Why I’m Buying the Dip in Crypto

Be Greedy When Others Are Fearful

The thing about us humans is that we’re often wrong…but rarely in doubt.

I come to this bit of wisdom by way of Twitter and all the crypto-induced lamenting I am reading there these days. So many people are so badly down that they’re now certain that the cryptosphere is dead.

These lamenters are very much wrong, but they are very much certain in their assertions.

Which is where opportunity and wealth are waiting for the rest of us.

I have been at this investing thing for a long time. I made my first investment in 1984, in Flying Tiger International, an airfreight carrier long ago subsumed into FedEx. I have ridden the roller coaster far too many times to be fazed by its dips and drops…or its ascents, for that matter.

Here’s what I have learned, and I think it’s quite the pertinent message today: This too shall pass.

Which really means, if you want to make real wealth from your investing, buy now.

Seriously. Just hold your nose, open your pocketbook, and buy great assets that are on sale. And then make sure the safety bar on your roller coaster car is locked in place, and hold on.

To be clear, I am talking in particular here about crypto and non-fungible tokens, those whimsical one-of-a-kind cryptos I regularly tell you about and which represent everything from digital art to venture-capital investing.

Right now, the crypto space is not in a good place—at least in terms of those who rode it up and then rode it down, and who are now whining loudly about their losses.

But me? I’m buying as much as I can right now.

I have an order in to grab a bunch of one particular cryptocurrency that has fallen to about $40 from more than $250 last fall. I am snapping up what I consider to be blue-chip NFT projects, and I’m stuffing every one of them into a hardware wallet (a crypto wallet that looks like a USB thumb drive and which holds my crypto portfolio offline for safety reasons).

And I am doing all of this with the greatest amount of confidence.

I know crypto is the future. I see governments all over the world working right now to incorporate crypto into their financial and monetary systems. I see businesses all over the world working right now to incorporate crypto into operations ranging from marketing to security to hosting meetings.

Moreover, as an insider deep in the NFT space, I see that certain projects are going to change the world. I’ll just take “hosting meetings” as one, small example.

An NFT project I’ve previously mentioned, Portals, is soon to launch a 3D meeting space where companies can rent a digital room big enough for 100 people or so, decorate it however they want, and then invite in employees, clients, investors, whoever, for whatever kind of meeting they’re hosting.

All in 3D. All voice chat capability. Everyone is an avatar, so no one has to get dressed up. Everyone can move about the space to check out displays or graphics or whatever.

I’m gonna go ahead here and predict the demise of Zoom. I mean, why get dressed up to attend a meeting and look at 53 other bored faces on a mosaic of ennui when you can wander through a virtual 3D space as an avatar and chat privately with people?

That’s one small example in a giant Santa’s bag of examples that I have of how crypto and NFTs are right now shaping the world we will live in tomorrow.

The crypto market being down doesn’t change what these companies are building. Just like the stock market being down doesn’t change the fact the Microsoft or Merck work every day to bring about new products to grow their business for shareholders.

I want financial exposure to what’s coming.

The opportunity to grab that exposure at ridiculously cheap prices is just too great to pass up.

Now, to be clear. You must have a high-risk tolerance as an investor to do this. And you should never invest more than you can afford to lose in a risk asset like crypto. I advise never putting more than 5% of your total investment portfolio in crypto or other high-risk assets.

Still, if you have a high-risk tolerance, a little cash to spare, and patience to wait out this down cycle…then there are incredible buying opportunities out there.

That’s why I’m buying what many others are fearfully (and mistakenly) dumping at fire-sale prices.

As I tell all my friends—most of whom don’t listen—wealth is made at the bottom of a market, never at the top. And we are far closer to the bottom than most people assume.

Right now is the moment to be greedy when everyone else around us is not only wrong, but confident in their in wrongness.