So for this vlog I’m gonna try something a little bit different. Kind of impromptu but I wanna get it out on Friday. Obviously it’s not Friday right now but that’s when we’ve been doing the vlogs. So I wanna quickly hop to it, so the production is just gonna be me sitting here. Let’s see what is the family relation. So my brother in law’s brother, so does that make him my brother in law, I don’t know what that makes him but anyways; an acquaintance.
I’ll just put it that, text me a couple days ago and was asking me, he’s gotten into cryptocurrency and all that so I wanted to do a quick video on this because I’ve had a lot of people ask me to recently. Hey Clay what do you think about cryptocurrencies, big coin, all those things, what are your thoughts and I really don’t have any videos out there on it. And you know this is a very fluid situation, one day they’re up super high, the next day you’ll read a headline and they’re down 30%.
So I wanna quickly go through this text because I have a feeling that several people are probably wondering the same thing or some variation of it. So let me grab the phone and I’m gonna just tell you all what I told him and then make a couple other comments on cryptocurrency. And I’ll put this up on the screen too so you can see the text. He says, “been plinking around with crypto the past four to six months, seeing some staggering gains. Anything I need to be thinking about, anywhere you could point me? Hope all is well ClayTrader, hope to see y’all again soon.” Well first thing, he really calls me Clay, it’s not like in person, you need to call me ClayTrader.
I’m weird but I’m not that weird. But anyways so he’s been trading for the past four to six months and a little bit of context, maybe you’re not familiar with cryptocurrency but the past four to six months and even longer than that but cryptocurrencies, they’ve made quite a nice gain. Quite a nice gain. And Will is his name and Will’s perspective, he’s used the word staggering so he’s looking at some staggering gains. So what should I do and I have another video on this but I want to apply that same topic because it applies right to cryptocurrencies. And I think a lot of people get mixed up when they hear the word sell. If you tell somebody to sell, their mind automatically goes to… Let’s just say, for example sake you have 10 bit coins so just to keep the math easy, 10 bit coins.
If you were to say, why don’t you sell your bit coin, most people, especially newer people are going to think, sell but what happens if it goes up. They think that sell means sell all 10 bit coins but that’s not what sell means and I say that, I’ve seen it time and time again. When I first got started into trading, that’s what I thought, I equated sell with the entire position. Whether it’s all of your shares, if you’re trading stocks, you know all of your contracts, if you’re doing some sort of options or with cryptocurrecny again, your position of 10 bit coins, sell means all 10.
That’s not what it means. So what I told Will and what I would advise and what my opinion is, I’m not a financial advisor, this is for entertainment purposes only but what I told Will you can take it or leave it, this is not what I’m telling you to do but this what I, if it was me, this is what I would advise myself to do is sell a portion. Again going back to 10, sell five. Yeah you can do that, that’s called a partial sell and what’s the logic behind that. Well let’s say that you were wrong and bit coins just keep on sky rocketing. Well you still have 5 bit coins.
Great so you can still participate in the fun. But let’s say bit coin craters, it’s all a scam, it’s all, whatever you want to call it, and it goes down and down and then you know what it does, it goes down even more. You know what, at least you sold five, up at a much higher spot and locked in some gains way up there. That’s better than having all 10 bit coins, where it’s drastically lower price. Do you have to sell half of your position? I’m not saying that but sell does not mean you have to sell the entire thing. You could just take a portion of your position. Maybe you have 100 to keep the math easy, maybe you wanna sell 1/4th, so yeah sell 25 bit coins and you still have 75. Again if you’re wrong and you shouldn’t have sold because the price just keeps on sky rocketing, you still have 75 and vice versa is true if the price craters, hey at least you sold 25 up when the prices were much higher.
So that is my thoughts on if you already own some sort of cryptocurrency and you’re looking at, to steal Will’s word, staggering gains. Just remember sell does not mean you have to sell your entire position. And then the second part, of what do I think of cryptocurrencies, should I trade it, should I invest in it. I personally do not but that doesn’t mean you shouldn’t. My only word of caution would be, the money that you have, can you take that money out into the backyard and light it up with a match.
And if you do that, doesn’t make any difference, or if you do that are you thinking to yourself, uh oh I can’t pay my gas bill, uh oh I can’t pay my rent, uh oh there goes my mortgage money. If that’s the case, then no, you should not be getting involved in cryptocurrency at all for that matter you shouldn’t be trading anything. So moral of the story here what I’m trying to get at is, if you wanna get in it, I don’t have anything against it. It better just be an amount of money that you can afford to see disappear and if it is, yeah, see what happens with it. Because from that perspective, it’s a very good risk verse reward. If you can afford, let’s just say $100, if you can afford to flat out lose $100, then the risk is what $100 which we’ve already determined you can afford to lose.
What’s the possible reward, who knows, maybe cryptocurrency is the next huge mega thing and that $100 becomes a whole lot more than just $100. So you’re risking $100, you’re risking some amount that you can totally afford to lose for maybe much bigger upside. So that is what I think. Should you do it? Yeah go for it, if you can afford to lose that money, every single penny of it because that is a real possibility.
Maybe this all turns out to be some fly by night thing and it goes to zero but you know what, it was money that you could afford to lose in the first place. So it is what it is, its not like you’re going to be living underneath a bridge or a cardboard box, little coffee can, none of that’s gonna happen. And then the final thing is, I had a comment, Oh blah blah blah, big coin cryptocurrencies, its like the next internet and maybe it is but you have to also remember that for every internet that happened, for every big technological thing, think about all the things that fell by the way side. It sounds awesome to say, it’s gonna be the next internet and you could be right but there is many dead bodies all around internet that were suppose to be the next big thing that never turn out to be.
And I just bring that up because that’s exactly why you shouldn’t be throwing your kids college tuition money. I gotta pay my own tuition next month, I’m gonna use that money, or you know what I’m gonna take six months of my mortgage because this is gonna be the next internet. Be careful with that logic, there’s a lot of dead big ideas surrounding the internet which did ultimately work out. So hopefully that helps you out, especially if you’re one of those people that are holding some sort of cryptocurrency, you’re up pretty big and you’re not quite sure what to do.
Remember, sell does not mean everything, remember if you wanna get involved just use money that you can afford to light on fire and see it disappear and its not gonna affect your life anyways. And then finally, in conclusion, what is this some sort of english paper, in conclusion, I’m such a loser, that was mean because for you people out there that have good grammar and like to state sentences; in conclusion, I apologize you are just much smarter than I. Nate are you impressed, Nate this is a vlog you’re allowed to talk. Nate say Hi to the viewers real quick. Are you in cryptocurrency Yes I am. Are you really? No I’m not, I don’t have any. Do you have any thoughts on it? I don’t I wish I’d a gotten in three years ago. I do too, I’ll fess up to that, I wish I would of gotten…
You know what it was funny, there is a college bull game that I saw three years ago and it was like something, the bit coin bull or something. I’m like, bit coin bull, what? If I would have bought in then… A viewer was like, yeah that’s why I bought in cause I watched the bit coin bull, I don’t even know what teams are playing but anyways, yeah I wish I would of bought three years ago too. So that’s my thoughts, Nate’s thoughts, he wish he would of bought three years ago but any sort of questions or anything you can leave those down below but I think I’ve pretty much summarized my view point on it. So I hope this helps, also let me know about the format, do you like the fire side chat, of just random topics, if so. We need a fire place. That’s a good idea. Let’s build a fire place in here so we can do literal fire side chats.
That’s a good idea. So yeah let me know if you like this format, if you don’t that’s fine, we’re still experimenting with things but that is my thoughts on cryptocurrency. .