Young crypto YouTuber says slow and steady investment is the way to wealth

when Nicholas Merten In November 2011, he saw a video explaining Bitcoin. He dismissed it and lamented, “Unfortunately, I didn’t do the right thing.” It’s hard to blame him, after all, he is only 13 years old.

Now 23 years old, he ran Data sprint, A YouTube channel with more than 470,000 subscribers, making it one of the largest channels focused on the cryptocurrency industry. There, he shared trading skills, made thoughtful, balanced and interesting comments on various related topics, and occasionally made guesses. What’s worth noting about his channel is that it has almost no hype and prefers calculated and moderated analysis.

Merten is also the CEO of Digifox, a DeFi startup that aims to provide a one-stop service for new cryptocurrency investors, and will soon allow them to automatically deposit part of their salary in cryptocurrency through an average dollar cost.

Dropout entrepreneur

Merten started investing at the age of 13, although “I was doing research even before then,” he added, making people wonder whether his first sentence was stock quotes. He was quickly bitten by the problem of starting a business. At the age of 17, he began to try his own clothing company and “trying to make a relaxing drink” by formulating recipes with partner companies.

“Understanding the many emotional nature of markets and market cycles, this is a good start.”

It is precisely because of this “close interest” in entrepreneurship that Merten, who grew up in Virginia, chose to study business administration and finance at Virginia Commonwealth University.However, he quickly dropped out of school and chose alternative education instead practice, It matches the admitted students with a six-month internship for on-the-job learning after a three-month training period. Usually, these internships become full-time positions, and Merten “really wants to get my first job.”

Merten recalled that his first job as a sales data management intern was when he was 18 years old in San Francisco “six blocks from where Steve Jobs once lived.”Next is the content manager for six months Click on, A project management software company, “is like a unicorn worth $1 billion now,” he said, emphasizing the learning opportunities that come with working in such a fast-growing company.

While working at ClickUp, Merten created his YouTube channel called Data sprintHis original idea was to deal with data science and data analysis. Soon, after Merten made some videos on the subject, DataDash became a cryptocurrency channel. “I got hundreds of views, and I thought’you know what, I will keep going’,” he recalled.

As the 2017 bull market was in full swing, Merten decided to quit his job at ClickUp to concentrate on his encryption technology.

Don’t trade, DCA

In 2019, he established Digifu“I originally started building it in 2013.” The startup includes a smart phone wallet app that allows users to trade through a Celsius plug-in and earn interest on their cryptocurrency deposits.

In the next few weeks, Digifox will launch the “reward through cryptocurrency” feature, which will help people earn part of their salary in the form of cryptocurrency and receive it directly in the app. Initially available in the United States and later in the European Union and the United Kingdom, salaried workers will be able to simply ask their human resources department to deposit a portion of their salary in a bank account owned by Digifox. “Your employer doesn’t even have to know the cryptocurrency you earn,” Merten clarified, adding that the app charges a fixed fee of 1%.

Source: Digifox

“Buy cryptocurrency, but in the United States, I know many banks, they will freeze transactions on debit cards or bank accounts-we think this is the ultimate cryptocurrency entrance.”

This method of buying cryptocurrencies on a regular basis is called the dollar cost averaging method, or DCA, and is a common concept of traditional investment in the old world. Merten said that many new investors asked him “is it a good time to buy and the price is wise”, and he suggested DCA as a way to diversify risks.

This is because ordinary buyers may not know whether they are buying temporary peaks. If we imagine an asset that continues to rise, an investor who has not previously invested a large amount of capital for immediate distribution would better invest $1,000 a month for 12 months, rather than invest $12,000 in order to save for a year. This is why I get paid in Ethereum-this kind of arrangement works very well for me.

“This is a great strategy. In this case, for people who invest passively and don’t have to be pressured by the market,” Merten confirmed. Another useful factor of the dollar cost averaging method is its systematic tendency to mitigate the often frightening “panic selling” that many new investors succumbed to after seeing the value of their investments fall.

Unlike many other channels, despite the potential rewards, Merten’s DataDash does not encourage its followers to over-trade or enter leveraged positions. “The first principle I’m talking about is’don’t do intraday trading’,” he emphasized, saying that the probability of a passive investor’s ultimate profit is 95% higher. But there are some things that may be more dangerous than day trading-trading with leverage.

Merten stated that leveraged trading is the biggest danger facing cryptocurrency investors today. It’s tempting, a correct call is “easy” to get a huge reward in a short time-but the risk is high. Despite his warning, many people still regard leverage as an intrinsic part of crypto investment, and many influencers refer to leveraged trading as a “position” to distinguish it from a simple 1:1 “spot” shareholding.

“A lot of people start trading with leverage, it’s really bad-you know they are trading on derivatives platforms, which is usually a losing game for most people.

It’s time to go to DeFi

With the cancellation of margin trading, Merten encourages users to use decentralized finance or DeFi solutions to put their cryptocurrency into use. Merten believes that the functionality of the application similar to DeFi is important because the high gas cost of Ethereum makes on-chain transactions for retail investors expensive, even if they know exactly what they are doing. “A small investor, such as a $1,000 investor, will encounter difficulties because they will immediately charge a 5-10% fee for their transaction,” he said, and his example is likely to be an understatement.

When trading tokens or adding liquidity pairs to decentralized exchanges, Gas fees will increase rapidly, for example Uniswap or Sushi swap“It’s great for people who may trade thousands or hundreds of thousands of dollars, but it doesn’t make sense for our daily users,” Merten claimed. Recently, NFT minting has been blamed for the soaring natural gas price.

Source: Digifox

Once the cryptocurrency is in the Digifox wallet, the user can choose to deposit it into a revenue account, where it “can earn up to 5%” interest denominated in the same currency. This is done through a direct plug-in to the external Celsius platform. Similar to traditional banking, the income of depositors ultimately comes from other users who choose to use cryptocurrency as collateral to borrow from Celsius. “We tried to say it was like a savings account,” Merten explained.

“I think this is one of the few major opportunities in our lives in the 21st century-where you can invest in something and really get a decent return

Although “Celsius does not provide a major insurance policy for the cryptocurrency that users keep when paying interest,” Merten said that he chose the platform after studying the security protocols of his competitors (including BlockFi and NEXO). In the future, he expects that the company will allow users to earn lower interest in the insurance pool, also known as income, in which “some of the income they give up will go to the insurance fund” to compensate for potential losses.

He admitted that Celsius manages $20 billion in funds, which is “reassuring”, which makes Digifox a very small participant, only about $10 million.

Expert outlook

Merten believes that we are now in half of the cryptocurrency market cycle-not in a period of fear or suspicion, but not at the peak of optimism. He set Bitcoin to be close to $200,000, while Ethereum is trading at 15,000. Between USD and 20,000 USD. He said that this will bring the total value of the cryptocurrency market to 10 trillion U.S. dollars, a far cry from the current market valuation of 2 trillion U.S. dollars.

“Unlike most people, I don’t think this cycle will end this year. I don’t think it will end in early 2022 — I think it will end in late 2022 or early 2023,” he said, referring to the appeal of many industry experts It reached its peak around the coming new year.

Merten does not rely on the time of year, but believes in the “extended cycle”, that is, the market cycle is “extended by 11 to 13 months than the previous cycle.” He explained that in his view, the first Bitcoin market cycle was 11 months, and the second cycle was 24 months. Since the period ending in 2018 is 35 months, he expects that the bull market in 2022 will last about 47 months.

“If history repeats itself, then the start time will be December 2018 and the end of the cycle will be November 2022,” he was referring to Bitcoin, adding that altcoins may reach their peak “soon”.

Dave The Wave’s 2018 chart shows the argument for expanding the cycle. Source: Twitter @davethewave

Although he tends to make predictions, he admits that he was completely blinded by this year’s NFT boom. “I think CryptoKitties is over in 2017, but I didn’t see it come back in such a vindictive way,” he recalled .A sense of confusion, referring to the NFT project of raising cats Blockage The Ethereum network was launched in 2017. Merten said that despite fraud and “excessive hype” in the industry, he remains open.

With 10 years of investment experience, Merten believes that long-term prospects are an important virtue for those who want long-term profits.

“I like to make some simple coordinated investments for transactions-within a time frame of one to two years. When prices are at historical discounts, I like to enter the market’s greatest fear and doubt, and I like to ride the wind and waves.”

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