Cryptocurrency, a sure way to lose or make money? With a bit of help, this would be the fastest way to make a difference in your life
Table of contents
- Is Crypto currency trading or gambling?
- How do they make money and hold their value?
- Is there a better Bitcoin
- If Bitcoin is so good are there others?
- Other assets that compare with Bitcoin
- New Trends take years to become established
- Chasing the big growth companies for great profits
- Has the Crypto horse already bolted?
- How to invest in the market?
- My summary and conclusion
Is Crypto currency trading or gambling?
Hesitancy cost me half a million dollars a hard lesson in anyone's life.
A couple of years back I looked at the whole crypto thing and like nearly everyone else thought that Bitcoin was overvalued at $3200 and Etherium was a massive $100
I read all the reports and listened to the so-called experts instead of using my head.
Crypto coins and Altcoins are a technology that will change our lives. Like Google Facebook and even Amazon, they have arrived and stayed to dominate the world market.
Broadband Internet, Google maps, smartphones and now 5G Mobile networks are changing our world and the crypto market is no different. It is a game-changer.
All of the above have seen considerable growth over just a few short years which means that they are a growing asset and something to be considered.
How do they make money and hold their value?
We all wondered at Google the free search engine that could not make a dime. At Amazon that sold books, eBay that traded trash, Microsoft that wrote software, Apple that bought smartphones forward and the new kid on the block Tesla and EV technology.
It is funny that these are the top value stocks on the American market.
They bought change and a different future.
Netflix creators went to Blockbuster and tried to sell them on the idea of instant internet entertainment. The smart guys at Blockbuster Laughed at them and sent them packing but who is laughing now.
We are all hesitant at accepting change and The Crypto market is changing.
Bitcoin is a value-based product for investment activity. It is like virtual Gold or US hard currency (Fiat) except that it is different. Dollar notes depreciate, gold goes where the dollar goes and black gold (OIL) is a product of the past.
Smart contracts that pass between users cut out the middle bogeymen ( think Banks) with secure and fast transactions that cost very little.
All sorts of products will pass through smart contracts, real estate, stock, insurance, medical records eliminating the need for the middle man.
It is not and if it will happen anymore, it is real and it is our future.
Is there a better Bitcoin
First in is always best dressed so it will be very difficult to take the mantle from Bitcoin.
They ( whoever they are ) invented the Blockchain Technology that is driving our future.
People stayed away in their droves as the market went like a roller coaster from a few dollars to $60,000 at its peak.
Things are different bitcoin is now predominantly held by institutions that are in it for the long haul. Slowly they have changed their thoughts on the future and have seen the future.
The great Warren Buffet said no to anything to do with this technology. He was scathing of the whole thing for a long time before a little light bulb went on. He has now invested in companies that invest in the crypto market.
Will it go higher?
There is a limited supply of coins therefore demand will grow with supply thus taking the coin to new heights unfathomable at this time. Will it be $100,000 or a $500,000 coin right through to The magic million-dollar return?
Most experts that ignore FUD and rely on figures will tell you at least five hundred thousand in the next two years.
This is not investment advice, the market could do anything at any time however the pessimist in me sees a bright future.
Cryptocurrency and what to choose
If Bitcoin is so good are there others?
With well over a thousand choices on the market, there is ample opportunity to pick winners.
They may well be random like Dodge Coin however even that coin has a following.
Number two in line is Etherium a smart contracts option that follows in the shadow of Bitcoin Currently valued at about 7% of Bitcoin price. Therefore a half a million dollar Bitcoin would see Etherium at $35,000 a long way from the current $3000
Then you have Solana, Cardano, and a whole host of supporting infrastructures.
Staying in the top 20 coins will offer some investment security however a spread of a few always helps.
The market is volatile. It will be a roller coaster ride so set a reasonable time for your investment to mature. Yes, you can day trade to pick up a quick coin however take a bit of training first.
The options market is for the experts so let's not go there.
Other assets that compare with Bitcoin
The Stock Exchange is the closest comparison to the crypto market. Many listed companies invest in crypto as their trading objective. In general, the stock market rises year on year as good if not better than any other investment.
Gold Silver and commodities have always been a hedge against inflation however they generally keep pretty well in tandem with inflation.
Fiat currency is what we term dollar notes in any country. Particularly when it is not pegged to a gold standard. The buying power of a dollar will depreciate as the world appreciates. That is to say in ten years the almighty dollar may have the buying power of just $ 0.50. Is that a good investment?
Real Estate generally represents long-term value particularly when you live in it. Housing goes up with inflation however it can crash at any given time. It rises and falls on demand generated by governments. My last House decreased in value over ten years and that did not allow for adjustment in the value of the dollar. A poor investment.
Cryptocurrency is more than just a trend
New Trends take years to become established
This was the case in years past however times have changed, Companies like Amazon, Google, Youtube have had extremely steep uptakes and the latest is Tesla which reached the market in a few short years.
The crypto market is a product of change. Just about any transaction done will have some link to blockchain technology. It is currently in its infancy that has years of growth ahead.
You could have been a millionaire buying Amazon shares. or Google or many others however we all missed the boat by not recognising technology of change.
Where would we be without Google maps, the Internet PayPal, Uber taxis, Netflix to name a few that have made the world entirely a different place?
Cryptocurrency is the new trend
Chasing the big growth companies for great profits
There will be growth companies that will storm the market with an incredible increase in value-generating instant Millionaires. Therefore recognising them early is necessary. Buying at a few dollars and selling at thousands is a dream time for most of us. I missed the initial growth I am not going that way again, the market has a long-term future.
Just think a fifty thousand Investment today could be worth half a million in two years.
Where else can you achieve this potential?
It is reasonably sure that the top ten coins will see a bright future and the others require knowledge of the market or inside information to pick the Rockets.
One telling parameter is market capitalisation. Bitcoin may have a trillion dollar cap so any coin that you can multiply the price by supply needs to be well under this figure.
This is easy to work out by a simple search on Google.
The stock market is no different, shares are valued by the return they can generate to the shareholders over time.
Has the Crypto horse already bolted?
As I have said it is still early days before the technology of change will increase the market.
There are still a few Bogeymen hanging around making noises to scare off the punters.
The Chinese Government, The US Feds, big banks, running costs, calamity for-casts are just a few of these hiding in the dark.
Certainly, China will eventually have its own coin to compete in the market. This will increase competition not decrease value.
Some government intervention will be welcomed to rid the market of shoddy operators.
The costs of Bitcoin mining came to the fore when Elon Musk demanded they must use better technologies that waste Power and Water. China joined the throng by banning mining in their country thus forcing immigration of the businesses.
The miners found renewable resources to run the massive computer farms required in mining and reduced this concern to history.
Finally, we can never see what something like Covid_19 can do to a world market. There may be other events that can create the same havoc in the future and disrupt a market.
Cryptocurrency investing
How to invest in the market?
First of all, you may need more than one broker account. Each broking house only carries certain coins so you may need to open several. I use eToro as my main account and FTX for Cardano and Coinbase for others. Binance is one among many, that has some of the lesser-known coins.
Select with care and only choose reputable brokers that come with high recommendations.
Be very careful of your currency and keep it under lock and Key invest in a Yubikey to stop all fraudulent activity.
My summary and conclusion
Disruptive technology is changing our world and will continue to do so at a faster and faster rate in our lifetime.
We will see fossil fuels disappear, a global satellite broadband internet service, 5G mobile technology that is one hundred times faster than what we have now.
The race to space is bringing new dimensions in technology that were thought bubbles a couple of years back.
The humble petrol engine will disappear and transport will be run by green fuels that have little or no contamination to our environment,
World economies will change to global currencies away from local Fiat to contain deflation
and allow the ease of currency transmitting.
Being in early has been proven time and time again to be the money maker, It may not be quick however it will be positive.
Be disruptive and join the band.
This is not investment advice nor a recommendation
Crypto currency, a sure way to lose or make money by Peter Hanley
Is it safe to buy online
I really appreciate you taking the time to explain all of this fancy crypto language. I’m completely new to the game and I’m still a little confused on how this all works, but what blows my mind the most is how fast this market is growing. Alongside with that, it’s also scary. I have seen so many people promote crypto that ends up being a scam, so for beginners I think that it’s best to do a full research on this topic before jumping into anything. This article is a great means of education that is able to help us all.
Hi Stephanie
If you only consider the top five coins you will get gains with relative safety.
I invested and went down by about twenty five percent however it is a long play not day trading, the reversal has been great and I am now up about 30%.
If you want to try a small run I would pick Solana on FTX.us
Not advise just a pet altcoin.
Peter H
Thank you very much for this post. As you, I have also had cryptos in my radar for a couple of years. But that hesitancy has also cost me a lot of money, because if I would have invested back in 2018, I would have had huge returns. But reading this from somebody that hesitated as me and has made up his mind to invest has helped me make up my mind. Thank you!
Thanks Ann, and yes I missed that early opportunity because I listened to the wrong people.
I believe Blockchain technologies are part of our future and will be here for a long time.
I also believed Amazon was a Dud and Google could never make money now two of the top stocks on the market,
I am also a Tesla fan as a disruptive technology that is making big change.
Furthermore the crypto space adds a lot of excitement to a day, not all good by the way but when you are winning it is great.
tread softly but start soon, watch for a dip in the next weeks.
Peter H