This indexing crypto strategy will make you a millionaire, explained with nice cars

in bitcoin •  4 months ago

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Hello my fellow Steemians and Crypto Investors,

“There’s nothing new under the sun” this famous phrase summarizes the fact that history tends to repeat itself. This keeps happening in fashion, politics, industry and all aspects of human life.

Industries, new technologies follow a pattern that repeats:

Challenge question: What do these cars have in common?


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Wikimedia Commons Photos

They have all disappeared! Their companies went bankrupt, their brands lost and forgotten, they didn’t make it in the race to the top. Check out the long list of defunct automobile manufacturers of the United States.

The early car industry was very similar to the crypto phenomenon of today. Thousands of car companies appeared all over, lured by the riches promised by the new car craze that was taking over the world.

Many of them shined for a while before burning to the ground. Just like it will happen to 98% of altcoins today most of these car brands disappeared forever, leaving us only with pictures and expensive toys for car collectors like Jay Leno.


Jay Leno's Car Garage. An entertaining look into the birth and multiple deaths of the car industry

The few companies that survived went on to thrive and spawned a new mega industry that made their early investors multimillionaire car tycoons.

This process happens over and over again with internet, soft drinks, gaming, movies, alcoholic beverages, breakfast cereals and even pet food companies.

Indexing Strategy by market cap catches the winners

The obvious problem with this is that investors can’t possibly know which of these companies or crypto currencies will end up succeeding in the long term.

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CoinMarketCap currently lists 1603 crypto currencies. Most of them are either dead already or in the process of dying

The crypto genie is out of the bottle and no one can put it back. The industry will survive but there will be many casualties along the way.

So, what can you do to spot these winners early and invest only in them? Absolutely nothing! You just can’t, no one can! All those market gurus, technical analysists, alleged experts you see on Youtube and TV, are all shameless bullshitters fighting for your money through expensive subscriptions, newsletters or speaking fees.

Markets are efficient, which means it’s impossible, unless you have insider trading knowledge (highly illegal and a different subject for another post), to beat the market through technical analysis.

Any active traders that have made money are either lucky in the short term (long term they will get crushed) or are illegally using insider knowledge and whale club manipulation to beat the markets.


It’s all a Fugazi! As brilliantly explained in this video clip from the movie The Wolf of Wall Street.

But, don’t worry, you can exploit these efficient markets and make sure you end up at the top. The way to do this is by investing only in the top coins by market cap, regardless of other details such as white papers, their developers, road maps and such details that are usually exaggerated.

Hard cold cash doesn’t lie and cannot be manipulated. This strategy is called Passive Indexing and has been used and championed by the most successful investors of our time such as Benjamin Graham, the father of value investing and mentor of Warren Buffet.

This way you will catch the winning coins on the way up. You will also catch some of the losers but that’s what real long term investing is about, managing risks.

If you only invest in lower market cap coins you may achieve a higher ROI short term but the longer term results will likely be catastrophic. By diversifying your holdings in the top market cap coins you guarantee your winners will always make up for the losses, and then some, as a new industry is born!

Check out Crypto Millionaire, a free app (supported with ads) that helps you diversify and create a passive index portfolio.

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Are you a passive investor or an active trader? Have you lost money active trading?

Did you know about Passive Investing already?

Feel free to share your thoughts on this post with the Steemit community in the comments below!

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What have you been doing this crypto winter?

  1. Accumulating patiently like a professional hodler.

  2. 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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INVEST SMARTLY!
DOWNLOAD CRYPTO MILLIONAIRE from Google Play

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Don't forget to tell the community what you think of this post in the comments below.

Follow me for updates news and commentary on "sane" crypto investing.

Happy crypto investing!

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You got a 16.67% Upvote and Resteem from @ebargains, as well as upvotes from our curation trail followers!

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Investing in top coins as arranged by market cap is a prudent strategy. Thanks for the write up and explanation.

Well done, corruption will kill everything
Great post from you
Thanks for sharing..

Thanks for the info

Hi sir i cant download It It seems the link its Broken could you verify pliz... Im kinda new un the investment business its there a book u can pliz recommend me ?

I have a 60-40 split. Where i keep 60% in long term investing and 40% for swing trade. Day trade is not my cup of tea. I have too little capital and even less time.

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Great post! You've earned a 7.14% upvote from @dolphinbot
Join the DolphinBot Team for Daily Payouts in Steem! Click here: http://bit.ly/dolphinbot

Top 50 or top 100?

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Top 10 or 20 is more than enough

Thanks for sharing cryptocurrency update providing news.
I appreciate.

Upvote resteemit

RESTEEMED | UPVOTED | FOLLOWED | THANK YOU

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Its absurd what all expert opinion is thrown on YouTube and steemit. Most content on YouTube is clickbate, or reading news articles without offering any useful insight.

New projects are evaluated solely on the basis on a whitepaper which is just a marketing document. Add buzzwords like effieciency, blockchain, secure, token, decentralized and you can scam anyone.

In such a market, i agree with you, the best thing to do is trust the market and invest in a basket of top currencies. Diversify - utility/protocol token, market cap. Also assign weights basec on market cap (trust assigned to a security by the market can be judged by market cap) and invest based on your risk tolerance. The crypto index launched on bloomberg by galaxy digital is a great start and people should stick to that. That ways you can invest in crypto without being burnt badly.

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I can see you have been doing your homework! Very smart comment. regards

I totally agree with most of your post, but tbh even Bitcoin might die at some point.

I am not a Bcash shill or anything, but by the standards you talked about like there will be a lot of casualties - which I totally agree with - this doesn't necessarily has to be all the shitcoins.

Or if it isn't BTC, maybe ETH will die?

Nobody knows, so it definitely is a whole lot of luck involved, obviously.

Anyway, great article. Gonna resteem and share that on twitter if I might.

Ya, but don't forget the dangers of indexing in crypto, though. The reason it's been successful in the stock market is because stocks are built on top of functioning successful businesses, where it's hard for a company to just collapse and disappear on a very short time-frame (financial crisis aside).

But that is a very real possibility with any cryptocurrency. So, go ahead and HODL guys. Just don't falsely think that indexing will work with your cryptoassets the same way it has worked for you in the stock market.

And once again: Always. Do. Your. Own. Research!

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The whole cryptocurrency industry won't die. The coins that make it will make it big

I always learn something from your blog . I want more people to learn from your blog this is why i upvoted and resteemed your post.

I have only been adding to my portfolio. I will dollar cost average until 2020 when hopefully the value is much much higher :). Looking forward to extra vacations, new-ish vehicles, and if lucky a down-payment for a home to call my own.

But if 98% of all altcoins are going to fail then why would a indexing approach necessarily work?

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With a top market cap indexing strategy you will always catch the survivors that will make it big. The whole cryptocurrency industry won't die.

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Yeah but if you look at the top 10 from five years ago, it’s only Bitcoin left. All the other coins have failed. I think investors should do their own research and pick projects that have great teams and a good idea for their best chance at making good returns.

This is exactly why I stick to the mainstream crypto: it's all a fugazi... most alt coins will die. If all crypto dies, Bitcoin will be the last to go.

I used a similar strategy throughout the past year to accumulate a very diversified portfolio. I had a lot of friends, who are Bitcoin maximalists, making fun of me as my alt-coins continued to depreciate against BTC prices while we approached ATHs in December. Right afterwards we saw the most insane alt-coin surge ever and my investments finally paid off!

This year Im taking a much more cautious approach by buying into only the top coins for now and holding what I have left of my portfolio from the last year. I significantly cut down on most of my alts however I still hold a very diverse portfolio (compared to many).

Nice information . important topic . Thanks for this post
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Resteemed it . Thanks :-)

I hold 15 coins in the top 50...slowly building them up by selling high buying low. So far 100% strike rate. Im only doing very small trades so my risk is low. Hodling for the next rise...

Good article, I agree that focusing on the top performers is the best strategy. I think the small caps are pure gambles unless you have deep inside information. Investors need to know when the company is going nowhere and to dump when necessary. Hodling can be death sometimes.

It seems there's a way to do this type of index investing in the bitshares ecosystem. The asset is called btwty and you can check it's composition at bittwenty.com/ If you have a bitshares account with something in it, might not be a bad way to go.

the app is very good, I was reviewing, as always with valuable information, I would like you to publish more often because I use guide on cryptos.

Thr end was funny. Im a hodler. Recently decided to focus on gaining life experiences through travel. I'm happy with my decision but look forward to having some savings I can invest in crypto.

Investing in top coins as arranged by market cap is a prudent strategy. Thanks for the write up and explanation.

Clear and usefull idea for newcomers!
I do investment laying on the ground thesis that there must be real business (better if I know it as a customer as well) beyond the coin. All these promise-to-change-the-world-for-better are foolish. THats why I chase projects like Playkey cause cloud gaming is really perspective. They have just announced the utility of PKT and the buyback which will lead to rate growth covered with real things, not the bubble.

I don't think that it's relevant to compare cryptos with cars.
The cars at least are the part of the real world and offer real value to their users while cryptos are mostly the matter of speculation.
However, don't hurry to bury this market yet, as there still are some working projects, such as steem, bitshares and, of course, eth. Looking for ward to the launch of EOS, also.

yeah man,, that is all waiting for you..

Yes I answered 1, I am gonna download Crypto Millionaire!

thanks for this information...

Thanks for sharing this with the community. It always nice to read something that is done with passion.

sharing such educative and informative post. lots of love from here

Well put together. I will check out your site.

This post is resteemed and upvoted by @bestboom

Nice car. common is same wheels. thank you so much for sharing

cryptocurriencies are the future, thank goodness we are part of this

Investing in top coins as arranged by market cap is a prudent strategy. Thanks for the write up and explanation.U5dsppcNJMM2rn9aoXkiw43DvanrzzY.gif

THank you @cryptoeagle for sharing such educative and informative post. I have learned the best move to make now.
Time to invest...
Thank you once again.

crypto's are future..

All those market gurus, technical analysists, alleged experts you see on Youtube and TV, are all shameless bullshitters fighting for your money through expensive subscriptions, newsletters or speaking fees!

it's crypto update
thanks for the update

Bitcoin is one of the biggest opportunities since the invention of the internet itseif....great times to be around............

I'm happy to report, that my steemit (i'm o1o1) following is growing 10x's faster than my twitter account grew---My guess is, the steemit crowd, recognizes good bitcoin analysis, when they see it. (9200 low June, 10k before 8k, booyah)

bitcoin is unstoppable....

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maybe "will be" unstoppable....it has been quite the opposite the past 6 months. If it were unstoppable it wouldn't be sitting at less than half of the ATH.

this was a great read

U always gives us all types of innovative news tht r necessary fr us.Is it really true tht indexing cryptro stratragy will make u millonare..???
Thnxxx sir.@cryptoeagle.☺