Speculating is not a game — but the best speculators treat it like one.

It makes them fearless and competitive.

They play to win but they aren’t afraid to lose.

Fear is a speculator’s worst enemy. Fear of losing will keep you out of the game completely. Fear of missing out will have you chasing unicorns and catching donkeys.

Trust me, it’s not as fun as it sounds.

I’ll teach you how to get in the game, but first I have to do my duty and tell you what not to do when you’re in it.

The Simple Truth

It’s by no means guaranteed that you’ll profit from cryptocurrency speculating.

If you’re going in with the intention of supporting what everyone else has already become rich from, then you may as well give them a quarter of your money and walk away right now.

When it comes to speculating there is a simple truth.

If people have already made money from an asset, when they cash out their positions the value will go down, and you will be left holding an asset that is worth less money than what you bought it for.

Buying cryptocurrencies is no different in this respect than most other aspects of our capitalist society.

The stock market, real estate development and financial services all work on the same principle: an asset is a good investment only if its purchase price is less than its anticipated future value, and that future value will always be dictated by future demand.

In simple terms, by stepping into an investment that someone else already has a stake in, you are raising the value of their stake by increasing the demand for it. Similarly, you are making that investment in the hope that more people will invest after you, raising the value of your stake as well.

However, once the value has risen high enough, it’s more likely that people will want to realise their profit.

In doing so, the balance shifts from people wanting to buy the asset (inflationary pressure) to people wanting to take their money out (deflationary pressure) and so the value of the asset will decrease.