Knowledge Creates Power

Many investors desire to speed up their journey to wealth. This often results in failure and even utter destruction. This is also at the heart of the FTX failure. Had SBF chosen to grow the business he had, as opposed to creating an illusion of wealth, he would have done really well over time. Even though there are no shortcuts to wealth, there are ways to legitimately “speed up” the process. However, this will once again demand effort and dedication.

Isn’t it funny how “effort and dedication” are always present when it comes to reaching a goal, or some level of success? This is rather ironic, as those who refuse to learn and develop an understanding of TA, and markets in general, are in essence actually avoiding their own success. The years that are wasted throwing money at altcoins and wild speculation are lost years that generally tend to yield very little fruit.

However, a dedicated student is soon making headway and accelerating along the path to wealth. Someone who has a relatively sound grounding in market dynamics and technical analysis is able to create a form of synergy in their investment approach. The average Crypto investor only practices two disciplines/approaches.

• Dollar-cost averaging
• Hodling

So what happens when the market turns bearish? Furthermore, what happens when the market just edges sideways over prolonged periods of time? Best case scenario: There is no portfolio growth. Worst case scenario: The portfolio depreciates in value. Fair enough, investment is a process that requires time to mature, I understand that. However, there are ways to enhance the process.

The Double Whammy

A skilled trader is able to add an additional step to the investment process. Instead of averaging into investment opportunities straight off the bat, a trader can begin leveraging capital. In this way, he can begin allocating profits into hodl positions. While the DCA investor is sitting on idle capital, the trader is utilizing profits for DCA allocation, while making use of the initial capital to generate more capital for investment.

This creates a form of synergy, ultimately speeding up and enhancing the investment process. It’s a similar idea that motivated my passive income endeavors. In both scenarios, I am able to generate new capital for investment purposes. This ultimately helped me to invest in high-risk/reward altcoins. If the investment capital is in essence “free money” then I can’t really lose, can I?

Establishing these dynamics in practice allowed me to become more adventurous, and ultimately removed much of the risk involved in the altcoin market. This too is similar to what I mentioned in my recent post, “Hive – A Level Of Defense”.

It’s going to cost you something. However, with Hive, money is removed from the list. You can enter the Crypto space, begin accumulating and leave your wallet out of the equation. It’s an unparalleled opportunity, in my opinion.

Holdings that are acquired outside of a purchase, ultimately carry no risk. Allocating trading profits for investment purposes produces additional capital, as the initial capital is being utilized as trading capital.

Final Thoughts

If you enhance your investment strategy with additional work and knowledge, it’s not a shortcut! It’s a smart move. There’s a difference. Shortcuts are not only pertinent to speeding up a process, but also avoiding effort. Arriving sooner than expected at your destination by working smarter and harder is commendable, not a shortcut.