Happy Wednesday Wise Owl Nation!

This week I decided to write about Crypto.

The crypto market is down something like 40% right now, and many people are wondering if this is going to last.

I see IG influencers and TikTokkers freaking out, declaring the end of crypto, and claiming they have sold all of their investments.

It's all bullshit. Markets cannot always be going up.

Sometimes they have to go down, and when they go down and stay down for a while, that is called a bear market.

So when my friends, family, or WoW readers reach out to me to ask if the downswing is going to last, my response is simple: It doesn't matter.

The longer a bear market lasts, the more opportunity you will have to take action, prepare and build for a wealthy future. Because when the bull market returns, you want to have already taken action and be in a position to profit.

That is what I will briefly cover today. How to take advantage of a down crypto market.

Let's get into it.

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🦉🪙Wealthy Owl Thought(s) of The Week: You Profit Most When the Markets Go Down

At first, this may seem like a pretty counter-intuitive thought, but hear me out.

To put it simply - when the crypto market crashes, the crypto you buy will be purchasable at a massive discount. It was in the last crypto bear market of 2018-2019 that I was able to acquire most of my ETH.

At the time I was purchasing $50 worth of ETH every week, as well as larger lump sum purchases of ETH when I had extra money. At the time one ETH was worth between $100-$300. So on average, I was able to casually purchase 1 ETH every month.

Here are 3 huge benefits of a bear market:

1 - Long-term wealth - As I stated above, a bear market allows you to purchase assets at a much lower price than you would otherwise. A down market is what makes dollar-cost-averaging, or buying the same amount on a frequent basis, so profitable.

I tend to dollar cost average all the time, and then purchase additional crypto when the market drops and stays down. I know that I cannot time the market, so this is why I like to only buy in larger chunks when the market goes down and stays down.

2 - It is harder to lie about quality in a down market - One of the most annoying aspects of a booming market is that everything looks like it is succeeding. It is much harder to differentiate quality from all of the noise.

Bear markets typically shut down most of the noise and make it far, far easier to spot the true long-term opportunities.

There is a famous investing quote from Warren Buffett that conveniently applies.

"Be fearful when others are greedy, and be greedy when others are fearful."

This is why I only dollar cost average when the market is going amazing, and dollar cost average + buy in larger chunks when the market is down.

If you like investing in NFTs or smaller coins, pay attention to how things go during the next few months. There are going to be a lot of really good deals out there for those that are paying attention.

I will do my best to share some of these opportunities if I come across them, but I am always slow to make financial recommendations, less I fall into the trap of being "one of those guys."

3 - Crypto gets much stronger during a bear market - I touched on this briefly in the section above, but crypto as a whole is anti-fragile. Each time there is a bear market, the projects that survive and improve themselves during that time get much much stronger overall.

It also becomes much easier for the software teams working on these projects to focus on building what will last, rather than chasing the wild swings of a bull market.

What is happening in Ethereum in the next few months?

Speaking of opportunities.

Remember all the times I have mentioned an ETH1 merge into ETH2?

Well, that is happening in a couple of months.

This is why it is pretty cool that a bear market is happening NOW, right before the merge happens.

Why not give everyone a massive discount right before the Ethereum supply gets dramatically reduced and forces the price back up? It's amazing.

I've explained this before but I will quickly do so again for any new readers.

When the merge happens, Ethereum mining goes away.

Currently, Ethereum mining creates 5.4 million new ETH per year.

When mining goes away, there will only be around 500k new ETH per year.

That is almost an 11x reduction in ETH supply.

Furthermore, for a while after the merge, due to EIP-1559 burning a little ETH in every transaction, the total supply of ETH will start to decrease.

Anytime you have a massive decrease in supply, paired with constant demand, you have an increase in price.

So take advantage of the cheap ETH while it's still cheap.

I do not know how long this bear market will last, but I do know that it will eventually end.

Act accordingly my fellow Wise Owls.

Quote/Meme of the week:

Happy Wednesday and have a great week!

This concludes our issue this week, I hope it gave you some perspective or injected a little motivation into your life!

If it helped, let me know! I read every newsletter response I receive, and I absolutely love hearing from all of you. This newsletter is for you, so I need your help to make it as great as possible.

If you'd like to show me some love for writing all this free stuff, you can always buy me a coffee.

More Resources

I will be adding to this section over time as we find resources that will help you all.

• Check out the Wise Owl Store
• All Wise Healthy Wealthy Articles on Medium
• Start your own Sendfox Newsletter
• Free products to help you level up

Crypto Resources

The Bankless Podcast: This is a link to the bankless podcast on Spotify. Start from the very beginning and learn why I am so positive about the power of Crypto and Ethereum in particular. You can find the podcast easily on the internet, but I am linking to episode 1 on Spotify for your convenience.

Buy your first ETH or BTC:

• On Coinbase - this is the easiest starting place for the newest beginners
• On Gemini - Another great option founded by the Winklevoss brothers. They are based out of New York.
• On Kraken - Kraken has a bit of a harder user interface, but they already have ETH staking enabled with the push of a single button.

Earn interest on your crypto

• BlockFi - Currently, you can earn 4.5% interest on BTC, 5% interest on ETH, and a whopping 8.25% on stable coins like USDC. Use the referral code b09f24fd to support the newsletter.

Other tools:

• Argent Wallet - This is the best mobile wallet for Ethereum, Defi, and all things on the Ethereum network, including staking. They even have plans to implement Layer 2 to remove network fees.
• Ethhub - this is a weekly newsletter that lists out all the interesting news, articles, and tweets that have happened in Crypto that week. It's free and awesome.
• Ethdashboard - A simple dashboard to look at various metrics in the ethereum space. I mainly use this as a quick tool to check ETH gas fees.
• Cointracker - this is one of the better tools for tracking all of your various crypto across all of the various wallets, exchanges, etc. You can also use them to do your crypto taxes each year.
• Metamask - this is a crypto wallet that you can access from your browser and allows you to easily interact with blockchain apps online.