future success.
Furthermore, the market will ultimately challenge your investment decision or thesis. Nothing goes up in a straight line, and bear markets are part and parcel of the investment journey. These can be incredibly brutal, causing many to abandon their investment ideas. Let’s just be clear, even good investment decisions are often tested by the market. It’s not indicative of failure. However, conviction is required to continue.
Why Most Investors Lose Conviction During Bear Markets
Bear markets have a way of thinning the herd; investors throw in the towel, crypto-related Google search queries fall off a cliff, and the media is quick to point out the market’s increasing downside. For too many, this is too difficult to deal with; abandoning the market at least gives them some closure, with many vowing never to return. This, unfortunately, is far too common.
As mentioned, the appropriate conviction is needed to stick it out. Harsh market conditions, compounded by accelerating losses, push many inexperienced and newcomer investors out of the sector. Even conviction rightly attained can fall prey to the brutality of a Crypto Winter. This is why finding ways to stack additional sats at no investment cost is imperative.
How Does Binance Support The Crypto Industry?
This ultimately led to the development of numerous passive crypto income systems. I have really tried to drive this point home to my readers, as it is truly the most powerful aspect of crypto, especially as what is earned in a bear market generally increases dramatically in value over time. I recently viewed an interview in which CZ of Binance stated that the earnings generated on the platform are held indefinitely in the currency they were received in.
This is a very good move, at least in a bear market anyway. Passive crypto income ensures that new crypto is added to a portfolio each day, which is a fantastic way to offset losses, as no personal allocation of funds is required. A portfolio that is growing, even if only in coin holdings without further allocation, is actually what many would consider pretty amazing.
The Truth About How Easy Crypto Really Is
The reality is that this is a lot more attainable than some may think, and once you begin examining ways to achieve this goal, you realize how truly dynamic this approach is. Perhaps it is just me, but passive income has always excited me tremendously, while simultaneously stirring up the drive and motivation to achieve as much as I can. You can always choose to work harder towards your passive income goals, but even if you do nothing, the money is still coming in.
This is why I often ignore price when it comes to the bigger picture of my own strategy. In my thinking, losses in a bear market will be offset by building more and more mechanisms. Fresh daily income does not lose value and can be converted to stablecoins if prices are expected to edge lower over the next period. Those stablecoins can also be used to earn even more passive income. The opportunities and creativity of this idea are almost limitless.
Keep Your Head Down & BUIDL (Crypto Builder Mindset)
Being motivated to keep building regardless of price or market conditions is an extremely powerful distraction. It can also be the most rewarding decision you may ever make in the crypto world. My most meaningful gains have not come from price speculation but from building positions in certain projects despite the price or any other metric, and then just HODLing. I enjoy working towards a goal. Building and developing a certain investment/mechanism is very rewarding and a challenge I always welcome.
This is not only rewarding from a financial point of view, but it is also great to start something from scratch and watch it grow as you dedicate your time and effort.
When Should Conviction Give Way To A Change In Strategy?
This is a very important aspect to address because, though the conditions might be rare, they are worth being aware of. If a project experiences a crucial setback in its roadmap, utility, or relevance in a fast-paced, narrative-driven space, reevaluation is a reasonable option. Apart from these conditions, downside and dire conditions are often just the natural effects of a bearish season. There needs to be validation regarding a shift in strategy.
Final Thoughts
If the market continues to slump and we find ourselves slap bang in the middle of another bear market, use the opportunity to apply yourself and build something for the future. I do, however, believe that this is unlikely, though we may visit $40K; you never know. Most only look for opportunities in a bull market, but opportunities exist everywhere; you need to find them.