Find a Job
Like many people I lost my job during the pandemic. I was a production planner at the time and there wasn't any production happening in my company so I was let go. I was only told that COVID-19 was the reason that I was being let go. Thus the first part of the plan will be to find a good and stable job. If you don't have excess income beyond your expenses then you cannot invest.
Reduce spending
During COVID-19 I have cooked a lot more which has allowed me to spend less money. If you are renting or you own a home this is a good time to find a new place or refinance your home. I was able to reduce my monthly housing cost by $300. This means less expenses, more saving, and more capacity for investing.
Diversify your investment
Spread your investments wisely between some cash, stocks, and cryptos. You need cash because times are unstable and cash can also be viewed as "dry powder". In the event that stocks or cryptos crash you want to be able to take advantage of the downturn. Don't hold too much cash because there is a possibility of inflation because of all of the fed liquidity. I also plan to use crypto as a hedge against cash and equities, but I will focus on cryptos that I think have utility and staying power.
Cryptos I like (NOT FINANCIAL ADVICE)
Polkadot DOT because it connects blockchains together.
Ethereum ETH because I think they will keep evolving and stay relevant
Oracles like BAND and ChainLink LINK because they connect the blockchain to outside world data like temperatures, car traffic, housing prices, etc
Mysterium dVPN MYST and Orchid OXT because they are VPNs
Stablecoins for safety against inflation
Equities and Stocks
Emerging Markets and Internationals
REITs, but avoid Malls
Thanks for reading my article and please comment and share my post!
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I wish you to succeed to all your goals in 2021!
I have some reservations for ETH fundamentals, which I analysed on my 2021 fin. goals post. But in the crypto market that (except for Bitcoin) is totally dominated by retail investors, there is a good chance nobody cares about the fundamentals and they just follow the trends as expressed by prominent youtubers etc. in that case, you will get a very lucrative return on your investment in 2021, although the future is not as promising as many think.
DOT and LINK are my picks too!
I like BAND, although I do not hold it at the moment. I decided to stick with LINK from the Oracles category.
I have heard about OXT, but never seriously consider to invest in it. I would be glad if you can share more info on which you based your decision. I have never heard of Mysterium dVPN, I guess it's an Orchid alternative, right?
But, could you please explain how stablecoins provide safety against inflation?
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Mysterium and Orchid are pretty similar. I am not sure which of the two would be the better bet, but there are ton of VPN providers in the traditional VPN market, so I expect there would be room for more than one blockchain based provider.
As for analysis, I don't have detailed data to support investing in Mysterium or Orchid, but my broader thoughts have to do with the way VPNs work. VPNs work by being a proxy between you and the target data that you are trying to reach.
My thinking is that this would be an ideal use-case for decentralization. A centralized proxy would be the most technically vulnerable proxy, but a even physically decentralized proxy that is centrally owned is not trustworthy because the central owner could always steal metadata if not the actual data directly. Right now we are just taking their word for it when they say that they are not storing our data.
I should edit my post when I say "Stablecoins" because all of the dollar backed Stablecoins do not hedge against inflation at all. I am thinking of the Stablecoins that maintain their value by having dynamic supply controls like Ampleforth, other coins that have mechanism for "burning" coins, or coins that actually earn revenue in some way and use that revenue to do "buy backs". I am just not sure which coins in that category are going to succeed yet.
I think the better bet to hedge against inflation would be to be in assets that produce such as REITS, internationals, and emerging markets or commodities that are going to be used in production.
I agree with what you said about Bitcoin and ETH being mostly invested in by retail investors who don't know what they are doing or retail investors who are just momentum investors. I did read that a large portion of the BTC supply is now in the hands of hedge funds which to me seems like they are just currency manipulating.
The other one I need to look into is Cardano. They have that ETH like ambition, but they have the second mover advantage and might be able to build their chain out using a more scalable consensus mechanism, but I need to learn more about them.
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