This week we will discuss how you can stake to earn extra crypto as well as the state of the market. While this week's market might not be blowing you away now is a good time to think about how to earn extra with your crypto.

The news this week is all about the nations. Three different major countries has news items directly relating to crypto. We discuss the implications of these announcements in the news segment.

I can be reached by email at mcintosh@genwealthcrypto.com and on twitter at @McIntoshFinTech. Looking forward to hearing from you!

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https://genwealthcrypto.com

Music Credits

Protofunk by Kevin MacLeod

Link: https://incompetech.filmmusic.io/song/4247-protofunk

License: https://filmmusic.io/standard-license

Ethernight Club by Kevin MacLeod

Link: https://incompetech.filmmusic.io/song/7612-ethernight-club

License: https://filmmusic.io/standard-license

Hey everyone!

No one on this podcast is a financial advisor.

All information presented on this podcast is for informational purposes only.

And now that we've got the legal stuff out of the way, let's jump on in.

Welcome to the Generational Wealth with Cryptocurrency podcast.

I'm your host McIntosh.

Today we're going to be talking about some world news as well as staking.

Let's jump on in.

All right, today's episode is going to be a little short.

The market overall kind of sideways as it has been for quite a while.

We will discuss that a little bit.

But I do want to talk about staking.

It is a topic that we have mentioned before.

And in case you're wondering of some things to do while we're waiting for the market

to go up or go down or do something, it's actually something that you may want to consider.

If you own some Ethereum, if you own some Cardano, I believe you can stake Solana as

well.

There are a number of currencies that you can stake.

I'm going to talk about Ethereum and Cardano.

I have experience with those.

But if you have another currency that you would like to do this with, you can certainly

check and just do a quick Google search to see if you can stake.

Basically, with staking, that's kind of the engine behind proof of stake.

We've talked about proof of stake versus proof of work in the past.

Bitcoin, as an example, does proof of work where you mine Bitcoin.

Currently, Ethereum does as well.

However, they are moving to a proof of stake model.

And as part of that, you can actually already stake your Ethereum.

Now, there are two ways of staking.

With Ethereum, you can either run your own staking node.

You can basically set up a transaction node.

You can put your Ethereum, which you would have to have 32 of, commit that to the staking.

That would not be available until after the merge happens, which we believe will be later

this year.

We certainly hope that happens.

And so you're kind of committed there.

Not that that's a bad thing.

In return, you get the highest possible return for that staking.

Now, on the other hand, you can go to a exchange like Kraken, and you can stake through their

program.

So in this case, you don't have to have the full 32 ETH that you would for a do-it-yourself

staking setup.

And in return, Kraken manages the entire process.

It's very, very simple.

You just basically say, I'm going to stake these, and they move into that staking pool.

I'm not sure about Kraken on the ones that I've looked at.

Actually, you can move them back out.

I bet that's true with Kraken as well.

And they manage all that process.

In return, they're going to kind of take a cut off the top.

You're not going to get as much return, but you're going to get return.

And I don't know offhand what the rewards are, but it should be around 5%, 6%, something

like that.

So it is certainly worth it.

If you had a full 32 ETH, I think when I did my calculation for it, you actually got around

2 ETH in reward, and that's on a yearly basis.

You're accruing it, you know, probably, well, you're accruing it constantly, but I'm just

saying over the course of a year, you would get about 2 ETH in reward.

I'm also familiar with Cardano.

I actually currently stake the small amount of Cardano that I have as a way to try and

increase that.

So with Cardano, probably the best way to get involved at this point, you would have

to have a Cardano wallet.

I use a wallet that's called, I don't know, I'll spell it out.

I don't know how to say this, D-A-E-D-A-L-U-S, and that I run on my laptop that I manage

my crypto with.

My Cardano stored in that wallet, but I specify a staking pool, and the interface is fairly

easy for that.

You can find a staking pool that you can stake your Cardano, and again, you're committing

to it, although in Cardano's case, you can withdraw at any time, very similar to like

if you were staking ETH with Kraken, or one of these other centralized exchanges.

And you're accruing Cardano, and it's used for the same purposes.

You're staking a transaction node, or multiple nodes, I'm sure, on the network, providing

that security for the Cardano ecosystem.

So while you are waiting for the market, I would encourage you to do two things.

You might want to consider staking, and you might want to consider doing that long term.

You say, well, two ETH isn't very much, or some percentage of that, but over a long time

period, it's not bad.

Five percent return is better than you get at the bank, I would point out, and this is

on an asset that historically is appreciating in value.

So not only do you get the five percent return, the compound interest, as it's called, but

you also get an asset that's going up in value.

So it's not quite like putting money in a savings account in the bank, where I stick

10 grand in the bank, and then I get, well, these days, less than a percent of interest

on that.

And that's accruing over time.

If I come back in 10 years, well, I'll probably have about $10,200.

But with Ethereum, if I'm staking that, or Cardano, certainly with Ethereum, we've got

the track record to show that over time, we've got a rising price.

So three, four, five years from now, maybe, let's say 10 years, I don't think it's crazy

to think that Ethereum would be double the value that it is right now.

So not only is it double, you've got more of it.

So that's a win-win.

All right, so there's other options.

There's other coins, any coin that you do proof of stake with will have some formulas

of staking.

That's the staking part of proof of stake.

So I would encourage you to look into that, and do not forget during these times when

we don't know what the market is doing, continue to dollar cost average.

Today is the second, as I'm recording this, the second of February.

So for me, that means I should be doing my dollar cost average.

I have not yet decided this month what I'm going to buy.

I've been debating.

Probably going to go with just Bitcoin this month.

I didn't buy any last month I'd intended to, and in fact, I may test that Strike app.

I have the money loaded in the Strike app, and if you recall, I told you with the Strike

app that we can actually do a DCA that happens every day.

You could even do it every hour for that matter.

And in fact, I'm going to do that while we are live.

So I am going to set my buy daily and put in the amount, let's see, 30 days.

Yep, that would do it.

Wait, how many days are there in February?

Well, there's not 30, so it's actually 28.

So that's close enough.

So we'll do that.

I'm going to kick off my buy, confirm.

That was done.

I just purchased my amount for today.

I just got an email saying you bought Bitcoin and now every day at roughly 1230 in the morning,

because that's when I'm recording this, because I couldn't sleep.

I'll buy my Bitcoin for the next 28 days.

So there you go.

It's that easy, literally, once you have your bank account set up.

And I told you all I had a little bit of trouble with that, but that was not a normal issue.

No biggie, got it straight.

The Strike customer support did a good job.

So don't forget to DCA, especially in these kind of weird times.

Let's segue from this into a discussion about the market.

We'll talk about that for a few minutes, then we'll talk about the news.

Some interesting news in the last few days.

Okay, market, yes.

We are at 38,529, which I believe was higher than the last time that we recorded.

However, I am not convinced at this point yet that we are going up, up, up.

I do not think that's actually the case.

I do not know, but there's an interesting confluence of resistance levels going on right

here.

And we bumped our head on it earlier today.

I believe we went up to 39,000 and roughly 200, and then basically that was the peak

and it started drawing back.

We're now down to like 38,300.

So we've actually dropped almost $1,000 since it reached that high earlier today.

Maybe tomorrow it'll get pushed back up.

We will see if it breaks through this level and it breaks through 40 and 41,000.

I think at that point, we'll probably hit 48.

I think that's been pretty consistent with what I've been saying for the last few weeks.

48, there'll be some more resistance there for sure.

But 41 to 48 is, if I'm not mistaken, a 20% move, $7,000.

So almost a 20% move.

So there's nothing to sneeze at.

But if we don't push through, I think we're going to go back to 33 to 35.

If that doesn't hold, 33, by the way, was kind of our local high.

We hit it back in early January, I want to say.

Hasn't been too long back.

We break that, we'll be hitting 30.

We break that and I do think it'll be a ways down.

I'm not a bear.

There's lots of bears, crypto bears on the Twitter.

But I am realistic.

If these levels of support don't hold, then the price is going to go down.

Now, if we get below $30,000, and I believe I've said this before, I do believe that we

could be in for a bear market.

We could be in for a period of six months or more of low price and not going up a whole

lot.

Now, I don't think it's going to go down and touch $10,000.

But if it does, it's a great buying opportunity.

There is an interesting thing.

We broke a level called the 50-day moving average and that's happened in the past with

Bitcoin.

When I talk about these charts in general, I'm always talking about Bitcoin, I hope that's

clear.

Bitcoin, certainly for now, leads the market.

It, in a lot of ways, sets the pattern.

We will not have a big bull market in altcoins without Bitcoin leading the way.

It just will not happen, at least for now.

There may be a point coming when that's not true.

Anyways, back to my story.

50-day moving average, been broken a few times.

Every time it's been broken, three or four times, every time it's been broken, Bitcoin

has then gone down and touched the 200-day moving average.

We haven't done that yet.

I'm betting that we will before we go back up.

I'm not betting.

Well, I'm not in a trade right now, just to be clear.

I'm very uncertain about these markets.

I think a lot of people are.

Some people don't want to admit it, frankly, because it doesn't make them look good.

But I think a lot of people, there's a lot of confusion out there right now.

We will sit back, at least I will.

If it breaks 41, that's game on for the traders.

If it goes down, I've never shorted a market.

I never have.

It's almost against my nature.

But if we break some of these levels and things start going down, there's an opportunity there.

But as a long-term holder, there's also a good opportunity to buy.

That's kind of the state of the market.

I wish I had better news.

We have had some good news for the last few days.

Things have been going up.

We're certainly a long way from our highs, of course.

But like I said, now we've reached 39.

We've reached this kind of $39,000 to $40,000 level, a lot of resistance.

The buyers have kind of petered out.

I will say this, just as another little aside, one of the reasons why I think we're going

to be going down again is that there's not a whole lot of volume in the market.

The market overall has been...there was not a whole lot of volume all of last year, really,

in retrospect, unlike some of our previous runs.

A lot of the retail is not there, the average people.

Even though you've got large corporations buying, like MicroStrategy, for example, who

announced, I think, oh, I don't know, 600 Bitcoin buy, they don't buy it at Coinbase.

We could do a whole podcast on that, how they do that, but they don't buy it on Coinbase.

So actually, those large buys don't directly affect the price.

That's just the way it is.

So until we get volume back, I don't think we're going to have a bull run.

So anyways, moving on, news section, I want to wrap this up pretty quickly today.

News, lots of news this week, actually, some very important news.

I wanted to point out a few things.

Actually, all the news that I'm going to discuss is kind of at the nation state level, so that's

interesting, and three very large countries involved.

Number one, India, recently was saying they were going to ban crypto, nobody was going

to be allowed to deal with crypto.

Well, now they've come out and said, no, we're not banning it.

We're going to tax it at 30%.

So they're putting regulation.

You remember one of my themes for 2022 was going to be regulation.

Here's some of it, you will see this more and more.

And so we're going to regulate it.

You're going to be taxed at 30% on your gains, and they're going to implement a very aggressively

a digital rupee.

So they're moving to a central bank, digital currency, national currency, whatever you

want to call it, the digital rupee.

So India has decided to put some real skin in the game.

All right, nation number two, Russia.

Now, two things came out of Russia this week.

They estimate that the Russian citizens have around $213 billion in crypto, which is a

significant portion of the crypto overall total.

And in fact, it's higher than their percentage of the world population by quite a bit.

I don't know the numbers off the top of my head, but it was an interesting little stat.

$213 billion out of a market that, you know, at its peak was $2 trillion.

So there you go.

Now Russia, to my knowledge, has not been saying they were going to ban crypto or anything

like that.

However, Putin, the Russian, I believe he's the president.

I apologize if I'm not saying that correctly, premier, whatever his title is.

He came out this week and said basically encouraging companies, people, businesses really to come

to Russia and mine Bitcoin, you know, mine crypto because Russia, one thing that Russia

does have besides the cold winters is cheap fuel, natural gas, cheap electricity, right?

Cheap power.

And actually I said, you know, cold winter is almost ingest, but having the cold weather

is actually beneficial in a mining operation like this, where your servers generate a lot

of heat.

I've worked in data centers and those servers do generate a lot of heat, keeping them cool

is actually a big issue.

And if it's minus 20 degrees Fahrenheit outside, that's beneficial because you can use that

to cool the servers, reducing your power usage.

So anyways, Russia is kind of moving towards the direction of being pro Bitcoin.

And then interestingly, right after that, just a few days ago, the Biden administration,

specifically President Biden came out and said, we're going to have to look at crypto.

We're going to have to analyze it.

We're going to have to provide some rules, regulations.

Once again, there's that word as a matter of national security.

Now I am old enough to remember the cold wars of the seventies and early eighties.

I remember when the Berlin Wall fell, so on and so forth, when Russia broke up, when the

USSR broke up, I should say.

And frankly, I don't think, well, I believe that this is a direct response to what Putin

said, first of all.

I don't think crypto is a matter of national security at all.

That's very disingenuous.

It's a way for the administration to say, we're going to stick our nose into this and

regulate it.

And I'm okay with regulation.

I'm not okay with, it depends on the regulation.

I think regulation in and of itself is not inherently evil.

And in fact, regulation will bring in large companies.

There's a lot of companies that are waiting for regulatory clarity to happen so that they

can put crypto, Bitcoin, Ethereum specifically, on their balance sheets as assets.

And they won't do that, many of them, until that clarity happens.

So I'm okay with regulation, but I really didn't like the way that this came out, to

be honest.

And maybe I'm just being nitpicky.

I actually don't think I am.

This isn't a war.

This isn't the new arms race.

So I don't know.

That's just my take on it.

I actually hope I'm wrong.

But anyways, they said that there will be a new National Security Memorandum coming

down in the next few weeks, which is going to outline the plan to analyze and assemble

this framework of regulation for crypto, for stablecoin, for NFTs, and probably how the

United States will have a digital currency itself, much like what India is doing with

the digital rupee.

I mean, we can say we don't need that or whatever, but it is what's going to happen.

So we might as well just prepare for it.

So three different countries, really three different major news items, two of certainly

of which is very pro-crypto, arguably maybe the United States information there isn't

pro-crypto.

Again, though, there will need to be much clearer regulation than what we have right

now.

You know, you've got the SEC off going and doing crazy things and there's just, the IRS

has no idea what to do with crypto.

They don't.

They just think, they just don't want people, you know, hiding their wealth in crypto.

Anyways, there definitely needs to be clarity.

I don't disagree with that at all.

But we will see more and more of these kinds of news items, announcements and so on.

The president of El Salvador, if you're on Twitter, my goodness, and you have any interest

in crypto, you should follow him.

He is tweeting up a storm.

He tends to, I never followed Trump, honestly, on Twitter, I don't really have an interest

into it.

Didn't have an interest in doing that, still don't.

But from what I understood, Trump certainly tweeted a lot.

The president of El Salvador does the same thing.

I mean, he tweets constantly and lots of interesting stuff coming out of it.

There's a lot going on in El Salvador.

This is not a place to ignore.

So anyways, I think that's going to wrap it up for this week.

I actually went longer than I thought I would.

If you like this content, I would love it if you would visit the Apple podcast review

page and leave a review.

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Tell your friends about the Generational Wealth of Cryptocurrency podcast.

Thanks for being here.

I hope this has been helpful.

I would love to hear from you.

I'm on Twitter at McIntoshFintech and you can reach me by email at McIntosh at GenWealthCrypto.com

and of course, the Generational Wealth website is at GenWealthCrypto.com.

Now go out and make it a great week.

I'll see you in the next one.

Bye-bye.