Investing differently

in #cryptocurrency6 years ago

Investing differently






While everybody is advising to diversify your portfolio and buy blue-chip coins as well as small cap ones, I would like to propose another way to invest.

Since cryptocurrencies are still very new and in my opinion, no currency is really a "blue-chip" yet, you should consider investing in cryptocurrency as a high-risk investment. That means that whatever amount you invest in cryptocurrencies, you have to be fine with the real possibility of losing it all. So no investing your retirement saving or taking a loan to invest.

But since it is high risk and you probably will lose it, why playing it safe? why trying to make 10% profit? If that is your goal, any well-managed fund will get you there and with much much lower risk. Now, I am not saying to just go all-in with one exotic coin or just choosing a couple of coins with very low market capitalization. No. It's not gambling I am proposing. Not really, but of course there is a certain amount of luck involved (as is in every trade).

What I propose is much more time consuming and difficult, but also much more rewarding.
The idea is to find projects with very strong potential at an early stage (even ICOs) or at least with a low market capitalization (compare to its potential). With this type of coins, the probability that it succeeds is very low, but if they succeed the potential reward is extremely high.

Many people are using this kind of strategy as proves the recent rise of Cardano or IOTA for example.
These two coins have huge potential and if you bought in early enough, you have already been rewarded. But hold on and that might be your coffee money in the future.

The nice thing with this strategy is that almost all of the coins you choose will fail, but if one succeeds, it will make it up for the loses and still make you a lot of money.

The most important point I would like to add here is that while we all would like to make money in this market full of great opportunities, let's not forget that the blockchain technology can bring much more than just financial gain.
In this strategy, I, therefore, encourage you to find projects that are worth supporting. Projects that will improve our lives. Projects that you feel close to and would be ready to back up even when it looks really hopeless.


This brings a few benefits:

  • you won't mind investing and holding, even for a long time
  • you will be much less tempted to pull out when it gets scary
  • you can proudly tell everybody that you invested into something worth it (and if it works out, that you were one of the very early believers in the project).



So, what do you think about this strategy?

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Thanks for the feedback on my post! I absolutely agree with you, especially considering the price and volume of a coin is determined pretty strongly by the amount of exchanges that carry it and which ones do. Getting 10 different coins and having 1 get on a mainstream exchange like Binance (which adds new coins all the time) will totally offset huge losses on the other 9 for example...

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