Hello my fellow crypto investors,
Andreas Antonopoulos’ latest video on the subject of cryptocurrency ETFs and, why he is against them, is a must watch for everyone involved in this industry. Like him, I expect crypto ETFs will be approved soon but I must warn you they will not necessarily be a good idea for tech savvy investors. You can do much better, and wield way more power, by creating and tracking you own crypto currency indices without paying any ETF fees.
Nacho Cheese, Nacho Coins
Crypto ETFs will be, in essence, an index of coins (only Bitcoin initially) that someone else manages for you, and can be easily traded on the stock markets.
This will likely represent a boom for prices because it means a lot of traditional mainstream investors will have much easier access to these previously inaccessible markets.
However, the fact that someone else is managing your coins means they are not really yours. They are holding the keys for you so they hold the real power, not only monetarily, but also the power to vote in important decisions in the crypto world such as hard forks, contentious technical improvements, etc.
Also, these custodial services mean your coins can easily be frozen, just like your current bank account, at the whim of corrupt local governments, police departments, greedy lawsuit leeches, divorce settlements and so on, so they will not be as good as the cryptocurrencies they contain in holding your rainy day funds.
“Not your keys, not your coins = Nacho Cheese, Nacho coins. “
ETFs will still be good for the sheep
ETFs will target the sheep, the mass of complacent, non tech savvy, mainstream investors that, don’t have, and likely will never have, the know how required to keep their coins secure.
Crypto currencies begin making inroads into the mainstream markets
I’m not saying this is a necessarily bad thing for them. It’s a actually a good trade off because these funds will offer security and insurance while letting non tech savvy investors become early players in a nascent market with extreme upside potential for very low risk. Mainstream investors can, for example, invest just 1% of their portfolio in these ETFs and enjoy gains of thousands of percents with very little downside risk.
You can be a powerful wolf
The good news for you, the tech savvy investor reading this, is that you don’t have to wait for, or rely on Wall Street managed ETFs, to create your own index of coins for which you hold the private keys securely and hold absolute power over.
This is what we recommend:
Install the Crypto Millionaire app and start collecting and tracking the Millionth of Supply of the top 10 or 20 coins by market cap. You can dollar cost average every month or get as much as you can safely afford right away. The app will give you tips on how to diversify your crypto portfolio and reach the millionth of supply of each coin.
Securely store all your coins on hardware wallets, never at the exchanges where you initially buy the coins.
Watch your investments grow exponentially as the crypto industry matures and becomes mainstream in a few years or spectacularly goes to zero in the unlikely case the entire industry collapses (but hey, you only invested money you can afford to lose right?)
Do you currently index your own coins? Share your strategy in the comments below
Do you think the crypto ETFs will be approved soon? Will they be good or bad for the industry?
Feel free to share your thoughts on this post with the Steemit community in the comments below!
What have you been doing this crypto winter?
Accumulating patiently like a professional hodler.
Panic selling like a hopeless noob.
If you answered 1, go ahead and download Crypto Millionaire from the link below. This app will help you diversify in a smart way, especially right now that' it's such a good time to buy the millionth of supply of top coins on the cheap.
If you answered 2, sell everything and become a pimp. It's the only way you will be able to keep selling bottoms, haha!
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Happy crypto investing!