Even the Dutch tulip bubble, which is classically regarded as one of the first instances of massive speculative market mania, saw increases only on the magnitude of 10–100X — not even remotely close to 100,000X+. And even the most successful of extremely risky angel investments in companies, such as Peter Thiel’s initial $500,000 seed investment in Facebook, see returns on the scale of 10,000X or so or less — Thiel’s $500,000 investment, had he held it all the way to the present day, would be worth $6.8 billion, or approximately a ~13,500X gain. More incredible than just about anything else, certainly, but still nowhere even near Bitcoin’s meteoric rise in price.
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And finally, let's not forget that crypto trading is primarily comprised of short-minded retail investors. These often emotional investors don't have the wherewithal to stick around for the long term, meaning any news event could send them running for the hills. We've witnessed more than one scare with bitcoin and other large digital currencies that sent the entire crypto market tumbling, with basically no exceptions.
Once you have done all your research and established your portfolio balances, it’s time to add some more elements to your strategy. These elements ensure consistency and promote discipline, something that is of utmost importance for any strategy. Consistent discipline removes your emotions from the strategy and creates the biggest upside potential. Nothing goes up forever.
With cryptocurrency projects, you are mainly investing in young startups. The sobering statistic is that 90% of all startups fail. We see no reason why the failure rate of cryptocurrency projects should be any lower in the long term. That’s right; if you invest in 10 random cryptocurrency projects, on average you ought to expect 9 of them to eventually be worth nothing.
History has proven this to be an often fatal assumptive error. The second things start to stop working, they tend to stop working in an extremely rapid, catastrophic fashion. There’s very little, if anything, stopping us from seeing another Great Depression sometime in the future, be it the near or longer term future. When that does happen — and it almost certainly will, sooner or later, if history is any good teacher — those who haven’t adequately prepared for it and taken appropriate prophylactic measures may very well find themselves in a bad spot.
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Many investors are nervous about trying to invest directly in bitcoin, given the high-profile hackings of several major bitcoin exchanges over the years. The Bitcoin Investment Trust (NASDAQOTH:GBTC) offers an alternative method of investing in cryptocurrency, making it possible to buy shares of an entity that itself holds a substantial amount of bitcoin. Here, we'll take a closer look at Bitcoin Investment Trust to see if it's worth adding to your portfolio.
Gold holds its value well because we trust that we will all collectively continue to trust it as a store of value forever, predominantly due to its scarcity and lack of centralized control. Fiat currencies hold their value well when they do because people trust that everyone else trusts the currency as well, and that it is deserving of trust. The moment that collective trust collapses, so too does the currency, no matter what its intrinsic ‘tangible’ value.
I’m in it for the long term and I don’t focus on daytrading, ever. However (and it took me a while to understand this), HODLing isn’t always the best way to fly either. Yes, the market is still in its infancy, and the new Googles and Facebooks may already be listed on Coinmarketcap and perhaps even in your portfolio. But your portfolio can be worth much more with a measured strategy, instead of passively HODLing. And let’s be honest, at least half of your motivation to buy crypto is to make a lot money.
There are so many hoops to jump through to set up for mining and each coin has its quirks. The power of your machine and graphix card and your power consumption are all important. My friend mined for 8month Eth and only made couple of hundred bucks by time you subtract power useage etc. He already had a powerful machine used in film industry for video graphix just sitting around so he thought he’d put it to use over that time for a laugh and see what happened. It took many hours messing around to set up and occassionally nursing it over that period. Of course he had to use his machine also occassionally which compromised the performance.
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The same growth trajectory is how I see bitcoin, cryptocurrency, and blockchain technology at large playing out. If all goes well — and there’s no guarantee it might, everything indeed might fail and all our hopes and dreams might gang aft agley — there’s no reason at all that bitcoin can’t one day surpass even our wildest imaginations today, just like the internet did before it, and fundamentally rewrite the script for how we interact with money and the world as a whole.
• In the United States, although Coinbase seems the go-to option in many cases, bear in mind that’s only an exchange, not a broker. You would be wiser to choose, for instance, TradeStation, one of the most reputable brokers, with a great site, great trading options and a solid mobile app. Because, you know, the crypto market moves so fast that you want to be able to check it while you’re drinking your Chai latte on your commute or waiting for your friends to show up at the bar.
Mutual Funds Investment is a personal financial firm that provides services to investors that will help them achieve their short-term and long-term financial goals. Our various publications provide unique investment insights for investors and traders with varying philosophies and strategies. Mutual funds are a popular way to invest in securities. Because mutual funds can offer built-in diversification and professional management, they offer certain advantages over purchasing individual stocks and bonds. For most people, investment objectives change over the course of a lifetime. Whether you're starting to save for your first home, setting up your child's college education fund or building your retirement savings, Mutual Funds Investment, LLC offers a wide variety of options to help you achieve your financial goals. Our team of professionals is highly trained and experience in their field of expertise enabling them to provide the quality services demanded. You can expect quality service, professionalism, and integrity. Mutual Funds Investment, LLC offers 5 investment plans with different profits.
Hey, Will, I like this! Thanx for the info. I’m somewhat new to cryptos but not to investing — my Dad invested in the stock market since I was a kid and as an adult I was a registered investment advisor representative for a large US institution. One conclusion I’ve come to is that the skills and approach for crypto investing are no different than those for the stock market. I use the same strategies and analyses I use for stocks and etf’s and feel completely at home in the crypto market. Yes, I deal with more brokerage accounts, etc., but the principles are the same.
Okay — so that’s about it for investing in the dominant cryptocurrencies available today. If you want to invest in other more speculative altcoins, you’ll have to create your own wallets for them, and investigate the best and most secure solution for doing so yourself. This should generally be a good exercise in any case to determine if you meet the bare minimum requirements for responsible investment in a given altcoin.
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“Custodial concerns are extremely important for CIOs, and if they are unfamiliar with the brand of the custodian of the asset, they won’t get comfortable getting involved in the market,” he said. “Volatility is always a key concern as well, in addition to skepticism about the driver of returns on crypto assets and a lack of regulation in the space.”
Ultimately, if you want to make money with crypto you have a couple of options. The easiest thing to do is to build a diversified portfolio of carefully selected coins and then to simply wait a couple of years. However, this is not the most effective way to make mad money. If you want to truly crush it at crypto, you need access to truly knowledgable people.
Litecoin was developed in 2011. While it has faltered of late in value with the other cryptocurrencies, if it gains back that value, it will be because of its strengths in comparison to bitcoin: Significantly faster transaction time (one major complaint when bitcoin exploded was that the increase in users slowed down transactions tremendously) and a larger number of crypto tokens.
This is the most popular method of investing in Bitcoins. The best time to buy is when the currency value is low or it is expected to increase. Then we resell the coins when we believe that the time has come. Our investment does not have to be short-term, we can resell our Bitcoins after a few or several years. The advantage of this type of investment is that we are the owners of the purchased Bitcoins and we can use them as a payment method. The disadvantage is that in the case of a loss of the value of coins, we have to simply wait for their value to increase again.
This system holds a lot of advantages even over gold’s natural system of being mined out of the ground. Gold’s mining is effectively random and not dictated by any perfect computer algorithm, and is consequently much more unpredictable in its output at any given moment. If a huge supply of gold is serendipitously found somewhere, it could theoretically dramatically inflate the rate at which gold enters the existing supply, and consequently cause an unanticipated decrease in the unit price of gold.
Steindorff: Litecoin. LTC taught us a very valuable lesson about the strength of a brand and its corresponding community. We missed the boat on LTC early on because we felt that its use case overlapped too heavily with BTC. It was hard to imagine that LTC could gain any significant market share from its dominant predecessor but despite our beliefs, Litecoin’s brand and community have driven it to become a top 10 cryptocurrency with a lot of volume and liquidity. The lesson here was that the power of a trusted brand and a devoted community has the ability to outweigh innovative tech.
Bitcoin (50%) – When speaking about cryptocurrencies, it means speaking of Bitcoin. Bitcoin is the base asset for the other alternative coins, and is the primary decentralized crypto currency. Bitcoin was created by Satoshi Nakamoto back in 2009. Bitcoin is designed to function just like physical currency, which transfers value, and as time goes on more places accept Bitcoin as a legitimate way of payment.
These tokens don’t have an inherent use case but are issued by a company to raise funds. They don’t give access to a service, but allow users to participate in the growth of the value of the company through, for example, buybacks of the tokens by the issuing company. This is still a very grey area in terms of regulations, and there have been frantic discussions on what exactly differentiates security tokens from utility tokens.
This has proved a mistake countless times throughout history. Zimbabwe is a classic example, where the Zimbabwean dollar, thanks to an incompetent government among other factors, experienced enormous levels of hyperinflation. At one point, inflation was estimated at almost 80 billionpercent in just a single month.The following image gives an idea of just how rapidly and absurdly a fiat currency can spiral out of control, once it reaches the point of no return.
DISCLAIMER: Recommendations and Information found on Cryptopotato are those of writers quoted. It does not represent the opinions of Cryptopotato on whether to buy, sell or hold any investments. Investors should be cautious about any recommendations given. All investors are advised to conduct their own independent research into individual coins before making a purchase decision. Use information at your own risk.
You’ll find that different exchanges cater to different markets. Today, most countries have at least one cryptocurrency exchange specializing in their own currency. There are exchanges that can accept New Zealand Dollars in exchange for bitcoin, for example. Other exchanges are known for certain pairs. Bithumb, for example, has particularly strong liquidity in the ETH/KRW (South Korean Won) pair at the moment (and it’s easily the most popular cryptocurrency exchange in Korea).
No. 6: Large financial institutions are moving ahead with crypto products: Crypto assets have drawn the attention of institutional investors. Large institutions, such as Goldman Sacs, Fidelity and Blackrock, have started to develop cryptocurrency products and the underlying Blockchain technology. To wit, Goldman is close to launching a Bitcoin trading desk. Fidelity debuted a crypto fund a year ago and is actively building teams for crypto custody and other related services. Blackrock, the world’s largest investment management firm, recently announced plans to invest in the Bitcoin futures market. We expect to see more institutions enter this industry and offer a variety of crypto-based derivative products.