The Investors Guide to Crypto-Currency

[Thetamind]

Crypto-currencies, once you've researched them a little bit, have a strong pull. They suck you in like a black hole, and before you know it you're dreaming about it, and it's got you thinking about the world in new ways. This is what's known, as a paradigm shift. Crypto-currencies have come along, and put a spoke in the wheel of our current economic paradigm. So when you research into it a little bit, and you can see the grand potential it has to change the world and strip the elite from power, as I mention here, beginners-help/the-smoking-gun-of-the-f ... 17137.html you feel almost obligated to invest.

Over the past few years, many people have caught on to the potential of crypto-currencies, and have created their own alternative currency to bitcoin. Some of them try to focus on certain niches, like say, pornography, and video games, or gambling. Others have tried to improve on bitcoins features and have added better anonymity or security, such as Monero. Since there are so many currencies flooding the internet now, it's difficult to choose which one to invest in, because honestly, most of them are going to come and go, very quickly, taking your profits with them. Because in a way, that's what they're designed to do.

People with get rich quick ideas are creating a currency to draw in investors, but the currency isn't secure enough, or popular enough, or their niche simply can't be penetrated yet.

That is because, right now, we are in a time between known, and unknown. Which means it's also a time of opportunity.

Since crypto-currencies are not known, and not unknown, you can relate it to back in the day, when people were buying .com domain names, and then selling them for thousands or millions of dollars.

This is where we are with crypto-currencies. Investing potential is as high as it's ever going to get. Since the beginning of bitcoin, when it was merely a few cents for 1 BTC anyone who invested even a small amount, would have seen substantial life changing sized returns on their investment today. Perhaps the days of making that large of a return of investment are over. However, that does not mean, the investing opportunities are.

We already know that Bitcoin is not perfect. It can, and will evolve with time, however, during this time, other crypto-currencies are going to seek to replace bitcoin, or at the very least, offer a good alternative. One prime example of a flaw in Bitcoin, is it's inability to handle a large volume of transactions, which as it gets more popular, will become detrimental using it as a daily currency. So what do you as an invester do to capitialize on your investments?

Lets break this down, and say you want to invest $1000 dollars ( apply the math to any amount)

You never want to invest more than you can afford to lose, that is the best advice anyone can ever give you about investing.

1. Put at least 50% of your investment into Bitcoin, to hold for the long term. Bitcoin has proven time and time again, that it will overcome any and all obstacles that get in its way. It will evolve and it will persevere, but it may not be used by everyone, however it should always be the mainstream crypto-currency people use.

2. You want to diversify your investment, so that you don't have all your eggs in one basket. This is important. Very important. As you can see here,
https://coinmarketcap.com/

There is a very large list of alternative crypto-currencies. You want to do your research on some of these, and have a look at their charts. Then based on your informed decision, place 10 to 20% of your investment amount, into each of these currencies. That means, you can diversify with up to 5 100 dollar investments in each of them.

Since most alternative crypto-currencies are still relatively cheap, a 100 dollar investment when held over the long term, can prove to be a very reward return on investment.

Typically, many of the alternatives rise or fall with the price of Bitcoin, except to a lesser extent, however, this is only due to most alternatives requiring BItcoin to purchase them. Which makes them dependent on Bitcoin to survive. As time goes on this will change. As we move from unknown to known, alternatives will have to seperate themselves from Bitcoin, if they want to survive. They will always be interchangable with Bitcoin, however they must evolve into their own standalone currency, and they will.

With the remaining % of your money, however much that may be, lets say, 20%, a great short term idea, is to take advantage of the volatility that Bitcoin is famous for. This volatility is lessening more and more as it becomes a stable standalone currency. However, we are still seeing some big shifts on a daily basis, and if you sell high, and then buy low, you can find yourself making a decent amount of money simply for clicking the mouse a couple of times on a Bitcoin trading platform.

The trick to trading like this, is to be patient. Do not panic. I know it can be difficult not to let your emotions get in the way when you see a sudden price drop, but I promise you, that if you let emotions rule you, you will start to lose your investment, this also goes for long term holding. Perhaps you buy low, and suddenly it drops lower, and you feel stupid, and it's not going back up.... Just be patient. If you must, wait a few days, wait a week or even a month. Just let it sit. Do not sell hoping to get back some of your investment before you lose it all. That's generally a silly thing to do.

We see schizophrenic stock markets, mainly because people are driven by their emotions, they're smiling when it rises, they're freaking out and crying when it drops. Every bit of news becomes a reason to smile or cry, and this makes you a fool as an investor. You must remain neutral. Remember, the first piece of advice, do not invest money you're not willing to lose. Be willing to lose it.

1.Be willing to lose your investment.

2.Diversify.

3.Remain neutral when bad or good news hits.

4.Inform yourself. Research your investments and their potential offer to people.

Remember these four rules. Write them down, put them somewhere you often look, perhaps on the fridge door? Because if you can remain a calm, cool, and collected investor, you will begin to capitalize where everyone else panics. This is how the pros do it. They take advantage of lows, and the highs, while being patient for the middles.

So who do you invest in? I do not want to give advice on which currencies to invest in, however, I will offer some recommendations. You should do your own research based on these recommendations and come to an informed decision on your own.

1. Bitcoin
Because it's Bitcoin....

2.Monero
https://getmonero.org/home
Because of it's ability to keep your privacy

3.Dash
https://www.dash.org/
Because it solves the transaction problem Bitcoin has.

4.Gamecredits
https://gamecredits.com/
Because they are about to attempt to penetrate the gaming industry, which could prove to be incredibly lucrative.

5.Ethereum
https://www.ethereum.org/
Because it has superior block chain technology than other currencies including Bitcoin.

There are other promising currencies out there, to name a few, maidsafecoin, litecoin, and dogecoin, among even more. You must do your research and become informed on what it is you're investing in, and how it can be utilized in a feasible way by people. If you can see potential in what they're doing, then you would be wise to invest in that potential.

So follow the four rules, and before you know it, you'll be seeing return on investments, and then some! One last piece of advice, if you do end up investing wisely, and you do see a full return on your investment, withdraw it and turn it into cash, while keeping the intial investment going. Why? Because if you earn your investment back, and you take it out and use it, then anything you earn or lose from that point forward, will essentially be risk free, at zero cost to you. From there, you can get a little more experimental with your portfolio and become a master investor.

For those of you that wish to invest in crypto-currencies, but don't know how to get Bitcoin yet, please check out my guide here,

beginners-help/a-no-bs-way-to-get-start ... 17062.html

Thank you all for reading, and happy investing everyone!

[Thetamind]

did anyone even see this? Lol

[pinetopterry]

Thanks for this. Very informative.

[Thetamind]

Glad you liked it,

If you could, I'd really appreciate it if you would nominate this thread here,

topic15139-90.html

Thanks