Everybody Is An Investor!
The world is going digital, there is now doubt about it. The biggest opportunity are now online. So if the fastest growing sector is online, then cryptocurrency is the most cutting edge area and it is one of the best place to make money online today.
The blockchain technology and the cryptocurrency fuelling most of those projects is still rough and this is why there is no massive adoption yet. But just like the internet in 1994, the technical innovation are here, it is just hard for normal people to use it. The first adopter will see huge return. Mark my word: Huge.
Why do decentralize application use cryptocurrency?
Every Decentralize platform will use cryptocurrency in a different way but the goal is always similar: create an economy behind the platform so it can sustain itself without relying on a central entity.
It will usually give a monetary incentive for the user to use and secure the system.
For example, Bitcoin miners are incentivize to secure the platform by receiving bitcoin. Ethereum use its currency the “Ether” to pay for application to run on the network and miner are also rewarded with Ether to secure the system.
The price will go up in proportion of how many people find the project useful and use it. (Also specualtion comes into play where people want to buy it today thinking that the platform will have more users in the future, hence more value)
So what is the opportunity?
We can invest in a decentralize platform as a seed investor when they first release their crypto-currency. It is pure crowdfunding. With as little as a few dollars, you can participate and be an investor in a disrupting technology.
There is no minimal buy-in because transaction cost are almost none. The abscence of Bank and institution regulating and processing the transaction make that possible.
For example, Ethereum launched their cryptocurrency 2 years ago. You could buy in at an average price of 30 cents per ether. Now, only 2 years later, each ether is worth more than 10$. Not all project will have such success and there is risk that comes with it. But early adopter have huge upswing opportunity.
No Barrier to Entry
You don’t need any special investor title to start investing. All you need is some money and the desire to research and participate in disruptive technologies.
Because the whole process use the blockchain technology, eveything is out in the open. No one can hide anything to anyone in most cases and code and idea are discuss in the open.
Here is some numbers for you to think about:
Bitcoin did 40 000% over the past 5 years.
Ethereum did over2000% over the past 2 years
Factom did 2000% over the past 2 years
How can you get started investing in cryptocurrency?
The first step is just to get Bitcoins. Once you have some, you can exchange for any other cryptocurrencies on different online exchange.
Once you have them, you can exchange your Bitcoins for any other cryptocurrency you want. Just transfer them to an exchange that carry the coins you want. Kraken and poloniex are two great places that let you buy most of the popular crypto-coins.
You will understand the power of cryptocurrency once you do your first few transfers.
It’s like moving a pen from one side of your desk to the other side. No one ask you for paperwork, you don’t need to fill in your information, you don’t need to disclose who you are. All you need is the address you are moving your coins too and thats it.
How to learn more about cryptocurrency?
Reddit.com is the stronghold of cryptocurrency at the moment and every currency is discuss there. The founders and core developers usually go on there and participate in the debate. Usually each crypto has it’s own subreddit.
Timing the market
The best way to acquire a crypto is often do buy small amount over time. That way you don’t need to “time the market” and you even out the odd of having purchased your coin at a high price on the first day of your purchase. If the price drop, you will be able to purchase at the lower price. If it goes up. you still get some of the action early on.
Always take all emotion out of a transaction. If you buy with emotion, you will sell with emotion which will most likely equal to lost. Be willing to see your money disapear. The cryptocurrency world is filled with bubble and its really hard to predict the market. Your coin might go bust but if you spread your risk a little (3-5 crypto) Chances to see one goes 10x are quite reasonable if you pick correctly.
If you buy at 10$ and the coin goes to 8$, the last thing you want to do is sell. You haven’t lost anything until you sell. So at 8$ if you gradually by your position, you should have money aside to buy more of it. Thats why you want to spread your purchase over time.
Edging is an important concept. It means buying a set of assets that typically do well when the other asset do bad. Personally. I edge myself buying other cryptocurrency. I dont want to “diversify” in other class of asset. They won’t bring as much benefits and I know that the 1000% return won’t happen anytime soon in the stock market or real estate.
Im also young and im ready to lose my fund if the crypto world go bust. So i can sleep at night. I dont see that likely to ever happen, but if it would happen, im okay with it.
A little bit of history
Crypto world is a brand new world. There is not much regulation and the choice of cryptocurrency only started recently. Maybe a few years ago, you could only buy 50 cryptocurrency. Now there is much more than that, a few hundreds.
There is a lot of people that dont see the opportunity presented in front of their eyes.
I really believe that within the next few years, fortunes will be made in the crypto-world. There is a high level of risk, but how often do you see a good stock do 1000% over a few weeks? So you can sell and pocket your new acquire wealth or keep yourself in and wait for the next big upswing.
But if you want to succeed, you need to become a savy investor. Spend many hours researching what you will invest in and listen to the right people. Follow the developers, founders and listen to the industry experts. If you are going to invest any part of your savings, you should spend a great deal of time researching this topic. For example, you can listen to an interview I made with Adam Draper, he is the founder of Boost VC. He has invested in more than 90 different crypto currency startup. You can listen to the interview with Adam Draper here
A good place to start is reddit and twitter. Twitter is great because of it’s “live” nature. You can get a pulse of what is happening in the cryptoworld right now by following the founder and lead developer of the main cryptocurrency. Read the news, read the subreddit and see what the people people behind the crypto you invested in are doing. Learn to code so you understand the technology behind it. The more you invest, the more you should know.
What are the best opportunities to invest in right now.
The best cryptocurrencies to invest in at the moment are the one who bring a great deal of disruption on the market place. Sometimes it is not easy to see which one will do well and so you need to monitor and hear what is happening. Right now, Ethereum, (which will reach 100$ before the end of the year in my opinion), factom and maidsafe are great choices in my opinion. There is also brand new ones coming up on the market soon like digix and makerdao.
If I was you, I would start by reasearching those currencies and invest a very small amount in them. It will give you the added motivation to follow them and learn more about the industry.