[00:00:01] Speaker A: Welcome to Crypto Talk radio, the podcast for everyday investors like you. Visit us on the
[email protected]. And now here's your host, Leister.
[00:00:13] Speaker B: Thank you for that, Bailey. And welcome, everybody out there in crypto talk radio
[email protected] oh, mercy, mercy me. Was that you? Did you say something similar to that a little while ago when you saw cryptocurrency crap unexpectedly out of thin blue? Mind you, if you've listened to Cryptotalkradio. Net, your host, Leister, for a while on a past episode, you heard me talk about liquidations that were forthcoming.
If you're new, welcome. This is the kind of information I like to share. I like to try to keep people safe. I expected there was going to be a crap. I've said repeatedly to my listeners, to make sure you take your mother fathering profits and not sit and hold. Now, let me be fair. This is a temporary set down. It's not going to last. It's going to run back up again. But it's important to understand these peaks and valleys as they are, are going to continue to happen throughout. You're never going to get constant, sustained up. Even in 2020, 2021, you had the same kind of disruption. So hopefully, if you're new and you're just now getting in it, you weren't spooked by what happened, because what happened was normal, natural, necessary. And I stress for people, try to think of these types of opportunities as chances to get in on the cheap as a discount rather than something wrong, because nothing's wrong. Everything's working like it's supposed to. There was an event, and I'm going to talk about the event, but I want to make sure you're not freaking out over what happened unnecessarily, in my personal assessment, can't tell you what to do with your money. I'm just saying I believe that this was a great thing that it happened. It gives people an opportunity to get a little bit of a discount. Obviously, it's not amazing discount, but it's a little bit of a discount for those that believe this is going to run as I believe it's going to run. I'm just stressing it's going to go down again, it's going to go up again, it's going to go down again, it's going to go up again. Peaks and valleys are absolutely normal, on a personal note, real fast, right.
So I had bought in and just, if you are new, you don't know this. I don't trade cryptocurrency to become a millionaire. It's not what I do. I buy here and there to watch price movement or because I'm intrigued by crypto. I like to talk about it, but I don't do it to become a millionaire. I know that profit opportunities are there, and so I take those, and I use it to try to master learning how to predict the market. I don't do overly technical analysis. So what I find is that sentiment plays a stronger factor now than it ever has. You kind of have to get a pulse on what other people are about to do. Part of that's based on historical patterns, but part of it's based on just what's going on. Now.
We know that cryptocurrency is largely fomo driven. We know that the vast majority of the money flowing in right now is coming from big players. But what we also know is we still don't have significant new money coming in cryptocurrency. What do I mean by new money? New money specifically refers to the idea that others that were not in it before are now buying in. That hasn't happened yet. From what I can tell, it's all people that were in it before, during the last run got out, sat, waited out the storm, and they're coming back now. That's not a problem. But as I was watching it, I figured, you know what? Let me take my own advice and make sure I take some profits. So I took profits, and I'll talk about that here later. But I took profits, I cashed out. I still have a crap ton more than the regular investor would. Crap tons, sitting out in various little projects here and there just to watch it again as it comes back up again. And I was debating buying some dips, maybe haven't committed, but I cashed out, sent it to the banks, plural, and said, okay, well, I might as well consider trying to buy a house, because I have enough now for the down payment on a house to just fully get out of here. That's how much I made. I made a lot. And I was shopping around, and it occurred to me there's a gap for all the people in the media swearing that crypto is mainstream and we're here now and it's going to take over fiat. Of course, I've never said that and never would. This was a great opportunity for me to share my thoughts about my experience as I was doing this, not to try to rub it in your face. That's not what I'm doing. I'm telling you what you're up against for anybody who's believing the narrative that crypto is now mainstream, because I was confronted with this experience firsthand. And as I talked to the bank sometime this week, I'm going to run into it again. So I wanted to share that experience, because later you're going to run into it, I guarantee you. Second, I wanted to share my DMV experience real fast before we get into the show. So I mentioned on the past episode I was dreading going there. It was actually pretty smooth people. It's a nine out of ten great people, great service, positive, no problems there. Their technology sucks. That's all it is. Process is about a seven. Decent, not great. But I was in and out. I mean, jeez, once I got to the lady in and out, she took cash. She was great. Fast, efficient, got everything done. So I have no more connections to frickin Nevada. So that was fantastic. So shout out to the DMV, other than their frickin'technology which sucks. But it didn't seem to matter because the people were stellar. Arguably one of the best overall DMV experiences I think I've had, and I've been through a lot of them. So anyhow, let's talk some cryptocurrency. I want to make sure people are still smiling. Again, this is not a down bad, not good. This is great. It's positive. It's a discount opportunity. It's a chance for you to get the discount that was missed and that you were overlooked for the first time.
All right, let's go ahead and
[email protected]. And we're going to zoom out to our month chart. Of course, if you look at the high level, and we'll start with the bitcoin, by the way, if you look at the high level, it looks scary. Right? Make sure I recommend to look at the month chart ever now more than ever. If you look at the month chart, a couple of things are apparent. Crystal clear. Not crystal blue persuasion. Crystal clear. Number one, we're still in an uptrend. Number two, there's significantly more red, but it didn't matter because a lot of that red was prior to the run that we're seeing. Because it's the month, it's giving you the time span. Over time, it's still been an upward motion. Even with the most recent down, it's still in an upward trend with significant buy pressure happening. A low of 59 seven, a high of 69 two, that's significant volatile. That's almost 10%, just shy of 10% of shift over the last day. Again, there was an event I'm going to talk about that contributed to this. We're currently hovering at 63 seven. So a low of 59 seven. And we've already recouped about $4,000 of this for bitcoin. What does that tell you? It tells you that what happened was the blip. It tells you that we're going right back up where we were before. Same momentum. I don't think we've lost any, and I think people understand that this is going to happen. So then, if I look at Ethereum, right, zoom out to the Montreal Ethereum. Same thing. In fact, Ethereum has a stronger upward trend. A low of 3200, a high of 3800, hovering at 3500. As I record this. Now, here's my story. So I had bought into a lot of junk. Like, I actually, at one point, lost track of everything that I held, because I have it in multiple wallets. I just completely lost track. I just tossed and tossed and tossed. And people might recall I mentioned I was in bone. And when bone went down, and I got to a basis, I was doing DCA. And then I got to a point where I was making money off of, basically, arbitrage. Well, I made so much that I took the vast majority of my bone stake. I still had a lot compared to the retail investor, but I took the vast majority of it, and I spread it amongst all these other projects. Ethereum, some solana here, binance chain here, some phantom, some matic. I just did all these. And then I bought into some of these other garbages, like the Trump 2024. Shout out to that one, by the way. Trump 2024. The story on this one, that one, recouped all losses I had prior to this run. So, satama, any fleck, every loss that you can count on a finger or two or ten was all recouped by Trump 2024. Just that one token did it. Because what happened is I must have caught it right when it launched or something, because I noticed it was on Mex C. I don't trade Mexic, but I noticed it was on Mex C, fresh out of the gate with no market cap, and it had a little bit of traffic. And I was able to buy a trillion of these tokens for $1,000. And then the thing just kept jumping. And I must have made, I don't know, $5,000 off this darn thing. My investment triggered a run.
Its base, its bottom is way higher than when I bought in. So I knew okay, I've triggered something here, and this is kind of fun. And I was doing it in multiple projects. So I took my bone profits. I did that, got a little bit of money there, took those profits and parlayed them into other stuff, like bonk. I bought a little bit of that garbage, bought a little bit of myro, that garbage bought a little bit of pepe, that garbage bought back into shib, bought back into leash, bought back into bone. I bought all sorts of other stuff in addition to buying back into things that I had before. And even Kishu, which was long since dead for a while, Kishu started running like crazy. And I made a little bit of profit off that one, Akita, which used to be Akita Inu. I made profit off that one. I made profit off colt Dow because I figured, okay, it's so much in the crapper, my investment is going to trigger a run. And it did. I put enough in. It caused enough of a pump. People started to FOMo in a little bit and then know took my stuff back out. So I do this with all these projects, right? I'm not going to give you straight numbers, but let's just suffice to say I made roughly about 15 grand profit in this recent run. I made a lot of money in this recent run. Now, when I looked at the profit I had and then looked at the basis, so basically the amount I still had in there from just at the profit level, plus all the different wallets. So I stack it all together and I'm like, that much money, I could down payment a house and not blink twice about it, still have money in the bank. And then I've got my ETFs is a completely different account. I'm not even counting that. I've got BitQ is in a completely different account. I'm not even counting that. So then I'm sitting back, I'm like, okay, I'm in a pretty good spot, considering I had to do the move in leading up to, well, September, basically that weekend, Labor Day weekend, I had to do the move. So that's a drive. That's renting the freaking vans. That's all the parts and supplies. And the hotels. I had to stay in that hotel when I got here because the thing wasn't ready. And all the money I spent getting up here, and it was a lot. It was a lot. It was five figures easy to get up here. And that's without a plane, mind you. That's five figures to get up here. But then I'm looking at it now. And I'm like, okay, well, jeez, I'm in a pretty good spot here. Of my investments here, I've done pretty good for myself. I think it's about that time because my current lease expires in June or July. I forget. So then I'm like, okay, let me go ahead. And then I noticed that it started to dump. And I'll tell you what happened here in a second. Patience. But it started to dump, and that's when I sold because I figured it's going to be down for a while. It'll come back up and I'll leave some in. And I did. I left a pretty good amount in there. More than retail normally would invest still sits in crypto, I do. But knowing I'm going to have to pay capital gains taxes, which I'm fine with because I got to pay taxes anyway, and then this is an opportunity to go ahead and use it for a down and buy a house, and then I can build out the studio, and then I can contribute more into the show. So it all worked out. But I'm a much better investor now than I was when I got in this business. By far. Back then, I just didn't have a clue. If I think about it, yes, I made profit off stuff, but I left a whole bunch of stuff on the table, things where I got in really early and just didn't. I didn't time it. I didn't think about it, or I held when they told me to hold and I should not have done so, or I didn't hold when I should have, and they were telling me to go ahead and trade it like I was in Shib back when you could hold a trillion shib on the cheap. And I didn't hang on to it, even though I was telling people to hold on to it. I didn't hold on. I was trading. I was active trading it. I made money. But again, if you look at how much a trillion shib is now, jeez, again, I had no concept of what to do back then. That was the inspiration for me starting the show was I want to learn, but I also want to help other people as I learn, contribute these kinds of information pieces to hopefully help other people become better investors. Some are going to be gamblers, and I celebrate the right to be gamblers. But I figured this was a good opportunity to get in and try to learn this a little bit more and then spread the wealth. So all I ask of you, if you think that there's good information being shared and I sound better than everybody else out there, and you learn anything at all, spread the word, let other people know the garbage they're listening to on YouTube and cutting it. You need to really listen to this guy over
[email protected]. Because he's got the smooth, as the kids like to say now, about the event that happened that caused this business. I talked about the liquidation. About a billion dollars of liquidations were triggered off of this recent dump that happened, which basically caused us a little bit of a cascade. Now, I say a cascade. It's not like, again, this is not end of the world dead. It's going to go right back up. I guarantee it's going to go back up. And I stress that you should treat this as an opportunity to get in and get some more on this business. It just so happens with this here. There were a lot of people effectively gambling on exchanges. They were setting up longs because they expected to just keep on running up, run up, run up, run up, run up, run up. And when you do that, you're leaving yourself open liquidations if you don't do your stop losses or anything else. And then it just became a domino effect over and over and over again. And it didn't just affect bitcoin, it affected a bunch of different cryptocurrencies. So I'm talking about bitcoin because bitcoin got the worst of it. But multiple tokens were basically being over leveraged. They were basically overextending themselves. If you think about to the bubble of 2008, you have your house, and people are using their houses as an ATM machine where they're taking a bunch of money out, and then they'll buy some other stuff, and then they get insolvent. That's essentially what happens here. So a lot of liquidation, it just keeps going. It was just going, going down to, like, 63. I was like, wow. And I had gotten out right in freaking time, right when I saw it was about to happen. And the clue, and this is one of your notes, the clue for me was Ethereum's gas started going crazy. I think at the high, it was like, $150 to do a transaction, which I'm like, okay, screw you, bro. I'm not doing this. And then there were times when I couldn't even transact Ethereum at all. Like my exchange, I use Kraken. Kraken's withdrawal. You have to create an address to be able to withdraw it. I could create an address for Solana. I couldn't do it for Ethereum. It kept saying, saravist busy. Saravist busy. I'm like, because I had more in Ethereum than I did Salana, so I couldn't do that. I couldn't do a conversion to Salana through the bridge. It was failing. So Ethereum was just toast. And I think that compounded the problem. It's like you're getting all this price, drop, drop, drop. Like, even mine. I think I must have lost like $1,500 just waiting for the dang thing to pick up and go. And I know you're thinking in your head, you're like, geez, rich people problems. It's not that. It's like, this was bad, this whole situation was bad because Solana never choked, it never had an issue, it never failed, it never slowed down. But it was affected by what was happening with bitcoin and what was happening with Ethereum and what was happening with all these longs getting liquidated. It was affected just like those. It's starting to recover now. But I'm saying, price wise, it had a ripple effect, no pun intended, all the way across the board. And so my messaging to you, just so that you understand how and why I say to make sure you take your mother, father and profits, because at the end of the day, you just can't know when something like that's going to happen. And you can't know if the blockchain is going to have some issues that preclude you from being able to get out and preserve enough of it so there's not slippage along the way. I'm not saying not to buy in off these dips, because if you see opportunities for something that you do believe in, by all means take advantage of it. I'm simply warning, it's a multifaceted problem that we don't have in fiat. Number one, can the blockchain even transact? Is problem number one. Problem number two, is, is the DAP working? Problem number three, is there liquidity in the damn thing? Right? Problem number four, can you even cash out? You got all these layers of points of failure, and because it's descend, decentralized means you don't really have a support. You can't call whoever and say, hey, my dang thing's not working. They're going to laugh at you. Even if you could get a phone or they send you to Telescam. So be careful if you do. This is when you have to be at the utmost of care, because you just don't know when something's going to block you from money that you rightfully earned. If you're the gambler, you're just going to let it ride because you know it's going to recover. Absolutely. But if you take my advice and you take those profits, make sure you do it on a regular basis. Don't sit on it too long. See, the 1500 was annoying, but it didn't hurt me. I still had crazy amounts. It was just annoying because I was watching it happen. I'm like, come on, man, really failed, really, that's all. But somebody else that might have been life changing for them, it might have been something where they made a major amount of money and because of technical glitches, not due to their fault, they lose $3,000 off of a trade that could have been life changing for somebody, that could have taken somebody out of homelessness. There are homeless out there who have mobile devices and they go to free wireless or whatever, and maybe they take some money that they got panhandling or something and they strike it rich to get off the streets. I mean, this is the kind of impact cryptocurrency can have. But yet we're held back by these technical glitches and fobbles that are annoying. And I'm ranting a bit, but it's because I want people to be careful and I want to make sure you take profits as my opinion to you, because I know what can happen as a technologist myself. So that's what ultimately caused this cascade of nonsense, is because all these people were, they were gambling that is going to keep on running, and at some point they were going to get trashed, and that's what happened. A billion dollars taken off, that I believe strongly it's going to keep on going up all the way around.
I had a question saying, well, I'm struggling to understand this whole business of longs and liquidations and over leverage and all that other kind of stuff.
So let me try to simplify it best I can. The best I can all along. If you're longing, what you're essentially doing is you're gambling on the idea that the price is going to keep going up and you're profiting as it goes up.
You're borrowing, in some cases assets, usually cryptocurrency, but it could be money, but you're borrowing assets in order to over leverage.
So, for example, let's say you only had $1,000, but you're so confident it's going to keep on going up, you want to borrow some money, just think about it with a friend, right? I think this is going to go somewhere. Let me borrow $10,000, and I'll flip you back your 10,000 plus 20% or whatever. So twelve grand back to you, and I'll pocket the profit off the top. That's essentially what you're doing when you take out margin, is you're borrowing money or assets in order to go on something that you're confident is going to give you a return. Well, what happens if it goes into a loss? What happens if that company goes out of business? What happens if the stock just is trash stock? What happens if there's a scandal, like Vince McMahon? Wwe, right. Anything can happen. And so if it goes down, you're in a loss. Well, at some point, you have to pay that friend back. What if it's a big, burly dude that works for the mob that's still out in New York? You don't know. Right. So they're going to come after your ways, and so the liquidation in is them coming after your ways. I'm going to get my money back, hook or crook, no matter what it is, and I'm going to take, and I'm going to get rid of this, because maybe you put up your car saying, hey, hold on, my car. I'll come back and get it. When I do this, they sell your car, the car is theirs, plus whatever money they can take out of your skin. That's kind of the concept of this. Well, multiply that times, let's say, 500,000 people, and you get a lot of money that flows out, because there was a lot of money that was borrowed. It is kind of a house of cards, if you think about it. It's a house of cards that's always going to have these pump and dump periods. These events are what caused these major shifts in price that you see up or down is when there's some sort of a liquidation event, because it could have been that the price was supposed to go up, right? And they're longing it, and then it all of a sudden goes down for whatever it does. There's multiple reasons why something might go down. As I said, it doesn't matter that it went down. It matters that you overextended yourself on the bank, that it was going to go up. Well, what happens if you're shorten it? Right? So you're selling it short and you expect it to go down, but then it goes on a major crazing run, and those people are getting crapped out. It always happens. It always happens. And there's very fascinating information about following the liquidity and liquidity chasing and everything else that I won't bore you with here. Suffice to say, that's why I say it's normal and natural that it happens. It's going to continue to happen. And you can't always anticipate it. Sometimes you can, but not always. You just have to get a gut instinct of when do I start seeing that? That freaking line, if you look on charts, is starting to taper off and it looks like it's about to fall. Just like if you throw a coin up in the air, at some point it's going to plateau and start coming back down, and you have to anticipate when that's going to happen and then make the right decision according to whatever your portfolio is. Meanwhile, on the flip spot, bitcoin etfs are skyrocketing. Irrespective of what happened with the recent liquidations. Record baking performance happened this week, over $10 billion in volume. As I record this, this is higher than it was back in February, just after it launched, or $7 billion, which means that there's strong momentum. And if you heard my other episode, I said there may be a little bit more assurance on the ETF side, as opposed to buying into straight cryptocurrency didn't mean that we were not going to get cryptocurrency purchases and traffic, rather that there may be certain organizations who prefer to transact with the etfs as perceived to be safer because you're insulated from the risk. Now, of course, the ETF price movement is still subject to what happens on the main cryptocurrency. So as it did crap out, you still saw some dips on the ETF pricing. I looked at mine because I have fidelity. I looked at mine. I didn't see a significant amount of drop. It dropped, but maybe about a dollar, $2. Because it's a pool of assets. It's not like you're buying a single assets. So as a pool it went down slightly. But my share of it is just a minuscule piece. So I was insulated by virtue of not having a major bag, which I thought was good. And I still advocate these etfs. I think it's a great addition to a diverse portfolio to have any one of them, one or two or three, but at least one of them. I do think it's good. If you can, in your country, in your state, to buy into the etFs, you probably have access to it through your local bank or investment firm of choice. If you have an IRA, if you have a anything where you can do investment portfolio investments. I do recommend looking into those and possibly adding a little bit as part of your portfolio strategy, because I think they're a strong asset class, personally speaking.
Speaking of fidelity, they had over $400 million in single day inflows.
When I looked at fidelity, when I was doing the analysis of all of them just prior to the launch, I settled on fidelity because I said that its graph looked the cleanest. It looked like the most predictable, easy to read, easy to understand, didn't look too volatile, looked very clean. And so I've been happy with it. I bought it a low of $35. I think it was purposely, I was not going to go any higher than that. And it's gone nothing but up since then. And I've been really satisfied with what that's doing. It's steady performance, it's not over volatile. And it seems like it doesn't have the same crazy amount of crapping as we saw here. Most recently, Ibit had over 420,000,000. That's another one from Blackrock. And so the grayscale one had a lot of sales still happening. It's not as bad as it was, but it still has a lot of sales going on. So each one of them has a different level of performance and a different measure. It doesn't mean that you shouldn't invest in all of them, or just one of them. Whatever makes sense for you. You kind of have to gauge it according to your portfolio because you always want to have a good mixture of assets. And I do think that this one's worth having as part of an asset portfolio.
Coinbase who I've been, I can't stand them. I think they're garbage. They're in trouble right now, folks, because they slipped to number three in the bitcoin reserves. A lot of people were dumping their bitcoins, selling off, cashing out those major profits that made on the run up. And of course, reserves has always been a contentious issue with these exchanges. We've always had questions about reserves and whether the exchanges have enough reserves to support major events like we saw most recently with. We knew that bitcoin was going to go up and we knew it was going to hit the all time high. Well, what was going to happen with people sold out? They were going to have to get that money from somewhere, and that's going to have to be the exchanges, because that's the only way that you can convert into a fiat form is through one of the exchanges. You could go back in the days back in 2020 and some od you could go peer to peer. And I think some of the peer to peer like pacs full are still around, but they're not anywhere near as good as they used to be, certainly. So the central exchanges are kind of your go to because the banks don't support it even at this point. Well, the stress on Coinbase is largely predicated on the fact that of know, it's the most commonly known other than Robinhood out there. So I wouldn't be surprised to see more strain on some of these other exchanges where they're just running out of money. I don't think they're going to get completely insolvent, but I think it's something worth watching out for as the price of bitcoin recovers and starts running again, as well as some of the other ones. Because people are going to be cashing out because as I said, they should be taking profits and they're going to take profits. And some of these, remember, bitcoin got as low as freaking $12,000. Imagine if people just said, you know what, screw it, I'm about to toss ten.
I'm about to buy ten of these damn things and just spend 120 grand. These people are going to be making major freaking bank, right? And so you multiply that by the number of people that are going in now, and you look at all these other big players who stacked bitcoin when it was dirt cheap, these exchanges are going to be stressed again. I don't think they're going to shut down, but I think it's worth watching, especially if it's one of your exchanges that you transact with. And just for the record, I do not transact with Coinbase. I still have the account, but I don't use it. I just said screw you guys because they blocked my trading that one time and I will not play that. Kraken is the one my go to right now. And I've been reasonably happy with them. I've not had any issues trading, not any issues cashing out, no issues whatsoever. They largely leave me alone and it's pretty good. I use the main, not the pro, but generally speaking, it's a really good exchange. It's cracking very positive there.
Blackrock is doing more investigation. Try to figure out. I talked about before, the potential for bitcoin to end up in other asset classes as part of a more diverse set. That's what they're looking into doing. That's going to be huge for price movement across the board. If you see that happen, it's going to be amazing. You're going to start seeing way more spikes than you do now and it's going to show up in your portfolio whether you like it or not. So if you are interested in getting in it indirectly, that would be the opportunity to do it. And then on last, I'll just close and go back to Coinbase and just say you might be running it. If you still use Coinbase. Cool. You might run into issues with them. They understand. They know about it. There are technical problems happening right now that they're apparently working on. I don't know if they resolved them as of the last time I saw an issue. That's why I think they're crap. Anyway. Please enjoy take profits. Make sure you do. That's my recommendation. Take profits. Don't sit on it. This is a long time coming. You deserve this. And it's a great era. I think. I think it's fun to watch it. Everything will recover in time. We're going to go right back up and we're going to see really new highs, new all time highs here very, very soon.
