You go to your online banking and purchase Stocks, Shares and Certificates. It’s easy. Because you know what kind of business is BASF or Daimler doing. What if you would like to invest into crypto currencies and digital assets? How to do it if nowadays there are 3000+ of them?
I’ve been thinking why is so difficult to have even a chat with people about crypto currencies and digital assets in general. The major reason is that people don’t know much about it. It is still considered as speculative and volatile investment asset class and old-fashioned shares’ holders simply don’t know how to enter the market.
More importantly, how to enter the crypto market secure and reliable way. How to pick the meaningful digital asset out of many? Who can help them to understand the WHY these or that crypto projects make sense.
As I am in the blockchain and crypto world 8+ years and I’ve even intensified my studies about it, I’ve decided that it might be interesting to help the investors to maybe 5% – 10% of their portfolio invest into precisely selected crypto currencies. With strong reasoning WHY to do it.
First what you will hear if you ask NON crypto knowledgeable person, he/she will ask: “Should I now buy bitcoin?”.
True is that #BTC or Bitcoin is well known and the first crypto. It will probably raise in the value in the future for these 3 reasons:
1, Halving in 2020, miners will get half of the bitcoins for their effort
2, Scarcity and FOMO (Fear Of Missing Out) if price goes up
3, False believes that it is store of value if there is any shake-out on stock market or forex
My focus when I create crypto portfolio is different.
Step #1 I analyse these 3 major things
1, WHY someone in this world would need this digital asset? For what is it good for?
2, Strong and Sound partnerships with already established companies for future and present use cases
3, Efficiency, Technology and Sustainability
Step #2 For how long to keep the digital assets and WHY? When to sell. What price appreciation to expect.
1, For certain projects and visions, you need also the time frame. If crypto company signs the contract with bank or another financial provider, it needs time to take a real effect.
2, The major value drivers are Use cases and Liquidity (volume driven price action)
3, You should not keep it forever because there might be other interesting projects in the future. On the other hand I will never sell all my digital assets completely. I will always keep certain amount of selected crypto currencies for the future visions.
Step #3 As you might typically invest for 2 – 6 years, keep your crypto safe
1, You can read the stories how people lost fortunes in crypto because they were hacked or simply forgot the private key and they don’t have recovery phase. All is lost in these cases. There is no 3rd party helping you or help-desk line.
2, Therefore I recommend to keep your cryptos off line in cold storage and not on crypto exchanges. Back up your recovery phase on paper and keep it in deposit box. It should be on different place than your cold storage device.
If you would like to know more and potentially join the forces for your new Digital Asset and Crypto Currency portfolio, you are welcome to join me on this page and let’s discuss the next steps with my advisory service.
Enjoy the day and chat soon,
BTW: Currently I have in my own portfolio 4 – 5 major crypto currencies with interesting future potential and 6 ICO (Initial Coin Offering) projects.