Crypto Investing #144 – Understanding The Layers Of Risk In Crypto – By Tai Zen

what's up guys my name is a Tyson I'm broadcasting from district 7 in Ho Chi Minh City and I'm eating some cashews right now from one of my subscribers here in Vietnam who gave it to me I guess he's from a specific village where they didn't they they pick nothing but tattoos so he saw me at one of the meetups here in Ho Chi Minh City and gave me a couple of these which is really nice they got the skin on them which I'm not used to seeing this in America normally when they sell these cashews in America they take the skin off so it's brown I don't like this it doesn't have the skin on there so tell me some cashews and share with you guys a little bit about risk okay this channel is about trading investing and entrepreneurship and we're closing in on the cryptocurrency market this moment there's it's the hottest market on the planet right now so we're not gonna Jack around with the forex market the commodities market or any of the stock market on any of those okay we want to focus our time effort and energy into the hottest market and the one that gives the most bang for the buck huh so behind me is the apartment complex uh-huh it's built by a developer called Nova land okay in in Vietnam they in America the equivalent type of real estate developer would be something like Toll Brothers alright cuz they know Vogtland focuses on upper high-end luxury the high-end in the luxury market so that's what they're building here okay I got this beautiful nice infinity pool behind me now when Nova land came out with this apartment complex there's a luxury complex there with just the blueprints only you can get a two-bedroom for like 2.8 billion dong the Vietnamese dong okay it's not a very popular currency out in the world that's traded right it's called the Vietnamese dong and you have to look up to see what the conversions are for 2.8 billion dong to the u.s. dollar it's about 23,000 dong per US dollar you don't have to do the math just listen to the percentages that I share with you guys when they came out with the blueprint they came out with it and it's 2.8 billion dollars a billion dollar I mean not not dollars but for a two-bedroom and it's about it's close to a hundred square meters okay and what happens is you put like a 10% deposit on that and then after about six months or a year they're gonna start pouring the foundation like when you put that when you they show you the blueprint and they they they take the deposit from you this whole area right here is nothing but rice paddies there's it's in America we would call it swampland okay there's water probably up to your knees up to your waist so they have to pump mud fill it in before a truck can even drive on there and a bulldozer and a scavenger and a backhoe and other construction equipment can't even get on here to even start you know hammering the pilings the concrete pilings into the ground to build the foundation okay but after six months 12 months right they they get a building permit and they get the the the pilings the concrete pilings in place to form the foundation and they pour the concrete for the foundation at that point they usually require you to pay another 10% and then after they build like you know five ten floors they require you to put up an additional ten percent and then by the time they finish all thirty four thirty five floors then then you you know add another ten percent and then when they deliver the actual condo unit or the apartment room to you like it's all concrete it's in America they deliver the condo unit to you fully completed with paint the walls are painted and the floors tiles the kitchen granite countertops and the marble countertop all that is done over here in Vietnam it's a that is not very common it is more common for them to give you the entire condo unit we just bare concrete walls and then it's up to you to put in the floor tiles you want the stone floors you want the the granite countertops or the marble countertops that you want okay so they don't do that for you okay because yeah it's an emerging market so everybody nobody trusts us anybody here in Vietnam so they can never trust the contractors to actually put in quality materials so it's very common for the homeowners to go out there and personally select the quality materials and then pay a like like the installers to come in and install the the stone install the granite countertops so that's very common for the homeowners to to buy the materials and then bring in the laborers to or the installers to actually do the work okay so you buy the the piping and then you bring in the plumbers to install the sink in the toilet and all that you buy the electrical wires and then you hire the electrician to come in because you can never trust that the electricians or the plumbers or the the floor tile people will actually put in that the material that they say in the contract that they'll actually put in like they'll say that they'll put in grade a granite or wires or plumbing and then when they actually install it they'll actually put in grade C grade B or C or D quality materials so it's very very common okay so then when when they finish when you receive the condo unit right and you finish now along the way by the time the concrete has been poured for the the power of the pilings okay in the foundation we originally paid if you paid originally paid 2.8 billion for it now it's worth about three billion by the time they get to the fifth floor your condo unit even though you only paid an additional ten percent that condo unit is now worth like 3.1 3.2 billion by the time it all 35 floors have been built right they haven't delivered the condo unit to you yet but by the time they finish the roof and everything on the 35th floor and that's done then the condo unit now goes sells for like you know three point four three three point five doing it now keep in mind we start with 2.8 billion okay by the time the homeowner you know finishes the walls the floors the kitchen the bathroom the plumbing electrical and all that and you are ready to move in and live in it that condo unit is now worth about four billion or 4.1 billion dong 4.2 billion dong depending upon how fancy the the stones the floor tiles and the furniture are and the appliances are okay so right now I can buy a two bedroom condo here for anywhere between four point five anywhere between four to five to five point five billion okay now keep in mind that when they first came out with the blueprints for this whole complex right it was only two point eight billion dong okay now ten billion dong by now is about about four hundred and twenty thousand dollars so five billion dong is about half of that which is 225 200 and 210 220 thousand dollars so a 2-bedroom condo unit now complete it and you're ready to move in and it's about two years old or three years old now you can get it for like two hundred and twenty thousand US dollars okay so right around to her thousand euros or two hundred thousand pounds okay now the first thing is when I first got here I said hey man that's a good deal like to two hundred thousand I could get a nice you know high-end luxury condo for 2.8 but you know I can get it for almost like sixty percent of the current price if if I just go shop for one and get a blue when they just come out with a blueprint right and just go put it down ten percent down payment on and get me a really nice luxury condo and and save me like forty fifty percent on the cost of that condo then I went and talked to the owner one of the owners here who is currently in the build-out phase for the one of the towers next door and he was one of those guys that originally bought it at 2.8 billion and I was asking him if it's worth it he was telling me giving me the rundown on it and his experience and he's he's completed I think like two of his unit so he bought several units and completed two already and he was selling it for like you know like somewhere around four to five and a half billion depending upon the size of the room and everything and I asked him if there was a big profit margin in it and he said no there's not and he says that if he had to do it all over again he had he would go back and and we think that in a real estate investment strategy where he buys it during the blueprint stage and then and then finishes it out finishes the build-out and then and then sell it to somebody or rent it out because he said that it costs him like anywhere between six to ten months to complete one two bedroom condo unit and he said that the biggest pain in the butt was you can never trust if the installers and the laborers are gonna do their job and then he said you got to get building permits and he goes every time you bring sand and you bring C man you bring concrete up you know you got to get a permit you gotta wait in line the the security guard here is very tight because it's a luxury condo unit and he said that you have to wait in line at 8 o'clock in the morning and the contractors cannot come up into your room to actually do the work until about nine o'clock cause it takes about an hour to wait in line in front of like you know 50 60 70 other condo unit owners and his first-come first-served and then they have to bring the concrete the saying the building materials up the maintenance elevator and since there's only one millions elevator everybody has to wait their turn okay and then in Vietnam they have a they work from 8:00 until 11:00 and then from 11:00 until 1:00 o'clock is a nap lunch and that break so doing that two hours have to go back and then at 1:00 o'clock the the condo owner has to run over there wait in line again to bring the the workers up and the reason why he has to be there for this tower next door is because like I said it's a high-end kind of apartment complex and they want to make sure that the owners the one who's bringing up there so that the the laborers and installers don't steal other people's property and stuff like that or interfere with it right and and after he explained it to me all the headache and all the hassle and all the risks that he went through right because he said that in the first unit he ever did he said that he he paid the contractors to come in and lay the floors and he thought that they put marble floors on and on the outside they look like marble but the reality was they were not marble floors and at that time he didn't know anything about marble floors or granite floors or any of that stuff so what happened was it ended up being like the extremely lowest grade marble there was it stained easily cracked easily and it was just very very shoddy and sloppy work okay so and he was telling more about the paint in the wallpaper and in the kitchen and he said that the the plumbers came in and they realized that he was not he was not a he was a first-time condo home homeowner so when they did the plumbing he said that he would go take a crap and they would flush the toilet and it didn't work and he said it took him weeks and months just to get the plumbing right in the kitchen and the showers and the bathroom it was just a complete disaster here to tear out the the sinks the toilet and just pretty much we do everything that the first plumber did and he said he was exhausted mentally stressed out and he he still not sure if this is the right investment pathway you know you know I was asking him all these things just I can learn about how to buy a condo here and and so after he talking to him at length about the process of buying a new condo and trying to save 40 50 60 % on the condo I came to realize it was not worth it it was not worth it and I would rather wait until they finish the condo and then I'll come in and I can check it and if it works the way I want it the toilet the electrical and things work you know like I went into some of these units and even though it's supposed to be a luxury condo there were some rooms condo units where I went in the homeowner or the installers were sloppy and the the the bedroom would only have each room would only have one electrical outlet you know like most American homes or apartments or condos you know each room has multiple outlets pretty much at least one outlet on each wall in the room and there was rooms that I went into where then we had one outlet on one end of the room and that was it and then there was something where I went into the bathroom and there's no electrical outlets at all so if you want to use a hair dryer or a powered electrical toothbrush anything like that you cannot do it okay so and I realize you know what that's not worth the risk I'd rather wait until the homeowner finishes the entire unit and then I'll come in and if I have to pay 40 50 percent more right I'm fine with that or pay double the cost I'm fine with that because I know that I know what I'm getting okay the reason why I'm explaining this level of risk the the layers of risk you know like from the foundation to you know how many floors you know getting the building permits pouring the foundation the blueprint stage the foundation stage you know five floors ten floors twenty fours and so on right I'm telling you guys all these stages as each stage is completed there's less and less and less risk meaning that the the risk that you take when you buy that the blueprint stage is that you don't know they're even going to get the building permits all right you don't know they're gonna get the building permits so you give them the money and that money is trapped in there and then they get the building permits and they pour the foundation you don't know if they're gonna finish the contractors the developers are going to finish the actual building they pour the foundation and boom that's it so you go around Ho Chi Minh City and there's areas where they pull the foundation and they're not done for whatever reason they lost money you know because it's a communist country sometimes they didn't pay off the right people in the government and they lose the building permit or the inspection didn't go through and they can't build anymore and the time that goes by they lose money and the developer just abandons the project right so this is very common in Vietnam that's why it's an emerging market a lot of risk so there's a lot of reward could be done if you know what you're doing here okay so how does this translate into the cryptocurrency market okay lately I've been in Vietnam you know many guys know I left the US and we located back to Vietnam and many people have asked me like here in Vietnam and when I was over there like hey is this a good time to buy Bitcoin is this a good time to buy ethers is this a good time to get into crypto trading and investing and I want to remind you guys something okay back in 2013 when the Honorable grandmaster legendary world-renowned leon food calm and I got into crypto okay Bitcoin was only about it was we were buying it between 60 to 100 $60 okay now I want you guys to think about this okay back then hey we tried to buy $1,000 worth of Bitcoin in 2013 at $60 that was not an easy task okay Leon had to run and get some cash run to a Walgreens or a pharmacy store and they had a system where you can deposit cash in there and then send it over to so-and-so and send it over to so-and-so and it finally went to Charlie Shrem at the bit instant and then Charlie schwim and we didn't know if Charlie Shrem was going to send us the bitcoins okay fortunately he did okay we also tried to buy bitcoins from mountain doc and we had to go to a ky you know like a registration process with mountain and then we had to send them US dollars we couldn't do that because it was just it was just so brisk like who the hell's this mountain cos where they at in Japan we'd never been to Japan before all this other nonsense okay so we combine so a lot of you guys might say hey you know what I you know you and you yeah lucky you guys got into Bitcoin early yes and no we're lucky we got we heard about it earlier but we cannot put a lot of money into it even then if we try to push like five ten twenty thousand dollars into it was extremely difficult it was a laborious process and the cost to actually Mario's bitcoins was extremely high like we would lose ten twelve fifteen percent just to buy you know a few thousand bucks with the bitcoins okay and also at that time many of you guys remember that I said that I put nearly all my life savings into Bitcoin back into 2013 right because at that time the only coin that you could buy or trade was Bitcoin like there was no other alternative currencies back then right 99.99% the market camp was made up was what was made up of Bitcoin right nowadays only 50% of the market cap is made up of bitcoins and the other 50% 50% is made up of two thousand other coins right so what I'm saying here is this many people here in Southeast Asia are asking me if hey is this a good time to get into Bitcoin cryptocurrencies time and I want to remind you guys right since 2013 to 2019 today six years have gone by actually seven years has gone by since the time that I heard about bitcoins back in 2012 didn't buy him till of 2013 but heard about it in 2012 okay back then teach Bitcoin we can get for anywhere between a hundred to a thousand bucks I'll have before the collapse of mountain gosh but realistically it was about six seven eight nine dollars realistic is that's the real expected price and what I mean by that is that if you want to get several thousand dollars with the Bitcoin that's the price that you gotta pay okay so if someone tells you that oh you know they could have bought 20 or $100,000 with the bitcoins at you know 50 bucks 100 bucks back then that's extremely hard I don't even know how you could could have done that back there okay cuz we tried but too risky too lengthy and too long okay to do it now today each Bitcoin is worth four or five thousand I just cracked $5,000 right with this short rally we had in the last two weeks and at the beginning of 2019 and people are asking well ty it's $5,000 it's not $500 no more it's not $100 no more it's not $50 no more like when you got into it and I said look man it's true that I got into it at a lower price but keep in mind I could not buy a large volume of it okay today if you want to push $100,000 into Bitcoin or put a million dollars into Bitcoin you can do that back then we could not do it so that's a huge advantage today back then I mean today if you buy a hundred thousand dollars with the Bitcoin the the transaction cost the total transaction fee and the slippage and everything probably less than 1% whereas when we did it back then it was like 10 12 15 could even be 20% okay so do you do better volume better liquidity tighter spreads better a less slippage lower transaction fees and here's the thing here's the number one risk that you guys don't have to endure okay back in 2012 2013 2014 even 2015 there was a lot of people cause with acquaintance and scheme and I'll be honest even in 2015 and even going into late 2015 I was still in the back of my mind worried that big win with the scam okay or that it will never get adopted and no one's ever gonna use it okay today in 2019 six seven years later we now see that there's two thousand and something coins the list is growing every day there's massive exchanges the amount of volume every news channel is talking financial news channel it's quoting the price of Bitcoin okay every major exchange traditional exchange like the like the Chicago Mercantile Exchange like a New York Stock Exchange like the Neth they all have a Bitcoin price index somewhere they quote the price of Bitcoin that futures products on Bitcoin they have all kinds of stuff okay yep they have IRAs on Bitcoin back then there was none of that stuff today we have Hardware wallets we have tighter security we have two-factor authentication at the exchanges we have so much things that's going for us today and if I had if I look back compare the safety that I have and the lower risk that I have today to get into crypto I might prefer getting into crypto today than I did six seven years ago because Liane food command I had lost a ton of money in a ton of crypto during the last six years because of no hardware wallets like pretty much every exchange that we use to buy crypto has been hacked and went out of business except for coinbase okay the they don't there there's new ones that come up like mine ants and bit tracks and things like that but pretty much all the ones that existed from 2012 until like 2000 and in 16 right they all went out of business okay they all got hang and yeah and out there done okay so you might think that the place of Bitcoin at $5,000 is high but you have to think you don't have to assume the risk of no hardware wallets scams and the exchange is giving hack scams all kinds of stuff today bitcoin is part of the financial fabric it's not going away crypto not going away okay it's not going away anytime soon and because of that it is like buying these apartment complexes these condos here when it's already built out it's already constructed you don't have to worry about the risk of are they going to get a permit are they gonna finish building the tower are they going to have people living in it are they gonna have them I find the right management company okay so when people here in Southeast Asia ask me is this a good time to buy a Bitcoin it's just a good time to buy it cerium is just a good time to get into crypto right I say absolutely because the risk today is significantly less than it was five six seven years ago significantly its magnitude okay today Leon my business partner and my trading partner Leon food comm is pushing you know I think like six or seven figures into his retirement account with crypto okay with crypto with Bitcoin some Bitcoin IRA he's doing right back then there was no way in the world that he was going to cash out his IRA his retirement account and pay the taxes on it and the early withdrawals and all that stuff just to put it into Bitcoin later that's unheard of okay and today we can do that and do it with a high degree of confidence that he's making a good move for himself and his family okay I want you to think about this and two five six years ago can you imagine someone saying that they're gonna leave the US you guys the Bitcoin because there's better opportunities in crypto outside the US and there is inside the US can you imagine that well my business partner David Fogg he left the US because there's better tax rates in Puerto Rico he left down there and I had to come back to Vietnam and take care of my sick mom and I also had to solve the tax issues say in crypto and there was a lot of crypto and a large changes I could not use inside the US so there was also another second incentive on top of my mom being sick to leave the US and relocate outside the US so can you imagine telling someone that they need to leave the u.s. to get to participate in the crypto market five six seven years ago that's unheard of that's crazy but today there are hundreds of people that are flocking to Puerto Rico there's hundreds of people that are leaving the u.s. just so they can take advantage of the crypto market okay so when you're getting into it today there's so much less risk then than it was five or six seven years ago when I got into it okay so I don't want you guys to be scared okay when terror somebody tells you that this is nonsense all this stuff remember look at the volume today okay look at the volume go to coin market Capcom and look at how much volume of crypto was traded back when the market was at a hundred billion market cap at a two hundred billion market cap and look at the amount of volume that's traded today it's like three four or five times as much volume okay if this market is going to die the volume would not be increasing like that guys okay don't let the idiots the broke asses and the dumb idiots who do not trade for a living or invest in crypto for a living tell you otherwise okay everyone on our team trades crypto and the best in crypto for a living that is our full-time gig okay matter of fact you have to do it anymore because we made enough money to retire off of it okay so I just want to remind you guys that okay and I'm making this videos I've sent out tons of tweets already to remind everybody that this is a buying opportunity now is a time to be buying crypto now is it time to be buying bitcoins now is the time to be buying a theory now is not the time to be selling now is not the time to be sitting on your ass now it's not the time to be complacent now it's not the time to be goofing off doing research and trying to see if you can outsmart the market now is the time to get into crypto if you are not in it already now is the time to secure your crypto using a treasurer or a legit or Hardware wallet now it's not the time to be jacking around watching soccer watching football watching basketball and watching all the other stupid nonsense out there that keeps your ass broke now is the time to take action okay that's what it's time to do now I'm making this video to remind you guys guys stop asking whether or not I should be in crypto you should be encrypted five years ago already okay but if you didn't today is the day today is the time if you watch this video and you don't have at least ten bucks with a crypto Pamela unsubscribe button because this is not the right channel for you this channel is where people want to make life-changing money and life-changing profits and improve their life-changing finances okay and we're able retire earlier in freedom cells from the corporate nine-to-five work okay so stop jacking around and take action guys okay life-changing profits comes to those who take action and get off their butt not those people who just think about it in theory okay and no matter I'll leave you guys with some of my experience and the mistakes that we made okay do not get into any icos or any of that nonsense okay focus on the kryptos that's like in the top 100 so your your risk is less and make sure that it's on a major exchange like finance bit tracks coinbase baloney acts one of those okay and make sure that it can fit into our hardware wallet if it does not if it's not on a major exchange and it cannot fit on a hardware wallet leave it alone it does not matter what anybody tells you how much profit potential there can be do not take that risk when you are starting out get it make a few hundred percent return profit first before you consider taking that kind of risk if you're new make sure it's on an exchange make sure that you can put it on a hardware wallet the only two Hardware wallets that I can safely recommend are the ones treasurer is the first Hardware wallet on the market for crypto and ledger is the number one the biggest supplier of hardware wallets like I remember they have more users than anybody else so those two that's it don't don't waste around Jack around and take any more wrists and you have to with the other ones ok that's it and if you guys really want to supercharge your knowledge your education and your training and learn from from our experience make sure that you go to and vesting blueprint that is the Ferrari of cryptocurrency investing and trading training and education you are not going to find I don't know if any other program that is better than that okay I'm not saying that because our team created it I'm saying that because I have not seen any other one okay so we in the cryptocurrency investing blueprint guys we teach the reality we teach you guys what we did to you know become millionaires and retire early okay we're not going to teach you crap that we read on the internet and regurgitate it back to you we're not gonna you know teach you guys stuff that's in theory we are going to teach you guys real world trading and investing in the cryptocurrency market okay no jacking around okay none of that you know all this sounds good none of that you know oh you know head and shoulder pattern this or Head & Shoulders stupid nonsense that that doesn't make any money okay this is real world trading and investment and if you were one of those people are serious about it go get you a copy today stop jacking around stop fooling around stop waiting around this is the opportunity of a hundred years and you don't want to miss it okay thanks for watching this video make sure you follow me on twitter at hey tides in and I will see you in a future video thank you guys these cashews are good I can't stop eating them

8 thoughts on “Crypto Investing #144 – Understanding The Layers Of Risk In Crypto – By Tai Zen”

  1. Think most of the Asian countries do it this way. Been living in Thailand for many years and its the same over there. When you buy a Condo you buy a empty shell.

  2. Great Video Tai! Thanks for sharing the great analogy.
    I've also seen a lot of abandoned apartment buildings in various stages in Bangkok.

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