- Robert Kiyosaki said crypto investors who are merely clinging on to hope for favorable market conditions exhibit a bad investing habit.
- The author of a best-selling financial book advised people to use their crypto holdings to earn income passively.
Robert Kiyosaki, best known for authoring the book “Rich Dad, Poor Dad,” recently shared his perspective on one of the bad investing practices prevalent in the crypto community. He reminded people that investing should not depend too much on hope.
Most Common Crypto Investing Practices
According to the renowned entrepreneur and author, most crypto investors cling to these three common investing strategies:
- Holding during bull markets, expecting prices to go further upward.
- Weathering across bear markets, anticipating that prices will go back up.
- Maintaining a position in a sideways market, looking forward to something happening to prices.
All these are grounded in the hope for a positive upturn.
Hope is Not a Strategy
Kiyosaki stated that the best investing strategy is to get paid no matter where the market is moving or whether asset prices have stagnated. For example, investing in rental property generates steady monthly cash flow regardless of market conditions.
Given that, the veteran entrepreneur believes that holding Bitcoin (BTC) or any other crypto and simply waiting or hoping does not produce any cash flow. After all, even unrealized gains when the market is on a bull run remain only on the charts unless converted into cash.
Kiyosaki explained that there are ways to leverage crypto to generate monthly income regardless of market conditions. He recommended staking one’s holdings to provide liquidity on centralized crypto exchanges or in decentralized finance (DeFi).
With millions of crypto transactions occurring every day, Kiyosaki underscored that it’s a surefire way to generate passive income. Hence, it won’t matter if the prices drop, rise, or move sideways, as earnings would depend on daily trading volume.
Typically, the following kinds of people trigger these trading activities:
- Trading in a bull market to profit from price momentum.
- Executing trades in a bear market to cut losses via dollar-cost averaging.
- Making trades out of boredom in a sideways market.
Kiyosaki claimed that providing liquidity could unlock returns of 15% to 40% annually, regardless of market fluctuations or stagnation.
“Don’t invest in assets that only pay you if something happens,” said Kiyosaki. “Invest in assets that pay you while you wait.”
The expert trader pointed out that investors must shift their mindset into collecting from cash flows instead of lazily waiting and hoping for prices to shift in their favor.
Disclaimer: Robert Kiyosaki’s recommendations in this article are only for informational purposes. They do not constitute financial advice or a product recommendation from the author or the Blockzeit team.
