Basic BowTied Fundamentals: BlockFi, Exchanges, Risk Management and More
Level 1 - NGMI
Welcome Avatar! Surprising no one on this side of the web, it appears that BlockFi is suffering the same fate as Celsius, Voyager and other centralized scams. Here we’re just going to write out some basic fundamentals in bullet form so the masses don’t lose everything over the next 12 months or so.
This will be some sort of “CartoonStitution” in the future.
Basics Explained - Crypto
Sell 1/2 of *any* investment if it doubles in value. Only exception you are 100% financially independent and never have to work for 50+ years. Since we don’t know how much you spend this is up to you to calculate. If you are not financially independent go back to the first sentence
Any crypto that is not held on a ledger/Trezor/hard wallet is not owned by you. All coins on an exchange or “yield” platform is owned by the company. Not you.
For those that need to sell their coins it is simple. You leave all your assets on your hardware wallet. Until the last second. Then you send to the exchange you use and click sell. That is all.
“Not your Keys Not Your Coins” “Don’t Trust Verify” “Sovereign Individual”. Certainly a HUGE portion of people have no idea what this means. If you are using an exchange or “third party” which could be fidelity, Coinbase, FTX, BlockFi etc… it is *NO LONGER VERIFIED BY DEFINITION*. Anyone claiming this was an oversight either doesn’t understand what crypto is or they maliciously lied to you. One of the two in this case.
Brokerage account? See part 4. Still not your coins. Doesn’t matter if it is a Bitcoin ETF or not. It is not owned by you. Once again. Read this 10 times.
Basics Explained - Stocks
Same principle! Unless you’re financially independent even with major stocks you do the same thing. Sell half at a double. Here there is *ONE* exception. If you own stuff like the S&P 500, QQQs and other diversified index funds… Those funds do not go up and down a lot so you can leave them and avoid selling half at doubles if you like
When you look at stocks, always follow the money. If a CEO sells all of his shares you know it’s time to do the same thing. Don’t over think this. If a founder sells everything we all know what that means
If it’s on TV it is either the worst or best time to buy the stock. Read that again. If it is on the news all the time it is the worst or the best time. Be smart about which one it is. Go look at what happened to META stock after it was all over the news after they missed earnings. It went up
All markets are MARKETS. It does not matter if a company make $10 a year or $20 a year. All that matters is if some people are clicking BUY or SELL. That’s what matters. Economics is a false degree based on the assumption that people are “rationale”. People are not rationale. They are 100% emotional, so emotions drive the stock up or down
You won’t win them all. Even if you do your best and know an industry cold you will lose in certain cases. No big deal.
Basics Explained - Running a Business
NEVER go into a 50/50 partnership. There are no exceptions to this. One of you is doing more than 50% of the work/value. Someone has control
It could take 1 year or it could take 10 years. No one knows how long it will take to succeed. However. If you actually try and treat it like a marathon, we haven’t seen a single person fail that has tried for 5+ years. We have a massive group of people who have followed our steps for years and all of them are millionaires. Is there a range? YES. Some people get to $1M others to $10M+ you just never know
Always think about scale. While you can start a business that trades time for money (consulting for example). Eventually you must do something that earns while you are asleep
Profits matter. In a high interest rate environment, if you are running at a loss your business is now crushed. Always have a way to generate positive net income
If you get into a bad deal cut the losses. Don’t let it drag. If you realize you made a mistake rip the bandaid off and move on. Don’t drag it on and on.
Basics Explained - For BowTied People Broadly
Promote or ignore. Only talk positively about people doing things correct otherwise don’t say anything. If you engage with someone who hates you, you’re just giving them more sales. There are no exceptions to this rule
Jealously is for losers. We already know some people in other niches will earn much more than we do (honestly could already be the case! - who knows). There is no point in caring what other people are making. You will never be the richest person in the world forever
Try to find good people. Over time we’ve added tons of new people and every 2-3 months someone new comes up. Similarly, just like any large community, there will be ebbs and flows. Sometimes nothing for a few months, sometimes a bunch of new good people. Life isn’t linear. Lots of nothing followed by a step function
Try to help people save their jobs/careers. Most people have not seen a recession and it would be wise to continue grinding for Q4/Q1. As you’ve seen the layoffs are coming harder and it won’t get better any time soon
As new people pop up, definitely send them our way. We’ll do what we can to review the content/product/info. That said, just like life in general it isn’t possible to do this 24/7/365
That’s really it. These are real basic fundamentals. Do want to add one thing on judging character.
Person 1 says he wants to buy XYZ stock. 3 Months later the CEO is hit by a car and he dies. Stock goes down
Person 2 says to put your money into Celsius and claims to “know” crypto. An obvious ponzi that is easy to see with basic math. It goes to zero
Now which one should you be upset about? Assuming you lose the same amount of money it is clear that Person 1 didn’t do anything wrong. There is no way to know something like that would occur. The other one… It would be like sending your BTC to a crack addict and telling them that’s the best way to “store” their coins and get a yield on it.
Per usual. No crystal ball here. No one is going to shoot 100% or even 90%. The best you can do is follow the bread crumbs. For those that have followed for a while you know what to do and what to save for (in our opinion). Good luck, keep your jobs/careers and be as kind as possible to people you meet. Things will be getting real ugly as the global deleveraging occurs.
Disclaimer: None of this is to be deemed legal or financial advice of any kind. These are *opinions* written by an anonymous group of Ex-Wall Street Tech Bankers and software engineers who moved into affiliate marketing and e-commerce. We’re an advisor for Synapse Protocol and on the JPEG team. Currently homeless.
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Another evergreen post that pays for the subscription over and over and over. Thanks for the quick write up and helpful reminders.
"Hot Wallet" still recommended for smaller amounts per https://bowtiedbull.substack.com/p/doomsday-crypto-computer-coins-planning ??