How This Thing Destroyed Bull Run Gains in 2021
One of the most brutal ways people lost money in the last bull run was when they chased passive income.
Let me explain why this was a brutal loss and a dumb move.
The problem was that people started chasing passive income in the MIDDLE of the bull run.
Around that time, companies like BlockFi and Celsius popped up
And everyone started to jump on them.
The funny thing was that the people on those platforms started to make fun of other people who were not investing in them
Investing looked like an amazing opportunity because it was like 10% APY per year
Without doing anything.
I even had friends who put over $100k on BlockFi and Celsius
And they were earning passive income in the bull run.
I mean, it was free money without doing anything.
Everyone was bragging about the amazing opportunities they found.
But in reality, this was a really dumb move.
Firstly, people got triggered because they didn’t know what they were doing.
They didn’t even know where the yield came from.
(The yield came from trading)
And the real reason why they went bankrupt was because they were incapable at trading
Secondly, the problem with chasing passive income is not because ALL companies are "risky".
It’s because of the opportunity cost.
It’s all about what opportunities you lose in the meantime.
I remember all the people had this life goal back then:
“We’re going to make money in crypto, then we’ll chill on BlockFi all bear market.”
This was the vision that the majority of investors had in 2021.
Then when these companies collapsed, they lost all their money.
They risked all their bags for a nonsense APY.
Don’t get me wrong, APY is very lucrative.
But compared to what you can achieve in the bull run, it’s dumb to risk all your bags.
And most of the people who went in Celsius or BlockFi actually had money, like over 100k.
Because investing less than that is pointless
Especially when you want PASSIVE income.
It’s like buying a house lol.
You can’t buy a home with less than 100k.
But they risked that 100k (and more) to make 10-12% APY.
Which is ridiculous.
Because if you’re going to risk 100K in the MIDDLE of the bull run...
You better risk it on coins that have 20x-30x potential.
Even if you lose, you’ll say:
“At least I risked that money for something worth it.”
That’s why I’m saying that you shouldn’t risk for passive income in the middle of the bull run.
Also, this comes to a conclusion of mine, that I always shared with people:
The more you try to deviate from seeing crypto as an investment
And the more you trade, create passive income, or build businesses,
The more risk you’ll have.
I’m not saying you’ll fail in any of those things
I’m just saying you’ll have more success by just buying and HODLING
It’s that simple.
Focus on what works and don’t try to go against the odds.
Enjoy,
Cryptogit
One of the most brutal ways people lost money in the last bull run was when they chased passive income.
Let me explain why this was a brutal loss and a dumb move.
The problem was that people started chasing passive income in the MIDDLE of the bull run.
Around that time, companies like BlockFi and Celsius popped up
And everyone started to jump on them.
The funny thing was that the people on those platforms started to make fun of other people who were not investing in them
Investing looked like an amazing opportunity because it was like 10% APY per year
Without doing anything.
I even had friends who put over $100k on BlockFi and Celsius
And they were earning passive income in the bull run.
I mean, it was free money without doing anything.
Everyone was bragging about the amazing opportunities they found.
But in reality, this was a really dumb move.
Firstly, people got triggered because they didn’t know what they were doing.
They didn’t even know where the yield came from.
(The yield came from trading)
And the real reason why they went bankrupt was because they were incapable at trading
Secondly, the problem with chasing passive income is not because ALL companies are "risky".
It’s because of the opportunity cost.
It’s all about what opportunities you lose in the meantime.
I remember all the people had this life goal back then:
“We’re going to make money in crypto, then we’ll chill on BlockFi all bear market.”
This was the vision that the majority of investors had in 2021.
Then when these companies collapsed, they lost all their money.
They risked all their bags for a nonsense APY.
Don’t get me wrong, APY is very lucrative.
But compared to what you can achieve in the bull run, it’s dumb to risk all your bags.
And most of the people who went in Celsius or BlockFi actually had money, like over 100k.
Because investing less than that is pointless
Especially when you want PASSIVE income.
It’s like buying a house lol.
You can’t buy a home with less than 100k.
But they risked that 100k (and more) to make 10-12% APY.
Which is ridiculous.
Because if you’re going to risk 100K in the MIDDLE of the bull run...
You better risk it on coins that have 20x-30x potential.
Even if you lose, you’ll say:
“At least I risked that money for something worth it.”
That’s why I’m saying that you shouldn’t risk for passive income in the middle of the bull run.
Also, this comes to a conclusion of mine, that I always shared with people:
The more you try to deviate from seeing crypto as an investment
And the more you trade, create passive income, or build businesses,
The more risk you’ll have.
I’m not saying you’ll fail in any of those things
I’m just saying you’ll have more success by just buying and HODLING
It’s that simple.
Focus on what works and don’t try to go against the odds.
Enjoy,
Cryptogit