🧠 How to make (big) money

GM everyone. This is 2036. We scroll for gems all day so you don’t have to.

Here’s what we’re serving up today 🍲: Crypto is down…then up…then down again. Investors are on their toes. So, while we wait to find a bottom - here’s the key to making big money in crypto.

Let’s dig in.

In October 2007, the Journal of Economic Psychology published a study on elite soccer goalkeepers.

The study found that 94% of goalkeepers jump left or right on a penalty kick.

However, the same study also found that, statistically, the best thing for goalkeepers to do is stay in the center - and do nothing.

So, if the optimal move is to stay in the center, why do goalkeepers always jump left or right?

The study found that goalkeepers feel that a penalty scored feels much worse if they do nothing than if they jump… even if jumping wasn’t the optimal thing to do in the first place.

In other words - the bias towards action is so strong that goalkeepers voluntarily sabotage themselves because the pain of doing nothing is too strong.

Maybe it’s the humiliation of “just standing there,” the media ridicule, their trainer telling them “to do something! ANYTHING!” or their inner voice that strengthens the need for action.

Or maybe it’s a combination of all these things.

But jumping left or right is almost always the worst decision.

This is also true for crypto - and investing in general.

Right now, crypto is going through a correction. This means you may be sitting on positions that are down. And that’s okay. Remember, volatility is the price you pay for high returns.

But that doesn’t mean you need to go and change anything and jump left and right.

Sometimes, the best thing to do is nothing.

That’s because time is the biggest factor in your investment success, granted you own great assets.

It’s easy to panic when things don’t go up in a straight line. And that’s often when we feel compelled to do something - anything - even if it isn’t optimal.

Now - that doesn’t mean we should be passive all the time.

But there are times to be active and times to sit back and watch things unfold.

Naval Ravikant calls this operating like an athlete. First, you train, then you sprint, rest, and re-assess.

You can get greedy or fearful and think you must act. Or you can wait for crypto to be out of the woods before pulling the trigger again. Rest & re-assess.

Charlie Munger used to say: “The big money is not in the buying or selling but in the waiting.”

Be more like Charlie.

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1/ Net outflows from GBTC higher than ETF inflows for 4th day in a row

2/ Crypto sentiment falls to 100-day low

3/ Solana memecoin soars +30%

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.