Welcome to the July 2025 edition of our faith-based investment newsletter. This month, we focus on cultivating the right mindset for successful investing in the crypto market, grounded in Biblical wisdom and practical insights.
The Three-Legged Investment Stool
Years ago, a wise Christian trading company introduced me to the concept of the three-legged investment stool, a framework that guides sound investment decisions:
Fundamentals First: Determines what to buy—focus on assets with strong underlying value.
Technicals: Determines when to buy, using charting and Elliott Wave Analysis
Market Tone: Assesses the market’s direction and why it’s moving, often tied to news or events.
While my weekly market alerts typically emphasize technicals and market tone, this newsletter dives into why fundamentals matter—the spiritual and practical foundation for successful investing.
Mindset: Wisdom in Investing
Proverbs 21:20 – Precious treasure and oil are in the dwelling of the wise, but a foolish man devours it all.
In the world of investing, the wise are separated from the foolish by how they think. A disciplined mindset, rooted in understanding and conviction, is the key to building lasting wealth.
The crypto market is an emotional rollercoaster. Most investors react predictably: pessimistic when prices drop, optimistic when prices soar; selling during downturns, buying during upswings. This herd mentality often leads to losses, as many buy high and sell low. In contrast, the most successful investors, like Warren Buffett, consistently outperform the market by sticking to disciplined fundamentals, avoiding emotional traps, and focusing on long-term value by buying low and selling high.
Our goal is to equip you with a mindset rooted in conviction and patience, helping you navigate the volatile crypto market without being swayed by rapid price swings.
In crypto terms, it means HODLing (holding on for dear life) with diamond hands (even when under pressure to sell, hold on!).
Investing as Farming: The Parable of the Sower
Investing is like farming: your money is the seed, and your investment choice is the soil. In the Parable of the Sower, Jesus describes four types of soil, only one of which yields a fruitful harvest. While this parable primarily teaches how the Gospel takes root in our lives, it offers valuable lessons for investing. Let’s focus on one soil from Matthew 13:5-6:
“Other seeds fell on rocky ground, where they did not have much soil, and immediately they sprang up, since they had no depth of soil, but when the sun rose they were scorched. And since they had no root, they withered away.”
This passage highlights the importance of depth in investing, which we can apply in two ways:
1. The Depth of Conviction
Many investors chase assets promising quick returns, driven by hype or rumors (e.g., “Bitcoin is going to the moon!”). Without understanding the asset’s fundamentals—its technology, team, or long-term potential—they plant their money (seed) in shallow soil. This lack of depth in understanding leads to a fragile investment, like a sprout that springs up quickly but has no roots. When the market turns down (the scorching sun), the pressure of losses exposes their weak conviction, causing panic. They sell at a loss, and their investment withers, destroying the seed of profitability that once seemed promising.
To succeed, you need deep-rooted conviction. (For me, this comes by understanding a project’s fundamentals and/or a Word received through prayer about a project.) This anchors you through market downturns, preventing emotional decisions of panic selling that lead to losses. My previous newsletters provide detailed analysis to strengthen your understanding, so you can buy into winning positions with confidence.
2. The Depth of Price
The rapid price increases can create a false confidence, luring investors to buy toward market peaks due to perceived strength or the fear of missing out. It’s great if you ride the price up but in crypto, it’s common to see 80+% drawdowns after a strong rally, spooking investors into selling at the worst time.
The entry price is critical because it determines your risk. Buying fundamentally strong assets at undervalued prices minimizes downside risk and maximizes upside potential.
It’s impossible to time the absolute bottom, but you can identify when risks are lower. For example, I prefer to invest during corrective waves, when prices have fallen at least 50% from their highs after a rapid run-up. These much lower prices give you a greater chance to plant your seed in fertile soil, positioning you for gains when the market recovers. This means that it’s best to buy into weakness rather than into strength.
When Crashes Come, Accumulate
Crypto crashes are opportunities for accumulation. If you have strong conviction in a project, a price drop is a chance to buy at a discount, reducing risk and increasing potential returns. Instead of panicking during downturns, I suggest adopting a contrarian mindset: sow your seed when prices are suppressed, and harvest when prices soar. This approach requires patience and discipline but positions you for long-term success.
The Current Market: Opportunity Meets Risk
We’re at a pivotal moment in the crypto market, with two forces converging:
1. Growing Crypto Adoption
- The fundamentals for a new digital economy are strengthening:
- Trump’s Crypto Push: With 60% of his net worth in crypto, President Trump aims to make the U.S. the crypto capital of the world, with a crypto legal framework advancing quickly through Congress.
- https://www.forbes.com/sites/danalexander/2025/06/12/crypto-now-accounts-for-most-of-donald-trumps-net-worth/
- XRP Developments: The XRP lawsuit has been dropped, and 12 XRP ETFs are awaiting approval.
- https://www.theblock.co/xrp-etf-live-chart
- Bitcoin ETF Success: BlackRock’s Bitcoin ETF has become its highest-performing income ETF in record time, signaling corporate appetite for crypto exposure.
- https://cointelegraph.com/news/blackrock-bitcoin-etf-fastest-70-billion-assets-under-management
These developments bolster the case for crypto as a transformative asset class. See previous newsletter for detailed fundamental analysis.
2. Escalating Risks
Despite the optimism, significant risks loom:
Geopolitical Tensions: Iran’s sleeper cells in the U.S. and BRICS nations’ hacking capabilities could disrupt infrastructure.
Bond Market Strains: The U.S. needs more bond buyers to fund its debt, but demand is waning.
Liquidity Crisis: Economist Jim Rickards has warned of a dollar shortage, which could dry up liquidity and impact markets, as seen when mortgage companies halt lending during high-risk periods.
The Danger of Emotional Investing
If we see a major crash in the crypto markets due to any major risks, many people will be shaken out of their positions. Because they lack understanding of what they purchased, they will be mesmerized by the unrealized losses. Desiring to protect their money, many will sell into the crash only to watch crypto likely soar higher, with some paralyzed by what just occurred and others panicking back into their positions because of FOMO and greed. The best investors stick with their plan and do not let emotions into the driver’s seat.
Planting in Good Soil
To thrive in this environment, plant your seed in good soil—assets with strong fundamentals at suppressed prices. The investments I’ve recommended were chosen when prices were near lows or undervalued, reflecting my conviction in their long-term potential. Even if prices drop 95%, I’m prepared to hold and buy more during crashes.
Ask yourself: Do I have the conviction to weather a steep decline? Am I ready to harvest profits when prices soar, rather than chasing the rally? If not, why? Keep asking why until you get to the root of the issue. This is the time to get these issues out of the way so we can be mentally prepared for a significant rise and/or crash in prices.
Conclusion: Cultivating a Wise Investor’s Mindset
By grounding your investment decisions in deep conviction and strategic timing, I believe you can build a portfolio that withstands market storms and yields a bountiful harvest. Be a contrarian: sow seed when others are fearful, and harvest when others are greedy. When you hear everyone, everywhere shouting, “It’s time to buy crypto!”—that’s usually a cue to be looking for a time to taking profits.
This information is for educational purposes only. It does not constitute financial advice. Cryptocurrency investing carries high risks. Please do your own due diligence before placing any trades.
Current Portfolio & Purchase Prices
XRP: $0.60
XLM: $0.2867
SHIB: $0.0000143
LUNC: $0.0000687
ZNOG: $0.20
OXT: $0.055
