THE 5 CRYPTO RULES THAT SAVED ME MILLIONS.

Summary

The video script discusses five key rules for cryptocurrency investment to avoid significant losses. It emphasizes only investing what one can afford to lose, treating all opportunities as potential scams until proven otherwise, not trusting anyone including the speaker, avoiding leaving crypto on exchanges, and never using leverage. The speaker also stresses the importance of taking profits along the way, as no one ever went broke doing so. The script provides examples of common scams, the risks of altcoins versus Bitcoin, and the importance of cold storage. It concludes by highlighting the temporary nature of digital assets and the enduring value of health, family, and peace of mind.

Takeaways

• 💡 Diversify investments and only invest what you can afford to lose, as the cryptocurrency market is highly volatile.
• ⚠️ Be cautious of scams; treat every opportunity as a potential scam until proven otherwise, including emails and AI-generated offers.
• 🔒 Avoid leaving your cryptocurrency on exchanges due to the risk of hacks and loss of funds.
• 🚫 Refrain from using leverage as it can lead to significant losses if the market moves against your position.
• 💰 Take profits along the way to secure gains and avoid the pitfalls of FOMO (Fear of Missing Out).
• 📉 Recognize that altcoins can go to zero, unlike Bitcoin, which has historically recovered from major slides.
• 📈 Be aware of the difference between Bitcoin's value fluctuations and the permanent loss of value seen in many altcoins.
• 🤔 Question public statements and predictions about cryptocurrency prices, as they often do not align with private actions.
• 🏦 Understand that using Bitcoin for goods and services currently has limitations due to high transaction fees.
• 📊 Learn from past mistakes and apply them to future investment decisions to avoid repeating the same errors.
• 👀 Always double-check wallet addresses and consider sending a test transaction to avoid costly mistakes.

Q & A

What are the five rules mentioned in the video for investing in crypto and digital assets?

The five rules are: 1) Don't invest more than you can afford to lose. 2) Treat everything as a scam until proven otherwise. 3) Don't trust anybody, not even the speaker. 4) Don't leave your crypto on exchanges (0% exchanges). 5) Don't use leverage and take profits along the way.

Why is it advised not to invest more than you can afford to lose?

It's advised because the crypto market is highly volatile, and there's a risk of losing the entire investment. It's important to only invest what you're prepared to lose without it impacting your financial stability.

What does the speaker mean by treating everything as a scam until proven otherwise?

The speaker is emphasizing the importance of skepticism in the crypto space due to the prevalence of scams. One should verify the legitimacy of opportunities, projects, and communications before engaging with them.

Why should you not trust anyone, including the speaker, when it comes to crypto investments?

The advice is based on the principle of personal responsibility for one's investments. It's crucial to do your own research and not rely solely on others' opinions or advice, as everyone has different perspectives and agendas.

What is the reasoning behind not leaving crypto assets on exchanges?

The reasoning is that exchanges can be hacked or face operational issues, as exemplified by historical events like the Mt. Gox hack. Keeping crypto assets in personal wallets or cold storage is considered safer.

Why is using leverage in crypto trading discouraged?

Leverage can amplify both gains and losses. The speaker discourages it because of the high risk of losing significant amounts of money or even one's entire investment due to market volatility.

What is the significance of taking profits along the way in crypto investments?

Taking profits along the way helps to secure gains and reduce the risk of losing everything if the market turns against the investor. It's a strategy to ensure that some returns are realized, regardless of future market movements.

What is the difference between Bitcoin and altcoins in terms of investment risk, according to the speaker?

The speaker points out that while Bitcoin has experienced significant price drops, it has never gone to zero and has recovered over time. In contrast, many altcoins have gone to zero and are lost forever, making them riskier investments.

Can you explain the concept of 'not your keys, not your Bitcoin' mentioned in the video?

This concept means that if you do not have control over the private keys to your Bitcoin, it is not truly yours. When using services that hold your keys, like exchanges or custodians, you are at the mercy of their security and reliability.

What are some examples of scams that the speaker warns against in the crypto space?

Examples include phishing emails, AI-generated scam messages from fake accounts impersonating well-known figures, and 'poison' wallet addresses that trick users into sending funds to the wrong place.

How does the speaker feel about price predictions in the crypto market?

The speaker is skeptical about price predictions, noting that they are often wrong and should not be the sole basis for investment decisions. They emphasize the importance of taking profits and not relying on the hope of extreme future gains.

Outlines

00:00

📈 Learning from Mistakes in Cryptocurrency Investing

The speaker reflects on their initial focus on discussing crypto and digital assets and acknowledges the learning curve, including the importance of learning from mistakes as emphasized by Warren Buffett. They introduce five key rules to guide their investment strategy and prevent further losses. The rules include not investing more than one can afford to lose, treating everything as a scam until proven otherwise, not trusting anyone (including the speaker), not leaving crypto on exchanges, not using leverage, and taking profits along the way. The speaker emphasizes the importance of being prepared for the downside of investments and the difference between Bitcoin and altcoins, highlighting the risk of altcoins going to zero, unlike Bitcoin, which has historically recovered from significant drops in value.

05:01

🚫 Avoiding Scams and the Importance of Cold Storage

The speaker discusses the prevalence of scams in the cryptocurrency space, advising viewers to be skeptical until proven otherwise. They share examples of common scams, such as phishing emails and AI-generated messages promising high returns for sending crypto. The speaker also warns against using decentralized exchanges (DEXs) without verifying contract addresses to avoid fake tokens. They highlight the dangers of 'poison' scams where malicious actors send small transactions to confuse users into sending large amounts to the wrong address. The speaker stresses the importance of double-checking addresses and using cold storage devices like Tangem to secure crypto assets, sharing personal experiences with hacks and the value of learning from past mistakes.

10:01

⛔ The Risks of Leverage and the Wisdom of Taking Profits

The speaker warns against using leverage in cryptocurrency trading due to the high risk of losing one's entire investment. They argue that while day trading with high leverage can be tempting, it often leads to devastating financial losses. The speaker also emphasizes the importance of taking profits along the way, countering the fear of missing out (FOMO) and the false narratives often propagated by public figures and media. They debunk common misconceptions about the reliability of price predictions and highlight the discrepancies between public statements and private actions of influential individuals in the crypto space, urging viewers to focus on their own financial well-being rather than chasing unrealistic gains.

15:03

💡 The Reality of Using Bitcoin for Goods and Services

The speaker addresses the practicality of using Bitcoin for everyday transactions, pointing out the current limitations due to high transaction fees and network congestion. They acknowledge the potential for Bitcoin to be used as a medium of exchange but caution that it is not yet feasible for most goods and services. The speaker also discusses the risks of tying up one's Bitcoin in loans or other financial instruments, using recent examples of failed investments and the collapse of major cryptocurrencies like Terra Luna. They conclude by reiterating the importance of taking profits and being mindful of market indicators to make informed decisions about selling crypto assets.

👋 Closing Remarks and Encouragement for Future Success

In the closing paragraph, the speaker expresses gratitude for the audience's attention and support. They encourage viewers to like and subscribe to stay updated on time-sensitive topics related to cryptocurrency investments, particularly as the market moves towards potential peaks in 2024 and 2025. The speaker looks forward to continuing the conversation and providing guidance in future videos, emphasizing the importance of making informed decisions and being proactive in managing one's investments.

Keywords

💡Crypto

Crypto refers to cryptocurrency, a digital or virtual form of currency that uses cryptography for security. In the video, the speaker discusses the importance of understanding and managing investments in cryptocurrencies, which is the central theme of the video.

💡Digital Assets

Digital assets are a form of assets that exist only in digital form, such as cryptocurrencies, stocks, and bonds traded electronically. The video focuses on investing in digital assets, particularly cryptocurrencies, and the risks and strategies associated with it.

💡Mistakes

Mistakes are errors or incorrect actions made in the process of learning or doing something. The speaker emphasizes learning from mistakes, particularly in the context of investing, which is a key lesson in the video.

💡Investment Rules

Investment rules are guidelines or principles that help individuals make informed decisions when investing. The video outlines five specific rules for investing in cryptocurrencies, which are meant to prevent significant financial loss.

💡Scams

Scams are fraudulent schemes designed to deceive people, often for financial gain. The speaker warns about the prevalence of scams in the cryptocurrency space and advises viewers to be cautious and skeptical, which is a critical aspect of safe investing.

💡Exchanges

Exchanges, in the context of the video, refer to online platforms where cryptocurrencies are bought, sold, or exchanged. The speaker advises against leaving cryptocurrencies on exchanges due to the risk of hacks and recommends using cold storage instead.

💡Leverage

Leverage is a financial technique that allows investors to increase their market exposure by borrowing money. The video cautions against using leverage in cryptocurrency trading due to the high risk of losing one's entire investment.

💡Profits

Profits are the monetary gains made from an investment or business activity. The speaker encourages viewers to take profits along the way in their cryptocurrency investments, which is a strategy to secure gains and minimize potential losses.

💡Altcoins

Altcoins are alternative cryptocurrencies to Bitcoin. They represent a wide range of digital currencies beyond the most well-known one. The video discusses the risks associated with investing in altcoins, including the possibility of them going to zero.

💡Cold Storage

Cold storage refers to keeping cryptocurrencies offline in a secure environment, which is considered safer than keeping them on an exchange. The speaker recommends using cold storage devices like hardware wallets to store cryptocurrencies safely.

💡Health as Wealth

The concept of 'health as wealth' suggests that one's health is the most valuable form of wealth. The speaker uses this concept to remind viewers that while cryptocurrency investments can provide financial gains, they should not come at the expense of personal health or well-being.

Highlights

The channel initially focused on crypto and digital assets but has evolved with learning from mistakes.

Emphasized the importance of learning from mistakes, as suggested by Warren Buffett.

Introduced five rules to avoid significant investment losses in cryptocurrency.

Rule 1: Only invest what you can afford to lose 100%.

Rule 2: Consider everything a scam until proven otherwise.

Rule 3: Do not trust anyone, including the speaker.

Rule 4: Avoid leaving crypto assets on exchanges to prevent loss.

Rule 5: Avoid using leverage and take profits along the way.

Altcoins can go to zero, unlike Bitcoin, which has recoverable dips.

Be cautious of scams, such as fake emails and AI-generated messages.

Use a contract address to ensure transactions are with the correct token.

Avoid 'poison pill' scams by double-checking wallet addresses.

The importance of not keeping large amounts on exchanges, as seen with past hacks.

Recommendation to use cold storage devices like Tangem for security.

Warning against the use of leverage due to high risk of losing life savings.

Encouragement to take profits to secure gains against volatile markets.

Critique of relying on price predictions, which are often incorrect.

Highlighting the discrepancy between public statements and private actions of investors.

Discussion on the practicality of using Bitcoin for goods and services.

The impact of high transaction fees on the usability of Bitcoin for everyday purchases.

Advice on taking profits from altcoins and meme coins to avoid losses.

Examples given of cryptocurrencies that have lost significant value over time.

Recommendation to watch additional videos for strategies on when to sell crypto.

Transcripts

when I first started this channel it

really was just about talking about

crypto and digital assets but as I've

gone forward I've made plenty of

mistakes and just like Warren Buffett

says you have to learn from mistakes

they don't just don't have to be your

mistakes so learn from these screw-ups

and this is why I have these five rules

to help me not lose even more so what

we're talking about of course is the

five rules now you you've seen these

below me for numerous videos for the

last couple of years but it goes like

this there's five it's all gone don't

invest more you can afford to lose

100% scams meaning everything's a scam

until proven otherwise don't trust

anybody not even me 0% exchanges don't

leave your crypto on exchanges 0%

leverage don't use leverage and take

profits along the way because nobody

ever went broke taking profits and to

break this all down when I say it's all

gone don't invest more than you can

afford to lose right if you're looking

at like a $20 and you're in a cold sweat

going man if I lose this 20 bucks

investing into Bitcoin or altcoins or

memes my wife's going to kill me or I'm

G to be broke you have no business

investing right now hold on to 20 bucks

make sure that you have some kind of

Reserve six months at least and go from

there but if you're looking at like a

stack of like okay if I lose like a

couple hundred bucks here and there I'll

be okay doesn't matter what it is just

make sure that whatever you lose you're

okay with losing it because that's the

whole point of investing we like it to

go up but we have to prepare ourselves

for the underside and when I say don't

invest money AFF to lose the reason why

is because altcoins as far as 2021 goes

this is a report from coin gecko almost

6,000 went to zero not like they became

undervalued they went to zero so

remember when you think about this like

oh I can just dollar cost average and

keep putting money into it nope on some

of these you're never going to get your

money back because they are dead and

when I talk about this is's a difference

between altcoins and Bitcoin yes Bitcoin

has had some major slides negative 91%

in 2011 negative 81% looking at 2014 in

2018 yeah I went down 83 % in 2022

74% but there's a difference between

losing out and a reduction in value as

opposed to going to zero if you would

have hold held from 2011 when Bitcoin

was a couple of bucks $20 maybe and

right now it's around 63,000 you don't

care about these uh reductions in value

you just think to yourself hey those are

just dips and I'm okay with that so

again big difference between Bitcoin and

altcoins and moving on this is another

bigger one that I think everybody needs

to understand everything is a scam until

Prov otherwise you can't trust anybody

even myself here are some scams that I

see when you take a look in your emails

make sure like this is from Celsius and

it says two of course me but when you

click on the from you'll notice that

it's at e. Express soil and of course

they want me to click on something and

whatever else so always take a look at

where it's from because you figure out

pretty quick that hey this isn't the

right domain this isn't the right

address uh they're trying to scan me out

also you're going to see these AI

generated ones you could see something

like with Michael sailor you could see

something like with Charles hoskinson

it's always the same thing though send

me one Bitcoin or send me 10 ethereum

and I'll send you double back nobody is

sending you any free money don't be

ridiculous so just when you see

something like this just go that's a

scam and also if you're on dex's you

might uh like hey I want to get this

next mean coin called Pepe or what or or

Costco hot dog or whatever else it is or

tuker so when you when you uh put fill

this out you might put in pep and you

get like 20 different results don't do

that go to coin gecko find the right one

usually it's bu market cap it's not a

you know number

1,250 it's actually in the top whatever

it is maybe the C top couple hundred

you're going to click on the contract

address right there and you're going to

type in or excuse me paste in your

contract address so you can find the

exact right one see on the left there's

a bunch of them on the right there's

only one that's the power of a contract

address or also you may see something

like this and this is one that's most

important these are poison types of

scams and what this is a Trader lost $68

million and what they do because they

sent it to the wrong address here's how

this works your wallet and all wallets

in crypto are on an open Ledger anybody

can see them they can see what it is

they don't know who it is they don't

really care but they can see who it is

what they do is they're going to send

you dust or microtransactions and

they're going to try to line those up

with the different addresses that you've

used in the past so at some point you

might screw up like this guy did so in

this one you can see the wrong address

the first six letters and numbers are

the same as the correct address the last

six letters and numbers are the are the

same as the correct address and this

person just goes oh well they took a

look at their wallet this is my Phantom

wallet they go yeah that's the same one

I use and they just said you know what

I'm gonna send it away and then off it

went now on Phantom and all these

different wallets when you click on the

address that you used before it will

expand what you're doing is you're

looking at the middle parts of it not

just the first four and the last four

I'm guilty of this too I've stopped

doing that I've double checked triple

checked the different addresses to make

sure I have it and done the whole thing

not just the first three or four and

then also if you want to go even a step

further this is what I do with myself

send a send a test transaction if you're

sending 68 million or $100,000 why don't

you to send like a fraction of what

you're trying to send and just make sure

it gets to the right place because if it

doesn't I'm okay with losing 50 bucks or

15 bucks I'm not okay with losing $68

million

so just be careful out there

everything's a scam and tell PR

otherwise now the next rule is don't

leave anything exchanges this is the one

that if I wouldn't if I would have

listened to I would have lost my six and

seven figures on Voyer and Celsius so

this was the hack and this was actually

in 2014 I got it in 2017 I should have

known but I didn't listen to the people

before me again you have to learn from

mistakes they to be yours so in 2014

Mount gox was hacked 850,000 Bitcoin

were gone and that was worth 450 million

at a time I can't even imagine what it

is right now and I fell victim to

Celsius and Voyager and not FTX but if I

just would have listened to the elders

when they said don't leave things in

exchanges use a cold storage device I

would have lost so much funds now I

figured this out as far as Celsius and I

and I did a video on it I said hey take

all your crypto off of Celsius ASAP

unfortunately when this happen uh I did

a video on 11: a.m. all these videos

link description by 900 P p.m

withdrawals were frozen I tried to take

some out didn't happen so on June 20th I

created these five rules set them up on

all live streams which you see all the

time right now and on June 22nd I said

hey take all your crypto off of Voyager

ASAP because they did an

uncollateralized loan to three arrows

Capital there's the video right there

July 1 things were frozen did I take

everything off no but not near as much

as Celsius so at least I learned a

little bit and now I know that it's all

about cold storage devices you can use a

tangum that's my favorite Ledger traser

whatever else just make sure you

understand it this is the easiest one

that I I found and since 2018 they have

1 million plus users not no hacks to

date so that's why I use tangum and

trust them links in the description 10%

off for

not second to last don't use leverage

the reason why I talk about this is

because I've seen all the time people

like hey I figured out day trading cool

I'm gonna go 50x 100x on Leverage

trading you can do that but there's

constant different stories about people

losing their life savings it's not not a

question of if it's a question of when

you actually lose everything so I say

don't use leverage and then lastly and

this is the hardest part for people

understand for some reason take profits

along the way look I like Bitcoin

ethereum altcoins all that stuff right I

like real estate I like investing into

assets that I can hold but I know that

all this stuff isn't true wealth and I I

wrote this in a post in February I said

true wealth is your health a healthy

person has a thousand wishes a sick

person only has one if you have your

health you have everything true wealth

is your health make sure you take care

of it the time you spend with your

family the experiences you enjoy with

your friends a peace of mind Bitcoin

altcoins all different assets can help

you get those things but it is not those

things if you want to hold on to bitcoin

and be homeless and sick that's fine I'm

just telling you Bitcoin is a tool to

get you to where you want to go but the

problem with taking profits is fomo

right people say hey this 2x it could

10x it could 20x and it always holds you

holds you back from taking profits

that's why I'm always preaching take

profits because nobody ever went broke

taking those profits but there's some

things that come up that make you not

want to take profits predictions what

people say in public what they say in

private or a plan of action that doesn't

match up with somebody else what I'm

talking about here is price predictions

you're going to see these price

predictions and go oh well this is going

to go to a million why would I sell at

60,000 for Bitcoin or oh ethereum is

going to you know 50,000 ,000 why would

I sell a 2,000 makes no sense

everybody's predictions are wrong they

don't know when it's going to happen

they're just guessing and the one that

actually gets it right has been

predicting or saying this is gonna

happen for like the last 50 times and

they missed the last 50 times and then

when it hits like see Told You So Tim

Draper has been calling for 250,000

Bitcoin for years and then he just said

hey it might happen but it's be two

years later and when it doesn't hit he's

gonna say maybe in five years Tom Lee's

been wrong Arthur Haye says 70,000 this

year we already hit 73,000 Matthew Wood

said a million in 2030 maybe sure panta

148 Adam back one of the original

Bitcoin contributors he said 100,000 by

the having on April 20th 2024 right now

we're in May hasn't hit that so he was

wrong JP Morgan's wrong Robert kisaki's

he's he's increased it novag grats and S

charger has been so wrong every single

time they'll say 12,000 one week and

50,000 the next week they're they're

just wrong and then you you're going to

keep hearing these price predictions

Jack dorsy A Million by by 2030 sure it

could all happen and I hope it does

because I I own a lot of Bitcoin I would

happy but I'm just telling you take

profits along the way usually tends to

work out and the reason some of the

other reasons why you don't do it is

because the people in public ver what

they do in private publicly Peter teal

was on the Bitcoin conference in 2022

said it was great they're investing

heavily they really believe in the in

the technology they're all in but what

didn't mention was that months ago they

had offloaded their entire

cryptocurrency portfolio of an 8-year

bet so they can say like in public this

is what we're doing and I don't fault

Peter teal he's an investor he's very

very profitable investor but behind the

scenes are like yeah we believe in it

but you know we sold a big chunk would

have been nice to know and then there's

Michael sailor no problem with this guy

either he's great he's great for Bitcoin

and he tells you you never sell your

Bitcoin never and it makes sense for him

micro strategy when they first started

getting into Bitcoin August 7 2020 when

they first announced it the price stock

went up and went pretty much parabolic

and it was a great move for them but

remember micro strategy has been around

since the Doom era and the last time

they did that great for their stock was

back then and then for about 20 years or

so it was pretty flat I mean there were

some good good years and bad years we

get it right but then the big that the

big Catalyst for the parabolic Run was

Bitcoin and why is that it's great for

micr strategy the company the

corporation because Michael can now take

$260 million of profit from the shares

as it goes up makes sense if you are the

same way and you're a billionaire and

it's good for your company keep at it

man good for you but I just remind that

if Bitcoin is as great as everybody says

it's gonna be and it might I hope it is

I own a lot of Bitcoin I just think that

you don't need 10 20 30 a thousand

Bitcoin to be to have that happy

to to spend that time with your family

to take care of everything you just need

a little bit especially we're talking

about global in the billions this is

from my buddy Tom Crown he said you can

be the top 0.1% just by buying a little

bit and taking profits along the way but

then people will say and the last thing

about this is you don't understand

Michael sailor is saying that if you do

something like this you can be able to

use this for goods services and assets

for assets if you want to buy like a

house or something like that right now

you need to give away your Bitcoin keys

and have somebody custody it so that's

their collateral they can give you funds

so you can buy the house to buy the real

estate to buy a new business whatever

else but we've talked about this before

not your keys not your Bitcoin when you

give it away to people like Voyage or

celi or Sam and FTX for collateral for

loans this is what happens you get

screwed over so there's that aspect but

people also say but Rob you can use

Bitcoin for goods and services and that

one I totally believe and I see that is

where we we find the most value because

we can use Bitcoin we can actually have

real utility and it can be used but

right now doesn't really work that well

because because of ordinals because of

uh which is essentially nfts in the

blockchain because of runes which are

essentially meem coins on layer one

blockchain Bitcoin the transaction fees

are very high so it's like between 12 20

some even $100 for a Bitcoin transaction

depending on how congested the actual

network is so at this point I don't

think it's really going to want to work

maybe when layer twos come along around

I can see that but right now just take

it with a grain of salt and I got you

and then as far as like getting away

from Bitcoin at alt coins just remember

a dash assault if you're gonna say well

I'm never gonna take profits because I'm

just gonna ride this out and just dollar

cost average if you did that with Dash

you would have made very little over

four years eight years and especially

right now in 2024 you're still

underwater and salt it never came back

just like the very first slide we talked

about from coin gecko over almost 6,000

are dead and then of course if we're

talking about profits let's not forget

the big elephant in the room teral Luna

as it went from I want to say it was

over hundreds of dollars per token and

it went to zero overnight but if you

would have taken profits you would have

been up massively my friend and it

doesn't matter if it's a 10x 20x 50x

take some profits along the way because

you never know when the next Luna is

going to be and lastly I will just say

this if you're looking for indicators or

things when I'm looking for as far as to

like actually sell my crypto and some of

my Bitcoin there's two videos one is

when we're talking about the Blue Chips

Bitcoin and everything Below in the top

100 we would say and I talk about when

I'm selling why and when Link in the

description now for more risky aspects

altcoins and meme coins I do a separate

one which is we do a half and half

method and go check those out again

links description that's it for today so

look you like today's video give it a

thumbs upstead subscribing everything we

talk about especially moving into

hopefully a blowoff top

in 2024 and 25 is time sensitive so

that's it thanks so much for stopping by

I appreciate you and I'll see you on the

next one