€20 Could be Enough to Make you a Fortune with an AltCoin.
If you make the right investment, £$€20 worth of cryptocurrency now could be worth £$€20,000,000 in ten years time. Don’t believe me? Read on…
I wanted to get into day-trading for years, but my experiences were mixed, and I always wanted a better broker. However, every time I looked up the details of the brokers you can find advertising or even with established websites on Google, I discovered that there were many scam artists who would happily take as much as I wanted to deposit, and allow me to trade, and had very convincing information and trading platforms, but when I wanted to withdraw winnings there would be no action taken, or there’d be an email saying that I had traded on news, (or some other infraction) which their small print disallowed, and therefore my winnings were being confiscated. With most of them, the pattern is simple. You get to trade easily, and with careful following of volume and trends and using candle charts, you can bet on a currency either gaining or losing against another. An intelligent person will win perhaps four out of five trades. A person of mere average intelligence will lose most trades. That’s about pattern recognition, and it is why the rich get richer, and the poor get poorer, at least in trading.
Don’t get Pulled-In to a Scam
But rogue platforms and brokers can sometimes take from the intelligent as easily as they could take from dogs or chimps. It is actually naïveté that makes intelligent people lose to rogue traders. People have a tendency to believe testimonials, even if they are fake. It’s only when you have been ‘taken’ a few times that you tend to start looking very carefully at claims, and that is how the rogue brokers make a killing. They often get the first business of a new or naïve trader, although they are less likely to get repeat business, although they will try to hook you in by letting you withdraw a few easy wins before giving you a phone call to tell you of a certain trade that could make you a fortune – but you have to invest more to make that fortune. You might be taken in by that the first time it happens.
But the rogues can make enough, sometimes millions, in the six months or so they can keep a particular trading platform going before they have to migrate their operation into a new name, a new set of fake testimonials, and a new way of scamming. And the trouble is that if you ask a financial advisor or your accountant to do the research for you, he or she is as likely as anyone else to get scammed.
Thus, people are wanting out of this cycle of day-trading uncertainty, moving margins, freezing platforms when they try to sell to take profit, stop losses that don’t work because of ‘circumstances beyond our control’, buy orders that don’t go through until there is no profit to be made, brokers who hold orders to sell until you actually lose, and so on, (and this is with ‘legit’ platforms!). Honest brokers are as rare as hens teeth. As rare as honest lawyers. As valuable as true love, if you can ever find it.
So, like I said, people still want to make profit trading, but they want something new, and that is where cryptocurrencies are starting to take over. There are intriguing possibilities for those who are looking for them. And as cryptocurrencies start to hit the mainstream news, whilst they remain a mystery for many people, who I suppose skim over the things they don’t understand as some people skim over words they do not recognise, others are making a fortune from them.
And there are various ways to do that which everyone serious about cashing in on this relatively new phenomenon should consider. The first, the original, and currently by far the most valuable with the best long-term potential, is clearly Bitcoin – a name almost everyone knows these days. People who bought $5.00 worth of Bitcoin just five years ago would be $multi-millionaires by now.
My own first personal Bitcoin investment was only two and a half years ago, and I was fortunate to do so then, and probably because it was the only one I had been investigating, although there were far less altcoins then also. It kept niggling on my mind that I had an older ‘gift’ of Bitcoin in exchange for an article and business plan I wrote that enabled the business involved to attract investors – but that’s another story… Plus, my encrypted keys were on an old hard drive and extracting them is yet another story. I could fill a book with what I had to do! But one of the things was send for a Mensa book published by Carlton, in which I created the longest repeating number currently known. What people didn’t know was that I could create endless variations of that number!
So is it too late to invest in Bitcoin?
A lot of people, including Richard Branson, Bill Gates, and Warren Buffet, are saying that Bitcoin can’t be stopped, and that each coin could eventually be worth a fortune. Everyone who can read this can follow an exponential curve, right? There is more on that if you read on.
True, it is more expensive now to get into Bitcoin than it was, but most people will be able to scrape together enough to at least make a start on getting into the Bitcoin Market. Skip that lunch and invest the £30.00 in Bitcoin instead! Or save up your lunch money so that you don’t lose too high a percentage of it in fees, when you do invest.
A popular misconception is that you have to buy a whole Bitcoin. However it is exactly that – a misconception. You can buy as little or as much as you want. Bitcoin are divisible into what is known as Satoshi – named after the mysterious founder of Bitcoin. Each Satoshi is worth a hundred millionth of a Bitcoin. So you can buy a dollar’s worth, or even less. The thing is to get into the market, and start getting an understanding of what you are doing.
I’m talking to the ordinary investor here, not those who want to keep the status quo and have millions to invest every day, propping up the investment banks and hedge funds, although those people are starting to take cryptocurrency seriously. And I am switching currencies in this article, because you may see prices quoted in different currencies.
Learn and Profit
Even if you have some serious money to invest, get to know what you are doing first. You might make a few mistakes. You could end up making a small investment that you lose entirely because you don’t know enough about securing your cryptocurrency or enough about paper or hardware crypto-wallets. This is an area where need to focus a bit of research. This is pure due diligence. But perhaps you should not take three years to do so like I did.
Diversity is the Point
Note that on the image above, most of the ‘investment’ seems to be Bitcoin, but there are LiteCoin, Dash, and Ethereum there too. Also note that they are not all in the same place in the image. They are each represented by their own iconic images. This positioning represents different crypto-wallets and exchanges. You don’t want to keep all of your eggs in one basket, no matter how confident you are that the basket is safe. Although with more valuable coins, I would always choose the Trezor Wallet rather than any exchange.
The image therefore also represents investment in lower-cost coins than Bitcoin, as speculative investment that may or may not pay off, but in other articles I’ve made the point that you win some, you lose some. You can currently buy 10 Dash for the price of one Bitcoin. You can currently buy 10 to 12 Ethereum for the price of one Bitcoin. You can currently buy 65 LiteCoin for the price of one Bitcoin.
These ‘alt coins’ as they are known, are where Bitcoin was a few years ago. People, and by people I mean some very savvy and wealthy investors, are saying that, given the exponential curve that Bitcoin is on, and which seems to be unstoppable, a single coin could be worth anything from $500,000 to $5m in a few years. Now imagine you buy 65 LiteCoin today, and it does in five years what Bitcoin has done in five years. It has multiplied by around 300.5 times in value. Today LiteCoin is valued at $58.70 per coin. (Oops, already out of date as you read). Multiplying that $58.7 by 300.5 gives $17639.35. Now suppose you can afford to buy say ten of them today. In five years if it follows Bitcoin exponential curve, you’d have $176,393.50.
A Risk Worth Taking?
So is it worth risking $587 US Dollars (say £380.00) for that? Take into account that public investors, instead of just highly technically literate and intelligent investors, have really just been given the chance to make this kind of investment through user-friendly exchanges that mean you can make your investments with your laptop or a £100 tablet computer, and only the barest knowledge of blockchain technology, (just as you have little knowledge of the Central Banks and what is going on behind the scenes, or you don’t know how your local supermarket came by the fruit that is produced on the other side of the world), and you will also realise that it is through public participation in crypto investments that all viable cryptocurrencies will probably have a much sharper rise in their exponential curve of increasing value, in the future that starts now, than Bitcoin has had, as more and more people abandon traditional investments and pour their savings into a diversification of these new technology currencies.
Unless you are so mentally challenged that you cannot follow my admittedly sometimes long sentences, the investment opportunities in cryptocurrency should be clear to you.
Some People say you Need to Have Money to Make Money.
Unfortunately, that can be true with fiat investment, but it is not the case with crypto-currencies. And that is the point of this article. I will repeat this: €20 worth of a low-cost cryptocurrency now could be worth €20,000,000 in ten years time. Incidentally, and to explain, just in case you don’t know what an exponential curve is, here is an illustration of one.
As I write, the fluctuations on a curve this size on the exponential growth part of the curve – the upwards line – are too small to see, however, there are day-to-day, week-to-week, and even month-to-month fluctuations in price like you can see on the lower part of the curve. But taking the long-term view, buying and holding, in my humble opinion, seems to be a great strategy. Well, it has worked for me, so I can say, Like Buddha, ‘This is what I have found to be true!’
Here’s a curve I half-copied, and extrapolated from… You can see where Bitcoin was a couple of years ago when I started buying and storing it. You’ve got to get lucky sometimes, right? In crypto-currency, as in playing the lotto, you’ve got to be in it, to win it! And fortunately your odds of becoming what most people would call very wealthy through crypto are millions of times better than playing the lotto.
The numbers above are in US dollars, although personally, being a citizen of Europe, (at least until Brexit), I currently tend to use Euros for my transactions because of the ease and security of bank transfers between European countries. Unless I have to use Ether to buy into an ICO (Initial Coin Offering), or buy a released but lesser known cryptocurrency that currently only accepts Ether. Ripple is an example of that, (edit on 10th Oct 17 – you can now use fiat to buy Ripple through some exchanges). And because, call me prejudiced if you want, I would not now deal with an exchange in the USA (their government has shut down two exchanges recently, and I believe their long-term aim is to shut them all down) or for example, Nigeria, where you may have no comeback against somebody who takes your bank transfer and runs, and the coin exchange does not answer questions. Plus, making a non-European bank transfer can cost a lot in transaction fees. Although of course it costs you next to nothing to buy one cryptocurrency using another. Still, I tend to be careful. I feel that’s the way to go.
How Much of a Risk-Taker are You?
There are other ways of exchanging your money for cryptocurrency, such as meeting in a pub and doing the transaction there. Or I’ve even seen specified that the only place someone will sell Bitcoin for cash is at a lonely park bench next to the big oak tree in X park, at 10pm. Would you risk that? Would you even risk using the 3 or 4G network to verify your transactions on a phone or tablet?
Trezor actually gives advice on this type of thing, which is to set up duplicate accounts with very small amounts of cryptocurrency in them, so that, under pressure of torture or worse you can reveal those account details, and still not lose most of your coin. Or lacking that level of drama, if someone manages to hack your phone or tablet, they will be able to read the notes you have deliberately left yourself, but not the stuff you are keeping secret in the fireproof safe behind the false panel in your bathroom.
If I lived in a dodgy area in New York City, Mexico, or London, I might well do that. Who knows what is around the corner for any of us? I find that engraving secret keys and passwords on aluminium plates, and keeping them in various safety deposit boxes is a good thing. You can use a Dremel drill to do the engraving. But don’t make a stupid mistake. Read your codes over and over. Make duplicate s and kep them elsewhere. Even safety deposit boxes are not 100% secure.
So, day-trading or cryptocurrency for the ordinary investor?
I think the current trend is going to continue as more and more people realise that the security of blockchain technology, the distributed network that prevents almost all fraud, except for the occasional hacking incident, and the high reputation of crypto brokers like BitPanda and localbitcoins.com, together with the excitement of truly massive profits from new ICOs and from established coins like LiteCoin, Ethereum, Dash, and last but far from least, Bitcoin, will draw more and more investors away from current day trading platforms towards the ultra-secure triple encrypted, digital wallet protected possibilities of buying and holding even small amount for the long-term profit, with scarcely any chance of loss for those who hedge their bets buy buying into multiple cryptocurrencies.
You can buy a hundred million newly released coins for five hundred millionths of a dollar each, and you can do that multiple times with multiple cryptocurrencies. It just takes one of them to take off, and you could make millions, with, say, a €500 investment between all of your alternative coins, in between three and five years. It’s worth it, right? Because although three out of ten new alt coins may fail, (being pessimistic) the seven that don’t fail, and out of that seven, the few that zoom up the charts, make it certain that well diversified altcoin investment will pay off magnificently.
Hold on a While
AltCoins don’t make huge amounts for you in a few months.Unless, of course, you are part of the group that started the AltCoin. Just don’t back out if an investment falls back to practically nothing in a year or two. All cryptocurrencies have done that. Those who buy and hold are those who are likely to get wealthy through cryptocurrency over the next few years. Tens of thousands of people are tearing their hair out now that Bitcoin and Ethereum have taken off, because they sold their investment off on a downturn when the coins were worth very little each. You hear them crying in forums, ‘I could be sailing my yacht. I could have my own private jet. I could have houses all over the world if I had not sold the £100 worth of Bitcoin that is now worth tens of millions!”
Disclaimer: As always, never take my words as investment advice. They are not that – they are just what I think about things. Ask your financial advisor what to do. He or she will probably line up some conventional, slow-growing or even, taking inflation into account, loss-making government bonds or stock derivatives for you. And take most of your profit in fees… But asking your financial advisor? That’s the ‘sensible’ thing to do.
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