Safe assets for crypto cowboys and girls (video/podcast)

in cryptocurrency •  11 months ago

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Many people invested in cryptocurrencies are first-time investors, and seeing swings of 10% or 20% a day has created risk-tolerant beasts with intestines of pure tempered steel, willing to gamble on the latest ICO with the chance of 1000% gains. Some of them did indeed find those gains, but they don't necessarily know how to hold onto them. If they get caught up in the hype of a crypto bubble without having locked up their gains, they might eventually see their net worth dwindling down to a percentage of its former glory. So, once you get the gains, how do you keep them?

Here are three investment vehicles that you might consider, which can significantly reduce the risk in your portfoilio:

1. Precious metals

Gold and silver have been used as money for thousands of years, because of their utility as a stable store of value. It's likely that these precious metals will keep up with inflation, and it's possible that they may even outpace it. The precious metals markets are flooded with gold and silver certificates, which are often sold without any real metal backing. That means that the prices might be much lower than if it reflected only the physical metal supply.

2. ETFs - index funds holding stocks and bonds

"ETF" stands for "exchange traded fund". ETFs are basically baskets of shares or bonds, sometimes encompassing an entire stockmarket or bond market. They tend to have very low fees compared to mutual funds, as low as 0.04%, and many of the best ones outperform actively managed mutual funds. That means you get a better return a a lower price. Some of them pay dividends, quarterly or even monthly, which is a great way to start building a passive income.

3. Insured peer-to-peer lending

Peer-to-peer lending can be risky, because you're probably lending small amounts to each borrower, and in the case of default, it's unlikely to be profitable to chase up each individual. However, some platforms will offer insurance to lenders, so even if the borrower defaults, your money is safe.

In this episode, Kurt runs through these investment vehicles with much lower risk profiles than crypto, explaining how you can use crypto gains to put yourself in a better position for your long-term goals. Join me on another wealth-creating, wealth-preserving episode of ... The Paradise Paradox!

Disclaimer: I'm not telling you what to do with your money; I don't know what you should do with your money. All I'm doing is presenting some of my own decision-making processes.

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View the full shownotes with all relevant supporting links here: Safe assets for crypto cowboys and girls: The Paradise Paradox Episode 191

About The Paradise Paradox

The Paradise Paradox is a podcast where we talk about crazy ideas for open-minded people. We cover topics such as crypto-currency, technology, politics, economics, freedom, free-thinking, and psychedelic experiences.

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You're right! Gold is the best asset. But I would bet on multiple properties. Real estate is one of the surest ways to keep your finances fully.


Nice one. Do you buy cashflow positive properties?

I've also looked at are property funds like Property Partner, and real estate investment trusts.

Trying to pick the next big winner in the asset cycle is always difficult. The financial advisors say diversity is the key. That’s only because they have no idea and it’s sometimes hard to redeploy your capital quickly. So with the threat of rising interest rates are bonds a good idea? I’m a reall fan of PMs especially Silver.


I don't know. I've been trying to find that out, starting to research the circumstances for bond failure in the past. A few people in Facebook investment groups told me that bonds are crashing and therefore I should stay away. I said if they're crashing, surely that means I'll get a bargain, and I should buy. They disagreed.

Nobody really knows the future, so it's not just regular financial advisors who say diversify, but managers of large hedge funds as well. At the moment, I'm thinking I'll buy stock ETFs over the next few months, then move funds into bond ETFs much more slowly.