In this episode of Crypto Market Wizards which took place on April 11, 2024, Taiki Maeda hosted CryptoMessi to discuss the evolution of CryptoMessi and Taiki’s decade-long journey, market dynamics, strategies for success, the future of crypto, and more! Read our notes below to learn more.
Background
Taiki Maeda (Host) – Founder of HFA Research, Host at Crypto Market Wizards
CryptoMessi (Guest) – Trader
Evolution of a Crypto Investor: From Mining to DeFi Success
- CryptoMessi recounts his entry into crypto in late 2013, initially sparked by personal motivations to improve his life before his wife graduated from college. He describes his evolution from being a forum lurker to actively participating in the crypto community.
- He explains his initial engagement with Dogecoin and spec mining, detailing his early days of mining with budget gaming PCs. CryptoMessi highlights the lucrative potential of mining at the time and his decision to scale up his operations.
- CryptoMessi gives a shoutout to notable figures from the early days of spec mining, highlighting their influence and his inspiration from their activities on Bitcoin talk forums.
- He shares his transition to trading, initially influenced by the success of traders on Twitter. CryptoMessi admits to learning trading through trial and error and eventually dismissing the efficacy of indicators in favor of fundamental research.
- CryptoMessi reflects on his journey, starting with mining in 2013, which led him to speculate on various crypto assets, especially during pivotal moments like 2017’s ICO mania when he first became a millionaire.
- He discusses the cyclical nature of crypto markets, noting that every cycle, despite skepticism, proved as intense as the last. His involvement deepened, leading him to forgo substantial purchases in favor of reinvesting in crypto during downturns.
- CryptoMessi recounts his strategy during the bear market, focusing on fundamental research that led him to invest in projects like Ren, influenced by their potential and connections to notable figures like Peter Thiel.
- He describes the shift from centralized to decentralized exchanges, marked by his first use of Uniswap, which dramatically changed his approach to trading and investment, highlighting the seamless and empowering experience of DeFi
- During the “DeFi summer,” CryptoMessi capitalized on early involvement in DeFi projects, which provided significant financial gains. However, he also acknowledges the learning curve associated with understanding DeFi dynamics, which sometimes resulted in substantial losses.
- He reflects on the resilience needed in crypto investing, noting the mental and financial challenges of enduring multiple market crashes and the importance of knowing when to shift strategies amidst volatility.
- CryptoMessi highlights the role of continuous learning and adaptation in crypto investing, illustrating his journey through successes and setbacks, driven by an enduring commitment to navigating the complexities of the cryptocurrency landscape.
Crypto Insights: Investment Strategy and Personal Growth
- CryptoMessi mentions that he initially didn’t think much of Abracadabra but decided to invest heavily in $SPELL after seeing notable figures like Banteg of Yearn endorse it, leading him to become one of its largest holders.
- CryptoMessi recalls being influenced by reading Tetranode‘s thesis about the Curve wars and subsequently invested heavily in Convex’s $CVX & Curve’s $CRV during its low point, which eventually paid off significantly.
- CryptoMessi explains that early on he noticed the potential of the Avalanche ecosystem through its superior bridging technology and invested in several projects there, benefiting from the growth of that ecosystem.
- CryptoMessi reflects on his experience of heavily investing in the crypto market, leading to significant personal wealth and the stress of potential huge tax liabilities, prompting him to liquidate most of his holdings at the beginning of the tax year.
- CryptoMessi notes that despite deciding to step back from public crypto involvement, he still views the crypto world as a game he loves playing, indicating he will remain involved in some capacity.
- CryptoMessi says that he decided to leave his public persona behind in favor of focusing on his family and mental health, aiming to leave the scene as a hero rather than a villain.
- Taiki remarks on the resilience and skill required to succeed in crypto, arguing against the notion that those who have prospered are merely lucky, highlighting the complexity and challenge of the industry.
- Taiki recalls having CryptoMessi on his show three years ago, mentioning that CryptoMessi’s insights during the “Shitcoin Church” live streams were influential for many viewers, including himself.
- CryptoMessi shares that he likes the bank robber analogy to describe the boom and bust cycles in crypto, noting that the key is to take profits before the situation worsens, similar to leaving a robbery before the police arrive.
- CryptoMessi discusses the current state of the crypto market, indicating that signs of market froth often appear differently each cycle. He points out that new retail investors typically enter through major platforms like Coinbase, affecting different segments of the market.
- Taiki asks how to succeed in the current crypto cycle with a mid-five-figure portfolio. CryptoMessi suggests there are two paths: diving into meme coin trading or finding an undiscovered “gem” to invest heavily in.
- CryptoMessi highlights the importance of community involvement and research in making investment choices. He advises against spreading investments too thin when the capital is limited.
- CryptoMessi argues that believing in one’s investments is crucial for enduring the inevitable market downturns and realizing profits.
- CryptoMessi stresses the importance of building a trusted crew for trading and research, highlighting that having a reliable network can significantly influence trading decisions and strategies.
Insights on Social Crypto Trading and Strategic Selling Strategies
- Taiki says that crypto trading is a social endeavor and values it as such because of its dynamic nature, comparing the valuation of cryptocurrencies to traditional financial metrics like PE ratios.
- CryptoMessi agrees, indicating a preference for following personal trading strategies rather than external advice.
- Taiki inquires about CryptoMessi’s influences in the investing space, emphasizing his decade-long experience and seeking to learn from CryptoMessi’s heroes in crypto trading.
- CryptoMessi names Su Zhu, Kyle, and Dan from CMS as inspirations, appreciating Dan for his honesty and individualistic approach in the crypto community. He mentions his trading style is influenced by Brian Bemish’s “little old lady strategy,” but adapts it by selling portions of his holdings at higher multiples instead of the strategy’s original sell-point of a double.
- CryptoMessi highlights the importance of being comfortable with selling as a part of trading, describing it as essential and more challenging than buying. He argues for the psychological and strategic benefits of securing profits by selling increments during price rises.
- Taiki relates to the difficulty of selling and the psychological impact of market retracements, acknowledging the need for a strategy that allows for taking profits to mitigate losses and maximize returns.
- CryptoMessi advocates for continuous portfolio management and strategic selling to capitalize on market movements and reduce risks. He stresses the value of having a diverse and dynamic investment approach to adapt to changing market conditions and opportunities.
- Taiki observes that instead of aiming for a single high multiple, spreading investment across multiple smaller opportunities can result in significant overall gains. He mentions the strategy of buying into an asset before it achieves high multiples, as it’s easier for such an asset to then achieve multiples.
- CryptoMessi explains that after significant gains, many assets enter a period of consolidation or decline, presenting an opportunity cost. He prefers to sell during these periods to reinvest in assets that are about to rise, emphasizing the advantage of capturing these initial expansion phases for easy profits in crypto.
Navigating Crypto’s Cyclical Landscape: Insights
- CryptoMessi affirms his belief in the longevity and growth of crypto, citing technological innovations like instant settlement and the introduction of ETFs as evidence of its permanence. He acknowledges the wild west nature of crypto but appreciates the emerging regulatory frameworks that protect new entrants, contributing to the space’s evolution.
- CryptoMessi shares his personal learning journey in crypto, noting the importance of adapting and learning from each cycle. He discusses his shift in strategy, particularly in DeFi, where identifying high-growth opportunities has become his focus.
- Discussing specific crypto technologies, CryptoMessi notes that Fantom’s new Sonic upgrade will provide a high-speed, low-cost transaction environment comparable to Solana, which he believes will drive growth within the Fantom ecosystem. He highlights his strategic investment in Fantom’s DeFi environment, focusing on platforms that will benefit from ecosystem growth.
- CryptoMessi discusses the idea that due to the wrecked state of the ecosystem and low TVL, growth prospects in DeFi infrastructure are undervalued, suggesting that even modest ecosystem recovery could offer significant upside.
- CryptoMessi mentions his strategy of investing in distressed assets that have not yet caught mainstream attention, emphasizing his interest in assets built through bear markets and those with less competition.
- CryptoMessi reflects on his previous cycle experiences, noting that limiting himself to DeFi was restrictive. He discusses the importance of flexibility in trading, the significance of regulatory developments, and his bullish outlook on DeFi’s future, especially for projects like Aave.
- He highlights personal accountability in trading decisions, valuing the freedom to admit mistakes and pivot strategies without the influence of a large following, contrasting his approach with those who excessively promote their investments on social media.
Navigating Challenges and Growth in Crypto: Insights from Taiki and CryptoMessi
- CryptoMessi discusses the importance of personal growth and learning from mistakes, questioning the value of advising his younger self differently and emphasizing the transformative impact of crypto on personal lives, beyond material gains.
- Taiki highlights the surreal nature of crypto investments versus everyday expenses, sharing a personal anecdote about the disproportionate reaction to spending money on a smoothie compared to riskier, larger crypto investments.
- CryptoMessi encourages a focused and competitive approach to crypto investment, emphasizing hard work and dedication over leisure and short-term pleasures, advising listeners to think of their future selves.
- Taiki questions if it’s possible to ever completely walk away from the crypto world, considering its deep personal significance to those involved.
- CryptoMessi argues that it’s unlikely for someone deeply involved in crypto to completely disconnect, mentioning his own experience of taking a break but feeling a void during that time. He elaborates on the difficulty of abandoning a major part of one’s identity.
- CryptoMessi reflects on his return to crypto after believing it might not recover post-FTX, highlighting the personal and widespread uncertainty at the time. He advises against re-investing ‘real money’ once it’s been withdrawn from the crypto market.
- He discusses strategies for newcomers to earn within the crypto space, emphasizing the use of opportunities like airdrops to avoid risking substantial personal finances.
Crypto Market Insights: Future Cycles, Risk Management
- CryptoMessi speculates on the impact of broader economic factors, such as governmental monetary policies and social inequalities, on the crypto market. He predicts significant market dynamics influenced by these factors.
- He considers the implications of Bitcoin ETFs and other crypto-related ETFs on the market, proposing that crypto might eventually experience a low-volatility, continuous growth similar to traditional financial markets.
- CryptoMessi highlights the importance of risk management in trading, warning against overconfidence and the risks of substantial financial gambles in the crypto market.
- Taiki says that learning to enjoy selling is crucial in crypto, especially to avoid being left holding the bag. CryptoMessi agrees, adding that someone will inevitably end up holding the bag.
- CryptoMessi offers final advice, emphasizing the importance of focusing on downside risks over potential gains, avoiding revenge trading, and the necessity of hard work and commitment in crypto. He stresses the importance of seizing opportunities during the bull market and preparing for the probable continuation of a four-year cycle in the crypto market.
Check out these important links
- Listen to the YouTube Video
- Follow Taiki Maeda on Twitter
- Follow CryptoMessi on Twitter
- Follow Crypto Market Wizards on Twitter
Show Information
Medium: YouTube (Video)
Show: Crypto Market Wizards
Show Title: How to Make it This Cycle w/ CryptoMessi
Show Date: April 11, 2024