The Future Of Money – Where Crypto Fits In Your Portfolio
Last year we saw some of the biggest hype I have ever seen, in my 25 years in the financial sector.
Millionaires were made, scammers became billionaires and unfortunately the un-educated and greedy lost everything.
I could have started this post a bit more rosy, but why try and hide the truth.
Blockchain and crypto is one of the best opportunities to make money, however it can be one of the quickest ways to lose it as well. I’ve personally been watching this space since Bitcoin was $700 and Etherium was $11. I got caught up in a couple of the hypes, but I never invested (some say gambled), more than I could afford to lose.
The number one question I get asked is, “Is Bitcoin and crypto a scam”?
I wish it was a simple answer, but it’s not that easy.
Is Bitcoin a scam??
No, I don’t believe it is. It may possibly be one of the biggest shifts in our financial system if we take the time to understand it and not allow the current system to manipulate it.
What about other crypto currencies out there, are they scam? With over 1100 coins now in circulation and more coming on board each day, unfortunately some, if not most will be scams or at best failed ideas that won’t live up to the hype they tried to create.
Investing into a crypto or block chain project is just like investing into any start up company of the past. Right now some crypto companies are using coins or “tokens” to raise money. In the past, companies would need to raise funds by selling shares or equity in the company. This is much more regulated than what the crypto industry is right now.
So, what are the types of things you need to look at?
- What is the underlying use for the coin and or project? Ie. what problems does it solve?
- Who is behind the project?
- What experience do they have?
- Will the blockchain have mass adoption in the near future?
A simple money rules to adopt when looking to invest in this area is to ask yourself,
“Can I afford to lose my initial investment if it disappears?
I will treat some of the investing in this space as gambling, which means I’ll be OK if I make a million, or lose $500.
Setting personal rules will help keep the greed from taking over.
There is still plenty of money to be made in crypto, and you are certainly not too late to the party, which is the exciting thing.
Millionaires and multi-millionaires will be made in the next five years in this space. It’s about knowing what to buy and when. How much. And When do I sell and take profits.
It’s this information, and more, that we will be sharing at our upcoming live event, The Wealth Game.
If you’re interested to learn about where crypto fits in your portfolio, Click Here to learn more.