Navigating the Crypto Storm: Insights & Analysis

• AFRM (Donny): Was an easy win from last week’s NL buying the dip on the market’s overreaction to loss of Walmart contract - we were able to gain entry at ~$44.33 at last Wednesday's open vs $51 last for a +15% unlevered return in <1 week.

• COIN (Donny): Bought dip at $180 (close to the bottom, stock only went as low as ~$177) vs last close of ~$200 for a +11% unlevered return in <2 weeks.

• IREN (Donny): Caught the dip right at $6.50. Expecting further volatility in this one and moving my SL up to $7. ~+13% unlevered return is ~2 weeks.

• MOVE (Fox): Telegram long hit entry at 0.459 and pumped up to 0.5855 for a 27.5% unleveraged move to the upside.

• AUCTION (Fox): Telegram short setup hit entry at 32.824 and nuked down to 18.6 for a 43% unleveraged move to the downside.

• PENGU (Daniel): We called for a spot long after the Shopify partnership. The front ran a big news event, which pumped the price +34 % to highs from our entry of $0.0056.

• SOL (Daniel): TG/Stream long idea called at $131.1 and ran to $145+ without sweeping our entry. We sold at $137 about on stream for a +5% move unlevered. I was 50x levered on stream lol. 

• FARTCOIN (Daniel): Our entry for the newsletter idea was $0.29, and we hit our first target of $0.60 in under a week. This was a little over 100% unlevered move. 

• FARTCOIN (Daniel): I hit four different trades and closed in green on livestream and chat. One was at $0.29 on stream, running to $0.348, $0.356, and $0.368 before reaching $0.46 in the same night and ultimately $0.64. These were all scalp/day trades.

• SOL (Daniel): SOL was long $125 on stream hours ahead of FOMC, sold $126.6, and many held for $130, which we got ahead of FOMC. 

In previous segments, we've discussed things focused on the market, but there's much more to wealth than just Crypto and Stocks. That's why today we're talking about:

The Debt Scam

The Western world is addicted to debt. Governments borrow more than they produce, companies use it as leverage for their operations, and everyday people get scammed by it.

Debt is becoming increasingly normalized, from TikTok gurus telling you to take out risky mortgages to buy more homes to companies like Klarna offering "payment plans" on your DoorDash order. Debt is creeping in everywhere, and people are burning their money, and with it, there is no chance of seeing financial growth.

When you use something like Klarna, you can buy something you couldn't otherwise afford. They'll tell you you can pay it back in "interest-free installments," but when you miss a payment, the fees and interest start racking up faster than a loan shark.

When you buy something, you must tap your credit card somewhere, and you're not too worried about how much it will cost. That is your future problem. And again, it's free until it isn't.

When you buy a car, you might opt for a slightly fancier model because the monthly payment is "only" $550 instead of $450. 

These scenarios share a common problem: When you buy things with debt, you spend money quickly and pay more than you should. 

The average American spends about 10% of their monthly income to pay off debt, 33-40% if we include housing debt. A mortgage can make a house twice as expensive as buying with cash.

Most people find buying a car or house cash unachievable, but this is largely due to debt, which limits their ability to grow their capital.

Now you might say, "Okay, cool, Pidgeon. We know. It is what it is," but here are my rules for debt to avoid getting assblasted by your bank.

If you're in debt:

1. Stop putting your money in the markets. Getting 10% per year won’t matter if you pay 20% on your credit card debt. Pay that shit off.

2. Cut costs where possible. Pay off anything with an APR above 6-7%.

3. Avoid debt when possible. Pay for shit cash.

4. Figure out how to increase your income to pay off your debt quicker.

Suppose you're not in debt, great! Here's what you do now.

1. Only take out debt that you can pay back in full the second you take it out.

2. Don't get a car you can't afford. A payment plan doesn't mean you can afford it.

3. Fuckin skip college! (In what world is your philosophy degree worth $100k?) You can learn everything you need online. Harvard literally posts their CS course on YouTube.

4. If you take out debt, it should pay for itself. For example: If you take out debt for a basic truck but that truck helps you run your business, which makes more than the payment, it pays for itself.

The goal should be that if you take out debt, it's not because you want to buy something you can't afford, but because you don't want to lock your capital in it. You can service that debt with the cash you're saving.

Housing is important, and owning a home can be an exception to this rule. However, you will be substantially poorer if you buy a home, whether with cash or debt. It's a liability, not an asset. Make that decision wisely.

If you go to buy a house, you want to have enough to buy it mostly with cash. You can then CHOOSE a larger mortgage, knowing that cash will pay you more through investments. (Whether in yourself/a business, or the markets.)

As a trader, I would likely choose a bigger mortgage as I can easily outperform the interest I'd pay on the extra debt. However, we should understand that debt should always be a conscious choice.

Now, I am obviously a rich, privileged white boy living in the beautiful nation of the Netherlands. But I also understand how the system works and how to play the game. (And yes, I made my own money.)

If you want to be rich, it's not all about your income or how well your investments do (obviously, it helps). But if you're spending all that income, especially if it's being burned on interest payments, you're just making wealth building incredibly difficult.

Thank you for coming to my TED talk. While this is unlikely to reduce your debt payments, I hope it helps some of you avoid the debt trap and end up richer for it.

- Your friendly neighbourhood Pidgeon.

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