48. Is Crypto Investing For Me? ft Dalonie

Following on from last week's episode talking about the basics of cryptocurrency, this week we're joined by Dalonie talking about what you should be looking to start with if you're interested in crypto.

Episode Transcription:

0:00 Hey guys, and welcome back to the Pennies To Pounds podcast with your host Kia. And this is the podcast we're going to dispel your myths, simplify difficult financial jargon and rectify your own personal problems. I hope everyone's okay, Happy Monday. I'm here again, this is a topic that everyone is talking about naturally, there's so many different things we can talk about with regards to it. But before I get onto the topic, I have a special guest here with me special guest, who are you, introduce yourself. I am Dalonie. Dalonie Graham, nice to meet you. Good evening, everybody. So I am a marketing strategist, a crypto enthusiast sneakerhead. I have everything ready. But I'm here today to chat about crypto.

0:36 Amazing. Thank you so much. So you've given away you let the cat out of the bag here. We're going to talk about crypto all today. So I'm looking forward to this conversation. So I want to talk a bit more about you and your journey. So how did you actually get into cryptocurrency investing? Because I think people listening? I think cryptocurrencies probably, you know, you heard Bitcoin for the last couple of years. But I guess it's come to fruition I say a lot more in the last year or so. So how did you get into it? Yeah, super interesting, actually, because I think it's just because we were locked in the house. Now what we're looking at social media, we're all focused on the same topic. So the rise of it has been pretty interesting. But how I got about into it, funnily enough, via my little brother, so shout out to him for that. I actually was I heard about it. Many, many years ago, I had friends telling me ah Bitcoin is the future, Bitcoin this and that and at the time, obviously, didn't pay much attention, as many people did, and

1:26 then started to research a little bit more understood what it was, but then never really got too much into little brother got back to me on it again. Then I listened a little bit more started researching while I was like, wow, okay, this is really interesting. It's not just Bitcoin, there are other types of innovations within the space that is basically looking into the future, in a way. And that's always been the kind of thing that I obsess over. I'm always looking to tomorrow to see what it could look like.

1:49 Yeah, I think that's that's absolutely right. I mean, I'm just saying the way things are evolving and things are becoming a lot more technology-based compared to like our parent's generations, I think it's really important to kind of stay on-trend and know what's happening, what's coming up next. So I really agree with you in that. So how did you build up your knowledge and you said, Your crypto enthusiast, and there's gonna be people listening saying, you know, I want to kind of get into this but how did you do that? Was it YouTube videos? Was it reading articles online? Was it buying books? Was it I don't know? How did it look like for you? Well, it's everywhere. Really. It's almost like the same way it build up knowledge about anything else. Like say, for example, people are very interested in hip hop you're following on Instagram, you're listening to on YouTube, maybe from watching twitch Twitch streams, having conversations with people. So that's pretty much how I went about building up my knowledge about it. So yes, there are some really good YouTube channels out there. My favourite being for like people who are just starting to get into crypto, there's one called coin bureau that explains pretty much everything from high-level topics to like basic entry-level topics, where to invest, etc.

2:48 There are newsletters, you can get there emails, email newsletters, and get for example, from a guy called Kirsch, AK, he does these things called his daily meditations or five-minute meditations on that, but he just rounds up the crypto news. There are Reddit groups, you can read it subreddits you can join their Twitter pages you can follow. It's pretty much any way you want to go. My show today. My favourite place to go recently has been clubhouse actually. Now clubhouse.

3:17 I agree for real, like yeah, like the amount of information that's being shared on it, because everyone's still adjusting to, to the platform. So it's not really this kind of like hierarchical kind of, I'm not going to tell you kind of you know how on Instagram, Twitter is kind of like almost like based on Clout. On the clubhouse. It's just very much people just want to share information, have a conversation. So you can be talking with just like your friends one day, but then suddenly, you're in a room with a CEO of a crypto hedge fund or something like that. And he's giving you information. Or, for example, even when Elon Musk popped in the other days like there's normal people in the room with him talking. So it completely eradicates the kind of layers of talking. So I've picked up a lot of information from there recently. So I'd advise anyone who wants to learn more, follow pages everywhere that you already asked like YouTube, Twitter, all that kind of stuff. But then at the same time, if you can, if you're an iOS hop on clubhouse, just stay in the rooms, listen, take notes, really if you want to, but it's a good place to get some nice information. Yeah, I completely agree with me. Do you know how many times I've been in and I've left him so much more knowledge like there's people from all walks of life all kinds of industries. And as you mentioned people that I guess in the real world and normal world you wouldn't have access to and then like Elon Musk people in the room Elon Musk, crazy. Yeah. When you say absolutely insane so I definitely would encourage you Yeah, for sure. Definitely. One tool that I use all the time

4:40 on on on Elon Musk while we're talking about

4:45 knowledge, but at the same time, I would advise everyone to ignore his tweets about Doge.

4:51 I mean, it's funny, it's hilarious. It's a great like meme coin or whatever, but don't invest in something just because Elon says it and I'll get one

5:00 To that point later, I encourage everyone to do more stuff. But we'll talk about that. Yeah, I agree with you. So the next question I have for you is, Have you made any mistakes along your crypto slash investing journey? I think everyone has some sort of tale to tell I have my own tales, regardless of personal finance, do you have anything with your investing journey? And how did it look like for you? Yeah, it's, it's something like you said that everyone does, like, you kind of joined the space, you're fresh to it, you're like, Oh, I'm gonna get that or I'm gonna get that. So I'm gonna basically just detail it. So I joined the whole crypto scene by investing through Coinbase. Now, while Coinbase is a great kind of like entry-level app, if you've never invested before, should look into it. If If you want to invest, guys, so Coinbase, your first stop. The problem with it is in terms of its UI and UX, it almost kind of convinces you to trade your coins a lot, which isn't great. If you're in a like putting small amounts in there. Ideally, what you want to be doing is investing in projects that you believe in and holding it for a while, yes, you can sell off closer to the top of peaks to make profits or not. But Coinbase, the way it's set up, kind of encourage you to trade which isn't great behaviour, because you don't exactly at a starting level, understand how markets work, understand, like technical analysis, or even fundamental analysis, and then you can over trade and end up losing money have also been cases, I think, where I've, in the past where I've invested in coins that I believed were going to do well, based on the fact that I saw someone else investing in it. That's exactly what's happening right now with Doge people who are investing in it, because they see massive green candles, they see lots of hype around it, but then they don't quite understand what it is. It wasn't necessarily Doge in my case, there's another coin, I'm not going to talk about it too much, because there are a lot of people with spiritual bondage with it. But

6:45 I invested a lot into that coin. It was it was okay, price went up a little bit. But

6:52 a lot of people forget that. Yes, you can invest in crypto and increase it in US dollar value. But you've got to look at the Bitcoin chart and how it's performing relative to Bitcoin. Because if your crypto that you've invested in isn't performing better than Bitcoin, then you're wasting your time, you might as well just put your money in Bitcoin, to just always consider the opportunity cost of whether you're gonna invest in something, does it have fundamentals that you think long term, this is going to be worth way more? Or should I just put my money into Bitcoin?

7:21 Okay, that makes sense. That's good. So there's been talking when you got there because I think that there is this is we've noticed it now there's this thing around hype. I mean, we're in a, we're in a pandemic, we're in lockdown, and everyone's on their phones, and I'm on social media, but I think a lot of people would never know what to invest their money into. And just do what people say. So kind of following off what you what we kind of touched on a little bit earlier, Elon Musk, if you don't tweet something, everyone goes and runs to get it. What's your opinion on that? Do you think people should be doing that? Like what Yeah, what's your opinion on that? I was having a conversation with someone who was founding an E-wallet yesterday based on some blockchain technology. And we're having a discussion about whether that

8:01 well, how to regard that type of behaviour. And me personally, I believe that's just normal, because that's what people do, right? safety in numbers. It's like animal behaviour, you follow what everyone else is saying, well, you survive. But when it comes to the finance world, it's a little bit different. I feel like, if you don't know what you're putting your money against, to the tee, then don't put your money against it. It's the same way. As if, say, you owned a company. If you're going to hire someone, you go through multiple rounds of interviews with that person, you get to know their character, you get to know exactly how they behave, and what they can bring to your team before you pay them. Whereas in the crypto scene, because it's so easy to just give them give the markets money, people do end up doing that, hoping that it'll go up. So yeah, there's massive hype about hype around it. But I'd say slow down, take some time, and then figure out exactly what it is you're putting money against.

8:50 Awesome. Some wise piece of advice there. I think that's definitely what a lot of people should train themselves to do. And to do this on some temptation, I get it. You know you want to do what everyone else is saying on social media. But I think Yeah, slow down a bit. I agree with you. So let's, let's move straight on. So there's a lot of people out there who are sceptics and people who think I don't trust crypto, or, you know, this is gonna die out very soon. What would you say to those people? Like, yeah, what would you say to people? Cuz I mean,

9:19 I was I guess, like that in the beginning. I've watched those documentaries are only I know, some bits around cryptocurrencies. I wouldn't say I'm a pro at it at all. But you know, there is this kind of toying us with some people like yourself, who have you no advocates of it and enthusiasts. Yes. People say no, forget that one. Wouldn't put a single penny in there. What would you say? Well, I would say fair point, to be honest with you, like there's a lot of risk in investing something that is in its early stages. I mean, bitcoins been around for a long time. cryptocurrency has been around for over a decade now, in fact, but it's still very much in its early stages, which is why you see massive price volatility with huge spikes, and then huge drops in the price as well. But over the years, we've kind of

10:00 seen those, those fluctuations almost decrease in size.

10:05 With every single Bitcoin halving, it seems to get a little bit a little better, it means you get slightly less returns, but then you get slightly less drops, it's still, we're still in the phase of adoption. So yes, I can understand people's concerns about it being a risk and whether it's put your money in it. But then, with no risk, there's no reward. So you've got to kind of be willing, as people always say, to lose the money that you put in, what I tell myself is if I'm about to go buy a new pair of like, J's or Yeezys or whatever it is, do I really need that pair? Or can I just put it into bitcoin? Because that might help. Like, for example, if I'm gonna like, I don't know, you know, everyone's been in lockdown, just like buying stuff on Boohoo sales and ASOS. So we're not going anywhere.

10:48 So whatever money you think you're gonna waste, and you're gonna lose it anyway, might as well put into something that could potentially rise. Now, it's been rising for a very long time. So as it progresses, the risk of it failing is slightly smaller. But yes, there's always that risk in the background. It's just all it all pertains to how much risk you're willing to take in terms of investing the money.

11:09 Mm hmm. I think that's a really good point you make I mean, I know I'm not someone who shops online like that. So those sales I see and I can walk past it. But for me, I've always made money ordering food, ask me I'm mad hands up ordering food. But when you put it that way, you know that money, I'm gonna waste anyway. I can go down to the kitchen and cook and put that money into investing. Why don't do that? Yeah, there's rice.

11:31 There's always rice at home, Yes, you just choose not to have the rice at home but you're ready to start having more and put more money into investing, right? This is kind of a curve, of course, I'm going to throw it to you now. Where do you think obviously no one knows. This is just our little fun guess we're going to do Where do you think cryptocurrency as well Bitcoin or any cryptocurrency is going to be in the next 10 to 20 years? Where do you see it going in direction? Because a lot of people say it's going to be like a dominant currency like what do you think that looks like? Now, I would say from my perspective, I definitely don't see it being the dominant currency. I see it being paired alongside the USD and even then it's going to have some hurdles to jump over. So for example, we've already seen, for example, in Nigeria that banning cryptocurrency transactions are seen here in the UK, HSBC has banned cryptocurrency transactions to banks. So yeah, there's going to be some hurdles to jump over. But I see it now as a currency more of a store of value. The interesting thing about Bitcoin,

12:28 a move on to other cryptocurrencies, often, the interesting thing about Bitcoin is that it is, in a way, kind of like a religion, and a currency. And that sounds almost sounds bad to say it's like almost Ponzi scheme, you say, but it's, that's the essence of currency is the essence of something that you use to trade for another item. If you believe that it has value, then it does have value. Now there are hundreds of 1000 millions of people now that believe that Bitcoin has value even more entering the space because they believe Bitcoin has value. It's a store of value that people are using now, maybe as a hedge, or should we say in lieu of using gold? So I think there's the past six months, there were massive increases in orders from gold from major invest in orders of Bitcoin for major investors and decreases in orders of gold because they believe that given that it's a deflationary asset, given that there's a fixed supply that is going to have a good store of value for the long term, which is why for them we'll see Tesla buying 1.5 billion Bitcoin Pay Pal saying they're accepting crypto payments square considering getting Bitcoin the mayor of Miami is considering putting some of the city's money into bitcoin as well. People believe it's going to be a good store of value. So it's, it's, I'd see it living that way. But for me personally, I'd say that decentralized finance is far more important than Bitcoin. Now, decentralized finance has been this kind of development in recent years, where,

13:52 in a way, it completely removes the human element from finance. So we don't necessarily have to trust human actions or humans competency anymore. We can trust a ledger or a blockchain to provide us with all the data that we need. And there's been a lot of innovation in this space in terms of blockchain developments already. So regularly on a day to day basis, I'm like helping startups grow as a marketing strategist. So we've had quite a few blockchain based like e-wallets come out recently.

14:21 Spotify actually use blockchain technology, not necessarily cryptocurrency, if you will, but these blockchain technology.

14:29 You can use it in these things called smart contracts, which I'd encourage everyone to read up on. But personally, I think decentralized finance is the way

14:37 another case in point to that is the whole Robin Hood fiasco, we saw exactly what happens when a centralized authority has control. It doesn't pan out for the little guy at all. So if we had a kind of system or an exchange, I always like to say that I'm using an exchange called uniswap. As an example, we could eliminate problems like we had with Robin Hood just shutting down

15:00 Sell it also is a shutting down the exchange to new buyers, if you will, or shutting down registrations at the decentralized exchange, make sure you get the fair prices, no interference from a third party.

15:10 And that's just one example. One example of the different ways that decentralized finance can be used. And we're at the very, very, very early stages of that. So I'm quite often talking to friends about projects, we should be investing in looking for new ones, but the space is just taking off. So after looking at Bitcoin, I would say maybe look at Etheorem and then move on from there look at decentralized apps that are being built on etherium and all these other block chains that could provide some kind of technological innovation for banks in the future.

15:39 That is so interesting. Thank you for kind of sharing that as well. I mean, there's, there's so many points you made there. I think it's really important. I think people definitely for listening, and it's something that interests you. And for me after this, I'm gonna go and run and have a deeper dive into cryptocurrency for more clarity, definitely think it's interesting to, at the very least have knowledge on and then once you're comfortable with, I think you'd agree to then maybe look to put your money into but I definitely I'm sure you're the same I'm advocating, make sure you understand what you're investing in. I've heard so many stories of people just throw money into places and you have no idea where to put money into sorry, you want to make sure that you know what you're investing in. So yeah, completely agree with you. And finally, I would say what would you want one? If I said, right, everyone from this podcast is going to take one thing away from what you said, what would that one thing be in your opinion, it would be what we've just gone over, like multiple times, read, read, read, make sure you know what he's got. I can't say that enough. Because even the people that think they're well-read, don't quite understand why they think should appreciate. For example, again, in the currency, if they say that he's going to appreciate because of supply and demand, then, again, the opportunity cost of not holding Bitcoin, outweighs your increases from supply and demand, like the bitcoin price. Pricing increasing is programmed in because of holdings over a set period of years, whereas other currencies are just relying on people hopefully using them to the point where they increase the price. But anyway, I'm not gonna get on that. My point is this read more.

17:13 If possible, before you put down a single dollar become obsessed with that knowledge, the team that's behind the cryptocurrency know, the security of the currency in terms of ensuring your money's not going to go anywhere? No, the governance of it as in the tokenomics? How's the coin shared out within the space? Like, is the team holding a large proportion of the coins? So maybe they can dump on you later? Or is it spread out in a decentralized fashion? And then also know the architecture and technology of that coin? So what problem is it solving? It might be a cool coin, I'm gonna name one here. So for example, there's a project called odious, which is basically like, there's just a blockchain, Spotify, and as artists get paid in crypto for their music, it's a cool tool. Me personally, I don't think it's solving a problem that would move artists all the way over to crypto because we've seen Tidal. Tidal offered to pay artists a little bit more artists didn't necessarily move because the masses didn't move. So there's cool stuff there. But like, you've always got to remember if you're gonna invest, what problem is it solving.

18:15 So yeah, read more, understand your projects, and know where your money's going to. We're solving that's it.

18:22 That is absolutely amazing. Dalonie, thank you so much for this. This has been so insightful. And I know everyone listening has really taken away some major gems from this could have been actually incredible. Where can people find you check what we're doing? if they have any other questions will just stick out to me in general, find you. They can find me tweeting aggressively about Arsenal and their failures on Twitter. @afewmilesaway. I'm on Instagram @afewmilesfromhere, and I'm on clubhouse every now and then @dalonie.

18:51 Amazing. Thank you so so much. everyone listening in, make sure you follow up. Thank you so much for listening. And we will be back again next week. Thank you. Bye.

Transcribed by https://otter.ai