3 Reasons Why A Millionaire Trader Doesn’t Trade Bitcoin

3 Reasons Why A Millionaire Trader Doesn’t Trade Bitcoin


– So a lot of people love trading bitcoin. I do not. I’m gonna explain exactly why because you probably don’t
know about the risks. (upbeat music) What’s up, Tim Sykes, millionaire
mentor and trader here answering your questions. A lot of people are trading bitcoin, but first, before I get into
that, let me just remind you click the little button
that says subscribe, click the little bell
so that you get alerted when I have these video lessons. These videos are the key to your future! Do not leave your door unlocked! Your future will be locked forever! All you have to do is use the little key, put it in the little
lock, unlock your future. That’s what I’m here for. So I have been trading for 20 plus years. I have made $5 million. I do have millionaire students. I know what I’m talking about. I’m not perfect, but I have experience. Don’t mistake arrogance with experience. They’re two different things. Arrogance is what a lot of bitcoin and a lot of cryptocurrencies traders had just a few months ago,
really now, like a year ago, when bitcoin and all
these cryptocurrencies were going to the moon, and everyone said bitcoin to a million by the end of what like 2018? Bitcoin did not hit a million. Bitcoin, fantastic run
up, don’t get me wrong. I’m very, very thrilled that there’s something going up that much. Or any cryptocurrency, or whether it was marijuana stocks or CBD. There’s been a lot of hot niches. Bitcoin is a hot niche. The problem with trading it directly, well, there’s a lot of risks. Risk number one, it is
a very, very sketchy slash unregulated niche. That means that you might be trading all your cryptocurrencies one day, and then the next day,
your account is gone. It’s happened to several bitcoin traders, it’s happened to several exchanges. You can’t predict it. It can happen, literally at any time. So, I know bitcoin is open 24/7. How are you gonna keep
an eye on your account at all times? You can’t, so you’re taking big risks. I’m not saying that bitcoin is a scam, and that every bitcoin
broker is gonna go bust and all the exchanges are gonna go bust. I don’t know what’s gonna happen, but I don’t like the risk. I like the safety of stocks, where frankly, we could have a crash, but even the biggest crashes
in stock market history, the stock market crashes 10, maybe 20%. Literally there have been
bitcoin exchanges down 100%. And you cannot get out. So that’s a big risk, number one. Number two, another risk is taxes, and profits, very, very sketchy business. You have to consult a financial advisor. I would consult multiple
financial advisors and accountants, actually. Because the rules kind
of have been written, but kinda haven’t. Very, very questionable. And I just don’t like questionable things. I guess that’s kinda
just me like being old, being experienced in this game
where I don’t want to risk losing the millions that I’ve made. I don’t want new students to get kind of a bad taste
in their mouth with trading when they lose 75 or 100% of their money, due to no fault of their own, just because they’re
trading the wrong stuff. So those are two big risks. I think the third biggest
risk is just volatility. A lot of people think that
bitcoin is the future of money. Maybe it is, maybe it isn’t, but all this idealistic
BS is confused with what is bitcoin trading at? Because frankly, bitcoin
has had a huge run. All of these cryptocurrencies
have had a huge run, even though they’re 60,
70, 80% off their highs, they’re still up a lot. So there’s dramatic volatility, and a lot of investors and
traders just aren’t used to that. You say you want to go into bitcoin and have a long-term perspective, but then you’re down 75,
80% a few months later. I mean, you could say,
“Oh, bitcoin’s the future. “I’m just gonna hold.” But what if you’re wrong? What if it doesn’t come back, and you’re just down 75 or 80%? I don’t like taking those risks. So you have tax risk,
you have volatility risk, and you have frankly,
inherently built-in risk because this is such a new niche. I have made, frankly a lot of money, six and seven figures, trading
bitcoin-related stocks. That way, I can still
participate in the volatility without the tax questions,
without the sketchiness of is this exchange gonna
get shut down or not? And I also don’t have to be up 24/7. I know a lot of bitcoin
traders, they’re cracked out, because they have to be
awake all of the time. Obviously there are more
active times than not, but it never stops trading. With stocks, you have
a nice Monday to Friday trading time period. And when bitcoin is hot, that’s when I’ll trade
a bitcoin-related stock. The stocks are not as volatile, so if bitcoin itself is
up like 20% in a day, then a lot of the stocks that I’m trading, maybe they’re up 10 or 15%. But, because I’m also trading
bitcoin-related penny stocks, sometimes when bitcoin
is up 10 or 20% in a day, the bitcoin penny stock is
up 50 or 100% in the day. So sometimes I get more volatility
trading the safer asset, which is the stock. And frankly, that’s why
I don’t trade bitcoin or any cryptocurrency directly. I can get the returns with stocks. I don’t have to take these excessive risks with sketchy brokers and
a sketchy asset class. And a lot of people don’t
think about this, you know? They just go for home runs. I want you to start
thinking about the risks. I know, I’m a penny stock trader,
I short sell, I day trade, I’m the devil, right? I’m trading all this evil stuff. Well, I’m not the devil, and nothing is evil,
it’s just misunderstood. Bitcoin, cryptocurrency,
maybe it will go up. Maybe all this idealistic
BS, maybe it is the future. But, I don’t like it at this
juncture, at this point. Until we get more regulation,
until we get more answers, I just don’t wanna risk waking up one day. And I will tell you,
this has happened before with different exchanges, with different bitcoin and
cryptocurrency-related brokers. People wake up the next day, and they can’t take money out. It’s all gone. And then you’re fighting,
and you’re going to court, and you’re trying to get your money back. I just don’t wanna deal with that. I use E*TRADE and Interactive
Brokers for my brokers. Not because they pay me anything, I just think they suck the least. These are the brokers that I use, and that’s why I say they suck the least. Not because they’re the best,
just because they’re safe, or relatively safe, you know? Nothing is 100% safe, but
Interactive Brokers and E*TRADE are multi-billion dollar companies, so they’re safer, rather than a lot of
these sketchy sectors, and sketchy niches that pop up that lure in a lot of
financially-naive people who wanna go for home runs
instead of taking singles. My average gain is just
1,000 or $2,000 per trade. All of my top students
have similar type gains, and that’s what we go for. But if you wanna risk it
all, by all means, have fun. Leave a comment below. Let me know what you think. Do you hate my guts for
warning about the risks, or have you lost all your money and you realize that I’m
actually telling the truth? You tell me. Hey, Tim Sykes, millionaire
mentor and trader. Thank you for watching my videos. I hope that they help you. I wanna share everything that
I have learned over the years. You can check out more
videos right over there. And also click subscribe so that you can watch all of these videos, get that knowledge and become
my next millionaire student. (uplifting music)

37 thoughts on “3 Reasons Why A Millionaire Trader Doesn’t Trade Bitcoin”

  1. Your risk is the same as cutting losses then two weeks 3 weeks if you had Just hold on to it you could have double triple your profit

  2. You seem to assume people are buying crypto and leaving it all on the risky exchange for days and weeks. Do you buy a penny stock and keep the trade open for weeks and weeks at a time? No. Thats not how to play the game.
    Bottom line is if its large cap stocks, cryptos, forex, penny stocks, futures, etc trade what is making you the most profit consistently and learn the risks to the area you are trading before you start trading. I trade stocks during the day, algo trade cryptos 24/7 on bots, and do short trades in crypto at night.

  3. World governments are utilizing blockchain technology to keep a ledger of transactions that are settled in gold, the coins are worthless. You have the winning strategy.

  4. Its better to understand the technology and be long and don’t day trade bitcoin. Also you don’t leave your coins on an exchange because it can be hacked, so keep it in a cold wallet.

  5. I trade btc and other crypto’s ( alts), 1 of my strategies is: I pay attention to bitcoin because it controls the entire crypto market. They all follow btc’s pattern

  6. My favorite thing about your videos is the simple fact that your intro is less than 10 seconds long. So I know what I'm in for early on. You rock for that, Tim.

  7. Much respect to you Tim but where will you put your wealth when the currencies have lost its purchasing power as the governments all around the world print the currency and increase the circulation supply into oblivion?

  8. my crypto exchange- QuadrigaCX shut down a few months after I withdrew all my money from the exchange. Id swing trade crypto but was usually in fiat. I almost lost, not only my gains, but the rest of my account as well! CLOSE CALL!

  9. Of course it is riskier and more volatile. It doesn’t mean that it’s hands-off for me. Bitcoin is the first truly 24/7 unregulated market. That’s a good thing; it means I have to get smarter in my tape-reading & execution abilities.

    Some of these exchanges (American ones) are under scrutiny from the Uncle Sam… so, I’m not too worried about exit scams but I don’t keep all my money on the exchange, anyway.

  10. Im investing in btc, but I agree with you tim!! I hate trading it, traders havent yet been educated yet. It makes random moves most of the time

  11. I recently have been trading ticker GBTC. Are there any others that you know of that are in the crypto realm. Please and thank you!

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