FULL Cryptocurrency Trading Course - From Beginner To EXPERT

This crypto course will give you everything you need to get started trading cryptocurrency all of these topics will be listed as time stamps down in the description below alongside loads of other links free resources and other videos that I mentioned in this one we're going to be looking at how macroeconomics affects crypto why Bitcoin exists and how it spawned this entire industry how altcoins play into This then going ahead and analyzing crypto both from onchain and technical standpoints than how to actually trade at the end of this video we looking at how to use a

blockchain as well if you don't know me yet I'm James I used to work on the London Stock Exchange but I'm not your financial advisor and I can't give you any specific Financial advice so just keep that in mind when watching this video let's get started though with what exactly is crypto Anyway you may have seen sites like coin gecko or coin market cap and seen all these different cryptos and thought what are these how do they work are they the same or are they different and why are they valued differently well firstly let's split

up the difference between a crypto and a blockchain a crypto is simply a digital representation of value now that can be very different depending on the coin you can have something like Bitcoin which simply represents the Bitcoin Network or you can have a token that represents a diamond or a bond and so they're not the same and they're not equal even though they're both crypto assets ultimately a crypto lets us transfer or trade value from ourselves to someone else 247 peer-to-peer meaning that there's no intermediary in between we don't need a broker we don't need

an exchange and we can do that on the blockchain 24/7 so ultimately a crypto asset lets us transfer value Peer-to-peer 247365 the blockchain is the actual thing that enables us to transfer those assets so a blockchain is simply a ledger of accounts when you create a blockchain wallet what you're really doing is creating an account just like opening a bank account and if you had money in your bank account the bank would keep a ledger of all of your transactions now the difference with a blockchain is this is distributed Amongst unconnected participants around the world

so there's thousands of people running the Bitcoin blockchain and they don't have any links to each other and the blockchain keeps their honest in that they can't mess with our transactions so when we submit a transaction the blockchain sends it through and those nodes go and carry out that transaction for us it keeps a record of History around the world so it's basically like money in the cloud But nobody really owns the cloud and it allows for crypto assets to be sent between the accounts on that blockchain so it's a decentralized way to send value

peer-to-peer and the blockchain network allows for that no centralized Authority like a bank or a money institution or a government it's you versus me and I'll send you money myself using the blockchain and no one can get in the middle now let's look at the types of Crypto that there are because blockchains would always have a specific blockchain layer one coin that represents that blockchain and when you want to use a blockchain you have to pay a fee to the blockchain participants for processing your transaction and we call that gas so if you want to

uh use your Bitcoin and send it to someone else you'll have to pay a small amount of Bitcoin to the uh Network and a small amount of gas Tex is taken out of your Transaction every blockchain will have a layer one coin that you use to pay for gas on that Network tokens though are completely different tokens are built on on top of blockchains and they represent something else not the blockchain itself so you can have protocol tokens or exchange tokens and these represent uh something built on top of the blockchain so there's a decentralized

exchange or a decentralized lending protocol where I Can lend money to you and you pay an interest to me that's a protocol in itself and that can have a token that represents the value of that protocol there are also real world assets like stable coins which represent dollars in a bank so we can easily send Dollars around on the internet and then there are many other types of tokens that represent something else for example if you use a lending protocol you probably need a receipt for what you're lending Out so that you know that you

have it and you can call that loan back well that receipt token would be its own separate thing and it would more be like a utility token in that instance then you have non-fungible tokens which we'll look at in a second and of course many scam tokens because anyone can create a token pretty much for free there's going to be lots of scams and other types of tokens that don't really represent anything at all other than basically the People that create them wanting to sell it to you to get rich so everything exists on the

internet and everything exists on blockchains Can it can be represented by a token there are really three main different types of token or coin you have this one the coins these are the layer one gas coins that represent the blockchain network then you have tokens which are fungible this is a stable coin called Usdt and this represents dollars just like dollars are fungible if I gave you $10 you could swap it around with another one and give it back to me and it's fungible I wouldn't care it's exactly the same it's $10 same for uh

dollar stable coins on blockchains but of course you need to represent unique things as well which is why we have non-fungible tokens simply unique things so a token that represents one specific artwork has to be unique because you Can't swap it with anyone else and hence we get nonf funable tokens as well they're the three main areas within crypto so we know that coins and tokens Can represent value in completely different ways and can have different attributes and the way that we try to write down those attributes in a way that we can understand is

called tokenomics it's the economics of tokens or coins and so these can be very different depending on the blockchain or The crypto asset itself so let's have a look at this firstly we value cryptos in dollars so if you go to a site like coin geco you'll see down here all of the cryptos and they're usually listed by the most uh valuable first which as of making this video is BTC and you can see the price here this price represents how many dollars it takes to buy one unit of the cryptocurrency so as of right

now one unit of Bitcoin costs around about $46,000 now you can buy a fraction of a Bitcoin so you can buy 0.00001 of a Bitcoin no problem it's going to cost you a lot less money but it's one unit of the crypto how many dollars does it take to buy that now every single crypto has a different Supply meaning that anyone can create these coins and so they can create the supply themselves so if we look at Bitcoin we know that Bitcoin has a total Supply the protocol itself was written to have a total Max

supply of 21 million coins that's all that will ever be created and the protocol can't create any more of them there is a circulating Supply right now which is the amount of coins that are in existence it's around 19.6 million uh coins right now so so what we can very easily do is work out the total value of this crypto we call that the market cap or the market capitalization so what you do is you Take the price per one unit around $46,000 and you multiply that by the circulating Supply which is around 19.6 million

and that gives you a total market value of 900 billion so it's the most expensive asset in crypto as of making this video we can also see that is a 24-hour trading volume that's the dollar amount traded each day which is this amount and the fully diluted valuation is the valuation where we take the price per coin and we multiply it by The max potential Supply which is 21 million coins so what we can know is that each coin has a different Supply there are a different amount of coins and so they have a different

price but in order to accurately um compare the value of each blockchain or coin or token you have to look at the market cap that's going to give you an overview of the actual total value so we know that Bitcoin has a market cap of 900 billion and ethereum has a market Cap of 300 billion and so uh ethereum is around onethird the value of Bitcoin but if you just looked at the price you would see ethereum is much cheaper what we can deduce by this is the ethereum has more coins than Bitcoin so if

you click into BTC click into ethereum you can see there are way more coins you're looking at around 120 uh million coins right instead of 21 million so tokenomics can change but to compare coins and tokens we really need to look At the market cap why do people create these tokens there are many different reasons so Bitcoin was created by Satoshi and he created it as a peer-to-peer money and then left the network and it kind of spawned from there other types of tokens can be created for other purposes for example iOS or initial coin

offerings that is when someone has an idea for a project and doesn't have any money and so what they say is to Investors give us dollars so that we can spend those dollars to make our idea or our project real and you know bring it into life and we'll give you some token that we just created this is basically the same as equity in the network that they're creating or the protocol or the business that they're creating right and that's the same in you know in equity as well if you start a business you can

create Equity within the business and you can Sell that equity for dollars or other feat currency to fund your business so what we can know is that Bitcoin may be very different to some other coins because most other coins created the coin and then sold it to for dollars to fund their operations initially that's why people create these coins and these tokens is to fund their idea not all of them but that is a way that many of these tokens exist is because you have um entrepreneurs that Need funding to start their Network or their

business and they create a token as you know investors can swap dollars for that token and then the idea is that that token goes up in value over time as the network or the business grows that's a very different thing to own than something like Bitcoin let's have a look at some tokenomics here that we can see so we know that a human being can create a token and that means that if they control that token they can sell it to Other people in any way that they want something like salana is an example of

a a basically an equity token it was created by people that are in Silicon Valley and so they're very comfortable with this kind of equity model they created salana the token they sold it to investors to get dollars to fund the operation to build up the blockchain so what we can see here is that the token was created and a huge amount around 25% of the supply was given out to investors In what's known as a seed sale so the token is given at a very very very low valuation for people to put money in

initially to fund the initial idea so 25% is owned by a very small cohort of investors you then have another founding sale which is again just a way to raise money so you give people these tokens that you created that represent uh some amount of the network and you sold that to investors the foundation also owns a ton of these tokens the foundation is Basically the things that run the network and make sure that it's up and running all of the time then you have the team that own 20% and then tiny tiny amounts that

represent the the public sale which is you know uh open market investors that can just buy it in the open market this is kind of representing what would otherwise be known as a company so it's a very similar to how you know startup companies operate where you get a huge amount of the supply Owned by a small amount of early investors that's not amazing as a representation of money itself but it could represent the equity of a network but it's again very different so you can see how these coins and tokens represent value in different

ways there is also a supply schedule over time most of these coins will start with a smaller amount of supply and then increase the supply over time to a later amount of sums of some amount the reason is as you can see The supply increases to give some uh Network participant more coins over time so for example the foundation could have a lot of tokens that vest over 10 years and so they get a little bit each year over that time uh maybe some other investors get tokens given to them over time or you can

pay out staking rewards for this type of blockchain which is an incentive to uh Network participants to actually run the blockchain so what we're saying Here is that we're creating value in some way and giving it out to people to do something and then we hope to create more value over time uh to make the thing more valuable this is kadano Ada which is a very similar type of blockchain a smart contract chain you can see that the initial coin offering was around 60% staking rewards over time around 30% and then the team got around

11% so this is definitely um more distributed Than salana the Ico is an initial coin offering that was initial investors that could get in but it's certainly um you know slightly more distributed than something like this where you're getting a huge amount owned by basically insiders so a little bit different there and you can see the uh the supply schedule is uh pretty standard right you have the token sale and the team and then you have staking rewards over time that try to incentivize people to um run Network nodes to run the network then you

have BTC which was created by Satoshi no pre-sale no Ico he simply created the protocol and he started mining the network initially now satoshi's coins have never moved and so they're essentially lost coins at this point so no control over them or the network this is very different in terms of its tokenomics because what you're seeing is over time the supply started at zero and the proof of work network Has created all of these coins up until 21 million where it will just simply stop producing new coins these are the block rewards as new coins

are created over time that of course goes to zero as block rewards go to zero the uh emission of new coins is zero hopefully this shows that Bitcoin is very very different to most other stuff where most other chains created these coins or these tokens sold them to investors to get some money to fund Their blockchain projects and it's owned by different types of people Bitcoin is really different in that respect where it was designed and created to be money and nothing else and it has this extremely fair schedule over time so how do any

of these coins or tokens represent value or capture value in some way for Bitcoin it literally does nothing other than represent the Bitcoin Network because Bitcoin is decentralized as a network that is Strong and reliable that network has some value because people may want to store some value in that Network and so Bitcoin simply represents the blockchain's value for smart contract chains like ethereum things can be very different ethereum is more of a Computing platform and it lets people create smart contracts where they can do things together so they can trade or they can lend

and borrow and they pay fees for that and so ethereum is a Decentralized network as well but it also earns very good fees and it pays those fees back to users if they stake their coins we'll get to that later but because ethereum pays fees back to users it also has some value because it pays a yield to them Bitcoin pays no yield but ethereum does and so ethereum may have value in different ways a stable coin that is essentially representing $1 only represents $1 if you invest in this you just are holding dollars and

Therefore it's not an investment and there's no value to be captured you can see that right here that tether is valued at a dollar and always will be valued at a dollar so that simply repres presents something else then you have protocols like Unis swap which is a decentralized exchange an exchange charges fees to its users who trade tokens and so if an exchange charges fees it's basically a business at that point and you can value that token based On how many fees it makes and if it passes some of the profits back to you

as an investor so blockchain assets represent different things and they have different values depending on what exactly they do you may be wondering where I get all of this information all of the resources that I show you in this video and everything that I use will be listed down in the resources section in the video description I recommend getting an Account on X formerly Twitter lots of news and research on there and it's a great resource there are also tax and portfolio trackers that you're going to need if you're trading in crypto or investing now

your exchange may give you this for free so definitely don't pay for anything if you're exchange is going to give you that for free look on your exchange though now for research and analytics these are amazing look into Bitcoin defi llama June analytics they Show you everything that's happening on the blockchain in real time it's a fantastic resource and we can do this because of blockchain Technology if you want pricing data and charts definitely use trading view it's industry standard it's free to have an account and look at pricing data so why not have it

now at this point I want to the crypto course as well this is the professional version of what we're doing here you can see that there's um a Discord group where You can come and ask me questions I update the course for free of charge forever I'll leave it link below I get much more in depth into you know really what's going on with the crypto types you can also see a lot of trading articles as well have an entire trading section uh a little bit more professional than what we'll do in this video you

can see all of these different videos here if you want to request a video because you don't know something Or you want to ask me a question just just come and ask me in the private Discord groups I'll link the crypto course below as well and I update it with all of my research I just updated it as of making this video uh as you can see here with my latest research and what I'm doing with my portfolio and everything like that so lots of resources to use and just check everything down below Now we

move on to a crash course in how the macroeconomy Can affect crypto prices the macroeconomy which is really interest rates Central Bank policy all of that over the short term can manipulate asset prices so central banks control money the fat currencies that we use to trade and they control the interest rates on the debt that we take out and they control the supply of currency that we use and they do that to try and push and pull us into this kind of smooth and predictable uh way of moving in the Economy so every Central Bank

tries to grow its economy a certain amount and of course economic growth is not the same around the world some countries have a young population that are growing and producing more value other countries have an elderly population or an older population that are just past their best years and are not producing as much as they did before in any case C c banks know that they can't control that you can't control demographics but what you Can try and do is slow the pace around and not make it you know too crazy because financial markets don't

like to be upset if they know where the destination is they're fine with that and if they get there slowly then they can plan for it but if things are unpredictable markets are Mayhem and so central banks really just try to slow the pace or the extent of any you know Financial moves that may Rock the pricing mechanisms that we use to trade And so what this has come into in you know in modern Finance is really this cycle of macroeconomics and so it's everything is tied into one of course because everything that happens in

the world influences the price of the assets that we trade but the main cycles that we can look at really that influence what the price of Bitcoin is on a given day or you know what interest rates are the cycles that influence that are the business cycle so that is uh the Business cycle has periods of expansion where businesses are taking on more debt or you know raising more cash and selling Equity to expand bring on employees which reduces unemployment you know a lot of employment in the economy means people are earning money and so

the economy can grow and of course the other side of that is the times when that business cycle kind of deflates a little bit maybe businesses are making people unemployed that leads people to Save a little bit more and pull back and so you get kind of a dip within the economy so the business cycle for businesses are they hiring or are they firing are they growing are they kind of pairing back right so that's a business cycle that will of course affect the price of assets Bitcoin housing everything else there is also so a

debt and refinancing cycle because most businesses use debt to fund growth governments use debt to fund growth and There is around a 3 to 5e financing cycle so the average maturity of debt is around 3 to 5 years and so every 3 to 5 years what do you do do you pay off the debt do you refinance the debt and you know try and get more growth right so that is going to influence things right the demand and supply for debt that is a Market within itself and the interest rate that is charged on that

debt is going to massively affect the economy and therefore prices of everything we Trade there is also an election cycle right because most uh governments are going to try to get elected and how do you get elected people have got to feel good about their situation which means their assets are going up in value they have employment opportunities and so you're going to try and put political pressure on the central bank to try and raise or lower interest rates for your political gain it's definitely an influence on things and then amongst all Of this we

have the Bitcoin cycle which is the cycle uh Bitcoin has every four years to half the amount of new Bitcoin coming into the supply we know that Bitcoin has this in you know inflation schedule like this where eventually top out you know we're somewhere here right now every block of Bitcoin that is produced you get new Bitcoin that is made and paid out to miners as an incentive to carry out transactions every four years the amount of new Bitcoin given to them is cut in half and therefore the supply changes so you have the Bitcoin

cycle as well that happens every four years this happens every four years this happens every four years this just happens to coincide with debt and elections happens to be around four or five years these are shortterm Cycles so that is very different to secular Trends so we're going to look at this on charts right now for crypto Assets because secular Trends are entirely different to cyclical patterns within prices election Cycles debt refinancing Cycles the Central Bank lowering or raising interest rates on the debt that we pay changing prices within the economy these happen in Cycles

like this however what central banks cannot influence and governments cannot influence really longterm are these long-term secular Trends what is a Secular Trend technology is a secular Trend Computing is a secular Trend internet adoption is a secular Trend Bitcoin and crypto adoption is a secular Trend AI technology again is a is a secular Trend right so what we can say is prices move in Cycles based on what central banks and the and the business cycle are doing but over the longer term secular Trends will get moved by this but eventually just go in the direction

that they are destined to go in which is Growing so you have something an invention of something thing that starts small solar panels self-driving cars AI the internet and eventually that thing is just desirable by enough people that the thing just grows over time but it doesn't grow in a straight line of course it has Cycles along with adoption if there is a recession that means people are doing less stuff and they're demanding less stuff and so the price goes down but when there is another Expansion in the economy then that will go up up

the long-term circular Trend though is what um investors look at so if you have a time Horizon of 5 10 15 years which most people investing for their retirement or anything will have then what they're really looking at is secular Trends you don't want to be trading Cycles over and over again and trying to buy sell Buy sell you're just looking at what things are growing in a secular Trend over time and I'll be Buying here and buying here but that doesn't matter because over time you know the trend is up so that's what we

want to look at there's a big difference between cycles and cirular Trends cirular Trends can happen to the upside they can also happen to the downside so you can get Cycles within things that are actually getting worse or you know less desirable over time or just becoming less valuable so we can obviously get caught out on both of These for example we can get caught out in secular Trends to the upside by buying here the price falls down we get upset we sell here and we've just traded the cycle the wrong way around and we

aren't aware that what we're doing is actually in a secular Trend to the upside so if we just kept it and dollar cost averaged we would get higher at some point in the future right circular Trends happen to the downside as well in that you can maybe get into something Here it looks great and you think you've made money but then the next Trend down is lower right you can see this trend so secular Trends and price Cycles happen and that's very important to be aware of but what's way more important is the secular trend

of that thing because if you're confident in the secular Trend you can invest in it you can't invest in Cycles this is an example of a secular Trend this is the purchasing power of The dollar uh now this is an example most other fat currencies look exactly like this as well whereas the purchasing power over time in relation to a bunch of desirable assets has just gone down this means that if you held dollars in 1971 they're worth around 20% of what they were then so if you hold the same dollar you can only buy

20% of the things that you could buy in the 1970s there is a reduction in the purchasing Power of the dollar that just happens to coincide with the circulation of the dollar which has risen so as more dollars have been printed by the central bank or the government by issuing debt so it's putting fresh new dollars into circulation that has been printed at a faster rate than humans have printed resources through their efforts and their value and their labor or the fruits of those labors like goods and Services more dollars are being printed over time

and put into circulation than value has been created this creates a debasement of the purchasing power of those dollars in relation to the goods and services produced so there's more circulation that's a secular Trend because we were looking over the long term a secular trend of more currency in circulation and less purchasing power there are Cycles within This but the secular trend is very clear all investors know when they start investing when they realize this is I need to get out of that fiat currency if I have savings that I want to protect from this

currency debasement over the long term it's not about making money in the markets it's not about trading it's about knowing the secular trend is that fat currency has been losing its value and so we need to escape that and put our value in things that do not debase At the speed and rate of this this is a secular trend of the purchasing power of fiat currency going down in relation to desirable assets this is another secular Trend which which is the Federal Reserve in America and the size of their balance sheet we're not going to

get into how how this works we can just look at the secular Trend in that it seems like the Federal Reserve their balance sheet is getting Larger over time how does the Federal Reserve buy these assets it prints money to buy them so the secular trend is that the central bank is printing money increasing the supply of money to buy stuff what that does is the base the purchasing power of everyone else's money because there's more currency in circulation over time they are buying assets printing money to do so this is a secular Trend with

Cycles in Between this is also a secular Trend you can very clearly see that there are Cycles here but since the 1950s with Cycles in between this is a circular Trend to the upside this would have been a great investment if we started down here we've made tons of money unfortunately what this is is inflation this is the price of desirable things in the economy over time the price of desirable assets and things that we need to buy to Stay alive like food and shelter are going up exponentially this is not good for us because

the things that we want to stay alive are becoming more and more expensive now this alone doesn't matter too much because as long as your wages are going up at the same rate then things aren't getting more expensive for you so you have to look at your wages and how they're increasing in relation to the inflation of goods and services And of course wages may go up overall they may not go up and so inflation actually makes you poorer but what we can uh you know get from this is that the price of stuff that

we want never goes down ever when it goes down what happens is that the central banks step in and force the price of everything up again it never goes down it this goes up at a slower or faster rate so these things are linked right you can see that The purchasing power of money goes down over time as the currency in circulation increases that is also tied to the central bank which prints money to buy assets for itself to try and control things in the economy and inflation goes up seemingly in line with the fact

that we have so much money creation for some reason that is pushing prices up so these are secular trends that investors inherently know my dollars or fiat currency buys less stuff over time I Don't like that so I need to sell that for assets that go up at the same rate as the other things that are going up that I want to buy and in 20 years when I retire I will have save the purchasing power of my money in those assets so those are secular Trends but we can also look at Cycles as well

within parts of the economy so this is from GMI here we have inflation which as you can see moves in Cycles up and Below around about 2% Central banks around the world most of them have a target of 2% inflation don't ask me why they have that nobody knows the reason they just picked 2% as some number that if it happens at 2% a year no one will really notice that the things they're buying are going up in value um and so what they try to do with their Central Bank policy is to keep this

inflation rate around about 2% what is the inflation rate CPI which is the Consumer Price Index it's an index of The things that consumers can buy in the economy meat vegetables you know uh Netflix subscriptions everything like that now CPI is just one metric of inflation and really they change it all the time so CPI can be changed by the indexer the government basically they can take one thing out and put another thing in and so CPI doesn't really mean much especially if you change it over time also when you're looking at Consumer Price inflation

a lot of things that we buy over time actually get cheaper because of Technology we produce more of them we have economies of scale or we digitize them to make them cheaper in any case that CPI is still going up and is it the things that are getting more expensive or is there just simply more currency chasing the same amount of stuff hence pushing the price up in any case inflation moves in these Cycles so sometimes it goes above 2% sometimes it Goes below like this right but we know that even though these Cycles are

taking place and they will be changing the price of assets and the supply demand and everything like that we know that the actual secular trend is just positive all of this mostly is positive in terms of there is more inflation right in CPI so CPI moves in cycles and inflation will inhibit a a response from the central bank if inflation gets too high central banks Will try and reduce activity within the economy maybe an economic slowdown if inflation gets too low they'll try and stimulate the economy by lowering interest rates to get it around this

2% that's what central banks want to do that's their official remit is to keep inflation around 2% by stimulating the economy or drawing it back you can see here that this is the official interest rate for us treasuries which are the Benchmark for what debt trades at so you Have us treasuries which will trade at a certain percentage let's say 3% everything else is priced off that if you're a company you're a lot more risky than the American government and so maybe you have to pay 10% which would be uh you know this plus 7even

and that would make 10% as your spread as a company so all interest rates are really set off of this now what we can see here is Cycles within a secular Trend you can see the Cycles here they move these are The cycles but the secular trend is the interest rates have been coming down over time so things move in Cycles but we can't get caught out by those because we need to look at the longer term secular Trends but we can also maybe take advantage of those shorter term Cycles as well if we're confident

in the secular trend of something right if Trends are topping out and you know that there's a secular Trend to the downside Maybe you can trade to actually make some uh profits around these uh changes in the cyclical patterns along inside the secular Trend that you think that's happening this is uh Global liquidity this is a measure of how much money is Flowing around Central Bank systems because they try to manipulate prices and economic activity by slushing around money they pour it in they take it out they want everything to be moving at 2% we

can see that this is cyclical as Well so you get draw downs and you know you get points where liquidity is is higher this seems to move in Cycles so liquidity moves in Cycles which is an attempt from central banks to manipulate prices in Cycles however cyclical Trends rely on fundamentals like demographics how many people are being born how much value is being created is something in demand and going to be in demand over a 20-year period more and more and More we know the difference so what do we want to do we want to

uh watch out for cyclical Trends to invest in right because we've got this money that we're earning and we need to save some of it that that's why you're here right you're looking to invest or trade crypto um and you're looking to save you know purchasing power of your money over time you're looking to um make dollar price gains or fat Currency Price gains in assets that go up over time so we know what what we need to know is is something in a secular Trend and if it is how can we take advantage of

price Cycles to get the absolute best prices right investors if you've got a 20-year time Horizon you just want to invest in secular Trends invest invest invest for a long time wait an even longer time the trend would have carried the price and the value up so what you can see here is this is the Bitcoin Price and we can very clearly see that it is one really volatile but it also has traded in a couple of different Cycles so you can see an expansion cycle here you can see a destruction cycle you can see

an expansion cycle destruction and it looks like we're going in expansion so it seems like the price moves alongside Cycles uh within the macroeconomy like this right so what we Have here is liquidity moving up and down and Bitcoin moving up and down so what we're going to do is press indicators like I said trading view that I'm using now is completely free uh definitely recommend an account that'll be linked Below in the description you just need an email address uh sign up and you can use this we're going to look at global net liquidity

which is a measure of the liquidity from central banks so are they pouring money in to Stimulate or are they taking money out uh to try and you know calm down growth there is seemingly a correlation here we have an expansion in monetary policy we have an expansion in liquidity that just happens to coincide with Bitcoin going up in price as money is drawn out you can see that just how happens to inside with the Bitcoin bare market and the price going down we have another massive expansion in liquidity here that just happens to coincide

with A big price expansion in liquidity in uh Bitcoin we have uh liquidity coming down here and we can see the Bitcoin price going into a bare Market where the price goes down these things have a very high correlation so what we can um understand from this is that it seems like the amount of money in circulation from central banks affects asset prices in Cycles when there is an expansion of liquidity in central banks what they're doing is increasing the supply of money And conversely things that have a fix a fixed Supply or you know

uh a supply that can't change as quick as that have to go up in value right so if you have the same amount of stuff like Bitcoin or gold or a stock and you have more dollars chasing that then the price has to move right the price moves in Cycles along with this so this is very very clear so we can see that price moves along in cycles for BTC so the other thing we can see is a Secular Trend now this doesn't doesn't really seem like a secular Trend I mean it kind of does

a little bit you can't really see it so what we're going to do is go down to the settings here and rather than looking at the actual price we're going to change the chart to a logarithmic chart now what this does is it changes the price scale and compacts or compresses the price scale as the price of the asset moves up and this creates a totally different type of Chart that we can see what we're doing here is looking at Bitcoin since Inception and its price and it's very very clear that we can see a

secular Trend if you want to know exactly how to use trading view by the way I have a completely separate tutorial video it goes through absolutely everything using the charts using the drawing tools so I'll leave that link below but what we Can see very clearly now is that we have a secular trend in the price of Bitcoin now Bitcoin is a monetary Network and so more people are adopting it over time we look at that data but even though the price is moving in Cycles which we can very clearly see expansion contraction you can

see all of that happening what we can tell and that that was drawn quite badly but what you can tell with these Cycles is there is a secular growth in The price of this asset set over time secular growth with Cycles in between of boom and bust but the trend for 15 years is that Within These Cycles Bitcoin adoption is growing and therefore price let's have a look at another crypto asset just to see if we can get a you know a trend here so this is the price chart of ethereum we can see some

Cycles here right so boom and bus for sure if we put the logarithmic chart on we can see that again so it tends to Give us a another secular Trend right so we can draw that on the chart from here and upwards we see again that there is a secular Trend that seems to be growing the price of this asset so cycles of boom and bust but very clearly a trend to the upside so in each bust the price is higher in each Boom the price is higher what's happening here you have an asset that

starts at zero or close to zero and you have adoption a secular Trend in adoption over time more people Are using this thing it goes from Tiny to small to small medium to medium to medium large to large at some point the pace of growth will slow down out and that's fine that happens to every asset but we can't get distracted by Price Cycles because what we're really investing in is the secular Trend we can of course take advantage of price Cycles as well as price Cycles draw down these are fantastic opportunities to invest in

what we know is growing in A secular fashion to the upside so we can buy every price and wait or we can be a bit more tactical and try and buy more when prices draw down within the longer term circular Trend so let's recap how macro changes uh crypto prices now that's a tiny amount of macro there it's obviously a huge topic that could be a course in itself but how macro relates to crypto short-term price Cycles happen within longer term Trends Traders try to time Cycles so you're Looking to time this right buy these

lows wait for a pump sell here that's more active it's more risky because we don't know where the prices are going but investors just look at the trend and say I'm going to invest for 10 years then wait another 10 years for that growth to come Cycles give all of us an opportunity to invest or buy at lower prices investors must be active buying assets when they are at the price cycle low otherwise You're simply getting worse prices for the thing you want to buy the whole idea here is to buy the most stuff at

the cheapest price you can do that by being extremely early and taking way more risk that the thing you're buying simply is a bad idea or you can wait till something is bigger but you have to invest when prices are relatively lower than the expansion Cycles otherwise you're just simply paying more for the same thing so we can Use macro Cycles to our advantage to know that we have assets that have secular growth and during these price Cycles we don't get scared we don't get um you know taken out of what we're doing we invest

at at those lows then going to give us the best returns understand that Cycles draw prices down especially in crypto this is a new asset class it's volatile it's young it's not valued highly and so it's going to be very very volatile to the Upside and to the downside so we need to make sure that we're active when the downside price cycle hits and investing in things that actually have long-term growth the best time to invest is at the low of a price cycle invest in secular ball assets during cyclical bare markets that doesn't mean

that everything we buy that draws down is going to recover that's also the risk with investing is that many of these things will have one cycle go down and Then keep going down that's obviously the risk but we know that the things that do grow over time give us plenty of opportunity to make money because we're still early on in crypto let's move on to bitcoin why it spawned the crypto industry what exactly it does and why more people are coming to the network over time very clear to see that Bitcoin over time is growing

it has price Cycles but the cular trend is to the upside why is this Bitcoin is often called money You know or the the strongest form of money right hard money and the reason is because it has a cap in the supply so it's an asset that runs on a decentralized network so you can essentially own this asset no one else can fiddle with the asset they can't can't change it in any way it's 21 million coins and that's it it's non-government money it's an asset that you can hold uh digitally so it has some

desirable properties right it must have Because a lot of people are coming into this people say that Bitcoin is money but is it actually money money itself isn't actually real money doesn't exist there there is no such thing as money there are assets and liabilities each one of us uh has a balance sheet we have this individually as people so we either own assets or we have liabilities that we have to pay for companies have assets and liabilities And countries and governments have assets and liabilities many central banks around the world own gold many of

them have huge liabilities to pay out in Social Security and other things money itself doesn't exist cash f a currency that's not that's not money that is just a way that we account for the balance of trade between people where they're buying or selling assets and paying out their liabilities the way that we do that is simply by having a unit of Account that we all agree on in some way right so I've got $1 you've got £10 that's just a number completely irrelevant number that doesn't mean anything apart from the system by we by

which we exchange these for goods and services and we accept that that number that you're saying which is 10 is enough of a number to pay for the thing that I'm selling you so it can be a physical sheet it can be a number on your phone when you're just paying for something so Money itself doesn't exist there is only a balance of trade between individuals and the way that we carry out that trade is through exchanging numbers we used to exchange physical Goods like cows and chickens that was very that wasn't a good way

to do things then we eventually came to shells and salt and everything else then we eventually came to let's just exchange numbers and use a sheet of paper to do that then we realize we can just send it on our phone so we send the Number on a phone but all of that eventually became centralized right so you needed Banks and you needed governments to make sure that people weren't you know taking things into their hands and scamming everyone else Bitcoin we use current as a number a madeup number to account for the balance of

trade during Financial transactions theat currency is unreliable because there is a long history of governments printing more of It we've just seen that the purchasing power of dollars going down over time the reason governments print money is to pay for National Security military health education and they can print and print and print because they're the only ones that own own the money printer we're not allowed to own our own money printers that's illegal and we'll go to jail only the government is allowed this Monopoly on money therefore they can print as much as they want

unless we get Tired and throw them out of power right the problem is it distorts the way we account for Value within the economy when you are printing money uh and you know pushing it out into the economy people who earn value need to save their output in an asset because the the currency is unreliable every currency ever invented every fat currency has been debased by the people in charge of it because they don't want to lose power they print to take power from other People through their military or they bribe voters by printing money

and giving them free healthare and free education in order for their votes to stay in power but what that does is the base the purchasing power of everyone else's currency therefore we all know that if we want to save the value of our value over time the things that we've outputed into the economy and received income for we need to take it out of that currency Which is being controlled by someone else who we don't trust and we need to put it into assets stocks stock indexes gold housing anything else art diamonds right because we

know that they control the money and they fiddle with the supply assets are priced are priced based on supply and demand and desirability of them Bitcoin doesn't do anything other than give us a promise that it will always be there and it will only be 21 million coins and if we Compare that to the fiat currency there may be some desirable properties of this type of asset maybe Bitcoin and maybe other networks can do this as well if they're sufficiently decentralized and they won't be fiddled with so what is money it's a medium of exchange

that is something that we can exchange to account for the balance of trade between you and me I earn money I go to your shop you sell me a coffee you tell me it's three I give you three right Doesn't matter what we called it dollars or pounds doesn't matter it's something that we all say this is three of that I agree right it's a unit of account right so we have to account for the balance of trade and it's a store of value well fat currency isn't a store of value we've definitely seen that

and so that's why we use all of these other types of money for example housing or gold or Commodities right so what is money well Money can be pretty much anything it's something that we are so associate with value that we can exchange freely uh for the balance of trade of goods and services ultimately what money is is a database it is a way to put inputs in and create outputs right it's a unit of account it has to be stored somewhere so fat currency does this by having a central bank and then consumer Banks

who keep a value of the balance of trade of all this these numbers flowing around And that is their database a central bank is a centralized database controlled by the government and they can print the money they can control it they can stop you having access to that database right that's not great what is Cash Cash is also a database but it's different than the central banks because it's physical so as long as someone else accepts that cash from you that is also a balance of trade transaction and it has numbers on so that's the

way we Account for that the way that Fiat currency's database is controlled is through military operations and power right what you're saying is no one else is allowed to control this database and if you do we'll put you in jail you can't have your own money printer also if someone else tries to take our database from us we'll use our power centralized databases that are controlled through Power and physical Force Bitcoin it is a database that is decentralized around the world no single party has ownership of it no single party can control it it is

a decentralized database that no one can have specific control of and so we use the proof of network proof of work Network in Bitcoin with energy people that want to earn Bitcoin by mining this network need to have energy there is a cost associated with um having this network And there is a cost associated with trying to destroy the network if you want to destroy the network you can't just use Force you have to get energy you have to get 51% of the network to control it that's almost impossible because of how decentralized it is

right anyone can mine the network decentralizes power over time is it absolutely perfect it's certainly the most perfect thing that we've discovered so far and it's certainly more perfect Than centralized databases controlled through Force so Bitcoin is very simply a cloud database that's all it is it's a database that we can use to transact in Bitcoin it's fixed in Supply it's decentralized it's not controlled and therefore it might have some desirable qualities if you're looking to preserve the purchasing power of your value over time like I said there is no such thing as money there

are assets and liabilities and there is the balance of Trade what we use for that balance of trade really has changed throughout time Salt clam shells right coins and some people are using BTC there is no centralized issuer it is fixed in apply it is self- custodial if you want it to be you can have it's a bearer instrument you can have ownership of it actual ownership right it's not in a bank it's not controlled by a centralized party Bitcoin is absolutely impossible to rep replicate as a thing it just is the Invention you cannot

create a new Bitcoin no one would want it Bitcoin is the culmination of the consensus of the people that use it that this is the best thing for them it's pure capitalism Bitcoin is money just like gold is money or housing is money or other assets are money because they have value it's not really spending money right we're not going to buy coffee with it or buy a bar of chocolate with it it's not really what it's used for right mainly because There are legal tender laws which means you can't really spend it your government

May tax you when you dispose of it so it's not really like currency but it is a money Bitcoin is known as monies the group of assets known as monies it's non-government it can be saved or spent probably not for coffee though you spend it when you sell it later for the currency of the country that you're in so you pay your taxes and you know you pay the legal tender that People need to accept Bitcoin is not legal tender therefore it's not currency some countries made it legal tender good for them but in most

of the world it's more of an asset because it's digital it can be very very versatile you can save it and spend it which means you can save a billion dollars of it in an in an investment fund but you can receive $50 of it for work that you did and spend it on something so because it's digital It's very very versatile but really what it is is a decentralized database for Value over time and so it's an account for the world right it's a savings account for the world who want to use it I

want to quickly go back to the macro which we were looking at earlier remember that we have these Cycles the Haring cycle every four years for Bitcoin business Cycles election Cycles debt refinancing Cycles so we know that circular Trends move up and Cycles Drive Prices over time we also know that the supply of Bitcoin over time is increasing but it will eventually get to 21 million coins and then stop very different to other types of currency this is the supply of gold versus BTC so what we have here is the infl inflation rate of gold

gold is seen as a scarce asset desirable asset but price hasn't gone anywhere for 15 years or so the supply of gold is infinite it's not a scarce commodity it's a Commodity and not a scarcity gold exists on the planet and you just find 2% more of it each year gold exists on other planets elon's going to Mars how much gold is he going to bring back is the price going to go down because the LLY just shoots up Bitcoin is protected by its Network and you cannot control it as it gets stronger you simply

need more and more and more energy in order to attack the network well it hasn't been taken over in 15 years and the network Hash rate is going up and up and up there is more and more and more energy protecting bitcoin's network over time Bitcoin Supply is going to reach 21 million and no more can be created ever you got the supply of gold going up forever you've got the supply of everything going up forever Commodities there's an unlimited amount of them Bitcoin is truly scarce after the harving in 2024 the inflation rate of

Bitcoin will Drop from around 1.8 1.9% down to 0.9% so each year the inflation rate is 0.9% more Bitcoin in circulation four years after that it will get Haled down to 0.45% and then halved again and halved again until eventually there are no more coins this asset potentially is desirable to invest in because it is genuinely scarce and everything else that we've tried currency wise has not been scarce So maybe there are some desirable properties here how about if we compare compare it to real estate in terms of an investment a savings method over time

time real estate is has a lot of downsides you have management costs Insurance costs Insurance costs stamp Duty or whatever the tax is called in your region fees the thing gets worse over time it degrades you have to pay a lot of money to upgrade it it's very very high ticket to invest in if you Want to invest in property buy your own property for sure you need to live somewhere but if you've got money left over is another investment property the best thing for you do you have that much money to pay for the

deposit and the mortgage each each month do you want to save up for another house which is very very high ticket it's massively a liquid as a market can't sell 1/8 of a house can do that with Bitcoin it's extremely high cost and high fee when trading in And out right depending where you are in the world 3 4 5 6 7% and then stamp Duty as well if you've got profits there it's not fixed in Supply because you can just create more of it right buildings get higher over time things get refreshed the benefit

of real estate is that you can use leverage so yes you can buy an entire house if you put $220,000 down if you've got that so you can use leverage which means potentially um you know higher gains if you're comfortable with Using that leverage because a mortgage is leverage you're taking debt to buy an asset inflation adjusted income because the rental income you can adjust your inflation with Bitcoin zero management cost hold your Bitcoin in a wallet doesn't cost anything zero insurance cost although you can pay to insure it if you want capital gains tax

you can get around through putting the Bitcoin in trusts or tax efficient rappers if you buying the ETFs which Will increase the management cost a little bit upgraded for free by the world because it's a digital product it's liquid it's fungible you can trade $10 of it on a Sunday night right it's very very low cost to to trade you're talking about 0.1% as a trading fee it's digital it's quick it's fast it's easier it can pay an income Bitcoin doesn't pay an income because it's money but you can use money in a certain way

housing doesn't pay you money either your money Your your house if you're living in one now doesn't pay you anything it just sits there it's only when you rent it out do you get an income or you can rent Bitcoin out as well there's many ways to do that uh so so there are many ways to earn from BTC there are many strategies to implement Bitcoin right is that type of that type of asset and it has many desirable qualities looking at Bitcoin versus these other types of monies it just simply has many more desirable

Assets than those and so it's desirable for many people because Bitcoin is treated by many people as a savings technology where they buy it with some of their spare assets save it you can think of it like an index a financial index the reason Bitcoin is a financial index is because it indexes the people that are using it to store and spend value over time and there are millions of people that do this in different countries with different income brackets With different needs saving at different times saving different amounts and so what you're doing if

these people spend and save Bitcoin some part of their their value that they have you are indexing them right you're saying that when you're invested in Bitcoin the price of Bitcoin is an index for the Financial Health of everyone that uses it to store and spend value and because it's fixed in Supply we know that that value um is Going to be an accurate representation of what people are earning and the value of their output over time and so it really is unique in that respect there are other Financial indexes in the world as well

where we can index economies and what an index is is it just is a group of things together and you can trade it easily so the most uh popular examples are you know the um this is the Spy which is the S&P 500 which is the top 500 companies in America you just buy The asset you index those companies great way to index the economy you have the NASDAQ which is an index mostly tilted towards technology companies in America so you buy the NASDAQ and what you're doing is indexing technology companies in America what are

you doing when you're buying Bitcoin you are indexing everyone who owns it and uses it to store and spend so it's much more Diversified as an index than pretty much anything else it is a world econ Economic index and it's growing over time as more people adopt it and store and spend value it will grow with the economic output of its users during recessions when people get worried that they will lose their job or their income will reduce and they are worried that they have liabilities to pay in the fiat currency that they're paying those

liabilities in they will sell their assets to get fiat currency to fund Their liabilities therefore in a recession you could say the Bitcoin price may go down more people would want to sell out of it to get fear currency to pay their liabilities in Bull markets when the economy is growing people are earning more people are feeling more confident they have more money to store away because that that's that is a bull market right that's when the economy is growing they have more money to store Away and so they put more into their assets you

have more buyers there which may Force the price up Cycles but the secular trend of Bitcoin is clear that more people are using it to store and spend value over time it will rise and fall with economic Cycles Bitcoin is the index it is the world index there is nothing that comes close this is Bitcoin versus other indexes this is Bitcoin in Orange the NASDAQ in blue here the S&P in red and Gold right here in this kind of gold color so it's very clear that Bitcoin has outperformed everything as you can see over time

you can see bitcoin's price here these are the other ones right here now it's unfair to compare them because these indexes are indexing things that have been around for you know decades in terms of NASDAQ and S&P and of course these are broad indexes that index the largest most mature companies in in the economy and so these Are great absolutely amazing to index those companies to save your money over time because the companies are producing ing the value in the economy that we want to get exposure to we want to index that great Bitcoin does

that too now what Bitcoin has is its own growth as well outside of that index of course the growth is what we're interested in but over time as Bitcoin matures it will be that index and its growth will slow and Its returns will slow over time um but for sure uh what we can see is Bitcoin is an index just like the other things and even broader than those Bitcoin is a financial index Bitcoin is a strong digital asset that cannot be debased or tampered with Bitcoin is digital property with a low barrier to entry

the Bitcoin network is strong and resilient Bitcoin benefits from technological upgrades it's tied to the real world it is not a platform it Is not a technology company it is not an Enterprise it doesn't do anything it is just a digital money digital capital Capital with a fixed Supply and it's non-government non- centralized non-controlled that is desirable for some people they may not put 100% of their money in it but they may use it in some cases it may be beneficial for them in some way if you want yield then you have to take your

BTC and do stuff with it money doesn't pay a Yield cash doesn't pay a yield you have to invest in a bond to get a yield same for Bitcoin if you want to earn a yield on bitcoin you have to lend it to someone or do something else and you can make a decision whether that's right for you Bitcoin is property that gets upgraded for free and is not controlled so it is a desirable asset in many different ways for many different people some people may not see any desirable characteristics in that at all let's

now Look at crypto's adoption then because what we need to know is is the crypto being adopted is there a secular growth if there is we can invest we can trade we can take advantage of Cycles so very quickly we can see crypto adoption over time so this is is the Bitcoin chart we've seen this already but what you can see is essentially crypto is being adopted price Cycles like I said but adoption of the network this is uh bitcoin's Network growth so down Here you can see these are addresses with a non-zero balance if

there are more addresses that means there are more people and more activity it's not one address for one person because you can have multiple addresses but what we can see is activity and people coming over time does over time uh relate to the price of BTC so these are if you look at the Orange Lines here addresses with non-zero balance right price moves in Cycles around the actual adoption of the Technology this is not an investment in a company or something or an Enterprise that produces value this is not what we're trading with crypto crypto

is different it's not a stock it's not investing in Google or YouTube or anything thing it is an investment in a network like a telecommunications Network like the internet but this time you can actually invest because it's a monetary Network and money simply is a network so price Cycles but the adoption Is very clear if we relate the adoption that we've seen so far to the Future you're looking at way more growth in the Bitcoin price with Cycles in between this is growth models of the internet and the mobile phone they're put in line with

what Bitcoin has done over its price over its history price moves in Cycles but bitcoin's real adoption in relation to its address count has followed a similar pattern to the internet and to the mobile Phone because it is a monetary Network it's a network that's proliferating over the globe and so we should expect that to continue at some Pace we don't know if it's going to you know go along with a mobile phone or if it's going to tail off but the growth is pretty clear we're investing in networks we're not investing in a company

anything like that this is a network that we're investing in uh so what we can see here is growth As well over time now what I do with the crypto investor course is update it for free um so check the link below if you want all the free updates existing users get it for free so if you're in the course you get all of this this shows all of the data you know in real time and my latest research on are these things actually growing so you can see ethereum here we're looking at ethereum's growth

um users accounts right everything like that so keep real Time updates of what's going on here and that's important for investors right so that's part of the crypto course if that's interesting to you you can just you know check the link below but right here we have the adoption curve of um crypto this is crypto not just Bitcoin so in uh White you have Global Internet users which happened before and they've put uh crypto adoption over the top and as you can see millions of users we're actually Tracking a very similar rate to the Internet

so what you're doing in what you're doing here is really just investing in uh networks that are growing massively over time and have that secular growth and so we're nowhere near the end of this so as long as we know that these networks have this growth we can just relax because we know that the yearly average growth is 30% according to to this in actual Network growth value so whenever the price draws Down that's a great opportunity but if we just invest and wait we're getting really amazing growth growth way above um most other assets

these are adoption curves again we're investing in a technology here it's not a company or anything like that it's very very different so we have to treat it differently and we can choose the amount that we want to invest in our portfolio you can see many different uh Technologies here televisions VCRs Internet Broadband radios they have a big adoption and then of course once they reach worldwide adoption of course you can't grow anymore because there aren't any more people well Bitcoin and eth have had fantastic adoption in terms of their addresses per capita per person

in the world and of course they're going to start slowing as um every network does Facebook had huge growth and then you know tailed off but still had very very Good growth so we're not in the early days anymore no way but we're certainly in that kind of early midphase where there's still so much growth ahead and we can just very um you know easily take advantage of price Cycles if they happen but we're investing in Technologies here and not companies so we're not looking at pnls or profits or anything no this is an adoption

story this is what we're investing in it's meta's law and meta's law states that the financial value or Influence of a network is proportional to the square of the number of connected users so a two telephones can make one connection five can make 10 connections and 12 can make 66 connections as more people join the network it becomes exponentially more valuable because um they join the network you can communicate with them that is what we're investing in we're investing in networks over time and the networks if they're growing we can be Super confident to invest

in these as an example this is the ethereum network which is uh growing so this is something I discussed in the course as well but what we can see here is you can see this red going up here so this is activity on the Bitcoin n on the ethereum network over time and the layer 2 networks which are scaling it up to more users cheaper transactions more users you can see what's happening right there is a proliferation and a growth of this Network so we're investing in Networks these networks are being adopted just like other

Technologies and we're still early on in adop in the adoption phase now let's come to altcoins and how they fit into this entire industry because Bitcoin of course is the leader and it is the reason for everything else in this industry and many people back in the day would of course call everything other than Bitcoin a shitcoin and that makes a lot of sense if you know the Kind of culture that was happening around then which was Bitcoin was invented and clearly a very important invention and people wanted to change it right Bitcoin is fairly

slow and it has 10-minute block times and there were many people that said look we need this to be quicker we need to change it we need to make the blocks bigger in order to get more transactions in so we can you know scale up the network and people tried to change Bitcoin people tried to Copy Bitcoin you know take the code and manipulate it well all of those copies have failed right so if we look at the you know coin market cap rankings Bitcoin is number one all of the Bitcoin copies that were made

you know Litecoin is it's kind of its own thing but you have you know Bitcoin cash Bitcoin satos vision and loads of others down there you know they have clearly failed against BTC right they are losing value over and over and over again against Bitcoin and they they were originally the things called shitcoins however you know in in the modern era you now have these projects here that just you know are not trying to be Bitcoin they're not trying to be a different Bitcoin they're trying to be their own thing and they're trying to use

cryptography and these platforms to bring useful things to us and so I think calling these shitcoins is is obviously dumb firstly and secondly it just means That you haven't done any you haven't spent any time researching what is the use case of this is it useful is it a thing to invest in so look Bitcoin is always going to be the leader for many reasons but there are other use cases for this technology as well um and so let's go through some of those so really in the modern era of crypto what we're really looking

at is smart contract chains and then on top of that comes all of the other stuff so Bitcoin was Invented to send Bitcoin from one wallet to another and that's kind of all it does now there are other things you can do with Bitcoin for example recently ordinals and inscriptions have been have uh been you know being used more and these are ways to put extra pieces of data in the block along with a transaction and so if you can include data in a transaction it means that you can include other things other than just

sending Bitcoin for example text and if You have text in a block in a Bitcoin block it essentially means that you have inscribed something on the Bitcoin blockchain that will be there for the rest of Eternity as long as Bitcoin is you know a network that actually survives right so it's a little bit like cavemen painting pictures in caves of the things that were around them at the time right that was the way that they could have a memory of that well if Bitcoin is a blockchain basically a Decentralized database then you can put things

in that database now that has a specific use case because you have to pay for this so maybe things that are really important for example history or other articles could be inscribed on this chain and so that makes the blockchain obviously more valuable because you have a reliable database that can't be tampered with and you put things on it that are really important for Humanity to keep a record of so That's that's the use case that comes out of Bitcoin but it's not just sending one coin from one wallet to another and so there comes

ideas right humans have ideas and entrepreneurs make things to you know try and make money for themselves and hopefully through you know capitalism provide things that are valuable to the rest of humanity as well so what this all comes out of is that Bitcoin is slow and you can't change it and that's good but people want more Expressivity with the products that they have now Bitcoin is very non-expressive it's very difficult to really include any data moving up the scale a little bit you have ethereum which tries to be more expressive and so you can

write in different things like smart contracts other types of tokens right and then you come maybe to other um you know ecosystems that want to be even more expressive still there are many minute details here that I just can't get into Otherwise the video would be 15 hours long but essentially what the industry has become is a base layer down at the bottom and so that base layer does a couple of things it hopefully becomes distributed as a computer system so that that blockchain is reliable and trustworthy and if it's not reliable and trustworthy it's

literally worthless right because you just can't keep anything on there right that's why we don't keep money you know on these Centralized players like Google and Amazon it'd be very easy for them to come up with like an e-money system right we have these e-money systems like cash app or whatever like it's not difficult but the invention of crypto is not centralization right if you have an e-money like cash app they're centralized they have their dollars in the bank and you can send them around that's not the invention of crypto the invention of crypto is

to have a Decentralized system so the base layer down at the bottom is really just decentralized Network that allows you to code certain things into it and so they will have slight different is but really that is smart contracts that enable people to you know enter into an agreement with that protocol and no one else can change that when they enter you know enter into that tokens that come on top that can you know make better use cases right so you Can issue stable coins you can issue exchange coins and defy coins uh and and

everything else but at the base layer you have that system now there aren't many of these and the reason is once you have a couple of genuinely decentralized neutral networks you don't need any more right because you have one already and so there's a few of these and they seem to you know be large if if you look at the crypto market cap these really now take up the bulk of the industry so Al I Want to say here is that Bitcoin and ethereum these two coins despite their being you can just see this this

here despite there being 12,000 coins in existence Bitcoin and ethereum take up 80% of the value of this industry so that really tells you how mature crypto is it's not very mature but also that once you have a genuinely decentralized and neutral Network you kind of don't need to use anything else right every once that's invented then as a business Person as an entrepreneur as an inventor whatever you you can't invent that again and so you have a couple of these that just simply are going to be very big and then the industry matures by

building out stuff on top so the base layer down here and and these These are kind of the main ones that have um most of the the value in the industry so as we come down you have BNB salana uh xrp it's a little bit different but similar thing kadano Avalanche polka dot Tron polygon and that's that's kind of it I mean there's a few there's a few few different ones here that have La launched recently like near and Aptos which really are trying to be something different again much more specific so when you have

these large kind of generalized um decentralized networks there aren't that many of them now on top of that you have scaling and other types of Infrastructure and so the difference here is that this base layer this asset is a different asset than these right and so it's going to earn money in a different way it's going to have a different value and it's going to have a different type of longevity we hope right because if you have a large decentralized Network very large very big that's different than these which are more specific so these networks

they they really need to be Secure first which usually means slow and expensive as well but of course that's not a great use case that only have has a specific use case for money in a store of value which Bitcoin is so on top of that we try and scale out those layers to make the use case scale to more users because you can't just use a Bitcoin blockchain it's too expensive right and so we try and scale that out in different ways or through ethereum or through the other Chains so I haven't put Bitcoin

here because I just think it's kind of different to these um but Bitcoin if you had the Bitcoin base layer here the layer two on bitcoin would be the lightning Network so the lightning network is trying to be a scaling payments layer and you know it's difficult work but you know it's um it's got some tradeoffs but you're trying to scale that payments layer so for these smart contract chains that happens as Well because you can't just put everything on the base layer because there would be too much beta uh data to store and if

you have a lot of data to store it means that only rich people or corporations can do that and then that obviously centralizes things things again so you have to keep that base layer small and lightweight and then on top you try and scale it out so as you can see here for example ethereum that scales out through many different Networks on top so you have these layer twos what this what these do is they sit on top of ethereum and they batch up transactions and so let's say they have a th000 transactions on that

network instead of a th000 trans transactions going to ethereum you have a thousand transactions on the layer 2 Network and they batch them all up together and send them down as one transaction onto ethereum and so they're paying the ethereum fee which is slightly more Expensive but they're spreading it out over a th transactions or however however many it would be and so that's a way to try and scale and so you get these scaling and infrastructure layers right so there's many things that you need for a smart contracts chain because you have contracts which

means you have price feeds which means you have other data feeds which means you need lots of things working together to make sure That everything is accurate for contracts to be agreed and obviously gone through with so you have scaling layers like this which can scale out blockchains you have oracles now oracles take data from other parts of the world so from trafi or from other blockchains they take that data and they feed it out to the blockchains and all of the applications so that they can have these these price feeds how would this make

money essentially you're charging a fee For that data right so if you're a blockchain or if you're an application and you want price data you have to pay a service provider for that data and so that's where the money comes in so I'm switching into how to make money now because this is really just Enterprise entrepreneurial businesses right that's what they have to be so really they're not money right they're not decent centralized assets they're much more centralized at this layer and so they're Really just kind of businesses that need to make money right so

these guys make money by um you know taking a a kind of percentage profit of what they charge their customers and what it costs them to settle down to the base layer something like chain link and Oracle we just charge people fees for its data polygon is um layer twos other types of chain development kit uh bit of infrastructure that other networks or applications can use and they pay a fee For that right you have uh companies like binance which develop infrastructure in a lot of different places but again everything has to be a fee

or a payment right and there has to be money to be made and profits to be made right you have H coinbase as well here which are building out layer 2 networks on ethereum so how do they make money again they're a layer two so they're making some money out of that difference between what they charge and What they pay um but but also they're going to be making applications on their chain and of course coinbase as a public company is going to be investing in Venture so you know daps defi other applications that make

money they want to be investing in those taking fees from customers and they need a blockchain to do that and of course they want their own chain you then have uh things like anchor which uh provide rpcs which is How blockchains communicate with wallets and everything like that you have decentralized storage Solutions as well like arweave and filecoin and um also BNB Greenfield which do do things again these are businesses that have to kind of charge a fee right and then you have uh cross chain Bridges like Stargate which um you know charge a fee

for you to send crypto from one chain to another so I don't want to say these are good or bad or anything like that but I just Want to differentiate between a base layer asset and then everything else which which is just a business that needs to make money and then on top of that you just have this massive proliferation of applications uh so you know how can people take advantage of the ability to send value across the world peer-to-peer um without any intermediary right and so what what is the use case for that so

that spawns defi decentralized Finance So you can trade you can lend and borrow and you can create derivatives so you know in the Financial World derivatives are absolutely massive um so these are Futures and options you know so if you are someone that has uh you know produces wheat you want to sell that so you want to sell your crop now that you haven't you know you haven't harvested right you're selling in the future so you want to lock in uh money for your crop now you can do that if you want Through futures or

options and so all of this can be done on these networks as well staking as well well which is proof of stake blockchains will pay staking rewards because they earn fees and then they pay the fees out to investors and so you have infrastructure players here like Lio stada binance and coinbase do this as well right so what are they doing they are providing the staking infrastructure they receive the fees from the blockchains and they pass it Back to the investor and they take a small fee so everything here is business nfts of course we

know how um that's something that you know you can put on blockchains nfts and ordinals are similar um but of course a non-fungible token is one of the inventions of blockchain and so you can have exchanges other types of protocols that either let you create them yourself or or trade them or whatever then of course gaming because these networks now can Use money right now we have stable coins and other types of money that we can use within games you can either win actual money in games or maybe there can be you know social networks

with that as well so there's lots of different ideas here that spawns from having you know money on chain value on chain right this is all value on chain right because web this is what web 3 is is web 2 is a few companies that ran databases that were read and write and then they keep all The data but now this is the proliferation of no one owns your data it's all on the blockchain and so we can move value around and so of this all of this is just moving different things of value around

right and so you you have deepin which is De decentralized physical infrastructure Network so what they're trying to do this is render helium World mobile um binance runs a lot of infrastructure here as well so what they try and do is you know M uh Meet buyers and sellers of something in the middle right so you have these guys which try and run um small scale uh Network in telecommunications networks and so if someone has uh Wi-Fi that they want to sell or you know 45g that they want to sell if they have a mast

they can sell that to people that buy the network you know buy that connectivity and of course you have money that can very easily transfer between them right ordinals are the same thing as nfts more Or less like I explained then you have stable coins which are probably the number one use case of crypto they're definitely the most successful use case right now largest use case and these are simply fat currencies on the internet we've never had that before today which is crazy to say right when you buy something online you're paying with a card

it takes a week or more to actually settle with the banks it's a complete Nightmare well now we have pretty much instant settlement of money online through stable coins and people don't really want to use these to pay for things these Bas layer assets have become come assets because what they do is they charge a fee for security and hopefully make profits and then pass that back to investors so I would say these are crypto assets they're not they're not money in my opinion they're not money they're not Currency no they earn fees pass them

back and so they're an investment right and so people don't really want to trade those around and spend them for stuff that's not really how people behave and secondly you know these are going to be taxed if you get rid of them if you sell them they're probably going to be taxed in your country which makes it just unfeasible to use them as something to spend and so these are investments but these are currency on the internet and So obviously they're going to be one of the biggest use cases right because you can now send

money around now if you look at tether and circle these are probably the most uh the most profitable businesses within this entire industry because what they do is they take dollars from their customers who are most of the institutions so an institution will give them a million dollars they will issue a million units of tether one for one of course because It's $1 in a bank for one usdt now that stable coin is online and it's circulating on any of the chains that they operate on which is most of these now what tether actually do

is they take that dollar and they invest it in shortterm government debt mostly US debt I think it's all US debt now money market funds very very short-dated like you know one month thre Monon bills now those earn yield for tether right so they have an amount that they're making On whatever the circulation is so if you look at tether the circulation of tether is 95 billion call it hundred billion dollar uh so tether as a company have 100 billion doll worth of client money and they're investing that in short dated government debt which let's

say that pays around 3% well they're giving 0% back to their customers because this thing doesn't pay yield so essentially what tether are doing is earning 3% on a hundred billion Do and not giving any of it back to their customers now that's really good business and this is what usdc do as well now what's happening because competition is that now you have stable coins that say wait hold on what we'll do is actually pass that yield back to you so this is where usdm comes in it's one of the new ones again I don't

want to promote any of these uh coins at all there are many many risks in owning Crypto especially coins that are issued by centralized issuers these aren't decentralized at all in any way right none of this is decentralized these are companies right these are um you know created by and run by people but I just want to show you the the Outlook of the industry so something like usdm uh essentially what they do is you give them a dollar they will invest that dollar in short dated us treasuries and they will actually pass the yield

they Get back to you now they're going to take 50 basis points or 20 basis points whatever it is of the yield you know as their fee which is fine CU that's what money market funds do anyway right they'll invest anything and they'll take a small fee out obviously because they're running a business so now you have competition so now what we have potentially is the ability to hold fiat currency online whilst always receiving the Risk-free rate now the risk-free rate is something that we call the the the base rate that you can get if

you invested that fat currency in the government debt so us treasuries if you have a dollar right cash that's not earning any yield if you have a dollar invested in treasuries you might be earning 3% that's the risk-free rate because the government is never going to default on its debt because it can print money to pay you back we won't get into how they Do that or why that that's actually a bad thing but if you're getting cash with zero or a US Treasury of 3% which is basically the same thing you'd rather the 3%

right well that's what these are enabling so you can essentially own dollars and receive the risk-free rate in your account like a checking account and you can spend them out whenever you want now if you contrast that with a bank you're going to have to put it into a savings account or a CD or something Else where you may have to lock up your funds so these are one of the the most important inventions coming out of these chains that allow for Value transfer worldwide Visa is starting to use blockchains as well testing it out

for paying payments as well so stable cons are important now we can't really invest in these tether is a private Business Circle is private but as of making this video maybe going through an IPO so these are going to be Stocks listed on the market so you can't really invest in them maybe if they're public companies then of course with value transfer or data transfer around the world that spawns uh experiments with social media as well so you have Noster here you have forecaster Noster is Bitcoin based forecaster is ethereum based this is where you

can actually keep your data uh online on chain right so let's say you have your you have a decentralized ID which is a did Decentralized IDs you keep your data you keep uh all of the stuff that you post including messages between friends you keep that yourself and you can bring that data to any client that you want right so rather than now we have Facebook is if you use Facebook all of your data is owned and on Facebook servers and your history and everything you can't take it with you anywhere else with blockchains the

potential is that you can have your data associated with Your wallet kept on the ethereum chain or maybe layer twos and you can use any client that you want so if client ABC you don't like the design or they change something you can just take that to client C and all of your data and history just moves over and now you have a new interface uh these are you know very very new and experimental but obviously something that that uh seems pretty important and then what is very Important is decentralized IDs or dids and we're

going to have these more and more which is our ID right so we can put our ID in these uh and it has certain things about us that uh these applications would need to know for example where what country are you from because some assets you can trade in some countries some assets are blocked some laws prevent you doing certain things and of course right now we can do all of that on chain without any issues In the future it's pretty clear that governments aren't going to like that and so what they're going to try

and enforce is decentralized IDs where you can actually um put your kind of ID info into this did now the the advantage here is that uh essentially you can prove to Applications something that they need to get proved without revealing the actual information about you so for example if I want to trade something on a defi app and um there are certain restrictions Based on your country well with your did you can prove to the application that you're from a certain country without revealing your name or your address or where you live or your phone

number or your ID card with your with your photo so you can just say to the app look I've got this did and I'm from a country where I can trade and they say okay no problem we'll let you in and trade you don't have to reval your info and that can work across many different things as Well so it's a it's an upgrade to the current system so that is an overview of kind of the base layer and then everything you know on top which is basically a business that tries to make the use

case better and bring it out to more people with allcoins as well we have to discuss staking now Bitcoin is a proof of work Network you can't stake your coins on there and the reason why Satoshi made it like that is to differentiate owners of the coin from Operators of the network it's a very very important distinction to make sure that the network itself remains uh credibly neutral and competitive and that the owners of the coin can't own a lot of them and then control what the network does and it's a a a a kind

of differentiation a split a separation of ownership and and control the network is designed to make sure that no one has control and there's no staking if you want to uh earn Bitcoin you have to work For it you have to put out work yourself and earn F currency and then swap it for Bitcoin or if you want to mine Bitcoin you have to work for it you cannot create it yourself that's very different to altcoins and that's why they always are compared to equity or otherwise known as securities is because human beings can snap

their fingers and create them and Bitcoin cannot be created like that you have to work and there's a big distinction between that so let's look At altcoins and staking and inflation and what all of this is so tokens have inflation and that means they start off in a very small amount they'll start off with 100 million tokens and they will inflate that is the protocol will create new tokens every day or every every 5 minutes over a period of time to come up to some number in the future of something else 10 billion like salana

actually doesn't have a cap on its Supply it just says at the moment anyway That its inflation is going to be uh eventually it's around 6% right now but the inflation will come down but it will be 1.5% in perpetuity now they may change that in the future or not I don't know but that's what it is now why why are they inflate why is the token inflating so that comes back to how these altcoins exist and why many Bitcoin Maxes of course call them shitcoins because they don't see them as Money now these aren't

money because they're created by humans and they are sold to investors so that's where it gets a little bit more a gray area so you have a token at the start and you have 10 million uh 10 million tokens or 100 million tokens you sell some of those to investors why do you have inflation because you need to pay for stuff so a project a blockchain project is you know a group Of people that are doing something and they're doing that because they want to earn money they want to earn money by creating a network

or create an application and and and charging you fees for that right to use it so the inflation comes in because they can't just have all of these tokens out there initially right they need to have them over time because of course they want to feed them into the market over time to fund their growth so the initial amount They'll they'll have that they'll sell a bunch of it to early investors keep some for themselves right and then over the next 20 years you can see the inflation right it just starts to go it goes

higher and higher and higher so every five minutes or every block that will come in with some new tokens who who's owning those tokens though well it's the people that own these these people own a certain percentage of the protocol and when you Stake that token you get the staking rewards which will be paid out if you're early investors you may also have specific different lockups for example you can see here that some protocols what they do is there'll be early investors that are are promised more tokens over the next 5 to 10 years and

they get those tokens you know every week or something well that's adding more tokens into Supply which is inflation right so essentially why Inflation exists is because you have investors that want to have those tokens given out to them for free so they can sell them for money now that can be fine or it can be nefarious the first one is you're a project you have no money so you need to sell the tokens to get dollars to pay for the project to get built and to pay for developers because they want actual money they

don't want these tokens they want dollars so they can pay for their House over time you know that you're going to need to stay competitive and have even more money in your coffers to pay for even more development and so you take these types of things where you get staking rewards that come out to you 5% a year so you know as an as an early investor or a project that you own 30% of this project and 30% more coins or 5% more coins are going to be coming in every year for you that you

can use to sell for dollars to fund the project or Just sell and now you're rich so that's why token inflation exists it's a bit it's the same as Equity right if if you've ever um been in a company that has done a a share placing or um you know sold Equity to investors they're they're creating Equity out of thin air they're selling it to you to you for money because they want to expand their business or do something like that or you know what happens in larger companies is that um CEOs and and Managers

will get free stock options which means they have options over stock so they can buy them cheap and sell them for what the market price is and that's that's like a remuneration package for them so you you can see the mix here between you know these aren't these aren't money these are some sort of like Equity investment but they're not Equity they're tokens they're definitely not Equity they're they're tokens but they have they have a mix of this kind of Equity thing in them so that's why inflation exists you need to pay for development over

time and of course you need to pay for security over time as well because you need people to stake inflation is a bad thing right inflation means that your percentage ownership of the protocol is getting diluted all of the time by inflation just like the US dollar is so inflation isn't good it's something bad and we need to protect ourselves against it Most tokens will have inflation because that's how they start out they start out small they need to bribe people or pay them these tokens to get them to do stuff like join the network

and stake right so it it's it's not a good thing we need to make sure that we aren't in a token that has very high inflation it's just debasing our currency all the time so some tokens will cut the inflation off that have it now for example Bitcoin and Cardano cardano and Bitcoin have a a cap on Supply Bitcoin is 21 million canano is 45 billion and so they have inflation as the network is growing but their you know their outcome eventually is we won't create any more coins and we have to make sure that

the network is profitable enough through through fees to secure itself right so that's their thing um some tokens will never reach maturity and they will simply devalue right because they have Inflation the fee generation isn't enough and so they're just going to inflate over time and become less valuable versus things that are more more valuable and more popular and have more fee Revenue right now we are entering a stage of some maturity in the industry where some um projects are very profitable so for example ethereum ethereum is extremely profitable it makes a lot of fees

as a network and what it does with those fees Is it returns a lot of that fee Revenue to investors in ethereum where you can stake your coins in the network to receive the fee revenue and so what happens is you can see that here this is BuyBacks and dividends so just like a business which wants to create shareholder value through its profits it has a business it earns profits and it takes the cash that it has which is worthless and it buys back its own stock and that takes money That it earned and increases

the value for shareholders because it buys back the stock and so it buys back and cancels the stock and so now there are fewer shares sharing the value of the business that pushes the share price up for each of the remaining shares that's what ethereum does as well that's what B&B chain does cuz it's profitable and a few others so that's a share buy back but you call them a token burn in crypto it's the same thing now here you can't See it but it's right here it says dividends companies pay dividends where they just

earn profits and they got nothing better to do so they just pay you cash it's like we made this money here's some of it right and you can do what you want with that you can either roll it back into the stock or you can take it out the way that crypto tokens do this is through um staking rewards so let's say ethereum is earning uh you know billions of dollars in fees in Ethereum that the gas fees are paid in eth and so what it would do is just pay some of that out to

people that stake so what can happen is you know after a month or so you will have more ethereum in your account more ethereum in your you know in your staking account now staking ethereum you can do with different uh organizations we won't get into that now but essentially if you are staking eth you'll be rece receiving more e right and so that's like a Dividend out to to investors so again you can see there's a lot of similarities with Equity here but ethereum definitely isn't an equity it's a network it's code right it's definitely

not but there are many similarities but the underlying is that you know value is returned through a very simple method right if something makes money you have to return it either through through reducing the supply of it or just paying out the cash that's Made and we call it token Burns and staking rewards um inflation is is used by early investors to dump on you so what happens now in crypto a lot is that obviously everything is is Venture Capital funded now Venture capitalists what usually happens is they'll put money into into a business or

something else and then they'll have a lockup period of like 5 years that's very common what's Happening now with crypto is the they actually don't care about that because they can have staking rewards so let's say you have 30% of a project and let's say that's $100 million and let's say you're locked up for 7 years and so you can't take that out that's not great for you as an investor because youve got money locked up that you can't sell but the staking yield is 6 or 7% well that's a way of getting money out

of the project because you're now Making 6 to 7% on $100 million paid into you in fresh tokens and cash you can actually sell that out so yeah inflation is used by ear investors to dump on retail investors who are sold tokens for some reason hey look at this shiny new token you're going to get rich if you buy this meanwhile you buying it is through the supply of early investors who are selling out their staking rewards so that's something we have to be aware of as well what we need to look At is fully

diluted valuation tells us how much is left to dump on our heads so let's have a look at this Bitcoin uh Bitcoin has some inflation left 19.6 million coins 21 million total coins so there's some inflation left with Bitcoin if we look at ethereum you can see the circulating Supply is 120 million total Supply 120 million ethereum is deflationary or disinflationary now because fee revenue is enough to sustain it and so we're actually getting real Rewards out of it if you look to something like salana I think salana basically has M no Max Supply as

you can see here it's infinite there'll be at least 1.5% new coins every year um at the moment it's around 6% uh if you look at something like kadano 45 billion Max Supply 35 billion in circulation right now so let's go down to something like uh polygon you can see that polygon is number 16 in the rankings it's worth 8 billion as of making this video and you Can see the fully diluted valuation is $8.5 billion that's pretty good right so what we know is that most of the supply is circulating right because the market

cap is 8 billion and the fully diluted is 8 and a half billion so we know that there's actually not a lot of inflation left in this coin unless they change the rules or anything like that well that's number 16 in the market cap rankings with a valuation of around 8 billion so if you come down here to something like arbitrum this is is valued way lower than than polygon right it's number 38 in the rankings not as big obviously you know not as valuable it's only worth 2.6 billion but if you look at the

fully diluted valuation it's worth $21 billion so this project actually when you take the total Supply is extremely highly valued this would actually be like top top six coin Why because there is a tiny circulating Supply so we take the market cap like I said by taking the price per coin and multiplying it by the circulating Supply there only 12.75% of the total Supply is is in existence there are millions and millions of coins left to sell and dump on us why arbit is a new project it's fairly new maybe like a year or so

old in the public market they are new There's a lot of infrastructure to build and so they have a lot of tokens that are held up in order to dump and sell for dollars so that that project team can be competitive and build competitive products it's not to say that's a terrible thing there's no other way to do it right you can only raise a certain amount of money when you're very small and you have no Pro no product you can only raise Venture Capital at that point right venture capital is like here's 2 Million

per project we'll put it in and you know what venture capitalist are like they'll spread that around as a project that doesn't have a product you simply can't raise more money than that so you have all these tokens because you build the project you make it a bit bigger you make it a bit bigger and then the value grows then you have equity in in your token at that point right you have money now because people are willing to pay a higher price and so you Can sell sell sell to make the the project even

bigger this is how capitalism Works how venture capital and public markets work you're seeing it in real time but don't get caught out thinking that wow arbitrium is really low low valued here it's not it's worth $20 billion and so they are going to have to really build out very important services to justify being valued at $20 billion fully diluted right so what we would hope is that as They sell out all of these tokens give them out for projects and incentives and everything this selling Supply gets absorbed by buyers who are simply willing to

pay the current price because this project is seen as profitable and good and big and and sustainable so something to think about when looking at altcoin valuations a great resources token terminal you can see what tokens earn how much and if they're returning it to you so this is One of the resources I'll link Down Below in the description so token terminal you can see 180 days here over the last 180 days which tokens have earned money ethereum number one you got a billion dollars here so ethereum's earn a billion dollars as a protocol Bitcoin

is up there we'll never return uh any of this to investors that goes to miners um but it's a profitable protocol and that's important for Bitcoin as well for its longevity you have Tron here Lio Finance Unis swap so all of these are essentially ethereum defi uh madow RVE a Avalanche is its own chain right curve Finance pancake swap GMX these are all defi applications right so trading investing uh derivatives things like that they uh trade they charge a fee for people to trade on there and so they make money right so they're they're good

businesses and they make you know this they've made $50 million they've made uh know $58 million so there are some Profitable businesses here the obviously the difficult thing comes with the Bas layer assets because these are not just businesses these are not just profitable these are also base layer assets which means you can collateralize them you can use them as a store of value you can put them in protocols to get other things right so base layers is kind of a little bit different but with the applications these are these are just businesses in My

opinion right GMX is a derivatives protocol people trade GMX charges a fee how much do you earn now and what is the valuation of your business if your valuation if your total market cap is anywhere from 10 to 80 times your Revenue that's kind of okay as a tech investment right these businesses will be valued very highly 50 times 80 times their their uh their feed generation is is would be normal because they're expected to grow a lot Larger they're not cheap some will grow and some won't so again it's difficult which is why when

people invest in equities they diversify because they just don't know when you diversify what you really saying is all right here's 20 of the big best businesses in crypto let's just put all these into a portfolio and that's you know 5% of my portfolio right so you've got this you're not investing in one thing you're just investing in defi you're investing In um you know crypto that's what you're an exposure to so what we have to look at also when doing that I'll get to this in in the investing section but you need to look

at um you know what one what one of these assets is performing against eth because eth is is really a decentralized a kind of a diversified way to invest in everything built on top right kadano is a is a diversified way to invest in everything building on top because they all eventually pay fee Revenue so a question to ask yourself is do I need to invest in these altcoins or can I just get exposure to all of them by just buying the base layer asset everything's going to feed down to that base layer asset and

is that the sweet spot for me risk reward it's bigger it doesn't matter if seven of these businesses fail because some other ones will come along and use the network and that's fine for me so there's just questions that you need to ask yourself When going into altcoins but token turn is great you can see exactly what each of the protocols earns now a quick note on staking because if you own any of these coins that aren't Bitcoin they probably allow allow you to stake and so what is staking well it comes in line with

inflation like I said if you stake your coins you receive staking rewards now staking rewards come from two places one is inflation right which is the protocol Just creating new tokens out of thin air and giving it to you a you stake and and the other is through fees or more accurately profits right if the protocol if if the blockchain or the protocol whatever it is that token they're doing something they're earning money they're earning fees and they're paying everyone and then profits are made that can be returned to you now the way you do

that with all tokens is through staking the Tokens so if you've got eth you stake ethereum directly on the blockchain there are many other providers that let you do that as well very easily I've got specific videos on staking across all blockchains so they'll be listed below as well staking though is sometimes mixed up with lending or defy this is not lending or defy real staking is where you take the layer one coin you stake it right on the blockchain and so that is not lending or anything like That it's a blockchain protocol that should

you know pay you back right now there are other things that happen with staking including slashing we won't get into that for this video but generally as long as your stake is with a is with a validator in the network that is running properly you should be receiving those staking rewards whatever they are so obviously inflation isn't good right we know that inflation that's not good to have and we want what we want is Staking from Real uh fee generation so uh layer one networks use staking rewards to incentivize people to stake because it's a

security mechanism on the network and so they need inflation initially for that after they're mature they should be generating fees and profits that actually pay you real yield so what we know is staking rewards minus inflation is the real yield that we get so staking rewards Minus the rate of inflation is the real yield so let's take an example of we we have 5% staking rewards for our token and 5% of that is paid out through the inflation of new coins so we're staking we're getting 5% more each year our real yield is actually zero

because our new coins or tokens have been paid out to us through the creation of new coins and so the net effect is that no one's got any richer it's why inflation in Fiat Curren es Makes them less valuable as well because you can't create real output by printing money right you you can't do it you can't create a Doctor by printing money you have to actually you know educate them over 30 years real work you can't pay real yield by creating tokens out of thin air you need to have profits and pay them out

to people from the actual work that you did so if staking rewards are 5% and the inflation is 1% then our real yield is 4% we know that uh 1% of inflation is taking out but there is some real yield there so what we can also determine from that is that if you are not staking but there is inflation in the coin so let's say a CO coin that has 5% inflation every year and you can get that 5% through staking but you're not staking you are getting debased by 5% a year which is exactly

the same as what F currency does now we come to a quick Primer on trading before going ahead and actually seeing me trade live so you can see everything and how it's done and how to navigate a screen like this currencies are traded in pairs all assets are trading in pairs you need to sell one thing to buy another thing right and so you need value you need to spend that value to get the other thing that you want this is an exchange of one thing for another the way that we uh look at that

and uh trade that is like This so what we have here is BTC SL usdt what we're saying is we're trading Bitcoin against a stablecoin US dollar stable coin we're trading ethereum eth which is the ticker of the asset which is the three-digit code or four-digit code we're trading that against US dollar tether or you can say we're trading Bitcoin against eth so you just need one you need to sell one and you need to buy the other the base the base currency is the main currency that You're buying that's on the left so what

you can see here these are the base currency the quote currency is the currency which you're selling so that's this one that's the currency that is um using to quote the base currency how that works is that it tells you how much of the quote currency do you need to buy one unit of the base currency so you have the base currency which is BTC how much of the quote currency do you need to buy one Unit if we see a price that is this BTC USD 50,000 we know BTC is the base we need

50,000 USD to buy one unit of BTC if it goes up like this we now need 55,000 USD to buy one unit of BTC the price has gone up 5% the BTC USD pair is up 5% that means the base currency has a a crude inv value by 5% it takes 5% more of this one to buy the base currency What we're doing when we're buying assets is we're selling our fear and so what you're inherently saying is that this thing that I'm buying will be worth more when I come to sell it next time

right and so what you're saying is which thing are you selling and which thing are you buying because that thing you're buying you think it's going up in value you're B you're basically betting on One Thing versus the Other it's not just an investment in one coin you selling the other the other thing right so you're inherently saying the thing you're buying is going to outperform the thing that you're selling so yes you could be selling F currency into Bitcoin but you could also sell ethereum into Bitcoin if you think Bitcoin is going to outperform

over the time frame of that trade could be a week could be 10 years when you buy crypto with a Fiat You're betting against those Fiat currencies now fat currencies go down in value over time we've got hundreds of years or thousands of years of history of that and assets go up in value so that's a pretty good bet it's pretty pretty safe bet I mean as long as you're buying an asset right this is the most basic strategy currency pirs change though when we look at cryptocurrency we always quote the dollar price so you

can see Here bitcoin's 46,000 ethereum's $2,600 B&B's $300 but of course many of us don't trade in dollars we trade in other currencies this is Bitcoin versus some assets um so this is against pounds um so it's gone up in value versus pounds it's gone up in value versus Euros to more or less the same extent that's because pounds and Euros have devalued versus BTC more or less the same extent except against Argentine Peso it's really gone up in value and against the Turkish Lura it's really gone up in value so it really depends where

you're coming from right if you're if you earning in pounds or dollars then you know you bit Bitcoin is outperforming those but if you earn in L or pesos Bitcoin is extremely outperforming those but Bitcoin is the same thing so what these charts are showing is the weakness of the quote currency now let's come to actually how To navigate this as well so on the trading screen uh which you can get on trading view for free or some of the crypto exchanges which I'll go over in the next section but we have a screen of

two currencies so up in the trading screen of a crypto exchange I'm using bybit here BTC usdt so what we're looking at is Bitcoin against us doll and we can see right here this is the chart over time so let's go to a week chart this means that we're looking at Each period in time to be a week and you can see that over recent history the price has gone up what we're saying is it takes more dollars to buy Bitcoin Bitcoin is a crude in value right how do we know that we we can

see this as well so this is the order book this is the actual market for this currency pair right now the order book is simply a book of orders it's why it's called an order book it's the orders sorted by price so up here you have Sellers and down here you have buyers these are cheap these are expensive where they meet in the middle this is the real live price of Bitcoin this is the price of Bitcoin that is actually being traded people are selling and buying Bitcoin and USD down here we have biders or

buyers so the bid is the half of the book that is buyers so we call this the bid right so they're bidding for Bitcoin so if you're a buyer you can join the bid and You can bid for Bitcoin there is also the other side which is sellers this is known as the offer the the these are offering out their BTC if you're in America it's called the ask so you can offer right you can offer out your BTC this is the ask on this side of the order book so down here we have the

bid this is the ask in the middle we have the actual price of BTC now between the best bid and the best offer so the highest bid And the lowest offer that is different right if I was to bid $50 for something and you were selling at 52 the spread is $2 that's the spread between the best Bard and the best offer highest and lowest the spread is the difference between that this is a cost when trading So when you buy you're buying from someone who's selling and there is a spread between that now for

crypto the spread is Tiny it's literally uh 0.1 as you can see here so 1 cent I think this is there's a 1-cent difference between the best bid and the best offer so it's minuscule when you get to very very liquid coins tiny coins the spread maybe bigger and that is a cost because if you sell and and if you buy and sell immediately you have to pay that spread right so that is a cost of trade and then of course you pay commissions and trading fees so every time you buy You're already immediately down

by the commission that you pay and the spread that you pay now this is the trading screen so if I were to bid if I were to be the best bid for Bitcoin I would have to pay 42,900 n spot 40 right that is the best bid where is the best offer this is the best offer 4299 spot 41 on the right hand side you can see uh what is being traded at that price so we know that the quantity for this is here we know that At 42 9941 there are around six Bitcoin on

offer so that might not be one seller there might be multiple sellers but that price has six Bitcoin on offer and I think this is the total on the order book up here at this price we have 7 of a Bitcoin on offer up at this price we have even less this doesn't matter too much because what happens with Bitcoin is that people hide their orders they don't Show their orders they only show the order they want down here and then up here they actually use you know trading Bots to to put in orders if

they get traded and things like that so it's too complex for this but essentially we're seeing the price and the amount on at that price that can be traded so you can look at that now again for BTC five Bitcoin you know is plenty of liquidity for BTC right if you look at at smaller pairs you might be able to see that There's a price but there's only a tiny amount here and then the actual the actual volume to be traded is further down and that shows you the real price of the asset maybe not

this but maybe this right so that's how we read the order book it's a book of orders and a book of Traders showing their trades to the market now let's come to the top crypto exchanges if you are looking to trade crypto or use blockchains you're going to need these centralized Exchanges and as an on andof ramp but they're not all created equal so I'll just go through the major crypto exchanges right now some of the smaller exchanges what's known as bucket shops you know they'll let you trade meme coins and these small things that

you know are just kind of the bucket shop type of you know Investments others are much larger and provide big infrastructure for the industry uh and wallets and everything like that Coinbase one of the biggest names in the industry they are the only publicly listed centralized crypto exchange that means that they have their stock market listing they are open and public and there's an army of lawyers here uh making sure they don't steal your money right and so trustworthiness has to be the number one thing all of the Bitcoin ETFs uh and the providers there

they're actually using coinbase to go ahead and buy and custody things so big business Trustworthy of course things can go wrong but having a public trustworthy company like that is definitely a bonus their products are pretty much inferior though unfortunately I've used them a lot and they just are a bit slow and clunky not great to use binance is the world's biggest crypto exchange by a country mile they're huge they have massive infrastructure that they support many different blockchains and everything else they offer pretty much Everything that every other exchange offers and more and it's

a very very good product I 's buy out a lot myself I'll leave the exchanges I use Down Below in the description I can't recommend any exchanges I just want to give you the ones I use now these exchanges usually give you a bonus or a trading bonus or a deposit bonus or something like that right so I'll leave details on all of that down below you can see the bonuses or whatever and um For some countries that's not available for others it is you you're going to have to look at the links and the

details in the links to see if it's available for you um but these exchanges are businesses that want our trading volume because they charge us money right so as long as we get a good service for a decent fee that's fine binance is amongst the cheapest you get great access to pretty much everything now binance is pretty much banned from The US because they went into the US market and they let people trade without kyc which is know your customer information that's not good to do um they got an investigation there they paid a fine

every bank has paid a similar fine um but obviously binance was investigated and their business is profitable you know all funds are accounted for so you know uh doesn't really taint them for me personally but many people might not feel comfortable So just putting it out there bybit is definitely centered more towards trading they're all centered towards trading but bybit is really more for active active trading big player outside of the US it has huge chain support you need chain support right because you need to be able to buy a crypto and then use it

and withdraw it onto the blockchain and so you need a good coin support uh bybit has it binance has it um good for trading I use byit a lot too then we Have okx with number two big in Europe and Asia very very good for web web through infrastructure huge chain support great trading options okx is actually a really great uh exchange uh with lots of different options what are we looking for with a crypto exchange good fat currency on and off ramps get money in and out easily some are better than others and it's

going to change depending on which country that you're in so you're just Going to have to check out you know these specific Services if you want to know how to use the exchanges and the things that they offer I've got specific videos which I'll link below spot trading fee should be around 0.1% more or less for a trade so the the volume the amount of your trade in dollar terms or the amount that you buy what 0.1% will be taken as a trading fee if you trade Futures and options you'll be paying under that or

at least you should Be so watch out for the fees on the exchange that you're using these should have very good Network support if I want to buy a crypto and withdraw on the blockchain they need to support that Network and make sure that I can do that all of the ones I've mentioned have great support coinbase a bit mediocre with that unfortunately the others are much better um there there may be other products that you can use here like launch pools and earn products and Everything else these carry their own risk these are investments

they may be banned in your country because it's an investment product and it may not be available for you again that's going to change country to Country these have their own risk and so we must uh know that but ultimately we need to trust that when we put our money in The Exchange they're not going to use it they're not going to lend it out and they're not going to steal it from us And so trust is the the main thing and just please trust like I said I cannot um you know advise on what

exchange to use the ones I use are pretty much these ones that you've seen and so I'll link them below as well you can check them out if there's any offers or sign up bonuses obviously that would be decent but we must trust them we must trust them now the way that we can see that is what's known as proof of reserves this is what the crypto industry did after All of the FTX thing where each crypto exchange cryptographically proves that they have the assets that they say they do and so binance is number one

uh it's the biggest in the industry you can see 75 billion in clean assets here that they hold for customers this is cryptographic proof that they're not stealing your money and there's nothing there so they all do it you can see that buybit okx binance at the top crypto.com all of these cryptographic proof that They have their client assets that is a must if you're using an exchange that doesn't have this just don't use it they must be able to prove this and this is an industry standard or becoming industry standard now so the top

crypto exchange should give you more or less these options now we'll look at how to go ahead and trade cryptocurrency and use this type of trading screen so what I'll do is leave links to videos below for all the platforms that I use and how To use them uh so how to get started all of the different options and tools and everything really in depth I'll leave the videos below for here we'll just get started with trading cryptocurrency live and some of the options so the first thing is if you have an account uh on

a cryptocurrency exchange you need to get money onto the exchange so there's really two options the one is card and the other one is a bank transfer this is going to change Depending on which country that you're in if you go to buy crypto up at the top left of most crypto exchanges they're all going to be laid out the same is you have an option to get fat currency in and buy a crypto so your fat currency would be here if you spend that c if you spend that fat you'll get to choose between

buying some cryptos that you might want to hold that's great simple easy you pay with a card it's going to be around 1 to 3% in fees which is very High it's it's easy but it's very high fees what a lot of people may do is use a specific onramp in their country um to get a bank transfer in now some crypto exchanges are fantastic for on-ramps some countries restrict their so you're just going to have to work out in your country what the best options are some people use another on-ramp exchange to get money

in and then transfer the money over uh to another crypto exchange which has much lower fees so you put money in You TR you exchange it for tether usdt or usdc which is stable coins transer the stable coins over trade on the lower cost exchange there's many different options here it's up to the individual and what works in your country so this is is an option and if you're using this option just directly buy the crypto that you want to hold the more professional way is use the spot trading market so we'll go to trade

here spot trading and then BTC and what a lot of people do is Trade BTC against the stable coin if your country allows you to put fiat currency on your exchange go to the fiat currency market and trade directly into a crypto so as an example buybit allows for Euro uh trading so if you put Euros onto buybit you just go to the asset you want to trade so BTC so for Euro you can put a bank transfer in of euros and then spend those Euros to buy BTC in the Euro BTC Market so that's

right there and that's a fear to crypto if you don't Have that option A lot of people especially if they've been in crypto a while and traded in and out of things they will use stable coins stable coins are a crypto dollar so you know a dollar stable coin so you'll have a stable coin here and that's the money that you spend to buy a crypto so we'll look at Bitcoin here against US dollar tether see the price changes a little bit this is a much more mature market and of course we're trading against dollars

here and Not Euros up uh on any platform you should be able to search for the crypto pairs that you want to trade so if you type in BTC you can see all of the crypto Pairs and the ones with the most volume BTC against tether BTC usdc BTC Euro and then BTC against some other assets right if you choose eth should be able to see that here this is ethereum against stable coins Euro eth BTC so if you want to sell one to the other between eth and BTC just trade that pair We will

stick to BTC usdt this this is the uh trading information for the currency pair so the price is this this is the change over 24 hours and then you can just add favorites here as well down here we have the order screen so any current orders or previous orders any orders that are live and working you can see them here we'll go through charts later what we want to look at is the order book and the order Screen so for right here we know the order book now and this is the price of Bitcoin so

what do we want to do we want to buy or sell it so you can see this buy or sell choose the one that you want spot spot is the spot Market the cash Market that we're trading in margin is where you can borrow money from The Exchange and take leverage obviously too complex for right now we'll leave that so what we're going to do is choose a market order A market order lets you choose the amount that you want to buy but it doesn't let you choose the price that you're willing to pay you're

basically saying I don't care about the price that I pay I just want to get the order done so we're going to choose an amount to spend so we've got tether because this is the one that we're spending and we're going to spend $11 to buy an amount of Bitcoin and the price that we get we don't know whatever the best price is at The time you can also change to order by quantity so if you know exactly how much BTC that you want to buy you can put that in but you need to know

how much usdt uh that is going to cost right and it doesn't it's not going to be able to work it out because it doesn't know the exact price that it's getting for you in any case we'll just stick to order by value and then we can buy an amount of BTC uh by pressing buy now remember Market order is going to trade Immediately at the best price so if we click the buy BTC button it's going to check it that's the order here Buy right then we can go to trade history and that is

our purchase BTC usdt we had a buy order it's fied you can see we paid a little bit of trading fees there so we got $10.96 and the field price is this one we didn't choose that it was just what the price was trading out at the time so That's how to trade a market order and literally just buy crypto that's absolutely fine but it's like trading your money at the airport right you don't know what trade that you're getting so so the more professional way to do this is to use a limit order a

limit order lets us choose the price that we're willing to pay and the amount that we're willing to trade so we can make our limits this is the the limit of what we want to trade at so when we put A limit order in I say 45,000 that's the limit price that's the max price that I'm willing to pay that is my limit and the quantity we want to trade uh $15 here that's the order value now it works out $15 45,000 per BT C we can trade this fraction of BTC so we can put

the limit order in here we press buy BTC checks the order for us by BTC that's down here of course it hasn't traded because our bid at 45,000 is below the market price at 4599 so we can't trade where is our order well it's down here on the order book lower the order is working it's known as a working order because it hasn't traded but the system the platform The Exchange is is saying if the market price gets down to 45 and if there's a seller there we'll trade your order at 45 we we've got

that instruction so we're a buyer of Bitcoin the order value the price uh and how much is filled which is currently Zero right so what we can do is actually change that so we can change it here so click and then we want 45,000 880 something like that and then we can press okay our limit order has now been changed and that is our limit price we have a much higher percentage chance of getting this done because we're pretty close to the price at this point if we change again to something a little bit closer

like uh 918 we can do that and we may get filled At this level if the price comes down you should see a DOT near the price that your limit order is in at and once it's traded you will trade there now a tip here is the that using limit orders can get you better trades you can see that the price moves around quite violently and so using a limit order by just seeing what the price is going down the order book by like $5 or $10 or something and putting your limit order in there

a Little bit lower is just going to save you a tiny bit uh in each time that you trade so you don't need to use a limit the price moves around if you're just a little bit lower you might have to wait a little while but the price might trade and get you a better price so there's pros and cons to each because if you put a price in that's too low you may not change but a limit order lets you make that decision if you want to sell your crypto we can use the exact

same order Types to sell out for any other currency so the first thing is we need to know that we're selling a crypto and we want to know the currency that we want to trade it into so if you have Bitcoin and you want usdt you need to trade that pair if you're looking for Bitcoin and you want to trade it into Euros or something you have to trade that pair so I'm going to trade USD here go to sell so change it to sale we're going to use a market order and we're going to

sell An amount of BTC so you can put that in the amount that you want to sell and press sell you can also go to a limit order now again CU you're selling you can choose any price that you want now if I said that my limit price was 40,000 to sell an amount of BTC right like $15 worth I'm going to trade immediately because my limit price is 40,000 and the price in the market is 45,9 00 this is basically a market order so it's not you know the limit has no relevance because Your

price is below what you can do obviously is place an order Above So if I want to sell this March at 50,000 I can sell BTC I can confirm this and of course that will put a limit order for me so if the price does get up there I can sell that so this is good to use if you want to sell some BTC you just want to wait whatever you need the crypto on the exchange it's tied up in the order so you can't use it in any other way but that limit order is

there just waiting To be sold if the price gets there and just by my head you can see cancel here so just cancel out the order if you want to get rid of it there is also a way to take losses or profits with automatic orders so if you have an order in and you have an amount that the order is is there so you own some BTC you can use what's known as trigger orders or conditional orders otherwise known as tpsl so you can see that here if you press conditional it's actually exactly The

same order what this does is puts in a trigger order for you to do something so this is usually used with stop losses which is where you sell your asset at a lower price than it's currently trading because you're selling at a loss to prevent further losses so if the Market's coming down and you're losing money you can tell the system I'm happy to lose 10% but if it gets below that I actually want to sell out and take a loss at 10% Because I don't want to lose 20% so this is usually used for

more active trades investors really aren't going to use this because they're going to be just buying and dollar cost averaging over time but for more active trading you can set a trigger price so let's say that I want to sell my Bitcoin some amount of it the trigger price is the price at which the order will be triggered into existence so we're going to put that at 40,000 the order price is the actual order that is put in when this trigger is met so we can put a market or a limit order in here so

we'll just do a market order right so you can't choose a price what you're saying is when the price gets to 40,000 that's my trigger enter a market order to sell an amount of BTC right whatever it is the reason we can't use a limit order here is because like I said if we put a limit order in to sell with a limit of 40,000 it's going to trade immediately because the price is 46,000 what we're saying is sell as long as the price is above 40,000 so it's going to go yeah sweet I can

get 46,000 sell but that's not a stop loss that's just to sell order what we're saying is if the price comes down right and we are making a loss that's when we want to sell so you can't use a limit order you have to give the system a different instruction which Is a trigger at 40,000 then sell my Bitcoin sell BTC press that here and that's going to be a working order for you that will sell at a lower price than it currently is and that is used as a stop loss like I said that's

for more active Traders uh and people that are trading you know shorter term um but it is you know something that you can use um if you want to so just a quick bonus tip here for you know people that want to gain exposure to Crypto and trade crypto not really talking about day trading and that kind of tactical thing which to be honest is extremely difficult and really what we're doing with crypto is looking to take advantage of secular Trends and get the best prices during Cycles so a kind of easy way to do

this is to look at the Bitcoin price over the long term know when we're in down Cycles in the you know in the cycles and the secular Trend and then just really be active during That time so you know what we can do here is go over and say Bitcoin has these Cycles very clearly up and down right and we've seen that so when we're in a down cycle which is is pretty clear we're looking at um you know around a 30 to 40% draw down is you know a down a down move for for

BT see it's pretty pretty harsh during bare markets it has typically gone down 70% of the lows but anything you know down 30 or 40% from a from its high uh is typically somewhere Where investors would get more active so very simply we can we can kind of chart these over time um pretty easily right so you have these cycles that you can see on the longer term chart so what you can do then is really be tactical and say during that time during the time when the price is down in a low cycle that's

when you're more active and then you can go to you know actually trade the asset so what you do is you know put in orders each week or each each month So you can do uh automatic buyers and auto investing on a lot of these platforms where you can say I put an amount of dollars or whatever on the platform buy each week at this price and it's going to do it automatically for you over a time or you can simply say during this part of the cycle right right I know that I'm going to

be active buying and so each week you just go and you know activate your buyers there and then past a certain amount if you're in A big up cycle and you're you're you're nearing all-time highs maybe you you come back from your buys a little bit so one thing that we can use is the longer term charts you know we're using a weak chart here so this is very longterm and it's showing kind of Trends and then you go down to trading and you're looking at charts on the one day this is a period which

each period is one day right now and so you're looking at um shorter term to trade but then you're looking at Trends CU if you're investing in Trends and looking to take advantage you're really looking at these right people get too worried about short-term price movements but you got to look at where you are in comparison to where you've been right so for Bitcoin and we know the thing has secular growth if you're looking at a high these are the highs right if you're trading underneath that right somewhere here these are areas where investors are

active and it Doesn't really get any more complex than that so if you're a beginner and you're looking how do I get involved with all this stuff maybe just start there and you can get more active you know and more professional as you go on but seeing the longer term cycles and the trends over time seem to have fouryear cycles of these Trends making sure we are you know being active at the bottom of Trends seems like a pretty good thing to do and then you can go over to your Crypto exchange now we'll come

on to a short primer of technical analysis because when looking at charts there's some things you need to know for example what are candlesticks what are the time Horizons here uh how can how can we make some drawings to make our lives easier so if you don't know about technical analysis there's two different types of charts right we have a line chart that we can look at right so we can actually change this to line so if we change this To line right here and then we can change this to candles different information lons are

great for longer term term Trends this is the Bitcoin price you can see in Orange here so it just G gives us longer term trends of what the price is doing for Traders what we going to look at is candlesticks and that's because candlesticks give us way more information than a price chart you can see the line there a Candlestick gives us four pieces of information Which is the opening price during that time frame the low price during that time frame the high price during that time frame and then the closing price during that time

frame open close low high that gives us way more information about what happened during that time period the Clos is above the open so we know that that's a green Candlestick now in some countries they don't use the same colors but in the West Western countries you'll mostly see green for a green up Candlestick open high low and close the open is higher than the close that's a down candle and we color that in red plot those over time you have another type of chart so we'll go over here that's the Candlestick chart so these

green periods we know these are Uptrends where candles are opening and closing above each other clearly an uptrend right so this is the price of Bitcoin over time but we also know the price action during that time frame gives us a lot more info and it's a lot more specific with exactly what price at what time so of course we have different time frames uh this is on binance here one week each Candlestick is one week one day each Candlestick is one day let's reset the Chart and 4 hours 1 hour 15 minute if you're

looking at 15 minutes 1 hour charts it's like like this there's no signal there it's just noise it looks like the price is moving a lot but it's moving like half a percent if you're tra if you're investing you're looking at Cycles which is the real bulk of what we want to trade right day trading is tactical and it's difficult but these cycles that happen over four years very um slow and we can really take advantage Of the meat of these big moves you look at at days weeks in terms of um the price chart

really weeks not even days it's weeks right so clearly what we're seeing here on this chart is we are seeing that we are in a big uptrend here right each of the weeks are seemingly going higher so we're in an uptrend we're recovering price is going up right so let's look at candlesticks this is bearish price action what we say because sers are coming in and forcing the price Down this is bearish price action because we know that this is red so it opened here and closed here sellers forced the price down this is three

candlesticks could be 3 days 3 hours bearish price action sellers are forcing the price down this is bearish price action too potentially because what it shows us is even though the candle or the the time period finished positive what happened is buyers pushed the price up to the high but in that same time Frame sellers pushed it all the way back down to almost make it a red candle if they did that in this time period maybe in the next period that will continue and so the next period could be a down Candlestick why that's

important is because if you're looking to trade over maybe a day or a week or months or even you know on yearly candlesticks those Trends are maybe more predictable in that way so you can see here that you know you have some downtrend right you Have some candlesticks where sellers are coming in forcing the price lower and so sellers seem to be over overdoing buyers at this point right so it's just the information that gives us that hey if you're getting a lot of red candlesticks and they keep falling lower you know maybe there's just

a lot of sellers around and the for the price may go lower and so you can try and predict this or try and say what type of trend we're in right you can see here that There were a lot of candlesticks where the price was being moved up there was some consolidation here but moving up right so that shows us that there's way more buyers and sellers in the market and they're pushing the price up this is bearish price action this is bullish price action open close bullish price action keep going higher bullish price action

this is bullish potentially sellers forced it down buyers forced it all the way up to almost be a green Candlestick they may carry on in the next Candlestick and so that's how we look at Price action now we're going to look at support and resistance support and resistance are the same thing it's just a key price level where buyers and sellers seem to meet and the price gets rejected from that level and so we know who's in charge so you can see resistance here it's where the price moves up but it then gets rejected down

right and and it Doesn't go past that level so that price level is resistance that shows that there are sellers at that price level and there are too many sellers there that the buyers don't outnumber them so it turns into a resistance price this is showing us the fight between buyers and sellers and buyers are not willing to pay Above This price and that's where the sellers win and the price price gets rejected away from that of course these levels get broken all of the time when You break through that resistance level may now turn

to support the reason being that the sellers that were here are now gone they disappeared because the seller the buyers broke through so those sellers have gone now and so the buyers who pushed through and were willing to pay that price now turn that into support this is literal it's psychological you can see it happening in charts it's amazing how many times it kind of works out but of course that is A resistance level that now turns into support so you get the support where the buyers are coming at this price and the sellers have

moved up and are making resistance at a new level these get broken all of the time but we can use them as a pointer to where to put our trades and Investments and where to be active so back on the Bitcoin price chart this is uh the longterm chart what how do you draw support and resistance what you need to do is find an an area Where the price very clearly rejects away from major that is a rejection price came up big rejection down this is a rejection big rejection up this is a rejection this

is a rejection this is a rejection this is a a rejection as well you can see that here this is a rejection right so those are support and resistance levels so what we can do is draw them on the chart so we'll go up to here like I said um tutorials for trading View and Everything the crypto exchanges because you can do this on the exchange as well all down below like full in-depth guides we're going to go to horizontal Ray we're going to draw this on we're going to keep drawing them we're going to

draw this we're going to draw this right so now we have some support and resistance levels you can see that if you drew those before you see when the price moved up it got rejected from this level A couple of times so it gone up rejection rejection it's amazing how that that was the same price level as this so This support turned into resistance now we broke through it so now you'd be looking at new levels you need to look at this being a support level trading around here and then obviously this is going to

be a resistance and this is Major resistance because it's the previous all-time high So that's how to draw it on key price levels rejections and it just gives you these really important areas where you know the price can get to and reject from but importantly if you're a buyer or a seller you may know where to place your orders now so let's now looking at using that technical analysis to give us areas where we can trade so we know Bitcoin has cycles and we've seen that here cycle up down up down right and so what

we want to know is we Want to be active during down Cycles we don't want to we don't want to be too active at the top of things right so we know that Bitcoin has secular growth in Cycles around this so we can use the secular charts which is this logarithmic regression right you saw that down here in the settings log mic so we know that we're in a down cycle in this pattern we know that so we want to be buyers if we're investing right assuming that we want to invest in the asset you

You're going to have to be active at that point right and what we know is the trends right here right so this data shows that Bitcoin moves in Trends where it expands and contracts expands and contracts expands and contracts when you're down here you're being active as an investor for sure so what we can do now is go back to a price chart and give ourselves uh some price levels where we want to be active under so the first one is a draw down we know that this was a Key price level under this 32,000

so what we do is we can go back onto our trading chart and draw this on that level there 32,000 anything under that is a big selloff because we had support support eventually broke down and so as an investor what you're saying to yourself is this anything under here is pretty much automatic buy because you're down at the bottom of a price cycle you can very clearly see that these are just Regression lines right so mid regression lower and upper you're down at the bottom end of a price cycle we know this from the regression

analysis and from the technical analysis that this price level from a price technical analysis standpoint has broken down through through support anything under that level is probably a buy if you're an investor and you are looking to accumulate right you can just obviously just buy all the time but of course you Want to be more active towards the bottom of Trends you don't know where the price is going to go but these are areas then what you can say is if the price moves up through this what's the next level that we want to look

for so if you're a short-term Trader a breakout may suggest that you're going to get some bullish price action eventually which happened and so that is an area that you want to look at and of Course if you're investing what you're saying to yourself is there may be an area here as well that there may be some resistance right so at what point are you thinking there may actually be some resistance here maybe some you know some sell-offs or some some troppy trade here am I comfortable with this price is this price somewhere near the

investable range for me so I just did that as a box on this chart right so you can draw these via this so rectang angle just Draw that gives you an area rather than a specific line but what we're saying here is yes there is a lot of support and resistance and choppy trade here that it's going to be quite difficult to break through and that's why you saw some resistance up at this level are you happy to buy here look at the regression are you happy to buy this right or at what point would

you be willing not to buy or maybe buy less or maybe just you know come out of the market with the Regression Trend right so what we're doing here is line weak chart logarithmic draw on these regressions via curves and what you're saying is anything under this line is probably a buy anything over this line is okay but when you get up to the top here that seems to be a rejection Point rejection point would be 100K call it that so what we can do is go back look at the price chart right here and

and draw on some sort of level right 100K be around Here so that could be areas right so nobody knows where the price is going to go what's going to happen what's going to happen in the world nobody knows that all we're trying to give ourselves is some sort of guide as to where we're happy buying or selling for me because the price was in a draw down and we were at the bottom of the trend anything under this line was like thank you anything above this is fine but if the trend is suggesting that

you meet Resistance at these levels the logarithmic then anything up here you have to start questioning am I okay buying at these levels if I need the money in a couple of years short time frame is it best to be putting it in Bitcoin or crypto when it's at this price level because it may meet resistance and so I need to make that decision am I comfortable buying at these levels or do I not really want to do I want to scale back my buyers Because I think it may meet resistance and so on so

it's just giving us slightly more professional way of looking at prices and the way that they move because prices move in cycles and you get expansions and contractions we don't know exactly where they're going to work out but this is at least a guide to kind of in our heads kind of mentally prepare for what we want to do there are many more things we could talk about with technical anal analysis using Metrics and Trends to look at too much for this video if you do want to go a little bit deeper the trading section

in the crypto course has all of this there's you know hundreds of videos right so you can see all the trading videos here about Trends and strategies we also got uh some more day trading videos um with Futures and options huge amount of videos here obviously too much for this video um if you want to get you know a little bit more in depth Obviously those videos are there in the you know the crypto course so what we're going to look at now is onchain Analytics and how it helps us make investment decisions onchain analytics

is something unique to crypto we can see everything every trade every asset flow when it happens where the money is going when and why it's absolutely amazing so we can use it to our advantage there are many ways we can use this to just understand what's happening in crypto But really from an investment perspective it shows us how the Cycles play out how people come to the networks and leave the networks or activity getting higher or lower and so really we can use this to make investment decisions in that we know that assets are growing

over time that's what we need to know and the other thing is when are the price Cycles beneficial for us to invest or maybe a little bit overdone this is long-term holder Supply and Profit and it just shows these cycles of buyers and sellers right so when you have the supply and profit moving higher that's a bull market bare Market bull market bare Market bull market bare Market bull market it's actually very it's like a clock right it's like clockwork you can see when uh these breakdowns happen in the data that's showing us kind of

a capitulation so you can see where the supply and profit moves down and meets this level known as A bare transition where it's probably going to keep moving down because you're in a downtrend and a bare market selloff and capitulation moves down and eventually it comes to an area where it starts to reverse the capitulation has happened everyone that wanted to sell or needed to sell has done that the macro environment is changing risk taking comes back in and then you get a transition and of course you get the bull market transition here which leads

Up right so you can see these Cycles happening why it's important for us to be able to see this is because if we can see the cyle is happening we can get on the right side of the cycle remember that we know the secular trend is to the upside so if we want to get the best results we can take advantage of the cycles and even if you want to trade short-term you can take advantage of the Cycles but certainly if we're investors this is super interesting to us when Prices are relatively low even though

you know you're in this uptrend so you can see the break break downs of them and the breakthroughs of course when you're up here ask yourself some questions is this move overdone you know are we at the top of a bull market what's great about onchain is that it doesn't really matter what the price is it just tells us where marketp participants are so this is percentage in profit right so it doesn't Matter what the price is it's about traders who are in profit and who are in loss who are capitulating are new Traders coming

in forcing the price up but it goes in these Cycles so again this is an piece of information that we can use that you know the price the price has moved here from 15K up to 45k so some people may look at that and say I'm not buying at this price it's 100 you know 180% up not buying at this price but actually what you're seeing is That you're still not really overdone in terms of typical Market cycles and so it just gives us way more information and takes the emotion out of the price because

bitcoin's gone up in price for 15 years with huge volatility in between but if we can know the volatility understand it we can actually take advantage of it to make better returns so that's holder percentage toly and profit now that there there's so many metrics here that I can't go through all Of them glass node is great look into Bitcoin is great I'll leave them link below some of them are free uh some of them have a premium thing and a paid tier so you can make those decision up up up to you uh what

we're looking at here is mvrv again what this tries to do is show us where the price of Bitcoin is in relation to the Bitcoin that's already on the network and has moved before it shows us how many people are in profit or is the price in profit and People are kind of moving things around at a higher price so if we take the Bitcoin price out what it also shows us is Cycles Up Cycle down up down up down no price but if we could see that during the up periods where the realized price

of Bitcoin being moved is being moved at ever higher prices that shows a bull market when we're down here that shows that Bitcoin is moving at lower prices and that shows a bare Market or a capitulation if you're an investor that Wants to get access to secular growth the best time to buy is down times and so without even looking at the price we know that this part of the cycle where the mvrv is down here is typically a great time to buy now this has happened in real time as well as we drew down

from the last um bull market mvrv came down to the buy Zone and has rejected yet again and that's because this asset has secular growth if it doesn't then the MVR mvrv would come down here and Then just stay there right so obviously that's not great and you don't want to be trading that or investing in that we pick assets that have secular growth they'll climb out of this to a new a new level we what we can also do is get the the level of trades right so we know that mvrv once it spikes

up to about six that tends to show that you're kind of late stage bull market and prices are pretty high at that point and it can't stay there forever right it tends to Kind of reverse at some point so you can see it used to spike up to 10 then it got to about 98 and then it's about seven here maybe it spikes up to six or seven here but as you can see not the not the price not the market price the level of buyers and sellers where they are still quite low as of

making this video and at the top of a bll market would be up here at six now if we're at six do you want to be putting your life savings into BTC or any of the other Cryptos that would have this data because each time you've got up there tends to be at the kind of top of a speculation bull market and Euphoria and everything's great you know these things move in Cycles right long-term investors just calm down and know that they want to invest through Cycles definitely when things are bad that's the best time

and they want to pay up here that's fine as well because what this doesn't show is price remember we could have bought up Here when it was 10 and made loads of money because if you put the market cap back you're buying Bitcoin here at like much lower levels right $20 so the mvv was very high because it was the all-time high at that point but if you're a long-term investor and you're buying at $20 no problem so it's not that mvrv tells us uh what the price is good or bad he doesn't know what's

going to happen in the future she's just Telling us right now as a price cycle things are either overextended up or down and that may reverse it may continue for 6 months or 12 months we don't know it's just a guide right so that's mvrv then we have the same thing basically but it's called nupl or net unrealized profit and loss and it just puts the it puts the kind of the same thing on a chart with capitulation to Greed so you can see the price again and if you take the price out it's just

Showing us when is the market euphoric in terms of prices are rising Bitcoin is being moved at Rising prices which means that new buyers are coming in forcing the price up when is capitulation happening and that Bitcoin is being moved atow lower rates or lower prices so as you come down you get capitulation as it moves up you get hope optimism belief and Euphoria they just put this on to make it simple but you can see the this the uh the Cycles here right price Cycles of up down up down up down up and we're

going into an up so we're in belief or optimism right now put the price back on the price cycle flows this but remember buying here during Euphoria was still a great trade if you had the time to wait because the asset is just growing over time higher highs higher lows in a trend so the uh onchain metrics can really help us with Trends and uh where we are in cycles and the reason that that is important is because You can overlay that onto price charts and give you yourself a lot more information about actually down

here when we were in the buy zone right that was 15K the price was 15K that really is a buy zone right so if you're an investor I mean when when are you buying other than when the price draws down right and we're drawing out of here and now look the price has done very well recently but if we go back to the cycle we're definitely not topping out in Terms of mvrv and so as a long-term investor do you really care about the price or just do you care about as long as things aren't

massively overheated then I'm being active again that's up to the individual how they want to implement their strategy just doar cost average don't care about the price buy by buy for 15 years or be a bit more active everyone can choose what they want to do if you're truly looking to invest in cryptocurrency as an asset Class whether Bitcoin only or a mix of some of the networks that you think have good growth long term then price Cycles become slightly less relevant almost irrelevant you're you know dollar cost averaging through cycles and you have a

time Horizon of 15 plus years right you're looking to tuck this stuff way into your retirement account just looking to gain exposure over time it's really not more difficult than that we don't need to spend hours looking at Five minute charts trying to day trade that's not good for investing what we're really looking to do with investing is to be consistent over time because the way you make great returns is by cons consistently adding to the size of your portfolio if you're trading if you're day trading crypto with $1,000 you make a 5 or 10%

trade that day that's great the next day you got to get up you got to do it again maybe you lose Money so you lose money you lose money maybe you win a bit you're on this hamster wheel going round and round now day trading is fun and great and we want to make that little extra return and that's of course anyone can do that that's great but you need solid Assets in your portfolio over the long term that you know are there as a fullback and a base and that chunk of cash that you

need for when you stop working that's what investing is we don't need To get cute with the market we don't need to look for the next big thing we can just look at asset classes what does this asset class give me on a yearly basis what is the growth huge amount of growth no problem get invested multiple years no need to panic it's going to be around for a long time so investing is about the long-term allocation of free Capital to achieve later benefits not trading what asset Classes can I utilize to give me the

things that I need you take free cash flow from your income to buy desirable assets that are expected to increase in value over time you might think that's Bitcoin you might think it's ethereum you might think it's something else you might think that crypto's got no secular growth and so you invest something else it's up to the individual no investment advice here but that's investing choosing specific assets or asset Classes that achieve returns commenor it with the amount of risk that you want to take if you're 80 years old putting all your money into an

allcoin because you think it might do well probably not a good idea if you're young and have time to wait for the actual growth to occur then you can get much better returns by stomaching the volatility and waiting for that secular growth to occur so we don't have to panic we that the money is there it's There to be made we just have to expose ourselves to the assets that we want we're not trying to make money we're just trying to choose the asset classes that we need buying assets that can protect our savings from

inflation so when investing a lot of people especially ones that ask me questions over time they ask me specific questions about the market like what do you think this asset is going to do what do you think the Price will be based on this news event and the answer is I have absolutely no idea I cannot predict things like that it's unpredictable there are millions and tens of millions of Traders around the world positioned in different ways something can happen a news flow event that can change things the positioning in the market it is impossible

to know that and to consistently call that right with investing all of that is irrelevant and you only have to say here are the List of asset classes that produce returns with X volatility right so fixed income where you know you buy a bond and you get 5% for 5 years you hold to maturity that is fixed volatility is none right after 5 years you know exactly how much you're going to get back the returns are lower than something like Bitcoin has been with more volatility so you can choose exactly the Types of assets that

you want and blend them in a portfolio to give you the risk that you want to take it is from you first not the market don't try and call the Market don't try and call what assets are going to win and lose it doesn't matter what are what are your needs how old are you if you're 70 buying altcoins is a bad idea if you're 25 you can stomach the volatility getting exposure to crypto might give You much better returns than buying bonds how much free cash flow do you have right that's going to deal

with things if you need the cash back or if you're tight this month or you know you have to choose what is going to be the best thing for you right if if you don't have much to invest and it's the top of a cycle is that the best time or you you know actually I don't want to buy it this time I think you know I might need That cash comes from you first what are your future known liabilities Children Health Care education rainy day fund Insurance something else right you have to know that

first and then what are you saving for the things I just mentioned right if you know that you you have a liability in seven years where the kids are going off to college you're saving for that thing do you really want that in a speculative Asset do you want to invest in an altcoin where you're like this money is for the kids college funds I I can make some money short term don't worry about it boom lost everything now your kids can't like go to the college they want so you have to think of just

what assets are going to do the right thing for actually what you need to to to to spend because that's what moneyyy is for so if you have a liability in seven years time maybe think about something lower Volatility bonds plus something right you can work that out yourself right so maybe you take a flyer with BTC because it's at the bottom of a cycle but the bulk is in a bond that pays out in seven years because that's when your liability is so that's going to depend on everyone it's about you and not the

market do not call the Market call yourself CU you know that and you know what you need use the assets utilize them to your advantage time Horizon right and how Much volatility can you handle we don't just have to take flyers on all of this stuff we actually work out how good an investment is via certain ratios and it all comes down to risk versus reward or more accurately the amount of return that you get given an x amount of volatility right because volatility is the thing that catches people out they buy Bitcoin during a

bull market the thing Falls 70% they hate it they lose lose their money but of course maybe They don't know about the volatility of Bitcoin before getting into it and they they don't know about cycles and the trends so as long as we know that and what returns that we get for a commencement commencer amount of risk we can just create any portfolio that we want does high risk actually get you those High rewards the way that we can do that is sharp ratio and satino ratio this gives an outline of the risk adjusted return

of an asset or an index Or whatever you're buying performance of X in relation to the market portfolio sharp ratio measures risk adjusted return you also have the satino which is a variation of sharp that gives uh negative deviation as well right as positive volatility is desirable so what you looking at is are you making returns based on the draw Downs as well right so what is the risk adjusted Return of the thing so we can see that this is a a measure that you can you know very Easily look at this is uh satino

ratio for large asset classes so as of making this video you can see for each of these Cycles the 2013 to 22 2017 to 22 and then 2020 to 2023 um you're seeing Bitcoin essentially for a satino ratio standpoint the the best risk adjusted asset so despite the massive volatility within Bitcoin it is paying you much more for that amount of volatility than other assets now of course gold and S&P NASDAQ great you know big indexes the S&P and the NASDAQ are the the kind of basis for a portfolio and they give you less volatility

than BTC but they pay you even less in returns so Bitcoin has more volatility let's say X+ one but it gives X Plus 1.55 in returns so it's paying you more for volatility than everything else this may change it changes all the time because the price changes so during bull markets this is lower during bare During bare markets it's lower during bull markets it might get higher this is a fact I don't know if this is going to continue right it may not Bitcoin tomorrow may you know blow up as a network no one knows

what's going to happen in the future but this is a historical fact Bitcoin is the best producing asset from a risk adjusted return standpoint this is sharp ratio which is a similar thing you can see the Cycles Here right so as Bitcoin moves up into bull markets the sharp ratio gets really high in amazing and the sharp ratio draws down during bare markets but overall what you really want to be looking at is this right so you can see um that the satino ratio of Bitcoin over time is of course very very desirable this is

a sharp ratio as well so we're looking at Bitcoin versus eth gold US Stocks real estate bonds emerging currencies you know the asset classes You want to choose one of those to invest in if you're investing for your retirement these are the asset classes as you can see Bitcoin is also for most of the time the best risk adjusted asset in the world has been for a very long time that's why it's potentially desirable for a lot of people it may not be in the future I have no idea but this is just pure factual

data given that these ratios are telling us that any amount of Invested money in Bitcoin will outperform other assets what we can also look at is how a portfolio of buying this asset over the long term should could give us higher returns so on look into Bitcoin we've got a dollar cost average strategy which is buying an amount $50 each week and you start 5 years ago given that Bitcoin is supposed to have a higher sharpen satino ratio than others it should actually outperform them so you can see that here That the percentage change just

by my head here uh 200 plus% you've got gold here Apple stock and the Dow Jones and so you can see that it has despite volatility and big draw Downs outperformed those assets so it's not about volatility it's not about risk it's about risk adjusted reward can you stomach volatility is that thing paying you extra if that thing just simply has more growth than other assets it's going to outperform Them but of course it can be very volatile if we have the time and the stomach for that we can get the outperformance we don't even

have to call the price all we have to do is wait we have to identify what the asset classes are what the yields are that we get from them over time and then allocate to them and if you want to outperform you can just choose those assets as long as you have the time in The stomach to actually get into them have the draw downs and everything like that here are the top asset classes that people invest in and so if you're looking to build up a portfolio save money for the future which is really

what we're doing here you crypto is great we we love crypto but if it's not giving us the returns then it's not investable right at the end of the day supporting a crypto like a football team or anything like that is A obviously it's an embarrassment right what you're looking to do is take advantage of assets that provide value for you save your money over time make returns doesn't matter what it is as long as they do that we can put them in a portfolio and anyone can choose the amount of risk that they take

these are the top assets that are investable asset classes um I think Bitcoin is many people don't um but Bitcoin at the top you can see the annualized return Outperforms everything else you get these massive massive draw Downs of 70 60% yet the annualized return is almost 10 times all of the other asset classes it's much newer and therefore you get the volatility of course we can put any portfolio together we want right so how much risk do you want to take you can put together a portfolio of well NASDAQ technology is doing really well

us growth is doing really well us large Caps right so it seems to me like us large caps will be the S&P 500 so US tech and businesses tend to outperform they do really well you're getting around 10 to 15% a year returns for that that's going to protect you from currency to basement which which is why those indexes are great now Bitcoin with so much outperformance and volatility maybe people would want to add a certain percentage to their Portfolio so a lot of people hate Bitcoin hate crypto Jamie Diamond says it's garbage it's worthless

and everything what type of circus clown says that the best performing asset over 15 years 10x anything else else shouldn't be in a portfolio right if you're if you're an asset manager either a professional one or doing it yourself your job is to put together to put together a portfolio that gives you a good amount of Return this one is without a doubt the best performing asset if you are not including that in your portfolio you are a clown uh that is a fact that's not an opinion this is factual stuff this isn't a one-year

thing it's not a joke right when at one at what point after 15 years do you have to just admit that this thing doesn't seem to be disappearing now you may say not too sure pretty risky I don't understand it yet that's fine so you can make a Portfolio of 1% allocation to the best performing asset in the world maybe two or three maybe half a percent you can take that but to ignore asset classes that are growing is obviously idiotic however these assets just are used to give you something that you want so you

can see REITs this is um uh property about 7 8% good return right you can see bonds down here below my head they're pretty much like 2 3 4% garbage right but if you're 70 years old and you know that you need you know 15 20 years or whatever it is then maybe that's all you need because you've got your savings you can actually switch from the volatility into the less volatile stuff that's what you need it's not about calling the market or being right or anything it's just about allocating the amount of risk that

you want to asset classes that grow a certain amount each year so over this Very very long time these are the averaged annualized amounts so what you can do is just you know pause the video or screenshot this just to see these These are what's going to happen and so you can take as much or as little risk as you want in these things now remember that the inflation rate or the currency at the basement rate is around 7% seeing that inflation currency at the basement we know that the cost of Capital is around 7%

a year so anything that's under that you're actually losing money to the rise in um prices of goods and services anything around that you're saving your money anything more than that you're actually growing at or above the cost of capital everyone can make their own decisions but you know asset classes need to give you a return and as they're volatile it's fine but obviously they need to give you that return as well if you are investing over longer Time periods you don't need to call the Market you don't need to call prices you don't need

to be correct in any way you just need to make a decision about what assets that you want to get exposure to and let the and let the price gains play out assets will outperform dollars you will make returns you don't need need to do anything other than choose where you want to allocate get your percentages and then just wait the big thing as well is that it's not about trading with Small amounts it's about making the biggest portfolio that you can and having something reliable if you save up for 30 years and you get

a portfolio of a million dollars a 10% move per year that's 100 Grand in your bank account each year on that million dollar portfolio for doing nothing you haven't even woken up and you're getting those returns and that can pay for the rest of your life right if you're trying to trade short term With a with smaller amounts you're trying to be tactical you're just kind of one day away from losing and losing right and it's it's not reliable so time in the market is really the thing and being able to invest confidently in the

assets we all we've all seen those assets that go up altcoins right you get 10x in the altcoin and we want to we want it quick we want it quick this you know this cycle I get that like I totally Understand that and we can have our bag for that our risk bag right in the percentage but the bulk has to be large reliable assets that you can put big money in because if you can have a bigger portfolio smaller percentage gains that are more reliable That's The Sweet Spot how many people approach the market

is a dollar cost averaging strategy doll cost averaging simply means buying with the same amount at set intervals the reason why most of us do This is because we earn wages some of the wages goes into our retirement account some of the wages goes into whatever you want so that's that's how it's done so every month you get paid some of it goes into your savings or whatever after an amount of time like if you plan on being alive for the next 20 years why why not have a plan for that and suddenly 20 years

goes by youve got a big portfolio and you're in you're in a really good position but if you're Constantly speculating trying to trade trade trade it's more difficult so dollar cost averaging put money in over time and then you just get an average price of whatever this is remember you're exposing yourself to assets with growth and that's what's going to get the performance for you not timing too much um DCA or dollar cost average buying every week the same amount it's not a better strategy than the other thing which is lump suum lump suum you

Got 50k put it all in neither is good or bad because you don't know where the price is going to be so you could dollar cost average and actually get a worse price especially on assets that are growing like Bitcoin if you're buying and dollar cost averaging as the price moves up you're getting worse prices all the time you you if you could put all of that money earlier that would have been better most people that don't have this choice we earn wages we put a bit away Dollar cost average and so buying amounts each

week it's access to the assets with growth that give us the performance I cannot give investment advice and each person is going to have to think about what percentage can they do with their income this is just a guide so you have income and you have your expenditure or you have assets and you have your liabilities right so we have an income each month and let's see where our liabilities where where is our Spending then what can we put towards assets right so money doesn't exist you only have assets and liabilities you've exchanged your labor

for this money that's just numbers now now we have to allocate those numbers in the way that benefits us so you get your income whatever that may be you pay rent so that's just out you pay a mortgage 5% that you're paying on your maybe your mortgage is you know 5% 30 year or or something like That uh a mortgage is basically forced Savings in property you're investing in real estate right a mortgage is I want to buy this house I can't afford the whole thing so I'll pay for it over 30 years it's like

a savings plan for property and so if you're living somewhere and you think you're going to live somewhere for a period in time um certainly you know a mortgage or investing and saving in that properties may be a good idea we know that or real Estates real estate investment trusts these are uh basically broad investments in property they go up around 7% so they go up in line with currency the basement so as long as you are um paying for the property with an interest rate that is lower than the rate of currency de basement

you're all good if you're paying more in interest than the currency to basement it's not you know not a great uh leverage play there but if you live somewhere maybe mortgage is Is good to save in time your dollar cost averaging into real estate that's what you're doing you have car payments right so that that has to be paid 4% you're paying for the car payments student loans you're paying an amount there used to be free in the UK but not anymore that's where I got this from the amount that students are being paid now

credit card you got some money on there you're paying 20% right so not great then you have insurance that you're paying each Month and then your other monthly cost food and entertainment or whatever after all of that you have excess Capital that you can put into Investments of that Capital you have a pie chart or whatever a percentage in each right whatever you want to do everyone's different you need some cash on hand for a rainy day fund if you get injured or lose your job or whatever you need you need some money there right

as a backup that you need that safety right Then you need maybe 6 to 12 months of spending cash for rainy day now again that could be two months 3 months8 months up to the individual if you have an amount of cash that is your rainy day fund and you know it's there for drawing in payments or whatever uh you would probably put that in a money market fund so a money market fund is a short-term investment that uh the money market fund these are run by the big firms like Vanguard or van whatever they

invest in government debt short-dated government debt right and so you're going to get paid back it's you know a small yield right maybe 2 3% or something like that the money market fund you can trade them easily so buy them sell them you might have a savings account that basically does it for you whatever it is uh money market fund for that cash that you need cuz if you don't need it immediately if it's not like your day-to-day cash on Hand then you should be earning some yield on it because otherwise it's just getting debased

uh and the money market funds are very um liquid fungible investments just buy and sell but you're getting the yield there are other ways to do that for example with crypto you can use stable coins and then you can use Defi and you can lend out on Defi and get yield like that so some people do that for their you know their money market fund um if they if they choose Whichever one is easiest for you maybe cash in the banks better then you have your home equity which is your assets and that is being

uh you know gained each month so if you're paying this off each month you're paying some of the house back you're getting equity in your house that becomes an asset now that you can draw on so if you've paid 2 three years you have equity in your house now and that's actually something that you can use you can leverage it right you Can change that around so that's actually an asset that comes into you every month then from here this is your risk asset portfolio right so again everyone can choose the amount they want but

we've seen all of the performance of you know what's happening here so again these are risk assets that you can choose um but you can make any percentage portfolio that you want right so have a pi and say S&P 500 that's you know we know that's strong and reliable Is an index nasda outperforms a little bit but it's a bit more volatile cuz it's technology Bitcoin is super volatile but it's a great risk adjusted investment and then I've got my altcoins here and some other bets that I just want to use and I think they're

great networks then you've got midcaps here right like a midcap companies you buy an index for that as well whatever it is it's like 50 right 25 for this split this up whatever whatever you want to do And as long as you're comfortable with the risk and the volatility of those so you know you know what they draw down you know the return that you should be getting each year that's up to the individual to choose but it's as simple as that all of the emotion Market timing Market expectations taken out of it simple straightforward

way of trying to save the value of your output over time to end this section as well I want to quickly touch on kagar or compound Annual growth rate this is the annual growth rate of the asset that you're investing in so we saw this which is annualized figures so that can be you know what is expected to grow now what this is going to do is you know index these early amounts where Bitcoin was growing thousands of percent in a year or so and that's just not going to happen right so what we usually

do is a four-year kagar or you can do anything you want but fouryear kagar so that Means over the last four years with volatility in between what was the growth rate around about well bitcoin's kagar as of right now so this is black Bitcoin price orange compound annual growth rate uh is 60% 55% so that's the compound annual growth you'll see as the price goes up the compound annual growth goes up as the price goes down the car goes down you can see that also over time as Bitcoin matures its annual growth as an average

Of four years tends to decrease it's around 55% now but let's take Bitcoin if it was a 20% annual growth rate so you know that if you could hold the thing for like 5 years or you know an amount of time it's going to give you maybe 20% a year then you can start making decisions about the other liabilities that you have for example if you've got a 6% student loan should you use your money to pay off the loan um at 6 25% or should you keep the Loan pay the interest whatever and put

the money in Bitcoin Bitcoin is growing at 20% kagar and so you could do the calculation there that actually it's better to keep the loan because the money that you've got to pay it off in an asset that's growing faster than the rate of the loan is actually going to pay off the loan at a faster rate than you paying off the the student loan because the interest is six versus 20% kagar for BTC if you've got these These are also low but if you've got a credit card maybe that you should pay that off

first right so it's about risk here Bitcoin could have a 20% kagar it could also go to zero tomorrow the the network could blow up if you pay off your credit card you're you're paying off that loan and you're saving 20% on the balance of that loan each each year and you have 100% certainty that that will happen so if you've got high interest Liabilities maybe make a decision do you want to pay them off you have a 100% percent chance of getting a better outcome by paying that off this may seem good but there's

volatility there's no volatility so that's why I always come back to it's about you and your circumstances and what makes you feel okay because having debt is a burden and you know maybe Bitcoin can outperform that but maybe that's not where you want to be as an individual because it Stresses you out and stuff so it's about the individual who you are what you want to decide and what's best for you now we'll look at using crypto wallets and some of the security implications of buying crypto because if you buy crypto you'll either do so

on an exchange and so you're giving the exchange custody of your assets or you withdraw them into into self- custody now there are Bitcoin ETFs as of making this video which means that you can just buy the ETF which is An exchange traded fund where basically well the way it works right now is that coinbase is the custodian so coinbase custodies all of the assets for the ETF providers the ETF providers have the assets the exchange traded fund is something that you buy in your stock brokerage account you just have the ETF you get price

exposure to bitcoin but you don't own Bitcoin you can't use it you can't do anything with it you just get price exposure that's Obviously custodi for you but you have trustworthy institutions doing this so if you want to take self- custody of your assets and actually use them how do we do that because you can get price exposure through an ETF but you can't use it right you can't send it to someone so it's different so wallets are of course the thing that we use with blockchains to take self- custody wallet uh let us access

crypto accounts crypto is cloud-based money and so the money is Always on the blockchain it never goes into your wallet it is not a data packet or a thing that goes into your wallet or your application or anything it's all on the blockchain you just have access to an account so that's what the wallet is it's basically an account that sees the assets that you have in that account on the in the cloud which is the blockchain you never own or hold any crypto ever no crypto is in your wallet no code representing crypto is

on your device Wallets what they do is they hold keys to spend the crypto associated with the account so you open an account and you get keys like a password anyone who has that password can spend the crypto in that account if you know the keys to a wallet the wallet is yours anyone who knows the keys has access to that wallet and can spend them crypto is therefore a bearer asset if you have keys to a wallet you own it if you have someone else's keys To their wallet you own their money because it's

a bearer asset you have their keys you can open a Wallet account open a wallet app put in the keys have access to their crypto it's like an email account right so you have a wallet address that is the email address and you have the keys which is the password to spend the money our wallet is not an app that you use the apps that we use like trust wallet or the other wallets out there These are interfaces these just let us access the wallet which we created on the chain and they give us an

interface that we can use this is how you set up a wallet you go to a wallet provider now I've got videos on best wallets and things like that which I'll link below as well some links to the wallets that I use as well I'll link down below but you go to a wallet provider and you open a wallet that wallet provider will help you open a Wallet on that blockchain you then get an account that's step two in step two the wallet application that you're using helps you open an account you get a public

key which is your email address you can't choose this it's just given to you so that's your email address where people can send you crypto you also So within that application get the private key that's like the password to your email account the application that you Use keeps that private key in the app and of course that's the thing you need to spend crypto out of the app so the third thing that you get that you actually see is a seed phrase seed phrase is linked to the private key the seed phrase is a human

readable list of words around 12 to 24 words the private key is like gobbledygook right it's like this and so you you don't want to write that down so the way that we write it down and have a a kind of offline um way To recover the wallet is the seed phrase this is what the seed phrase looks looks like it's literally 12 human readable words you write them down in order and that is your wallet so what happens is when you get the application um what happens if you lose your phone well you don't

lose your money because your money is in the cloud it's on the blockchain well how do you recover that wallet you recover it with the seed phrase so you write the 12 Words down on a piece of paper then you download the application again on a different device and it says do you want to recover your wallet you say yes it says what are your 12 words you write these 12 words in and it says you own this wallet because you have those words and it brings up all of your all all of the balances

you had in your wallet so this is like a master key the issue with this is that we're in the digital age we're using Cryptocurrencies and money in the cloud and we're writing down 12 words on a bit of paper which is obviously ridiculous there are other ways to do this you can buy steel seed phrase cards which are a card or like a tube where you can have steel and you kind of put the words in steel and you close it up and stuff still ridiculous this should be digital so there's actually two things

that we need to worry about with Wallets where is the private key stored and how is the seed phrase stored there're the two things we need to worry about when we're choosing a wallet so these are the different types of wallets that we can use software wallets Hardware wallets and NPC wallets there are others as well there are paper wallets where you write down the SE write down the private key on a piece of paper so they've really been phased out because they're obviously awful in terms Of the use case but these are the what

most people use now so all of these wallets what they're trying to do is where do you store the private key and what is the seed phrase backup they're two things that are different amongst all wallets software wallets otherwise known as hot wallets these are an application that you download these are completely free trust wallet is great on your smartphone metamask many others I'll leave links Below to the tutorial videos on exactly how to set them up and use them and what they're like free to use phone browser you get a wallet and then you

can receive crypto the downside is that the private key is kept on the device so it's on your phone or it's on your browser could get hacked you could get a key logger it's not very safe cuz it's online so if a virus comes in it can take your private key and remember if something has your private key it owns You money that's where Hardware wallets come in Hardware wallets are special physical devices like a USB stick or a smartphone thing whatever and what they do is they create your private key on that device only

and it's not on your computer or on your phone it keeps the private key on that device these cost money and they're annoying to use because it's a hardware thing so if you want to spend coins from your wallet you need the hardware device with you you Need to then plug it into your computer to spend coins if you want to send them somewhere it's a little bit worse but it's a lot safer because the private key is offline all of the time unless you want to spend the coins you also have to physically accept

spending coins on the device and the device can be set up behind a PIN number or a fingerprint scanner so the private key is much safer because it's offline um so that's great the downside here with Hardware Wallets is that the seed phrase is also something that you have to write down offline so this one here the seed phrase you have to write down on a piece of paper but the private key is online this one the private key is offline but you have to write the seed phrase on a piece of paper so you're

in the digital age you've got a hardware wallet and a piece of paper and if you lose that piece of paper all your money is gone because if you lose that Hardware device and or you can't access it or it breaks and you don't have your seed phrase back up no one can recover the wallet for you not great the next option is MPC which is known as multi-party computation this attempts to split up the uh private key in the the seed phrase amongst different parties and encrypt it It's All Digital so what happens here

is that these are applications that you download so for Right now as of making this video binance and okx have web 3 wallets with NPC but there are other separate providers as well um and so what you do is you set up an account with the MPC provider you give them some sort of login like an email address so you they need an account to associate with you the private key gets split up into three shares the wallet provider has one you hold one in your iCloud account and the other is two of these usually

one and Two and this is on your phone so your phone can spend uh the the crypto out of the wallet because it has one and two so you log in with the with the wallet it knows who you are cuz you have that login with your email address through one and on two you have the private the the the second bit of the private key of course you need 2/3 of the key to control the wallet the wallet provider doesn't ever have 2/3 they only have 1/3 and so they have no control over the

Wallet the private key is also encrypted and sharded meaning that they don't even know what it is they just know that it's associated with your account they also know through cryptography that this second share is linked to it and so when you put one and two together it lets you spend the coins from the wallet the third is in your iCloud or your Google cloud and also encrypted and hashed this is for recovery so that if you lose your device you can go back and uh get your Cloud account open on a different device download

this one and three together makes uh 2/3 which can get the wallet back on your device in a fresh number to you never expose your crypto to one because everything is hashed and so it just knows that three and one are linked in some way but you're not exposing the key also important is that your private key actually never gets exposed it is encrypted and hashed and so even when you're spending coins you're not Exposing your private key which means you're not technically keeping your private key on your device this is a digital way to

try and get around the private key in the seed phrase problem so with MPC all you need is to remember is your iCloud account login because you you need to be logged into that um and then you set up a password with this or a PIN number so that's all you need to remember you don't need to remember 12 words you Don't need to write it down if you don't want you just need to remember that password that you set up this is trying to make seed phrases and private Keys a little bit safer um

it's coming into more and more use in the crypto industry but these may be useful for you as well because these are self Sovereign without any accounts and certainly for this one for the hardware wallet there's no digital signature if you don't want there to be here's an infographic of the Pros and cons of these Hardware wallets so I'll just get out the way so that you can see this MPC really is more or less great for every option software wallets you can really just use NPC at this point if you want Hardware still have

an advantage of um no digital signature or no digital account they do cost a little bit of money here is hot cold versus NPC again you can read this I don't want to go through this but you can just see this uh and screenshot this in terms of Pros and cons and then what I want to talk about is do you need to use a wallet is it best for you or should you just let someone else deal with it self- custody is self sovereignty you have ownership of the asset that's the entire point of

crypto the reason why Bitcoin was invented is when all the banks went went bankrupt and everyone was bailed into the banks meaning you can't take your money out sorry your money isn't yours with crypto it is yours if you Take self- custody with it they can't do that but if it's custody somewhere you're at risk you have to balance that risk if it's big or not now banks are different to um asset custodians Banks do not keep your money they leverage out your money they lend it out they do not have your money there that

that balance in your bank account not there banks are levered 9 to1 your money is not there if everyone wanted to draw their money out of the bank at once the thing is Literally bankrupt it's insolvent asset providers are different asset providers like coinbase and binance and ETF providers these are not Banks they hold assets one for one for clients so it's very different than a bank asset providers are not Banks they should should be holding one for one FDX didn't but the other crypto exchanges have proof of reserves that show one for one backing

asset providers are not Banks they're different so different risks but there are still risks with self custody everything is on you you are responsible for keeping that seed phrase and private key safe and you have to have that in your mind and you have to keep up with it to make sure that you're not going to get hacked or lose anything if you have self- custody do your family know about that in in an inheritance scenario can they access that crypto or is your seed phrase Buried in the garden and they don't know it's there

and you've got $10 million on there and that's their inheritance and you're gone and they're broke and they can't get your money so that is something to be aware of as well that you have to you know think about also self- custody can be expensive because if you're buying Bitcoin uh fees on the Bitcoin Network are going higher as the network grows You may have to pay5 7 $10 for a transaction during heavy times if you're saving smaller amounts $500 or something that's a lot right to send out and back in plus uh Bitcoin has

eut or utxo problem which is if you have many small utxos each time that you spend the coins you have to spend each of those utxos which can add up if you're putting small amounts in it essentially it can become costly when you want to send out the assets eth is expensive to use so if you Got 500 bucks and we're drawing it to eth and you're paying $15 for a trade for a fee for a blockchain that's that that that's impossible right that's going to eat away so much at your Investments that you shouldn't

shouldn't be using it at that point so it can be really expensive especially with smaller amounts because these are just flat fees that you pay to the blockchain that's where custody comes in now if you're using coinbase or Black Rock these are professionals they're not going to lose your crypto and if they did they're probably going to have to pay you insurance or just make it up themselves so they're professionals using the the highest quality you know cust custodial Solutions right custody is mostly free like coinbase if you put money on coinbase free you don't

pay anything binance free for the ETFs they might may charge you 30 basis points a year um as a as a fee to have you know The custody there not the end of the world right if you're paying for for custody and you haven't got that worry um they can be custodi specifically for the ETFs for Bitcoin and I'm sure others are coming they can be put inside a tax wrapper which you might not be able to do with the currency directly especially if you're holding self custody um all you need is a log login

and password for your coinbase account or something or your ETF brokerage account it's right There inheritance isn't a problem because you can just say hey I've got a Vanguard account they can recover it no problem or you know Fidelity f f Fidelity of the good guys um really into crypto so you know if you have an account with them they're they're supportive of crypto and the problem with custody which we found out with FTX and others is that if you have crypto on an exchange you are actually an unsecured creditor of that exchange Which means

that you are last in line to get your money out and if exchange has gone bust you're not going to get much back that's custody so that's an issue now proper professional asset managers bny melon right people like that black rock they're not going to be doing any of that stuff they're going to be holding your assets in trust separated from their business and you should be able to get one for one back but it's an issue especially if using Crypto exchanges where you know they're small or whatever the thing is with custody is there's

a lot of advant an ages it's easy it's cheap but there are downsides as well so self- custody or custody there's no right answer it's going to depend on you and where you see the balance of risk one of the main Innovations though of cryptocurrency is peer-to-peer value transfer so we're not just buying these internet coins and Hoping they go up in value you can get things done on these uh blockchain networks right we can lend we can borrow we can trade buy and sell we don't have to use a centralized intermediary what's the difference

between CI and Def not much defi are protocols so it's a protocol and it's on the blockchain and there is code there that dictates the rules we use it at our own risk right with centralized they're doing all of that in the background but they're just Giving you a nice wrapper on top you have to trust them that they're not going to steal your money or go ins solvent you don't have to do that with defi but there still are major RIS risks defi protocols can have a bad debt things can go wrong um H

hacks scams if you send money to the wrong wallet your fault if you click on a fishing link your fault no one's going to help you there's many downsides of you know using blockchains directly but we can get Things done on them as well and these protocols you know have opportunities the only real difference between them is that on defi there's no kyc no your customer information with CI you need to give you driving license and everything like that with crypto we can just use things and we're just sending code around this is how a

blockchain works you have a wallet with your money in it you send the coin to another Wallet a small amount goes out in the blockchain fee you have to pay a fee to the people when you use a protocol like a Dap decentralized app lending borrowing trading you send your money you interact with the smart contract which costs a fee you pay a blockchain fee for that you pay a fee to the exchange or something like that as well so you may pay 3% as a trading fee or anything else or if you're lending money

out they may Take 10% of your profits something like that you also pay a blockchain fee for every transaction and then eventually it actually goes back into your same wallet right but you've paid those fees out so daps applications are businesses just like centralized exchanges right the only difference is they're on the blockchain and their code and there's no one there making centralized kind of decisions about what's happening right you can do it any time of day but these Are not decentralized right there is a group of people writing the code and you know making

the application upgrading the application and things like that so it's not really decentralized but it is permissionless as in you can permissionless access it and any time of day you don't need kyc that's pretty much the difference so what we're going to do is use some applications to show you so for right here I have some a blockchain that I Want to use I know that I want to use BNB chain it's low cost just for this example so what do I need if I'm going to use a blockchain first thing I need is G

has to pay for fees BNB chain uses BNB coin as fees so I'm going to go to binance and buy BNB now what I need to do is send that out to a wallet many wallets you can use you just need to make sure that the wallet accepts the coin and the blockchain that You want to use so I'm going to show you metamask as an example metamask is the wallet that um a lot of people use for ethereum defi so so all all of the evm chains ethereum BNB chain Avalanche polygon optimism arbitrum in

fact you can see all of these here these are the list of all the chains these are evm chains so they all use kind of the same code and um you can add them all in your wallet these are different chains so you have to make sure that you're using the Chain that you want I'm not going to go through setting up metamask here I've got wallets uh videos Below on recommended wallets uh how to set them up how to use them so you can you know get into the details there but we've got a

wallet set up and from here this is a browser wallet I know that it supports the chain that I want to use so what I'm going to do is go onto the chain this is the chain that I want to use this is my address right here so this is my wallet Address that we need to give binance because we're sending BNB out from them so I'm going to copy this go back to binance I've bought some BNB I'm going to paste my address in here this is my wallet address that we we know that

we want to receive the coins too the network that I'm going to use I know that I'm using BNB smart chain as a network because I'm receiving on that Network we need to send from that Network so the centralized exchange Supports all the networks and as long as the exchange is supported they'll have some value there that they can send out to your wallet address so as you can see here um this wallet address is actually supported on two different networks these are both BNB Networks which one do I want to choose I know that

I want to receive it on the B&B smart chain so I send it from the B&B smart chain for my exchange yes I'm sure that I can accept that now the exchange knows the coin That I want to withdraw the network that I want to receive it on and the address of my wallet that is the same for every Network then I can choose an amount that I want to send out so I'm going to withdraw whatever amount of BMB I press withdraw just check the details so that you have the wallet address and the

network that you're using you can't you can't receive on different networks so if you're sending from ethereum and you expect it on BNB it's not going to show Up what you can do is go back to your wallet and if you've used this address this is an evm address which means it's the same address across all evm networks which are these ones here if you sent from your binance and you withdraw an ethereum it's going to be in your ethereum account on the ethereum blockchain it's not going to be on the B&B smart chain so

what you're going to have to do is well firstly you've sent the wrong coin and secondly you don't Have eth in your wallet because you need eth for gas on the ethereum network so it's really important that you get the coin and the network that you want I know B&B smart chain so what I'm going to do is just withdraw this and it will take 5 minutes it will just send that out to my wallet actually it will take more like 25 seconds B&B smart chain is quite a fast chain so you've now got a

balance in your wallet of the gas coin you always need the gas coin and you Need an amount in there to do anything to pay for gas you can of course withdraw different assets from your binance account if you're looking to withdraw an asset built on top of the chain like a stable coin you can withdraw that to the same address but in order to use that you need gas so you need the you need the layer one coin at all times in your wallet so we've got this amount here so what can you do

with money you can trade it so we'll do that This is a decentralized exchange um pancake swap is decent it's been around for a while a lot of people use it I'll link a video guide as well below if you want to use the thing with Defy is that anyone can create anything so make sure you're going to the right URL for all of the defy apps that you use I would star them or favorite them to make sure that you're going to the correct URL because there can be fake ones connect your wallet to

it all your money's gone make Sure you're going to the right place I would double check as well on Twitter on the Twitter account the official Twitter account of each protocol the URL that you're going to from here we need to connect our wallet so I've got a wallet in my browser I'm going to press connect wallet I know I'm using metamask so I'm going to click this by the way rabby is a great wallet as well um yeah highly recommend it's great but we'll choose metamask for this example my metamask is Now connected you

can see that so my metamask is connected to this wallet we want to make sure that we're on the right chain you can see many chains are supported here so I'm using BNB chain if we go to ethereum it's going to switch to this network in my wallet so switch come out now you're on the ethereum network these are different different networks have different pools of liquidity different amounts different coins are traded these Are like Banks right so One bank is separate to another so one blockchain is separate the fees are going to be different

more or less and what on offer is going to be different so for me we'll just switch back to BNB and so I've got my wallet connected and I'm on the B&B chain which is one I what what I want to use we're going to trade an asset here so this is a decentralized exchange so we'll go to Trade and swap from here I know I have some BNB so we're going to use BNB and we're going to swap it into tether click on this one down here switch to usdt that's the asset that I

want so we're swapping BNB into usdt what you can also do here is search a token via its token address so right here is a list of tokens that pancake swap has and these are tokens that it thinks are legitimate you can see that usdt is listed on coin gecko Here right I've got usdt that it's you I've already selected this one so it knows that I've got it but what happens if you're searching for some random meme coin or something what you can do is go over to coin gecko see tether here we'll click

this up in the right it's going to give you the contract address of this token so click these and you should see all of the different addresses now each blockchain is different and so it has a Different contract address on each chain we're going to search for B&B chain wherever that may be right just wherever it is and then you can go and copy that you've now copied the contract address of this token you can go back to the exchange you can press paste and it searches for the contract address so you know that you're

getting the real thing coin gecko is reliable so you can search for it this isn't found because I've I've uh copied the ethereum address and That's different to the address on the B&B smart chain that's just a way to get some more um valid token results if you can't find them through the search page from here I've got BMB so I'm going to swap 25% and I'm going to swap it into US dollar tether so that's here it tells me what the exchange is I'm going to press swap so if you want to know exactly

how to use um pancake swap with the settings and everything I'll leave that for that video but we're going to Swap confirm now if you haven't ever used a blockchain before what these applications do is they have to ask for your permission to manipulate your account what it's going to do is say if you've never used usdt as a token before it's going to say that you have to um approve the application to manipulate this token in your account and you're going to have to accept uh and sign a transaction that approves this token so

You have to go through that with that transaction for me I think I have it um approved already so so I'm just going to update the price and press confirm swap it's going to take me through to my wallet it says these are the details of the Swap and it's going to cost me 18 cents in gas I'm going to press confirm and transaction submitted you can add the token to your wallet on metamask or the others if you want to press that you can see that the transaction has gone Through and I've got a

transaction receipt here I can click this and it goes through to the blockchain Explorer which will give me every minute detail of the trade the time the time stamp how much was done and everything and the token addresses but that's it that's traded so we've used a decentralized exchange to swap one asset for another now that I've got some tether in my account I can go and lend that out in defy as well so on BMB smart chain Venus Is uh the lending protocol um not saying that BMB is good or bad or anything it's

been around for a long time it's fairly cheap and so I just chose it for this example but there are many other Chang that are great and that work really well as well um you can find them all um so this is a lending protocol so I'm going to connect my wallet metamask should be connected and then from here it's going to identify the Assets in my wallet and so it should Tell me that I have some tether because we've just swapped into some tether so what we can do you go to the dashboard um

you should be able to see what you've got so you can see the wallet here it shows me that I've got this amount of tether in my wallet right 39 6 that we've just swapped and so you've got a for a lending protocol you've got different ways to use it around the protocol um so I've got this tether in my account so what I'm going to do is go To the core pools and then what we're going to do is go to the uh asset that we have which is usdt so I'm going to click

this and you can see that this is a lending protocol so if you supply you're going to be getting at the moment 7.44% yield if you borrow you have to pay 10% % uh to borrow and the spread in between is probably what Venus makes themselves right uh plus probably some um extra for you potential Liquidations and things like that that may happen this is a floating rate of interest as you can see so it's not fixed income it's floating rate which means that the asset can the yield can be anything dependent on supply and

demand but at the moment it's 7.44% so what we'd want to do here is go and Supply so says Supply we're we've got usdt so we'll click Max so we're putting this in and you can see we're supplying at 7.44% apy you're also getting an Incentive from this protocol with their token called xvs they're paying you a tiny amount as an incentive and an extra a lot of protocols do this to get you to use them but obviously this is irrelevant because it's tiny total apy is 7.48 and we can approve usdt so I've not

approved for this app this app does not have permission to use usdt from my wallet so now I'm going to have to give them permission so we'll approve first Approve usdt going to go through we're going to have to sign this transaction and it says what is the spending cap custom spending cap is uh just choose Max what this means is I'm approving this protocol to manipulate $396 per transaction that's the amount that I need what I'm going to do is just change this to $100 um and it says be careful do not Give them

access to all of your money but $100 is fine right so I'm going to press NE next I'm going to have to pay 4 cents for this transaction 4 cents in dollars in cost but that's an amount of BNB but it just gives us the dollar amount that's gone through so now I can supply this token and actually use this smart contract so I go through this is going to cost me 24 cents press and and transaction completed so what I'm doing now well actually we're Waiting for it up here but what I'm doing is

supplying dollars on a lending market and I'm receiving 7.46% yield on the dollars that I'm lending out most protocols like this where you have a balance and something that's happening in the protocol give you a dashboard for exchanges they don't do that because you come in exchange out and it's done but obviously for a lending protocol we have assets that are tied up here right and so you can see The summary of my account my net apy is 72% uh my daily earnings are going to be tiny cuz I'm only supplying $4 down here you

can see the summary of my account and all of my supplied assets so I'm supplying this asset right here so I can click on this I can withdraw it press Max this is the amount that I can withdraw withdraw pay another transaction so come through you have to pay this press confirm that will withdraw that from The Lending pool and that will bring the tether back into your wallet so it's not tied up anymore I hope this course was helpful if you want the professional version that is linked at the top of the description and

I update it for free for existing users with my latest research and everything going on in crypto all of the other resources will be linked down there as well I'm James BG cheers for watching and I'll see you in the next one