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RE: Some Possibly Sacrilegious Thoughts About "Investors" and Steemit

in #steemit6 years ago (edited)

I think your point is very valid my friend, but like I've been trying to convey to my fellow Steemians, the challenge with cryptocurrencies comes from the fact that we lack some of the other financial products that facilitate such types of investments.

At the risk of boring those who don't care much about this I will share a couple of important bits of information.

Normally when a real investor, I do mean INVESTOR (all caps) takes a big bite into a particular stock, he does and sets up his strategy with covered calls. This way he can "hedge his bet" sort of speak, and protect himself from a miscalculation.

So, What's a covered Call?

Writing covered calls is a solid income-producing strategy for any investor. ... Covered calls, an income-producing strategy, are a good option for investors seeking to produce income, while maintaining some flexibility in short / long-term capital gains, while at the same time providing a hedge against stock depreciation.

Because we are still dealing with a very early market, one that does not offer these type of financial tools. Early investors need to hedge their bets with different ways of securing ROI.

In other words, we know that Risk = Reward but the name of the game is mitigating Risk as much as possible. Professional investment is as many know management of risk and the result of that is capital gains.

But!! - I completely understand your point my friend.

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Good points @meno, and yes... we are definitely dealing with an investment industry that is still in its infancy. And more than a few times I have heard people refer to cryptos and their markets as "the wild, will west" which is really not all that far from the truth.

As the years roll by, I am sure we will "come of age" here, as well. And I have to remind myself that until the middle of 2017 (when things really "took off"), the majority of crypto trading revolved around maybe a dozen coins.

Appreciate the thoughtful comment!

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