You know the old poker saying: “If you can’t spot the sucker at the table, then it’s probably you.”

That saying applies well to poker. But it also applies to investing, speculating, and pretty much any activity in the financial markets.

Too many people put their money at risk without understanding how the game is played. They don’t do their homework. They don’t do any research. They only care that their friends are getting rich by buying the latest hot stock, or flipping real estate, or trading derivatives on triple-leveraged-inverse-volatility trusts, and they want in on the action.

We all know how that story ends. The person with all of the money and none of the experience ends up with none of the money and one heck of an experience.

So, with that in mind… let’s talk about cryptocurrencies…

Cryptocurrencies are generating stunning returns. Bitcoin, for example, is up over 1,200% in less than two years – and it’s one of the laggards of the group. Ether, a lesser-known digital currency, is up 3,000% in 18 months. And Neo – a China-based cryptocurrency – has rallied over 20,000% since February.

It’s no wonder that cryptos have become the main topic of conversation on the cocktail party circuit. Biff and Muffy brag about how they’re hoping to fund little Skylar’s private school tuition with Paris Hilton’s sponsored initial coin offering (ICO). But when pressed with questions like “How does it work?” Biff and Muffy go silent. They can’t explain it because they don’t know. They haven’t done the research.

And that tells me any gains Biff and Muffy get from the digital currency world are temporary.

When the cryptocurrency bubble pops – just like when the dot-com bubble popped, and the real estate bubble popped – Biff and Muffy will be left holding the bag.

They’re the suckers at the bitcoin table.

I don’t think we have a bubble in the cryptocurrency space yet. But we certainly have the makings for one.

On the way up, bubbles are incredibly fun and profitable to ride. Some folks will get ridiculously rich in cryptocurrencies as the bubble inflates. But, in order to get out in time, you have to know the market in which you’re trading.

If you don’t understand terms like blockchain, initial coin offering (ICO), and cryptocurrency wallet, then you don’t have any business swimming in the digital currency pool. It’s far better to stay on dry land and miss out on the potential gains than to drown because you don’t know how to swim.

On the other hand, if you’re willing to do a little work… if you’re willing to study the market and gain some knowledge about cryptocurrencies before you throw money into the sector… then you may have a shot at some truly phenomenal returns.

One of the top experts in the space is Teeka Tiwari. He’s an editor at the Palm Beach Research Group, and he’s one of the smartest guys I know.

Teeka has been involved in the digital currency market since its beginning. He has generated staggering returns for his readers. And he’s the only person I trust to guide folks through this sector.

Teeka is hosting a special educational webinar on digital currencies on November 2 at 8 p.m. ET/PT. If you are interested in trading bitcoin, or any of the dozens of alternate digital currencies, then you absolutely must attend this webinar.

To sign up, click here

Best regards and good trading,

Jeff Clark

Reader Mailbag

Do you have any experience trading cryptocurrencies in the past? What have you learned from the rally this year?

Send in your trading stories – as well as any questions, comments, or suggestions – right here

Hi Jeff, thank you so much for providing the details of the LEAP strategy! What a nice read for a rainy Sunday morning!

After you mentioned it some weeks ago I have pondered this strategy a couple of times and I'm glad that the puzzle is now complete! Much appreciated and best regards.

 Andreas H.

Well, as a new subscriber I have made two trades following your recommendations. Both positive results. For my last trade I bought HOG calls for $1.70 on Oct. 16. Sold on Oct. 20 at $2.44.

I like it! Next recommendation please. 

  Brian W.