This may be why you signed up for this newsletter in the first place, and you’re wondering why it’s taken six issues to even discuss the possibility of making money on cryptocurrency.
It’s because I want you to understand the market and the underlying fundamentals in order to use it more effectively. I’d say the same thing about stocks or ETFs or real estate investing.
Here is my end of the year advice for you.
If you’re not in crypto yet, get in, at a price you are comfortable losing. Even if it’s just $20. Buy into Bitcoin or an altcoin that you’re comfortable with, that you’ve done the research on, and that you believe in. The crypto-economy could collapse and everyone’s investments could get wiped out. But what if it doesn’t?
Get comfortable with volatility.
Crypto is a wild animal, sometimes on a minute-by-minute basis, and almost always on a daily basis. Get used to 20% swings over a period of hours. Get comfortable with volatility. Don’t look at the price if you can’t handle the swing. Just HODL.
Don’t look at the charts, don’t trade. Wait.
If you’re in, stay in. Be long. As I’ve said before, we’re in the amoeba stage of crypto evolution. You haven’t seen anything yet compared to what the world will be like in five years. Ten years. Fifty years. If we assume even 1/5 of current crypto growth over the next three years, by 2020 half the world will be using crypto. That’s not hyperbole.
The next Amazon, Facebook, or Google could come from the crypto-space. You might be able to spot it while it’s still a seedling! At least 80% of all crypto projects will likely fail eventually
—mostly the bad, but even some of the good ones will as well. You can learn to read the signs if you keep reading. Join a community.
Become a micro-Venture Capitalist. Cryptocurrencies allow you to do what venture capitalists and angel investors do, albeit at a smaller scale. The other side of that 80% failure rate is 20%. Half of that will do all right. The other 10%—that’s the half you want to know about before the other kids do. Those are the products or companies that mitigate those 80% losers.
Make something cool.
Are you a developer or software engineer? Try to build something using smart contracts
. Or put together a team and make an app that softens the entry barrier to cryptocurrency
. Figure out what the blockchain can do better
than anything else. You’ll add to the ecosystem, increase market value, and make yourself wealthy, all at once.