Health, Wealth, and Happiness

February 14, 2024

“Nearly every time I strayed from the herd, I've made a lot of money. Wandering away from the action is the way to find the new action.”

- Jim Rogers

Howdy, investors!

As bitcoin blows past the $51,000 mark, you may be wondering how well it's stacking up against the S&P 500. Today, you can find out (and gloat)!

Institutional investors are increasingly noticing Avalanche as a promising Layer-1. Here's what you might want to know before investing in AVAX.

Solana is another popular L1 that's generated a lot of press because of the airdrops occurring in the Solana ecosystem. Here are 5 ideas to check out.

Tax season is rapidly approaching. As the IRS increasingly sets its sights on crypto profits, will you be ready for your crypto taxes?

Read on!

Bitcoin vs S&P 500: How They Compare

by Anatol Antonovici

Investors looking for easy strategies often use market indexes like the S&P 500. By buying a single index fund that tracks 500 top companies, investors can tie their wealth to the market's overall health.

Indeed, our investing approach is to hold most of your investments in a simple index fund like the S&P 500 -- or even the entire stock market! -- with just a small percentage allocated to bitcoin. (Read more about our approach here.)

There are still plenty of traditional investors who laugh at this strategy, avoiding bitcoin altogether. The question they should be asking: how does bitcoin stack up against the S&P 500?

In this article, we look at the recent historical performance of both the S&P 500 and bitcoin, to help show why our strategy has performed so well, and convert a few skeptics to the new way of investing.

Learn more about bitcoin vs the S&P 500 >>

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Do you Need to "Buy the Dip" to Profit from Crypto?

One common piece of advice in crypto is to "buy the dip": buy when prices are down. But is that even possible?

In truth, you can't see the full extent of the dip until the price rises again, making this moving target almost impossible to hit.

In our Investor Mindset series (only available to our premium subscribers), we look at the psychology of investing in crypto.

Our Investing Bravely episode tackles the idea that you don't have to "buy the dip" to be successful, and there's a better mindset towards investing in crypto.

Premium members can download the audio file and hear our thoughts on being brave with your investments.

Not yet a Premium member? Sign up now and get access to our complete library of tools and tips to make you a better crypto investor.

Must Read

Today's most important stories for crypto investors.

Navigating the Avalanche: An Introduction to the Avalanche Network (Coin Metrics)

With a distinctive consensus mechanism, Avalanche is a worthy Layer-1 contender, addressing the complex tradeoffs of scalability and interoperability. With its increasing adoption from institutions and individuals alike, now might be the time to look deeper into how Avalanche (AVAX) fits in your own investing strategy.

Are Solana Airdrops Still Worth Farming? (The DeFi Investor)

Airdrops have gotten a lot of press lately, and some of the biggest have come from the Solana ecosystem. Consider the December 2023 airdrop from Jito, which netted some users $15K for simply depositing 1 SOL on Jito for a few months. Since then, prospective airdrop farmers have been pouring into the Solana ecosystem. Here are five airdrop farming opportunities that may pay out soon.

Are You Ready For Crypto Tax Season? (The Defiant)

The IRS is taking crypto tax seriously, with authorities increasingly clamping down on the industry. The good news: buying and holding crypto is not taxable! For those who have sold crypto and triggered a taxable event, there are plenty of tools for calculating taxes. And exchanges have become much better at supplying transaction history reports, to make calculating taxes on crypto far easier.

Chart of the Day

Proof that DAU is correlated with price action.

Courtesy Token Terminal

We strongly believe that growth in the number of daily active users is one of the biggest drivers in increasing the long-term value of a token.

The Solana (SOL) chart above is a good example. We can visually see how Solana's DAU growth (green line) translates to increased price for the SOL token (purple line).

You can also see that the growth rate of price and DAUs, as expressed in a percentage, is highly correlated.

If you're considering adding a new token to your portfolio, we highly recommend researching their DAUs, to see if they're going "up and to the right."

ICYMI