Bitcoin recently surged to an all-time high—though it has since pulled back—so congratulations to those who held through the volatility. If you don’t own any, should you jump in now? Or at least begin researching it seriously?
Here’s my honest take: probably not.
Deep Expertise Trumps Chasing Trends
If you’re deeply familiar with a particular investment, there are multiple ways to amplify your returns—without needing to pivot to the latest hype. Take Bitcoin, for instance. Over the past five years, it’s delivered roughly a 10x return, outperforming many traditional stocks. Compare that to Cintas (CTAS.US), a company I’ve long followed—the uniform rental giant returned just over 2x in the same period. On the surface, Bitcoin wins.
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But here’s the key: with Cintas, you can use margin, stock options, or CFDs to boost that 2x into 4x or even 10x. Yes, risk increases with leverage, but so does potential reward—and let’s be honest, Bitcoin is no stranger to wild swings either.
The real edge in investing isn’t catching the next moonshot; it’s identifying high-conviction opportunities and applying smart leverage. Even in low-volatility markets like foreign exchange, traders profit using margin accounts by mastering subtle patterns over time.
I’m not dismissing Bitcoin’s long-term potential. But if you’re still unfamiliar with blockchain, wallets, or halving cycles, it may not be wise to divert your focus just because prices are climbing. Instead, deepen your knowledge in areas you already understand—then amplify those gains strategically.
This principle applies beyond finance. In your career, mastering your field before launching a venture is a form of leverage. The same patience and focus that lead to expertise in one domain can yield outsized rewards elsewhere.
Mastery Comes From Repetition, Not Switching
How do you become truly skilled? Through repetition and reflection. Years ago, I developed a method of analyzing JPMorgan’s net interest income to forecast broader U.S. economic trends. That insight helped me confidently enter the stock market in mid-April. Did I have that framework when I first started investing? Absolutely not. It took years of mistakes, losses, and trial and error.
Similarly, in Brazilian jiu-jitsu—a practice I train regularly—experienced practitioners can immobilize me with minimal effort. When I ask how, they explain techniques, but the real answer is always the same: “You just have to practice more.”
Investing mirrors this. Each mistake teaches you what to avoid next time. But if you jump from stocks to crypto to gold every time one underperforms, you’ll never gain the depth needed to make informed decisions.
Yet for many, the appeal of Bitcoin isn’t just financial—it’s emotional.
Bitcoin vs. Costco: Which Feels More Impressive?
Imagine being at a party where someone proudly announces, “I made $100,000 trading Bitcoin this year.”* You respond casually, *“Cool—I made $100,000 investing in Costco.”
Which story draws more attention? Chances are, the room gravitates toward the Bitcoin trader. They’ll get bombarded with questions: “Will crypto keep rising?” “What’s next for digital currencies?” Meanwhile, the Costco investor sips quietly in the corner.
It’s not just anecdotal—look at media coverage. When Bitcoin hits a new high, headlines flood every outlet. When Costco does? Crickets… except maybe on my own newsletter 😄.
I once had a client—an elderly woman—who walked into my wealth advisory office nervously. She wanted to buy gold. As I prepared her documents, I gently asked why.
She smiled sheepishly: “All my neighbors are talking about it. I don’t understand anything they’re saying—so I thought if I buy some too, at least I can join the conversation.”
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Gold has since risen significantly—hopefully she held on. But her story isn’t about gold; it’s about fear of missing out and the desire for belonging. That same impulse drives people toward trending stocks like NVIDIA, green energy funds, or meme coins.
Even I’ve fallen into this trap. Back in 2010, shortly after starting with U.S. stocks, I became obsessed with Apple—not because I had a strong thesis, but because everyone had an iPhone. I told myself: “You have the phone? I own the stock.”
Reality check: Apple was volatile then. I bought at peaks, sold at drawdowns, and ended up losing money—while missing steady gains elsewhere. My motivation wasn’t pure profit; it was identity. Owning Apple stock made me feel “in the know.”
That experience taught me a crucial lesson: sometimes we invest not just for returns, but for validation.
Buying AI stocks makes us feel tech-savvy. Holding Bitcoin connects us to a global movement. But when losses come—and they will—we should understand why we’re losing money. If it’s the price of social inclusion, so be it. Just call it tuition.
How to Build Real Confidence in Investing
If you’re tired of chasing trends and want a structured way to build knowledge, consider starting with education—not speculation.
A solid foundation in financial concepts, market mechanics, and risk management lets you navigate both traditional markets and emerging assets like crypto with clarity.
👉 Explore tools and strategies used by experienced investors
Whether you're analyzing macroeconomic indicators like yield spreads or building a diversified portfolio, understanding the why behind moves is what separates lasting success from fleeting wins.
Frequently Asked Questions (FAQ)
Q: Should I ignore Bitcoin completely if I don’t understand it?
A: Not necessarily. You don’t need to invest now, but keeping an informed eye on crypto developments can be valuable. Just don’t let FOMO drive your decisions.
Q: Is leveraging safe in traditional markets?
A: Leverage magnifies both gains and losses. It’s safest when applied to assets you deeply understand and have a high-conviction outlook on.
Q: Can emotional motivation ever be a valid reason to invest?
A: Emotions are part of human nature—but they should be acknowledged, not hidden. If belonging or identity is part of your motivation, factor that into your risk tolerance.
Q: How do I know when I’m ready to use options or margin?
A: When you can clearly explain the risks, costs, and potential outcomes of each trade—and have tested strategies in simulated environments first.
Q: What’s more important: picking winners or avoiding mistakes?
A: Long-term success comes from consistency and risk control. Avoiding major losses often matters more than catching every big winner.
Q: How long does it take to master an investment strategy?
A: There’s no fixed timeline—mastery comes from continuous learning, journaling trades, reviewing outcomes, and refining your process over years.
Core Keywords:
- Bitcoin investment
- Stock market strategy
- Leveraged investing
- Emotional investing
- Financial education
- Market mastery
- Investment psychology
- High-conviction trading