why you should delete coinbase and robinhood

Why you should delete all your trading apps

According to Warren Buffet, the secret to investing is simple:

  • Start early
  • Avoid losses
  • Your greatest friend is compound interest

If you start with $5,000, invest $100 per month and consistently return 13% year over year you will see returns of over $350,000 in 20 years. This is some serious wealth growth, and it’s simple.

Robinhood and Coinbase don’t care…

Unfortunately, new-age investor apps like Robinhood and Coinbase don’t care about building wealth for their users. They make their money by taking fees off each trade you make, so instead of helping their users build generational wealth, they take advantage of your psychological weaknesses motivating you to make more trades chasing the hottest stock.

Take for Shiba Inu coin for example.

When Coinbase opened up trading for $SHIB, they made sure to update their App Store description to say “Coinbase: Trade BTC, ETH, SHIB.” By doing so, Coinbase was able to overtakes TikTok for #1 position on Apple app store.

Coinbase outranked TikTok and Instragram

While a great marketing tactic, $SHIB is the definition of a sh*t coin, and anyone who invests is literally gambling their money away.

Yet there are tens of thousands of new users who downloaded Coinbase and likely purchased some Shiba Inu. And guess what, Coinbase made a hefty fee off of each on of those trades.

The power of fear and trading…

In addition of taking advantage of viral trends, both Robinhood and Coinbase are known for sending many notifications to their users throughout the day. These notifications consist of price alerts and news of a brand new stock hitting the market.

Robinhood notification overload

While some of this information can be helpful and in building an overall understanding of current market conditions and up and coming opportunities, getting 20 of these notifications each day simply isn’t healthy – both mentally and for you investment portfolio.

Once again, these trading apps aren’t motivated to help you make sound investment decisions. By sending these notifications they are doing everything they can to get your emotions pumping, either filling your body and mind with fear and/or excitement which hopefully urge you to reopen their app and make a trade on a new flashy stock.

Toxic communities on reddit and twitter perpetuate this cycle by posting screenshots of their latest hot stock big or successful trade sending users into a whirlwind of FOMO.

This is not how you build wealth. You build wealth by educating yourself on the market and generating your own thesis which hopefully outperforms the market overtime.

And you will never get this edge if you’re constantly checking your phone for stocks all day.

Delete your trading apps

Seriously, do it. Your peace of mind is worth it.

You can always make trades on your computer, but not having the convenience of making hourly trades from your phone will force you to take the time to be patient and think long-term.

“The greatest shortcoming of the human race is our inability to understand exponential growth.” — Albert Bartlett. Source

At the end of the day, if you return above 10% each year, you are winner in the market. There is no point to chasing the next DOGE coin if you’re gonna lose it all gambling on the next sh*t coin or new flashy stock that comes around.

Wealth is built by avoiding losses and making consistent returns. Coinbase’s notifications don’t help you with this whatsoever.

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