I've been investing since March of 2017. I did this by buying a subscription to the top newsletter that focusses on asymmetric speculations, those that have a much higher upside than downside > 5:1. The strategy the newsletter follows and that I have embraced fully is to buy small positions in many cryptos and hold them for the long run. There are not many who can successfully trade cryptos. With the newsletter making monthly recommendations based on the significant network the editor created since 2015, and with him attending every major conference, the back stories my positions have and the significant progress being made in blockchain technology adoption and applications is breathtaking. As a hint, one of my positions purchased in March of 2017 for $1,000 gave me 3887 tokens at $0.26. In January of 2018, the position hit >$190.
I encourage you if you don't know much about blockchain technology to start reading all you can about the technology itself. You can focus on how Bitcoin works and then expand into what makes Etherium such an incredible blockchain. Hint, it introduced smart contracts that are actually revolutionizing every business sector in the world and creating incredible opportunities.
Then go to coinmarketcap.com. There you will see all more than 1620 cryptos listed on exchanges globally. They are listed by market cap, meaning, the value of each token x the number of tokens that have been released. You can also see at the top the size of the entire crypto token market. In January if was over $800B. It was recently only just above $200B. I expect this market size to be somewhere around $5T by the end of 2019! That is the opportunity we have in front of us.
Lastly, if you buy the top 20-25 tokens with a hundred dollars each and then add to them as they correct, you should end up doing extraordinarily well. I don't like all of the top cryptos and don't understand why a few of them have made it to this top part of the list, but even if one or two of the tokens go to zero, it won't matter. Just buy the tokens and forget about them. In 5 years take a look. Your financial conditions will be materially improved beyond what you think is possible.
As I often say to people, I've tasted the future and it tasted really great when just one of my tokens went 750X. Of course you have to be willing to not look at it or you'll get depressed when the inevitable corrections take place. I believe that over time as the global adoption gets cemented, we will see much less volatility. Wishing you great success. But remember not to just buy. Read the websites of those you buy. Don't be ignorant. You can get information when you select one from coinmarketcap.com. Each individual page gives a link to the coin's website and the exchanges where they trade.
Hey @morseke1 wow cool, thank you so much for this information! It was great for me to read :)
Yes I am still a beginner with it all, and had spent about a year trying to ‘day trade’ cryptos and other things, and looking back, I didn’t know anything. Just taking mindless guesses! Anyway, that’s over for me now :)
So my plan is as you have stated, to hold for the long term, 4, 5 years time then sell. I had read about XRP and had some good feelings about it, holding until 2023 on that for sure. I may even purchase some more today as I do feel good about XRP. Also eth. But yes I need to learn more. There is a change they can just keep growing and growing. I think all of the competition could effect bitcoin bull runs but could even just boost it.
The next 5-10 years look bright I think. Unless the financial world declares war upon cryptos, as they could really change banking totally. They will probably find a way to work togther but who knows.
I do have a question that I hope you don’t mind giving me some advice with? I am buying my cryptos on binance and just leaving them in binance. Do you think that is ‘safe’ enough, or a good idea? Maybe I should buy a hardware wallet and store them in there...? I’m just wondering what your opinion on this is. Thanks for taking the time :)
Ps. Amazing how you managed to make such gains in a year! Well done :) to the sky!!!
I would say that keeping coins on exchanges is not the safest, but... Binance is a strong exchange and one of the safest. Also, some tokens had their Initial Coin Offerings (ICO) on the Etherium blockchain in order to raise the money they need to launch their own blockchain. If they are launched on the Etherium blockchain they are referred to as ER20 tokens. But many of these projects plan to launch their own blockchains. When launching their new blockchain they will provide a process for converting your coins from ER20 tokens to the new blockchain. The process is often confusing. But... if you have your tokens on Binance, they do the conversion for you without any complication...
So here is my practical answer, yes you should have your coins off of the exchanges. It's a bit of a pain. It took me a long while to finally understand how myetherwallet (for ERC20 coins) works because it's so different from the other wallets. There are some good youtube videos that can help. If you want to be safe, then do the work to get them off.
However, I believe within 12 months there will be exchanges that offer custodial services. Coinbase recently started offering this for institutional investors. What this means is that they hold the coins on your behalf, kind of like Fidelity holding your stocks on their platform. When custodial services become integrated every exchange will hold your coins and be responsible for their safety.
So if you have small positions, I see low risk to keeping them on an exchange like Binance, and if its an ER20 coin that launches its new blockchain there is no need to do the conversion... and soon, I believe, there will be exchanges that hold your tokens in custodian and wallets may not even be required anymore.
Ah cool awesome, thank you so much again for the great information ! I really appreciate it :) I have my XRP on binance and then some btc, eth and litecoin on my Coinbase. I think it will be ok there for now.
So your wallet is an online, or desktop wallet? If I wanted to buy a few more coins/tokens I might invest in a ledger hardware wallet, I hear this is one of the safest. It’s all seem relatively safe to me on Coinbase or binance, but yes, can never be too safe :)
Cool that would be great if they offered custodial service:) the market is really gaining so much popularity.
Have you heard of swift demand? I’m just wondering if you use it at all, I do, but am yet to see much happen as of the digital currency changing into a crypto currency, as they said it would this summer. Maybe it will soon. It seems like a good idea for another basic income strategy
I know of SWIFT, the current message based system the global banking system uses for international money exchange. The issue with the Swift system is that it was created in 1973 and has outlived it usefulness. Three massive issues:
I attended Consumer Electronics Show (CES) this year in January and sat through the full day of blockchain conference sessions. The Ripple CTO was on a panel. At that time they had more than 100 of the largest global financial institutions signed up to use their new blockchain service. Why?
Ripple will do great. But... A big BUT...
Don't fall in love with one coin and build an outsized position relative to the total you are investing in the space. You simply do not want to bet on one. If you do, your entire return is dependent on its single success. It will certainly be successful, but relative to what. Let's say it goes up 20X in the next 5 years and you LOVED it so much you put all $10,000 you have to invest in cryptos into it. Great! You made $190,000. Congratulations.
But what if you would have bet $2,000 in 5 positions and increased your number of chances. You might get 20X on 4 of them but the 5th you get 100X. So the 5th position alone turned into $2,000 x 100 = $200,000. Never Bet The Farm On One Single Position. Spread out your bets. You said you have other positions, great, but try to have equal amounts invested in many bets...
As yes I do know SWIFT, but I believe ‘swiftdemand’ is different? I might be wrong... but I was wondering if you use it? Currently it’s giving out 100 swifts a day for the users until it reaches a certain limit, and it’s currently a online currency, so it has no real value, yet. But there is a swift demand shop where you can buy real items, and some people are selling them for their own set price. So, swiftdemand are claiming they are going to be making the switch to a full crypto soon, with the users swift tokens exchanged at a 1:1 ratio. Have a search for swiftdemand and let me know what you think. I would say it’s worth signing up and if nothing comes of it then nothing’s lost anyway... only potential gain. If you like the sound of it let me know. They say it’s a shot as universal basic income through block chain.
Wow, ripple had 100 major financial institutions to use their block chain service... I do have a good feeling about XRP. But, I do really appreciate your advice, in telling me not to keep all of my eggs in one basket.
I do look into crypto more and what I currently have is (not much as I’m still researching before I drop bigger investment into cryptos) bitcoin, eth, litecoin, XRP, and some steem. Maybe it’s a good idea to put more within these, but also I am going to read back over your previous comments tomorrow morning and have a look at the top 25 performers and just make some notes, gain some more info and have a think.
However, I don’t want to wait too long as I think this is a good time to buy. Thanks again for the helpful response :) I really do appreciate the help and advice! 😀