Why Crypto Bears are still Sidelined w/ Alex Kruger
Feb 8, 2024
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In this episode, former TradFi trader Alex Kruger discusses his transition into the crypto space. Topics covered include the bull case for risk assets in 2024, the reasons why bears have been wrong in recent months, and the importance of perseverance in the cryptocurrency industry.
Survival in crypto requires avoiding leverage, controlling emotions, and focusing on fundamental analysis.
Remaining humble, seeking mentors, and continuously learning are crucial for success in the crypto market.
Developing emotional control, contrarian thinking, and thorough analysis can give a trading edge in crypto.
Deep dives
Investing in crypto and the importance of survival
When getting into crypto, it's important to prioritize survival. This means avoiding leverage and minimizing exposure to catastrophic losses. It's crucial to be disciplined and control emotions, as emotional control is often lost when trading with leverage. For those with limited capital, focus on fundamental analysis and finding undervalued assets. Those with more capital should focus on high-quality liquid assets and show patience. Building a network and engaging with others in the crypto community can also provide valuable insights and opportunities.
The importance of humility and mentorship
To succeed in the crypto market, it is important to remain humble and be open to learning from others. Seeking out a mentor can greatly accelerate one's learning and growth in the industry. Starting investing early is also advised, as it allows for more time to accumulate wealth. Being aware of market biases and continuously questioning one's beliefs and perspectives is crucial for developing a well-rounded understanding of the market.
The edge in trading and investing
The edge in trading and investing comes from a combination of factors, such as being obsessed with the field and continuously working on improving one's knowledge and skills. Emotional control and contrarian thinking are important traits to develop. The ability to thoroughly analyze all available information and not rely on indicators or others' opinions can provide a unique perspective and advantage.
Common mistakes leading to loss
The most common mistakes that lead to losses in crypto trading are the use of high leverage, loss of emotional control, and stubbornness in sticking to a particular narrative or viewpoint. Avoiding excessive leverage and setting hard stops can help prevent catastrophic losses. Emotional control is essential in managing trades effectively and cutting losses when necessary. Understanding the bigger picture and being open to different perspectives is also important to avoid being trapped in a particular view.
Dealing with mental health and burnout
Mental health is important in the crypto industry, given its 24/7 nature. It is crucial to prioritize self-care and maintain a balance to prevent burnout. Building a supportive network and finding ways to manage stress, such as through exercise, meditation, or hobbies, can help maintain mental well-being.
Episode 13 of Crypto Market Wizards, a new interview series focused on crypto traders in the trenches of the liquid markets. Today we have Alex Kruger talking about his journey from trading TradFi to becoming crypto-pilled. He shares his bull case for risk assets in 2024 and why bears have continued to bang the bearish drum despite being wrong for the past couple months.
Crypto Market Wizards is an ad-free and sponsor-free podcast.
Guest's Twitter: https://twitter.com/krugermacro
Premium Discord: https://whop.com/humble-farmer-army
Free Newsletter: https://hfaresearch.substack.com/
Taiki's Twitter: https://twitter.com/TaikiMaeda2
HFAResearch Twitter: https://twitter.com/HFAresearch
Taiki's Twitter: https://twitter.com/TaikiMaeda2
Free Telegram: https://t.me/+3LgpNxIgJ4IzY2Fh
HFA Research Dashboard: https://hfaresearch.io/
PODCASTS:
Crypto Market Wizards: https://www.youtube.com/playlist?list=PL6bwqqJO_txgGQySGK5-HSuTPp0LjeGqA
Steady Lads: https://www.youtube.com/@0xSteadyLads
Taiki is the founder of HFAResearch, a DeFi-focused research company founded in 2021 with a mission to create high-quality, digestible content that helps separate signal from noise for DeFi enthusiasts. We were frustrated with the lack of authentic educational content on Crypto YouTube/Twitter and took matters into our own hands.
Timestamps:
0:00 Alex Krüger Background
01:49 Differentiating The Majors
06:14 Views on Macro Environment
11:46 Bitcoin Price Outlook & Flipping Gold
19:37 Overcoming Bear Market PTSD
22:22 Best & Worst Types of Content to Consume
26:20 Views on ETH
35:16 Views on SOL
40:08 How to Make it This Cycle
43:58 Building Conviction & Cutting Losses
46:34 Common Traits of Successful Traders
51:14 Managing Emotions
55:51 Advice to Younger Self
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