This year passed in three days, and when 2023 arrived, as I began to write this article, I wrote everything in my diary about 2022 that I faced, and I cried when I remembered this year’s memories because I lost my best friend and my lover, whom I adored.
This year I learned the true meaning of money when I entered the crypto space in the year of COVID when everyone was spending time at home. I just heard about crypto, so I just invested $1000 in it.
In 2020, I didn’t know about trading, crypto, bitcoin, PNL, or even how to purchase dollars using my country’s currency. I’m a full-blown idiot who knows nothing about finance or technology.
Many crypto trading communities are active on telegram, so I started by watching YouTube videos on how to use telegram, then I joined the crypto trading signals group on telegram and followed some free signals that they sent on telegram and, to my surprise, I profited from those signals.
Then I joined the premium signals group, which I follow for free. After joining, the admin and his team sent 5–10 signals per day, which I picked up and put on my Binance account before the end of the first month. I don’t have money to pay my subscription fees, because I lost all the money which I invested in crypto.
I don’t expose this crypto signals group because I believe this is my mistake, not his. I don’t research anything and blindly trust someone who trades. You know, every crypto influencer gives lots of advice about crypto things but also says “Not a Financial Advice,” so that’s a reason I don’t expose those trading groups because he says this line on every trade signal.
Lost all my savings in crypto at this time my age is around 22 and study chemistry I don’t link any finance-related things and also lost the customer care center job which also dis hurt me.
By the end of 2020, however, I had concluded that I had simply learned not to earn. So I joined Twitter, Facebook, and many other platforms to look for people who teach about finance and crypto things, but I didn’t find anyone I could blindly trust, and all of your financial advisers also say “Not Financial Advice,” which is why I don’t listen to anyone on the internet who says this line.
I read money-related books in the last month of 2020 and felt amazed because I learned about money instead of finding solutions on YouTube. I searched blogs on Google that were related to crypto and technology; this was amazing; I learned a lot of things from blogs after the end of 2020 and before 2021. I fall in love with reading books and blogs.
By the end of 2021, I will have written my blogs on money, cryptocurrency, and technology because I have a lot of knowledge that I want to share with others who are like me.
2022 is a full learning year for crypto and the current money system.
2022 My learning about Finance
I don’t brag about how much money I’ve made from cryptocurrency because I don’t want to be an influencer. After all, they will judge your followers: “You are a loser if you don’t follow me; you are poor; you don’t know anything; so follow me if you want to become a superhero.”
I cried while writing this line. One thing to remember is that you are the only one in the entire world, so please don’t compare yourself to anyone else; God created you and me and the whole 8 billion people in the world. Everyone is unique in their own way.
Starting from my learning from crypto trading everyone knows which belongs to trading there are trendlines, support, resistance, bear flag, bull flag, and candlestick, but you know trading is not dependent on these things which you and I learned.
1- What Actual Trading is?
Trading only depends on the fear and greed index if you don’t grip your fear and greed you don’t succeed in trading.
I was so greedy when I first started trading in crypto because I saw so many people making so much money from it. I open my account on Binance Exchange every 1 minute when I trade any coin. When the price moves upward, my greed levels increase, and I don’t take profits because I think the coin will move up more. When the price moves downward, my fear levels increase, and I sell coins. This type of thing harmed my health, and I lost a friend as a result.
When you understand fear and greed, you can see the big picture of the market because market cycles and market structure are determined by the fear and greed index. If you believe the market moves based on news, you are biased. Market makers run the entire market. All trading indicators have some outdated data, so please understand the market cycle, not the trading tools.
At the moment, I do not have any trading exchanges installed on my smartphone and instead trade crypto and stocks on a laptop. My trading strategy is simple: I either go short or long and leave my positions open as long as the market’s cycle does not change.
Don’t listen to the nonsense about things like “To the Moon.” Always understand the market and what current and past events belong to the project in which you trade.
A swing trader is an easiest and most sensible thing in trading, so please only see the daily and weekly candles because you have the ability to see the bigger picture of the market.
Don’t think your analysis is great because you entered this trade and believe the market is only going up; please always look at the market weekly because you have the ability to make decisions based on market behavior and current fundamentals.
Don’t be biased in your thinking; always try some change when you expect some tricks because Market Makers are more knowledgeable than you, but here’s the good news: they are also human beings, so read someone’s mind, which is based on previous data that can help you, so please don’t underestimate previous data.
You can read my daily digestible crypto content on the above website link. Last, don’t enter into a trade when the market opens; always make trades when the market is closing.
This year I believe bitcoin is become more strong because of the current bad events in crypto and the current money system exposed through these events.
2- What is bitcoin and crypto?
When you and I first entered the crypto space, all we knew was that bitcoin was a cryptocurrency, that trading it on the Binance exchange made money, that future trading would make an insane profit, and that we would believe this crypto coin to the moon, but we were all wrong.
The first thing to remember is that Bitcoin is totally different from other cryptocurrencies, including Ethereum.
I believe Bitcoin is simply a digitized trade asset, but I was completely wrong when the Luna and back-to-back crypto companies collapsed, and now the FTX drama will completely change my crypto concept.
If you think the Luna FTX collapsed due to crypto failure, you are completely wrong because the crypto company’s back-to-back fraud is simply an institutional fraud, not a crypto or blockchain fraud.
Bitcoin is peer-to-peer money, and Ethereum is a decentralized internet because the Ethereum network grows the web 3.0 uses, and I’m not against web 3.0, but it’s not completely decentralized at this point.
The term “crypto” is derived from “cryptographic,” and cryptographic is synonymous with encryption.
And blockchain enabled bitcoin to become decentralized, but blockchain alone did not make bitcoin a currency.
The main thing is the “Proof of Work” consensus, which was introduced by Satoshi This is brilliant Satoshi creates a mechanism which validate the each block of the blockchain because this consensus solves the double spending problem and fraud issues.
This consensus created true engineering money, which cannot be manipulated or created. Bitcoin is only 21 million; no one printed it. Never ban this because if anyone wants to ban Bitcoin, it would mean shutting down the entire world internet, which is impossible. China has repeatedly stated that it will ban bitcoin but is unable to do so.
If we compare the bitcoin and the current money system our believe become more stronger on bitcoin
3- Comparing Bitcoin to our money
Do you know why inflation is getting worse starting in 2022? You know how when COVID-19 spreads all over the world and everyone is afraid of the virus and the government is afraid of the health situation and there is a government lockdown in the country prohibiting imports and exports and everything,
Many people have lost their jobs, and the rest of the world is saying, “Stay safe, stay at home; fuel prices are insanely low, almost zero; and our governments, which print a lot of money to help the poor.”
I live in Pakistan in May 2020, where COVID-19 has destroyed our health sector and economy, and where my government prints approximately 22 billion currency notes daily in the name of helping poor people.
Because of the small and large business effects of COVID-19 waves, US governments offer 0% interest rates on loans.
When people get on track after the COVID-19 People spend a lot of money in 2021, the stock market reaches new highs, and the crypto market cap surpasses $3 trillion in an insane growth.
The growth is an illusion; it is not genuine growth. The government gives fake money to people to buy things and stocks, but the printing of money is because helping the poor is not a permanent solution; it’s a way to inflate your money.
let’s simple things Our governments print the notes, which is fine, but they do not print the food, clothing, or manufactured goods.
How government define the printing money while foods reserve have shorts we can not print the wheat, rice burgers, 2021 people have money which is stop in 2020 while everyone the spending money while manufactraction is limited that’s how you can spend more money to buy product you want.
Our money does not have a limit, but our resources have a limited supply; this is why our government inflates the dollar, which is why we don’t have a right to access our money.
Bitcoin is a true engineering money that allows you to manage your own money and doesn’t print above 21 million.
Our money is just a ledger; our banks just enter our debits, credits, borrowing, and lending, and our government prints daily money to feed the fake money supply, fake customer spending, and fake stock market bubble.
Our overall monetary system is analogous to a debt currency that powers a debt economy.
Because bitcoin has a transparent, no loopholes system, you can check On-Chain data without any legal documents or permission, and anyone can audit this bitcoin blockchain network.
4- Is Decentralized Finance (DeFi) is new form of Finance
DeFi is not a new finance if we comparing the old age of peer to peer system which is called barter sytem. . For example- A farmer gives his cattle in exchange for some land, and so on. In simple words, any exchange of goods and services for other goods and services without exchanging any form of money is known as the Barter system.
However, this peer-to-peer barter system is inefficient because there is no transparency and we cannot determine the value of goods. Furthermore, gold coins have a problem in that the financial system is transferred through a middleman, such as a bank, and the government finances this system.
2008, when the famous white paper was released by Satoshi Nakamota, which introduced peer-to-peer currency, which is transparent and very efficient This paper is famous today under the name of Bitcoin.
According to the property of blockchain, which is that it is not scalable, Satoshi’s use of blockchain technology is a smart way to create engineering money.
And the real present is the amazing solution in the form of Bitcoin, which is also decentralized and never inflated by someone.
But at this time, many crypto projects work like a digital fiat cryptocurrency because of Ponzi Tonkenomics, which is damaging the Bitcoin concept.
5- Tokenomics Economy
Many crypto projects have massive volume, but this is due to Poni tokenomics, as during the Luna UST event, Do Kwon minted UST more and more and gave a huge 20% APY on staking UST stablecoin, and at the end, the LUNA went zero. The FTX also created fake money to print FTT tokens that belong to the exchange collateral.
Ending my conclusion is just one sentence Focus on Learning don’t waste your time finding someone to teach you, like “influencers” stay away.