Sparta Crypto
Search…
💸
How To WIN In Crypto WITHOUT getting lucky.
Learn the fundamentals of becoming the ultimate Spartan investor.
DISCLAIMER: As a disclaimer for our Spartan project, none of this is financial advice. We are sharing how Sparta uses crypto as a tool to generate wealth. We are here to educate our army by providing options, opportunities, and insights. Do your due diligence and take responsibility for reading the material before taking any personal actions.

To understand how to win in crypto, we must find out why people lose in the first place.

Video walkthough
"All I want to know is where I am going to die so that I can avoid going there." - Charlie Munger (Charlie Munger is a billionaire investor and Warren Buffers business partner)
What does this quote mean?
Imagine you invest your life savings of $50,000 into dogecoin because you "believe" that it will "blow up," and everyone is saying it's going to “go to the moon.”
Now let's say that dogecoin tanks and your life savings of $50,000 turned to $2,000 because of the volatility and nature of the crypto market.
Knowing what you know now, after going through that traumatic financial experience you'll need to recover from, would you still make that decision?
  • Of course not
Because you know, you will “die” (referring to Charlie Munger's quote), so the wisest thing to do is to AVOID going there in the first place.
In the book "The road less stupid,"...
Keith Cunningham - Rich Dad from Rich Dad Poor Dad

Fitness example:

Imagine two friends. One is named Chad, who overeats, and the other is Kobe, that does not.
In 2 years, the compounding of doing dumb things (overeating), your friend Chad is now 300lbs, and Kobe is steadily at 200lbs.
Say Chad decides to make a change and go on a strict diet and workout plan to lose weight.
We will praise and celebrate Chad, who lost over 100lbs (a remarkable feat), but we rarely celebrate Kobe, who never gained over 100lbs.
So to win in crypto or any other domain, we must value the prevention of losing behaviors and celebrate that.

Sparta Fundamental #1: Prevent Losing Behavior

What is the five core losing behaviors that would prevent you from winning in crypto?
  1. 1.
    Lack Of Clarity On “The Gap”
  2. 2.
    Emotional Action Taking
  3. 3.
    Contradicting Short-Term and Long-Term Strategies
  4. 4.
    Frequent Price/Chart Staring
  5. 5.
    High Risk - High Reward Mentality
By avoiding these behaviors, you will be able to WIN because you'll behave in ways that prevent you from losing.

#1: Lack Of Clarity On “The Gap”

Where are you going?
The people who lose in Crypto lack clarity on where they are at, where they want to go, and a realistic timeline to get there.
If you are clear on “the gap” you’re trying to close, you will be able to prevent all of the points off the list of losing behaviors and win in crypto WITHOUT getting lucky.
Dogecoin example
You think it’s going to “blow up.” And that’s cool, but that’s investing based on speculation.
Speculation investing = Gambling
Sadly many new crypto investors default to the “speculation gambling strategy,” and maybe there’s that 1 LUCKY person out of millions that makes millions but the chance of that being you…. less than .01%.
As a Spartan, we focus on how to win in crypto WITHOUT getting lucky.
The question we must ask before we invest is…

What gap am I trying to close?

The starting point
“I think dogecoin is going to blow up, and 10x” has nothing to do with closing the gap, and it’s just speculation gambling.
There’s usually a reason you want it to blow up. Maybe it’s to buy a Lambo, go on a shopping spree, increase your savings account, have 100k in your bank account, whatever it is.
Finding out the reasons is where you start! What do you want? If you’re clear on what you want, then there’s a clear gap that we can close.

So what does closing the gap look like?

As an example,
"I want to invest in crypto because I want 5 million dollars in 10 years. Five million dollars will allow me to retire from my job, pay off my debts, pay for my kids' college tuition, buy a Tesla Model X and travel to 12 different countries a year."
This is where you want to go.
  • End of the gap.
Now we have to find out where we are currently at.
  • The starting point of the gap.
I am 32 years old, married, have three kids, and work as an insurance agent making $150k a year with a savings of $50k. I can responsibly put $1000 a month towards investing in crypto.
Now that we’re clear on where we want to go, our starting point, and timeline. We have a clear gap.
  1. 1.
    Where we’re at - 32 years old, married, have kids, and have $1000 to invest a month responsibly.
  2. 2.
    Where we want to go - 5 million to retire, pay off debts, buy a dream car, et.
  3. 3.
    Timeline - 10 years
Now that you have a clear gap you are personally trying to close, we can reverse engineer to close it because we have defined where we are at, where we want to go, and in what timeframe.
With an unclear gap, you will be a chicken with its head cut loose, running around in multiple directions, not knowing where you’re going.
Running around getting nowhere.
Now that we’re clear on the gap, the next step is to ask this question…

“What is the fastest, safest, most efficient way to close the gap and reach that goal in that timeline”

Remember this: When the gap is clear, so is the path to winning. You will continuously behave in a losing manner if you lack clarity of the gap.

#2: Emotional Action Taking

“When emotions go up, intellect goes down” - Rich Dad Poor Dad

The four most common emotions that ruin investors are

FOMO (Fear of missing out)

WATCH OUT FOR THESE NARRATIVES.

Urgency (The feeling like you need to do something NOW)

WATCH OUT FOR THESE NARRATIVES.

Greed (More money)

WATCH OUT FOR THESE NARRATIVES.

Fear

WATCH OUT FOR THESE NARRATIVES.
BE CAREFUL WHAT YOU CONSUME. WHAT ARE THESE YOUTUBERS TRYING TO GET YOU TO DO BY TRYING TO ELICIT THESE EMOTIONS IN YOU?

Example: Dogecoin

Think about how many people got destroyed financially buying dogecoin during its hype and mania because they took actions based on the emotions of FOMO, greed, urgency, and fear.
  • “Elon Musk is going to show up on SNL and shout out Dogecoin, and I have to invest before I’m too late” - FOMO and URGENCY.
  • “If I get dogecoin now and it 10x, my 50k is will turn into $500,000” - GREED.
  • “Oh my goodness, dogecoin went down 30%, and people are selling; I should sell before I lose any more money” - FEAR.
Think how irrational those thought processes are but how many humans fall prey to the emotions of FOMO, urgency, greed, and fear.
We are still in the EARLY stages of crypto (March 2022), so there’s no need to rush to act.
Rushing is LOSING BEHAVIOR that leads to poor mistakes. Imagine how many people lost more than they could afford to lose with dogecoin or any other investment.
If you act on these four emotions (FOMO, urgency, greed, fear), you are on a surefire path to losing in crypto.
The way to win in crypto is to PREVENT LOSING BEHAVIOR
If you feel these four emotions, DO SOMETHING ELSE UNTIL EMOTION GOES DOWN. Remember, as emotion goes up, intellect goes down.

#3: Contradicting Short-Term and Long-Term Strategies

Definition of Contradiction.
We will do two examples for this, one for investing and one for parenting.

Investing Example

Your long-term strategy in crypto is investing where you can “set it & forget it."
  • An optimal strategy to accomplish that would be earning interest on assets you believe in. For Spartans, we use an autocompounder provided by knightcompounder.com.
But let’s say what you’re doing right now (short-term) is day trading and looking at charts religiously.
  • Now, does this strategy align with the long-term strategy? Absolutely not.
You are doing something SHORT-TERM that contradicts what you’re trying to do LONG-TERM.

Parenting Example #2:

Let’s say your long-term strategy is to spend more time with your kids.
You work from 8:00 AM all the way to 6:00 PM and the only time you spend with your kids is dinner time.
Now let’s say your boss gives you an offer to work on a project temporarily for four months, and he will provide you with a raise and bonus if you take it, but you must work from 7:00 AM to 9:00 PM.
If the long-term strategy of what you want is to spend time with your kids... what’s the obvious answer?
  • Obviously, it's no.
You wouldn’t take it because short-term, that contradicts what you’re trying to do long-term, which is spending more time with your kids, not less time.
Remember: If the gap is clear, so is the path to winning. If the gap you're trying to close is meaningful enough, you’ll have clarity on what contradicts your long-term strategy and not behave out of alignment with that.

#4: Frequent Price/Chart Staring

Look at the crypto emotional stress.
“If you think that you can control your emotions, think that some people also believe that they can control their heartbeat or hair growth.” - Nassim Nicholas Taleb
New investors don’t factor in that frequent price/chart staring, especially in the volatile world of crypto, which places UNNECESSARY self-inflicted emotional stress.
The #1 self-inflicted emotional stress new investors place on themselves is frequent price/chart staring.
  • Let’s say you just invested $1000 into $SPA, and 1 hour it goes up 50% ($1500), and then the next hour, it goes back down 50% to $1000, which is VERY COMMON in the crypto world.
  • On paper, you broke even (your $1000 investment stayed $1000 - You didn’t lose or gain), so logically “it doesn’t matter.
  • But by staring at the chart going up and down, you put yourself at a huge emotional loss because human greed says, “I’m down $500 from $1500,” even though you’re right where you started.

Key point: LOSSES HURTS MORE THAN EQUIVALENT GAIN FEELS GOOD.

Let’s use an example using Mr.Beast.
Mr.Beast creates insane games where the #1 winner wins insane prizes. In one of his videos, extreme $500,000 game of tag.
Lincoln won $500,000 for the competition, and the runner-up got a free car and $10,000.
Lincoln the winner
The runner-up, Andy, felt an emotional loss for not winning $500,000, even though he got $10,000 and a free car.
Andy the runner up
Things that FEEL BAD (Not getting $500,000) hurt more than things that FEEL GOOD ($10,000 and a free car).
Now when it comes to crypto, imagine what happens when you frequently stare at the chart/price going up and down and what that would do for you emotionally. Remember, as emotions go up, intellect goes down.

Do you think you will make the best decisions in an emotional state of fear and panic?

If you cannot control your emotions, you cannot control your money. - Warren Buffet
Key Point: Do not put yourself in the position to be emotionally vulnerable by staring at the price/chart all day. People that lose are people that take emotional actions.
If you have a massive belief in what you are investing in long-term, then short-term price action should not matter, should it?
If you are day trading or doing short-term plays then it would make sense to look at the chart. However, if you are NOT day trading or doing a short-term play, looking at the chart is detrimental to your emotional health.

#5: High Risk - High Reward Mentality

Have you ever heard someone say... high risk = high reward

When it comes to crypto, a group of individuals chases “moonshots,” slang for getting a high reward like your money multiplying by 100x.
But the tradeoff of chasing moonshots (A.k.a gambling) is that your money can go straight to ZERO with the risk of...
  • Rug pulls - Where the team removes liquidity to prevent trading.
  • Soft rug pulls - The team slowly removes liquidity as more people buy the token.
  • Honey pot - A smart contract mechanic that prevents you from selling the token you've bought
Reward = 100x your money
Risk = Money goes to ZERO

Refer to this video of what I mean

Squid games rug pull

The wealthiest investors want the risk to be as LOW as possible compared to the potential reward.

The wealthiest investors want the risk to be as LOW as possible compared to the potential reward.
Let’s play a game
First, would you take the following bet (risk)?
$100 to enter. $100,000 prize. 83% chance of winning.
Basic math/probability makes this a no-brainer for most. But basic math might be the wrong math.
Are you SURE you would play this game/take this bet (risk)?

The game is Russian Roulette.

83% chance of winning. 17% chance of dying.
If the outcome is you dying (think Charlie Munger - that’s what we should avoid), no amount of rewards outweigh that risk.
How does this apply to crypto?
Most new investors chase the upside of the rewards of the next 100x token (Next dogecoin, Shiba Inu, Floki) and put in more money (risk) than they can afford to lose. They are playing a game that’s not in their favor.
The ideal way to invest in risky plays like moonshots would be using free yield from farms making it low-risk, high reward. The principal was never at risk, and you are playing with house money.

As a Spartan investor, the ideal scenario is Low Risk - High Reward.

Make sure you're in the right quadrant.
Low risk is the fastest, safest, most efficient way to close the gap and reach that goal in that timeline.
The highest reward is closing the gap and getting what you want out of life.
Copy link
On this page
To understand how to win in crypto, we must find out why people lose in the first place.
Sparta Fundamental #1: Prevent Losing Behavior
#1: Lack Of Clarity On “The Gap”
What gap am I trying to close?
So what does closing the gap look like?
“What is the fastest, safest, most efficient way to close the gap and reach that goal in that timeline”
#2: Emotional Action Taking
The four most common emotions that ruin investors are
FOMO (Fear of missing out)
Urgency (The feeling like you need to do something NOW)
Greed (More money)
Fear
#3: Contradicting Short-Term and Long-Term Strategies
Investing Example
Parenting Example #2:
#4: Frequent Price/Chart Staring
Key point: LOSSES HURTS MORE THAN EQUIVALENT GAIN FEELS GOOD.
Do you think you will make the best decisions in an emotional state of fear and panic?
#5: High Risk - High Reward Mentality
Have you ever heard someone say... high risk = high reward
Refer to this video of what I mean
The wealthiest investors want the risk to be as LOW as possible compared to the potential reward.
The game is Russian Roulette.
As a Spartan investor, the ideal scenario is Low Risk - High Reward.