Former stockbroker Jordan Belfort, who did time in prison for big securities fraud, known to the general public for his famous movie “The Wolf of Wall Street” explained how to behave during the current crash of the crypto market due to FTX bankruptcy.
A brief summary
According to “Wolf of Wall Street” Bitcoin is a long-term type of savings and can generate income in about three years because it has a solid base and will continue to grow after the recovery.
Right now, the cryptocurrency market is struggling with widespread fear due to temporary volatility and massive FUD. But investors in BTC and ETH should not sell in panic, the current correction is just a form of getting rid of weak players, which were destined to fall from the crisis around FTX. “This is the moment in time when the most money is being made in the market,” Belfort noted, urging everyone to be patient and calm.
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— J Woolsey (@woolseyfinance) November 12, 2022
Here are three of his brilliant tips that minimize the dangers of your investment. These three golden rules allow you to not only make money but also to sleep well.
Tip #1: Have a time horizon for Bitcoin of 3–5 years. The crypto market is not so scary and dangerous if you invest for the long term. You can easily check this claim by looking up the stats of the whole crypto history — any long-term investor is on the plus side despite all the collapses that happened.
“If you take a three, four or five-year horizon, I would be shocked that you didn’t make money because the underlying fundamentals, I believe, are really strong, and I just think it’s a matter of time that you know where enough of it gets into the right hands; there’s a limited supply,” he said.
Tip #2: A stable double BTC/ETH reduces risk to a minimum. Investors should concentrate on assets that have liquidity and that can definitely survive these couple of years of investing. You can choose from the top 10 or even from the top 5, but for the most cautious, our expert recommends limiting yourself to the eternal Top 2.
“Bitcoin is the type of thing that will survive this cleansing; it’s not going anywhere anytime soon. Case in point Ethereum is very similar. It was the first crypto that actually had sort of wide use cases in terms of decentralized finance (DeFi) for people to build other technologies on.”
Tip #3: Don’t play into the panic. The third tip teaches you to watch your emotions carefully, not to let them lead the way of the insane crowd. The second part of this advice is that this is when most people lose their heads and make serious mistakes, and this is your great chance to make money. Don’t miss it!
“Right now, you’re ready to panic and sell your Bitcoin and your Ethereum. I’ll never tell you what to do, but you need to take a deep breath and get sober about this, and not play into the panic.<…> The entire world of crypto is paralyzed by fear, so does that mean you should be out there buying in droves right now? Well, I’m not saying that, but I’m saying that if you go back in history, these are the moments in time where the most money is typically made in the market now,” said Belfort.
Good future for crypto
Jordan Belfort also claims that volatility and constant crashes will disappear from the crypto market with the arrival of regulation and big players. Both are related, but the good news is that it’s only a matter of time. The crypto market has already grown so much that it is impossible to ignore and overlook it, so all good things are coming for crypto in the near future.
This is good news for most players, but bad news for fraudsters and alarmists who will be forced to gradually leave this market.
Elon Musk yesterday actually confirmed the same point of view, writing that Bitcoin will definitely win and succeed, though it will probably be preceded by a long crypto winter. Many experts call the beginning of a new bull market 2023–2024, but according to panic around FTX, the weakest and most emotional players simply will not survive until the end of this crypto winter.
BTC will make it, but might be a long winter
— Elon Musk (@elonmusk) November 14, 2022
How can I make money on this?
Right now you see excited crowds of investors racing through the market, frantically selling their assets out of fear at the very bottom of the market, violating all three of these rules. FTX went bankrupt itself and by its example managed to scare many who rushed off the cliff like lemmings.
According to Jordan Belfort, this is the perfect entry point into the crypto market — calmly choose an asset and run it through all three of these rules. But in any case, think with your head and assess the risks yourself, you are responsible for any actions.