บท 4: Chapter 3: Rugged Finance
4 the crypto & financial freedom @ Heart
1.] P2P market day: A story in seatopia.
Diction
Seaz: the country's currency name
Sinance: A Crypto exchange platform
Bitsea: A random crypto username
Obedient: Normal dictionary meaning! (😏)
P2p: peer to peer trading
Seatopia: A first class underwater city.
Blue-Estate: Under-water state of art scrapper.
P2p trading should hold a Guinness world record, & noble price for an award title; "The ultimate Anti resistant force of nature".
A Trading phenomenon so open, yet highly secretive in awareness or trace of any real-life traceable transaction.
For instance: A country I know ordered banks to freeze any customers account conducting transactions related to Cryptocurrency. The only section that actually suffered from the law was its innocent economy, not even the crypto freaks.
Poor economy could experience a reduction in its finance by $6billon; "even though the physical cash hasn't left local banks account". The irony make it seems like money keeps leaving the country, while it still physically seen in the country's central bank account.
Adventure begins…
A Seatopian dude called Bagg¥ who lives in "Blue-estate" ; goes on Sinance, meets this anonymous dude called "Bitsea", and told him he wants to sell Bitcoin worth 1000seaz to a Seatopian account in the platform.
Bitsea reply's chat: "whatsup! u can send. but no crypto related words, and 50seaz for Stamp duty, card maintenance, and vat".
Bagg¥ sends the 1k-seaz to another Ordinary surface account owned by someone who probably lives in a different city like Lagos, Queens, or even Atlantis, far away from home. Now! Where's the suspiciousness?
Divert
Back to surface grounds: Banks are lost in greed, struggling to suck wealth from innocent masses in a "bad government regime".
Who knows! the next government might be sincerely "Obedient" to the surface citizens, for Greedy surface-banks don't have such time and resources to invest in an untraceable so-called illegal but valued transaction.
Even in Seatopia; a 1st class sea nation filled with tech advancement, doesn't still have a clue on how to stop p2p transaction.
2.] Trade the opposite direction
"Most people do not understand our banking system. For if they did, I believe there would be a revolution Before tomorrow morning,"
Henry Ford
Avoid thinking the ultimate play in the trading game is to make money as fast as possible. In real life people make slow cash, but suddenly expect the crypto space to magically supply them wealth beyond a genies wish. Feeling entitled pressurizing the market to produce fast result, as if the system was some kind of get rich quick Ponzi scheme.
Fine! You can make money so quick it will seem like Mr. Flash is so Dem sluggish. At the same time, you could lose ur coins faster than the speed of light, till the frustration start making you feel ur problem is spiritual ("Village People"), or that your brain is playing Bet9ja with your tensed emotions.
What you feed the system is what you get in return, if u want to make money fast, be ready to lose money fast; "Garbage-in, Garbage-out!" If you also choose to make steady money be patience and get ready to pass through the slow though times.
In reality, the end game is not just about making fast money, but making steady digits while not losing ur original capital, then repeat and compound. First you might think this strategy is slow. Well! As time advances, you begin to notice the ironic speed that flows with patience, merged with tiny gains compounds over the cause of time. Off cause you will surely lose money at some point, but when you make more money than you lose, that makes you a wining trader.
Learners lack the patience of making slow money, feeling the system is 2 slow. No one really enjoys making slow money; imagine how long it takes to build a skyscraper, if humans had a way of building it in lesser time frame they would. Guess what? They can't, because the result is fixed to a rigid timeline. However! In the trading multiverse of endless possibility, your fantasy tends to lure you into thinking the result of making money depends on what you want, only to end losing money fast.
Big brokers, Gamble site, and Cryptocurrency exchanges all understands these principles. They prefer to make the slow and steady money, by taking advantage of your greed. Entrepreneur's "be" marketing you the fast lifestyle of getting rich quick, selling you emotions which is part of their written business plan. Even program smart robots and artificial intelligence to help them analyse the false of your greed, and make themselves tiny fractions of ur hard earn cash accumulated over time, while you end up falling deep into their open net.
One of the ways to take advantage of the system is to trade the opposite direction of what they preach. They introduce high and unrealistic leverage, you trade a reasonable leverage; they "re-balance" their ETF tokens, you "re-balance" yours; exchanges advise you to trade the volatile direction, you trade the average correction, the list is endless. In-fact! Any product that looks too good to be true actually is too good to be true.
Big brokers, banks, exchanges, even bet sites; will never emphasis on how great you could lose your capital staking so much risk. it will just be spelt out in a deliberate boring description, written in the last two lines of the final paragraph. Something I would call a necessity done for the sake of fulfilling all righteousness.
After all, 99% of trader won't even have the time to finish the first paragraph, not to talk of reading the whole complex storybook down to the last sentence. But then! They would even spend millions preaching and marketing the fantasy of making a home run if you try their product. This is why you need to trade the opposite direction of whatever goodies the big boys are selling to you.
Don't get me wrong: these exchanges or brokers are not lying to you about the amazing result you could get by following their promo and so-called advice, but don't make the mistake of thinking they are doing it for your benefit. Remember they have a business to run, employees to pay, and an empire to build. They can't possibly achieve all this annual revenue, by teaching you how to perfectly get rich with the system, while they dive slowly into bankruptcy.
Every "God-Dem" financial business exists to make money off your money, directly or indirectly.
Vipers include; traditional banks, lending platforms, credit card companies, even government financial sectors etc. Its either they make money from tax, all kinds of charges, maintenance fee, penalty or late fee, trading fee, liquidation, interest from loan etc.
As a "so-claim crypto investor" one needs to figure out what these big boys really need. Run ur fundamentals, to grab the real reason they are promising to make you a millionaire instead of their investors. Find out the hidden puzzles and trick behind their exaggerated campaign, that way! You'll understand how to cross the forest without Dipping your feet into swampy waters.
3.] Production & services
Basic rule of production: if the product or services you're rendering isn't something you feel, need, wants, or get excited about, then you're wasting hard earn time and resources. Cuz at some point, during the rough process of bringing such imagination or concept to life, reality will either clear your doubt, or respect you for passing through such rugged test. (The process is demonic and angelic @ d same time.)
4.] "Introduction to digital Street"
@ Crypto daddy's…
Picture opening your multi chain address on trust wallet and a so-called automated admin asks you to write down your 12 key-phrase for a system update! What should come 2 your mind first? "Scam!" …
Quick 1: "In crypto, anything that looks too good to be true, is absolutely too good to be true". in fact! Any adage known to man is highly effective in crypto world: from "patient dog eat the fastest bone", down to "Don't put all your eggs in one basket" then up to "don't judge a book by it cover", the list is endless… (A topic for another book)
Everything has a cost price, and their boss "Mr. Freedom" has the highest cost of them all (Self-responsibility). In crypto you have 100% access to your finance which also means, if you 4get your password, "key-phrase" or "private-key" the blame of losing your entire life assets is still totally on you.
(Quick note: not a crypto fan? Well! It Might be hard understanding this current journey. For ur mental safety, move to the next choice or chapter.)
Key phrase: is an official password for your digital multi-chain wallet account. "In a real-life scenario, it will sound more like the password to your bank account and ATM-card".
However, in this democratic digital world, you are the one creating your own personal bank account. If you misplace such details either deliberate or not, thy coins are gone forever. Apparently, you were the one who created it, so you are the only person to run back to for solution.
Anyways! Let assume you've understood the risk of personal freedom, and still processed the commands as instructed. In less than 2-minute you have a new multichain wallet, spread across the Blockchain-verse of unlimited securities, nft's, and galaxies of meta-verse etc. all in one wallet.
This means you can have crypto worth either 1 naira or 1 billion dollar; so amazing how an entire digital community can see the worth of your money, track your transaction, but might never know who the owner of such anonymous wallet is. (A vital protection should in case the democracy becomes corrupt.)
It will be wise to understand that the real value of your wealth "if you had any!" is totally dependent on your wallet 12 key phrase, and do well to safeguard it.
Also securing it can become another problem for you. Storing it on your Gmail, a drive, or any other Smartphone utilities, doesn't make it free from online hack. Nor does Storing your password in physical wardrobe and paper file justifies any safety (e.g. fires outbreak).
Good news…
Imagine if we store it in a place that is totally secured, invincible, encrypted and has never been hacked ever, Ur brain! The same place we store memories, our phone numbers, bank account numbers. A celestial environment where we store our date of birth, year, time, and other subconscious details! "That's the best place to store your twelve key phrases".
You might think it's impossible to memories those 12 key phrase word by word. The idea of struggling to retain info in your mind looks scary to imagine, but guess what? It's just random thoughts.
What if you decide to think about it in another dimension and say, "you know what! Let's learn this keys the way we learnt our national anthem, phone number, 26 alphabet, times table, clock, or even new language."
What better place can you store trillions of dollars if not in your "Megamind".
5.] Spread your seed
"It is better to be roughly right
than precisely wrong."
John Maynard Keynes
Once upon a time, there lived an investment Whatsapp group i happen to join. Someone posted a random question claiming he wants to know who the forum smart investors are. He said, "Assuming we all had 3 million Naira, how are we going to invest it?" A more elderly person in the group segmented the money into 5 sectors: real-estate [land] 40%, stock and crypto 25%, business startup 15% and Treasury bill 20%.
Another younger group member questioned why his portfolio was so lame; claiming he should have added more percent in crypto, stocks, and business. Wondering why he will put so much in a sluggish assets like land, worst of all allocated more for a dumb static asset (Treasury bill). The naive fellow went further to confront someone investment choice by saying his decision of over diversification will only stunt his growth. @ this point, thy author realized the voiced of an experience Man, from that of a dumb naive kid who thinks he's an adult. The group went silent for 5 minute, as though Angel Michael was going round to do an inspection. Finally our elderly one replied by saying, "my portfolio choice is to simply give me peace of mind."
There's no point making a portfolio decision that will end up giving you heart attack all because you wanted to hit home run. You only invest in what you really understand and reduce your chances of great losses. The goal is not to keep making huge profit every second, but to make steady profit while not losing your original capital.
Portfolio breakdown: As an elderly person, his most understandable asset backed up with good experience is real-estate, so he fix the bigger cake there [40%]. Still as an elderly fellow, who's not too familiar with the internet madness, but just so he doesn't miss out! He allocates [25%] to stock/crypto.
Thought puzzle…
At least he is better than Warren ---Dash--- who ignorantly missed the ---Dash-- stock during the industry infant stage, and still repeated the same mistake by ignoring ---Dash--- during the early blockchain origin. "That dude would have been the richest man of all time, if only he didn't allow his dumb ego block his old sight from accepting change". Back to our elderly dude; he allocates [15%] to a business startup, "after all something must keep a man busy". Finally, [20%] to Treasury bill which will serve as both an alternative savings account, and a micro self-pension tool.
The so-called guru (pidgin: "I too Sabi") asked why he didn't allocate more to startup, instead of dumping [60/ 20%] in real-estate and Treasury bill respectively.
"Mr. Sabinus" will answer that: Startups are the riskiest investment to embark on, more risky than crypto, gambling, Forex, and stock combine. Every year the rate of new business that fails is roughly [9] out of [10]. So what is the point investing heavily in something you know has a [90%] chance of failing, because of the unseen obstacles you would experience along the way. Instead invest little, make mistakes, and learn from the experience. After a good confirmation period, you can then invest big in a working system you've created.
Landing back to the course of this subtitle; the same principles apply when you are trading or investing on a single cryptocurrency. Either you make more in the longer run, or you lose more in a short period of time. You can't eat your cake and have it. I would personally love to trade a single asset just like you guys, and keep watching it like a security dog.
However, the juicy truth still stand, which states that no man can know the future except God, not to assume that tiny "Me" will accurately predict such future. So thy "Motivational Speaker" won't possibly know which assets will shoot to the moon, or which will crash down into quantum realm. (@least "veb" is down there to give you the "Oozy-highness".)
My humble way of analysing the market, "which is open to update" is by spreading whatever capital I have, across different sector, for the sole aim of not running mad, or landing myself freely in a psychiatric home. Don't get me wrong! Trading or investing all your capital in a single asset is not bad, and I personally admire the bravery of such heartless risk, but what you've done is break down your defence walls for terrorist to easily invade your tiny village. Imagine having a single door in your apartment, "one way in one way out" with no backyard door, kitchen door, or secrete escape door. Suddenly! Armed robbers decided to attack you at midnight; the chance of you escaping such horror now depends on how well you've related with God in the past.
Also don't over diversify; it's useless to keep spreading your capital in multiple random tokens, which is an unprofessional way to invest your money. Too much of everything have always being bad, and there is no exception in trading. Just as over diversification stunt average growth, trading a single token deprives you the hidden opportunity that lies in other project. Plus it increases your chance of losing everything.
When you spread your capital to different coins or token while trading/Investing, you diversify your portfolio and reduce the risk/reward ratio to an average level. Let take for instance; Benito has [100$] in his binance account, & decide to spread it across [5] coins: BTC, ETH, BNB, DOGE, &EOS; [20$] each.
Most times the entire crypto market is correlated with their big daddy "bitcoin", but then you've invested your capital in five different tokens, five different fundamental background, five different settings, and five different ecosystems. What drives ETH higher is different from what drives DOGE higher.
The entire altcoin market might be crashing (which will definitely exclude bitcoin). dogecoin at the other end, might choose to ignore its extended family and go higher for the day, simply because a random celebrity made a dumb meme about buying dodge for his new dog.
Thus, what happens to your portfolio is; 3 altcoins worth [60$] is down [50%] reducing it to[ 30$], bitcoin moves higher [50%] making ur Btc value increase to [30$], and dogecoin went 150% making the doge allocation worth [50$].
Calculate the total amount of your portfolio: ETH, BNB, EOS [3 altcoin] 30$ + BTC 30$ + DOGE 50$ =110$. Our "Mr. know it all dude" from WhatsApp chat, who hates the limited growth that comes with diversification would say; "if you had put all your [100$] in doge coin, by now you would have turned your [100$ to 250$]". And will definitely forget to explain how putting your [100$] in only BNB too would have reduce your [100$ to 50$].
Diversification help one re-balance his/her portfolio, and take advantage of the deep. Moreover, you still have [100$] and profit of 10$ to readjust your position in the best undervalued coin before the market recovers back.
Correlation is bound to happen most times. Irrespective of how good and diversify your portfolio is, you can't escape the red market when it comes. Blockchain Space is still very young among financial securities, and still seen as a debate by the financial industry whether to make it an official security class, or allow the wildlife atmosphere settles first!
However one thing is certain, no matter how angry the market tends to be, you can't misplace all your egg when spread across at least [5] solid basket.
6.] Passive & steady
"On your quest trying to create passive income, stop struggling to do it with an instant result."
First Thing First! Your demographic Choice @ most "Importanta", & should be the age bracket that strongly consume whatever u choose to produce; especially in their most educative, intensive, and leisure time. Key goal should be discovering the most addictive way they can relate with your service or product.
Once ur target audience are able to take their time in checking out your stuff, Congrats! The passive journey begins. Slow and steady should be the slogan when creating passive shit. The journey is where you repair mistake that should have happen if the full package was already in your consumers hands.
Understands these 2 words and let it guide Your impatient zeal for success.
Slow: means it will surely hit the sky, but not @ sugar rush.
Steady: means u will keep getting better results over time in a consistent manner.
Both a blessing and a Course: It's more like one trying to solve a targeted problem, with a good karma of better days ahead.
7.] Holders, the real crypto millionaires
"Value stocks are about as exciting as watching grass grow, but have you ever noticed just how much your grass grows in a week?"
Christopher Browne.
I'm certain most people have heard of the adage, "the patient dog eats the fattest bone". Now here is the thing! Some critics will claim the adage lacks it relevance, but in "crypto-reality", it remains exclusively constant. Funny fact is, other dogs will also eat some bones along the way, but the patient one gets to eat the fattest of all. In crypto the big dogs are the investors who "HODL".
The beauty about holding token for a moderate lengthy period irrespective of price fluctuation is, you get to experience the rapid effect of compound interest. Watching short term holders and traders gambling with dem capital to enrich yours overtime, by indirectly increasing your token value with their greed, fear, and immature psychological decision in both buying and selling spray. All you need to do is Buy! Hold! Sit back with your bowl of popcorn or groundnut, and watch the moving train.
Day and swing traders will always preach the gospel of day trading, as it brings forth more money to the table. The only difference is; they keep forgetting to explain how they lose more money from the same table. When day/swing trading, you deny "Mr. Compound interest" his privilege to help you freely grow your "Raba".
Let's read a case study of 2 fantasy traders.
Two new traders Effiong and Bassey, decides to venture into cryptocurrency investment for the first time. Both dreamers are novice, and are only entering with the knowledge of their mentors. Effiong has a mentor who is a professional trader, and claims to be making millions on a daily basis. While Bassey has a mentor who buys penny crypto and hold till either an IEO opportunity, or when the token gets listed in a big exchange.
The two-newbie invested [50] dollars in a new token which is still passing through a verification process by the crypto community. Two weeks down the line, and our promising new token has already increased [4] times it origin price. Congrats, both traders' initial investment is now worth [200$] each.
Effiong followed the advice of his mentor, cashed out his token, & decides to use the money in furthering his derivative and leverage trading adventure. Bassey @ the other end, decide to still hold on to his token, even though he has an option of cashing out. A week later the token drops 50% below its all-time high due to a regular short term red market, and his token was now worth 100$.
Effiong laughed at him, claiming if only he had cashed out, he would have gotten 200$. But Bassey had checked the fundamentals and it was solid to continue holding. Two weeks later; token had increased [5] times due to a legit rumor of the project launching in one of the big exchanges, making Basssey portfolio increase to [500$]. Two days later, the token administrators announce in their twitter page, the date our celebrity token will get listed on sinance. Boom! token pumped an extra 300% from its current price, raising Bassey's token value to [1500$]. Finally Bassey decides to cash-out his gain, cuz everyone was buying, which meant he should be selling.
Bias Analysis
Though! From an investment of [50$]: Effiong made [3] times his initial capital (200$), by cashing out early "which is fresh!" Bassey @ the obvious side ended up making [30] times his initial capital; by simply waiting patiently, and allowing the power of compound effect work for him.
No one is saying you shouldn't cash out when you like. Sometimes depending on the nature and circle of the new token, your fundamental research might give you a valid reason to ball d fuck out. On a basic "normz"; for a token that has. Steady growth movement, and a fair use case scenario, holding and letting the market work for you can be the best decision you'll ever make.
8.) Accountant Jegede!
Sub ref: "Mama-T"
Caption 1: Salary is so in relationship with petty cash use for imprest. Thy purchasing power will always be limited no matter how chronic the issue at stake is.
Caption 2: Still in the realm of Accounting! Cutting corners while balancing your tables is a total fool's game, if you can't balance those "Shit-boring-figures", then go and Sleep!
9.) Monopoly Abstract
Warning: Best read by Monopoly game players
Caption 1: Dubious games found in the street of Monopoly
Caption 2: Bloody dice rolled all in disguise of Real-estate.
The game is dead simple, so I will split it in different groups like; Basic-Sapa, Middle-Slaves, The Demonic in riches, 7-8 #Airport-Road, & Gate-Pass.
Basic- Sapa
The system of investment remains constant. only that this time u b dealing with people who "worse come to worst" doesn't give a fuck, cuz they don't really have anything to lose. So advancing your own riches depends on heavy speed in upgrading to an entertainment level. At least a stage where you can take advantage of those tiny cash they keep spending on flexing & Shenkes.
Casted: "Like me senior bros Dem", will hunt for all the houses in Ajegunle's region with only one target in mind, which is turning them into hotels. Once that is settled, "Babana's" hunt for "Banan-island" "Begins". ("Rhymes Noni ")
7&8 #Airport-Road
Theme: Supply and life Source of steady cash.
While we keep chasing endless money, "Baddest in the game" be coordinating our addiction to suit their steady cash flow. They aren't taking advantage of us per se, just our ignorance which no one can control.
Or will you blame plp for Opening a transport business; claiming they are taking advantage of the masses heading to various destination but don't have a ride!
My point is; down here @ Monopoly, ur airport and utility assets are silent power engines to your steady cash-flow.
Middle Slave
However, Middle class boyz are the glorified suffering citizen who keeps powering utilities owners with their short term cash, all in the name of civilized survival. (#chronic rat race)
Whoever designs the city and urban lifestyle was a bad-god. Angry dude manipulated a societal idea filled with minions who will keep acting like they have everything under control, only to retain a level of cash @ one ticket away from Zero (Poverty).
9ja Caption: Ago/Lekki vibes
For instance! Lekki is dope, but in some places, you need to buy "Pure-water" (sachet-water) to even take a shower, such a glorified suffering.
Foreign version: just like in Zootopia when "Bunny Sargent" got disappointed buying a premium Carrot that's worse than the ones she do throw away back in mummy's home farm.
As for Mr Ago who claim to be the centre of eastern playground for the so called rich down here in Lagos, still suffer from lack of a normal drainage system.
The Demonic in Riches
Like Davido said; "Na person way get money dey carry shoulder". Hunting for "blood money riches" luxury houses has to offer, means you've gat ur basic life support settled. Solid enough not to get scared of buying crazy wedding rings, either for showoff or by mistake.
It's definitely a "fools-game" to hope for "Quick-Gains". Better still, wait for your targeted rich freaks to come around, and assume they will pay once the trap clicks.
In all, government be getting scared of rich bastards else they won't try to reduce their financial power with abnormal taxes.
On a second thought! since money can answer almost all things; the rich will always find ways to reverse the effect. As of our Sapa Masses, too bad tax remains equal.
Gate Pass (Address: Art 10)
Finally, the scariest part is when nature or "dice-misfortune" tampers with ur most priceless value call Time. & while you remain mentally stagnant in a place built by the society to hinder your success, people with not more than 1 "head" keep moving ahead. Down here such place is call kirikiri prison.
End note: As exposed in our Christian bible, Money is thy root of all evil/"Answereth"all things. How about we make it the root of all goodness, after-all money doesn't answer some but all things. Obviously being good is just a tiny part of all things.
(Pidgin;Cuz las las! This politicians go finish us with better wickedness.)
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