Why is financial knowledge important and do you think people in Dubai take their finances seriously enough?
Financial knowledge is key to developing a healthy life. Not only in terms of having your basic needs covered but also about having a healthy state of mind, healthy relationships, and proper physical health. Being financially literate forces you to have extreme discipline and a very narrow control of your income and expenses and it also forces you to research and be an expert on something to invest wisely in proper assets.
Dubai has one of the wealthiest populations on earth, but they are a very small proportion, and even so, it makes everyone pretend they are one of them. It drives the youth to lose focus and put their money on things that aren’t important such as expensive cars, branding clothes, and falling into Ponzi scams that promise them returns that aren’t possible in the real world. The long-term view gets lost in such an environment and it drives people to wrong financial decisions.
What is your recommendation to expats in saving while in Dubai and preparing for their future?
As an expat, you are supposed to be in Dubai because the package they offer you is better than back home. So what I would recommend is just to do the same you would do if you are still in your home country:
– Do not expend your whole Income
– Live under your financial capabilities
– Research hard assets and invest monthly on a Dollar Cost Average basis
– Have a strict control of your expenses
– Set a clear goal and exit strategy
If you have the discipline to do that for 5/10 years, your finances can change radically.
Is there a certain capital one should start investing with or is it more of a mindset and habit?
It is a mindset habit 100%. Nowadays, anyone can start investing with any amount of money. It may be 1000dhs a month, 500 or 100 but everyone can do it, the compounding interest will do the rest. The main issue is to have the patience and the discipline to keep doing it despite the personal situation or the social pressure.
How and where can someone start investing in crypto?
From Dubai you can invest easily in any exchange, but if you want to use a bank transfer some banks may come up with some restrictions. Now we are in the adoption transition, and it will be more crypto-friendly in the short term.
Binance, BitOasis, Coinbase, and Kraken are perfect for use, and you can but in credit or debit cards. I always recommend sending your cryptos to a cold wallet like Ledger o Trezor. Not your keys, not your coins.
What are you currently investing in ?
I’m an extremely conservative crypto investor and I only go to the blue chips which are Bitcoin, Ethereum, BNB, Solana.
Right now, my portfolio is based in 85% Bitcoin, 9% ETH 3% SOL and the rest stocks.
How has crypto been performing in relation to stocks?
Since the last Bitcoin all-time highs( ATH) last November, the whole stock market has suffered a correction, not only Bitcoin. This has happened because the FED has seen the inflation they’ve created by printing the 80% of the total supply of USD within the last 2 years.
They’ve reached the conclusion that they have to raise interests rates and due to that, the markets have started to discount this event.
In a highly leveraged system, a rise in interest will be catastrophic for the stocks, bonds, and real estate market. This event has caused the money to rotate to more safe assets like commodities and gold and it’s a matter of time before the market will understand that BTC it’s the safest asset that exists right now for its finite supply and censorship resistance.
Bitcoin has corrected from its ATH 40% while companies considered more stable such as PayPal or Netflix have corrected more than 60%. It is showing us that Bitcoin is not that volatile anymore.
What is your prediction for bitcoin and other currencies?
According to charts and TA, we are subject to another leg up in both, stocks and crypto before a potential recession.
I can say that within the next 12 months Bitcoin will surpass the six digits in price and some altcoins will follow with multiply returns.
I’m certain that Bitcoin will be a safe haven for investors and a store of value in the long term.
How are your charts analytics helping you to make decisions on buying and selling certain assets?
Technical analysis it’s a way to see the human emotions reflected in the charts. There are different strategies for trading. If you are a risk-averse person it’s better to dollar cost average and invests long-term.
It is extremely important to fully understand the value of the assets you’re investing in. Deep research has to be done on the right assets before you apply the TA analysis, so you assure yourself that there is the intrinsic value and the proper use case.
For the period of my life, I was investing on a short-term basis, and by doing day trading and I realize that I was not making any money but fortunately I wasn’t losing either.
It was there when I understood that real money, the real wealth is made on the long-term investing and holding the proper assets like bitcoin.
What is your opinion on NFTs?
NFT ‘s are smart contracts that certified that you own certain documents that can be anything. I do believe that NFT’s will have a lot of use cases in the close future.
In addition, NFTs have a very interesting use case in the marketing space. All the big brands want to own an NFTs collection and it’s a way to create your own branding and open new products lines or loyalty programs.
However, I think right now we are in a bubble and people are overvaluing some of the projects they are investing in. There is no doubt about the potential of this market however we are still early and the risk of losing your capital it’s too high in my opinion.
NASAQ potencia deeper correction coming on the following weeks with a huge bounce after full retail capitulation.
BITCOIN follows its correlation with the NASDAQ before it decouples. Another leg down may occur before the bounce. It may take months but it’s just a matter of time. Dollar Costa Average is the key to success.
About Marti Romanach
Marti Romanach Oliver is a Bitcoin and Austrian school of economics enthusiast that has invested 7 years of his life in studying human behavior on the markets by applying fundamentals and Technical Analysis.
Marti also believes the economic situation is based on social science and history can tell us a lot about the future.
You can find his analysis on the web staytough.co and on Instagram: staytough_crypto and Twitter: @StaytoughC