When Nicholas Merten saw a video explaining Bitcoin in November 2011, he wiped it off and later complained, “Unfortunately, I didn’t do the right thing.” It’s hard to blame him, after all, he was only 13 Year old.
Now 23, he’s running DataDash, a YouTube channel with over 470,000 subscribers, making it one of the largest focused on the cryptocurrency industry. There he gives tips on trading and makes thoughtful, balanced and interesting comments on various relevant topics as well as the occasional speculation. What is remarkable about his channel is that he is almost completely free from hype and prefers calculated and tempered analyzes.
Merten is also CEO of Digifox, a DeFi startup that is set to act as a one-stop shop for new cryptocurrency investors who will soon enable them to automatically deposit parts of their paychecks into crypto using dollar-cost averaging.
Dropout as an entrepreneur
Merten started investing at the age of 13, although “I did my research beforehand,” he adds, making you wonder whether his first words were stock market tickers. He was quickly caught by the entrepreneurial virus, at 17 he experimented with his own clothing company and tried to separately “produce relaxation drinks” by formulating recipes with a partner company.
“It was a nice head start to understand a lot about the emotional nature of markets and market cycles.”
Because of this “intimate interest” in entrepreneurship, Merten, who grew up in Virginia, decided to study business administration and finance at Virginia Commonwealth University. However, he quickly dropped out and instead opted for alternative training practice, which provides accepted students with six-month internships for in-service learning after a three-month training period. Often these internships are converted into full-time positions and Merten “was really hungry for my first job”.
He got his first sales data management internship at the age of 18, “six blocks from Steve Jobs” in San Francisco, Merten recalls. This was followed by six months as a content manager ClickUp, a project management software company that is “now like a billion dollar unicorn,” he says, emphasizing the learning opportunities that come with working at such a high-growth company.
While working at ClickUp, Merten created his YouTube channel called DataDash, which he originally imagined as dealing with data science and data analytics. Soon DataDash became a cryptocurrency channel after Merten made some videos on the subject. “I got a couple of hundred views and thought: ‘You know what, I’ll keep going,’” he recalls.
When the bull market was in full swing in 2017, Merten decided to quit his job at ClickUp to devote himself full-time to his crypto craft.
Don’t act, DCA
In 2019 he expanded through the establishment Digifox, “Which I originally started building in 2013.” The startup consists of a smartphone wallet app that enables users to trade for Celsius via a plug-in and earn interest on their cryptocurrency deposits.
In the coming weeks, Digifox will be releasing a Get Paid In Crypto feature that will help people get part of their cryptocurrency salary right in the app. Available first in the US and later in the EU and UK, salary workers can simply ask their HR departments to transfer part of their paychecks to a Digifox bank account. “Your employer doesn’t even have to know your earnings crypto,” Merten clarifies, adding that the app charges a flat fee of 1%.
“Buying crypto, but in the US I know a lot of banks freeze transactions on debit cards or bank accounts – we see this as the ultimate crypto ramp.”
This method of making regular purchases in a cryptocurrency is known as dollar cost average, or DCA, and is a common concept from the old world of traditional investing. Merten says many new investors are asking him “if it is a good time to buy, priced,” and he recommends DCA as a risk diversification tool.
Why should you use #GetPaidinCrypto?
💲Larger investment gains mean lower fees
🧘♂️Averaging over time reduces the volatility
💸Earn up to 5% interest
📈Bitcoin has grown an average of 400% annually.
Getting paid in crypto doesn’t have to be complicated – log into the Digifox app today.
– Digifox (@digifox_finance) October 1, 2021
This is because the average shopper may have no way of knowing if they are shopping at a temporary high. Imagine a steadily growing wealth, an investor who does not have a lot of capital available for immediate allocation would be better off investing $ 1,000 a month for 12 months rather than saving for a year to invest They ended up being $ 12,000. That’s why I’m getting paid in Ethereum – an agreement that treated me well.
“It’s a great strategy. In this case, so that someone invests passively and doesn’t have to worry about the market, ”confirms Merten. Another useful factor about the dollar cost averaging method is that its systematic nature tends to mitigate the often dreaded “panic selling” that many new investors succumb to after seeing their investment lose value.
Unlike many other channels, Merten’s DataDash does not encourage its followers to trade too much or to take leveraged positions despite the potential rewards. “The first principle I say is ‘Don’t Day Trade,’” he points out, saying that passive investors are 95% more likely to make a profit. But there is one thing that is potentially even more dangerous than day trading – this with leverage.
🥳 We’re hosting a webinar and LIVE Q&A with @Nicholas_Merten on Dollar Cost Averaging next week!
You can ask him a question by visiting us on Zoom.
Click the link below to receive your invitation before all spots are occupied! Https: //t.co/NUIMI4Qvzt pic.twitter.com/d2Lz6CSmNW
– Digifox (@digifox_finance) October 11, 2021
According to Merten, leveraged trading is the greatest danger crypto investors face today. It is tempting because a single correct call “simply” generates enormous returns in a short period of time – but with great risk. Despite his warnings, leverage is viewed by many as an integral part of crypto investing, with a large number of influencers referring to leveraged trades as “positions” to distinguish them from mere “spot” stocks which are 1: 1.
“It’s really bad that a lot of people get into leveraged trading – they know they are trading on derivatives platforms, and it’s a losing game for most people in general.
Time to DeFi
With margin trading off the table, Merten encourages users to get their cryptocurrency up and running with decentralized financial solutions or DeFi solutions. Merten believes the DeFi-like functionality of the app is important because high gas costs on Ethereum make on-chain transactions expensive for private investors, even if they know exactly what they are doing. “A small investor, like a $ 1,000 investor, will have a hard time because they’ll immediately be charged a 5 to 10 percent fee on their trade,” he says, his example probably being an understatement.
ETH gas charges are highest from 4:00 p.m. to 12:00 p.m. EST, especially Tuesday and Thursday.
It’s cheapest to trade Ethereum on weekends, especially Sundays, from 1 a.m. to 6 a.m. EST. pic.twitter.com/wj8pLHHnpZ
– Digifox (@digifox_finance) September 28, 2021
When trading tokens or adding pairs of liquidity to decentralized exchanges like Uniswap or SushiSwap. “As great as it is for someone trading thousands, hundreds of thousands of dollars, it doesn’t make sense to our everyday users,” Merten claims. Recently, the NFT coinage has been blamed as the cause of gas price spikes.
Once the crypto reaches the Digifox wallet, users can deposit it into an income account where it can earn “up to 5%” in interest in the same currency. This is done via a direct plug-in on the external Celsius platform. Similar to traditional banking, depositors’ income ultimately comes from other users who choose to borrow cryptocurrency as collateral at Celsius. “We’re trying to say it’s like a kind of savings account,” explains Merten.
“I think this is one of the few great opportunities we have in our lives in the 21st century – where you can invest in something and really get a substantial return on investment”
Although “Celsius doesn’t have a big insurance policy” for the user’s cryptocurrency, which it holds in custody while paying interest, Merten said he chose the platform after researching the security protocols of its competitors like BlockFi and NEXO. Going forward, he expects the company will allow users to earn a lower amount of interest, also known as a return, in an insured pool with “a portion of the returns they give up going to an insurance fund” to compensate potential losses.
He admits that it is “comforting” that Celsius has $ 20 billion under management, which makes Digifox a very small player at around $ 10 million.
Merten believes that we are now halfway through the market cycle for cryptocurrencies – not in a phase of fear or doubt, but also not yet at the height of the optimism he saw with Bitcoin at $ 200,000 and Ethereum trading between 15,000 and $ 20,000. He says this would bring the crypto market to a total of $ 10 trillion, a far cry from its current market valuation of $ 2 trillion.
“Unlike most people, I don’t think the cycle will end this year, and I don’t think it will end in early 2022 – I think it will be in late 2022 or early 2023,” he says, referring to it the many industry experts who are calling for a climax for the coming new year.
Rather than relying on the seasons, Merten believes in “expansion cycles” where market cycles expand by “11 to 13 months over previous cycles”. He explains that he believed the first Bitcoin market cycle lasted 11 months, followed by the second, which lasted 24 months. Since the cycle that ended in 2018 lasted 35 months, he expects the bull market to last around 47 months in 2022.
“If history repeats itself, it would be December 2018 for the beginning and November 2022 for the end of the cycle,” he says of Bitcoin, adding that altcoins will likely peak “soon after”.
Despite his tendency to make predictions, he admits that he was completely taken by surprise by this year’s NFT boom, a sense of confusion surrounding the NFT cat breeding project, the clogged Established the Ethereum network in 2017. Merten says he is open-minded despite fraud and “over-hype” in the industry.
With 10 years of investment experience, Merten regards a long-term perspective as an important virtue for those looking to generate long-term profits.
“I like to make some simple coordinated investments for trades – over a period of one to two years. I like reaching the maximum point of fear and doubt in the market when prices are historically cheap, and I like riding the wave. “