So, if you've managed to get through the last two entries I've posted about the crypto space, you'll know that I'm pretty much a believer in the buy and HODL strategy. No one is smart enough and/or can remain objective enough to trade these things up and down with any real amount of success. While it is theoretically possible to do so (you can certainly go back in time and look at the charts to see how you could have turned $100 into $100k over a couple weeks by making all the right moves), the fact is that its impossible to know which coins are going to run when and how far. The best we can do is find some people who know more than we do and follow them as best we can with the limited resources we've got.
That's how I started. I bought bitcoin and ethereum and litecoin to start with. Those are the BIG three. That is now debatable but.....realistically, they are the three most popular and well-known coins in crypto. My previous posts addressed why that was the right choice to get started. Like almost every crypto out there right now, they've done nothing but go up since I got in. Yes, there have been a couple of scary drops mixed in, but they lasted all of one day (if that) before they were right back up. In fact, as we speak, all three are again at or very near all time highs. And chances are, if you are just getting in today, a month...two months...6 months from now, they will all three again be near their highs only substantially higher than they are today. As I stated in a previous post, that is because we are still very, very early in the crypto game. More and more money continues to pour into these things and it needs to go somewhere. The vast majority of it will continue to go towards the more well-known currencies.
With only a couple exceptions, buying into any of the coins in the top 20 is probably not a bad idea. I wouldn't put all of my money into any one of them---try to spread it out a little--but most of these coins at least have some sort of game plan for the future and the development teams needed to help make them successful. Once you've made some gains, you can start branching out a little. Which is what I've done....
It took me two months to finally get the dollar amount into the market that I wanted to risk. Not because I put a lot in (I didn't) but because it was way outside my comfort zone. Dealing with all the red tape to open accounts and get wallets and transferring coins from point A to point B to point C was a colossal pain in the ass. But worth it.
As I've watched this stuff grow I've been researching and learning about lots of other coins/tokens in this market. You can find reddit and discord and telegram pages all over with communities of people babbling away about all sorts of different coins. I rarely participate. Just listen. And then research ideas I come across. In doing this, I now own twenty different coins. The majority of my funds are still in the more well known coins but I've diversified into some of the smaller ones and have been very happy with my success.
Its rather simple really. If I own .1 of bitcoin and it goes up $1000 I make $100. But if I own 1000 of something at 19 cents I make $100 every time it goes up a dime. So if it goes to $1.19 I make $1000. What you need to remember is that NEO was like 9 cents last year at this time. It's now $70-something. Ether was like $9 I think. Now almost $800. The list of these crazy moves is actually quite long. LTC, ETC, ZEC, DASH, etc....all have made gigantic moves in the last year. And that is just wave one in my opinion. Over the next 12 months there's going to be some crazy shit happening. The governments are scrambling trying to play catchup to this phenomenon but they've already missed the train in many regards. There will be lots of news stories both pro and negative for these markets but this is NOT a US led or China led or Japan led or South Korea led....you get the point....market. This is a WORLDWIDE market quickly closing in on a Trillion dollars and its becoming too big to take down in one fell swoop.
In the next year, there will again be some cryptos that are trading for less than a dollar today that will be trading in the hundreds by this time next year. The trick is finding them and then managing to hold onto them long enough to reap the full rewards. With that in mind, I've been buying 1000 here and 1000 there of some of these low-priced coins with management teams, developers, and (whenever possible) actual working products that could potentially turn into the next home runs. Can you imagine owning 1000 Ether right now? Almost $800k! 1000 DASH? $1.1M! You don't need to put huge money into these things. Build up your account with some of the more established names and then whittle off some pieces and throw them at a few little ones. EOS, ADA, STORJ, POWR, GNT, 1ST are some of the "little ones" I've bought. If they don't work out, oh well. But if just one of them does......and it goes into the hundreds.....that pays for everything else. Oh yeah, and if all else fails, just build your Steemit account. :-) That's what I'm trying to do. Happy hunting!
As always, this is NOT investment advice. I'm just posting my opinion about this crazy time in our history. I truly believe that we are witnessing one of the most significant events of our lifetime, if not the entirety of history. The ramifications of what's happening right now will have such far-reaching effects on the world as we know it going forward that I can't even begin to speculate. On those events that is. I have NO problem speculating on these currencies... :-)
Feel free to comment....thank you for reading.