6 Smart Money Commandments

Following smart money is not just about following their trades,

it’s also about following their thinking.

I first invested in crypto in 2016, when Bitcoin was less than $1,000. It’s now hovering around $90,000.

And I thought I was late. lol.

Here are the top 10 things I have observed from my 9 years in the trenches watching the big boys.

1.⁠ ⁠All whales have gone through 90% “losses”

Let’s imagine someone who invested $1,000 in BTC in 2012 and never sold. Back in 2012, that would have bought them 200 bitcoins ($5 per BTC).

• 1 year later - those 200 coins would have turned into a net worth of $200,000. ($1,000 per coin).

• 2 years later - those 200 coins went down into a net worth of $40,000 “I should have sold!” - they “lost” 80% of their wealth.

• 2 years later - up to $3,600,000! “I’m a genius”

• 1 year later - down to $660,000! “OMG I just lost $3 MILLION!”

• 2 years later - up to $13,000,000 “I’m a genius!”

• 2 years after - back down to $3,600,000 “I’m an idiot!”

• 2 years after (now) - current net worth $20,000,000 “What a wild ride”

You only truly lose when you leave the game.

2.⁠ ⁠This is a blood sport - big players eat small players

This is nothing new. Even in the normal finance world - the big players bully the small ones, because they can.

Look up the difference between “a-book brokers” and “b-book brokers” to see how even regulated traditional brokers eat you for breakfast.

In crypto however - this happens in a more transparent and less apologetic way.

Whales collude and market makers flush out leveraged positions by manipulating prices.

Protect yourself.

Avoid these games and don’t become prey.

Never take leveraged positions and never read too much into patterns in charts.

There’s always a plan behind the scenes that you can never see.

3.⁠ ⁠A game of endurance

Nothing in life comes for free.

And nothing good comes easy.

Investing in crypto (and investing generally) follows this rule.

A marathon runner pushes through even when it feels bad.

A crypto investor holds even when it feels like everything is lost.

Investing is not an intellectual game, but an emotional one.

Survival of the fittest most enduring.

(side note, stories have emerged that some elite hedge funds encourage their traders to take estrogen/female hormones to dampen their urges to act impulsively).

4.⁠ ⁠Do the opposite of what you feel - this is a zero-sum game.

There’s only a finite amount of money to be made and emotions are your enemy.

The majority of crypto investing is done by retail.

Completely different to traditional markets where the vast majority of investing is done by institutions and sophisticated investors.

This means the crypto markets are subject to a much higher degree of emotion and a much higher degree of momentum (since markets are open 24/7 and anyone can buy/sell from anywhere at any time very easily).

Bad news → mass emotional sell off → price drop → further sell off → etc.

(All whilst ignoring fundamentals and long term prospects)

Investing (like anything) has a finite distribution of success.

You are a human, like the rest of retail. You feel the same emotions as them, but the only way to beat the herd is to act differently to them (not with them).

5.⁠ ⁠The bear markets are where you make money

Whales become whales not by doing a 50% or 100% increase.

They do it by doing a 1000x (and higher).

The only way to do this is by buying at the bottom (when prices are low).

Profits are made in the buying.

Not in the selling.

When everyone is petrified and saying “it’s all over”,

That’s your cue to buy.

6.⁠ ⁠Follow fundamentals, think long term and keep it simple

Are you investing alongside morons or investors that are proven to be successful.

This is probably the most important metric in anything.

Would you take soccer advice from Christiano Ronaldo, or from your uncle who has never scored a goal?

Yes, you can do your own analysis and come up with your own thesis.

But following smart money should form a main fundamental to your decisions.

They’ve already done the hard work for you.

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On that topic, let’s see what our carefully selected group of successful traders have been doing this week.

Top 5 tokens by net inflow:

1. CoinBase wrapped Bitcoin

2. Toly - new socialfi platform

3. ARC - AI Agent launchpad

4. VIRTUAL - (another) AI Agent launchpad

5. EUL - lending platform

Super simple this week. All solid established plays (with the exception of Toly)

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And finally, a chance to upgrade your investing game.

You spoke and we listened.

You told us that you wanted faster and more real time alerts on when smart money moved.

Smart money moves quickly.

We are currently working with a big financial influencer to fine tune our AI and get it running on a Whatsapp and Telegram group.

Now you won’t need to wait ‘til Sunday to get an update on Smart Money.

It will be ready when you are.

(that’s the power of AI)

Just a warning…. It’s scary good….

Link to join next Sunday.

Stay tuned.