My Crypto Investment Strategy

In contrary to what people might think, I’m not holding any bitcoins directly. My main focus is on mid to small cap alt coins. Higher risk, but way more potential for upside. 10x or even 100x. It takes only 2-3 winners to eliminate 10-15 losers.

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The extreme case of a small cap alt coin is an ICO. Comparable to an IPO, but an investor does not buy a stake in the company. It’s crazy how much money can be made by buying into ICO’s. Last week I bought into a promising company called Titanium and at the first day of public trading, price x 3. However, these also have the biggest risk to fail. On the other hand, if they succeed, one can make thousands of dollars.

Although I do think Bitcoin is not at the end of its bull run, I think the returns will be significant lower than smaller coins. This is rather logic due to the law of the bigger numbers. Oh, and I do think that Ethereum will close the gap with Bitcoin by the end of this year. The bitcoin supply is limited and already 80% has been mined. I think the price of 1 bitcoin might stabilize as we get closer to the 100% mark, making it way more interesting as a currency.

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Daytrade or hold for the long term? Holding of course! As my market timing tends to suck in most of the cases, I keep my hands off daytrading. Knowing your own weaknesses is a major benefit in investing.

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Now is there a way to invest in an index way, like an ordinary S&P500 tracker? At first sight, no. There is no basket of different crypto’s available to buy for diversification. Although, in my opinion, there is a way to do some indexing. By buying Ethereum or NEO (comparable, but the smaller, Chinese version), you have a broad diversification of other coins. How? Well, you could see it as a platform on which other companies build their application or idea. It can be seen as the oil making it possible for engines, machines, planes, cars… to run. I wouldn’t expect a 50x increase in a year but a solid 5-10x should be possible if the cryptomarkets keep on booming.

What would your chosen approach be?

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7 reacties op ‘My Crypto Investment Strategy

    • When Do You Retire?

      True, the crypto market is very volatile, unpredictable and unregulated. However, I truly believe in the purpose of blockchain. I don’t believe in ethical investing but I do believe in investing in something that you want to support and see growing. We’ll see how it turns out 🙂

      Like

  1. Mattias

    good luck, but I am happy to leave the speculation to others. I would only consider investing in NVDA that sort of surfs on the bitcoin craze, but also does other stuff. M

    Like

    • When Do You Retire?

      So far, not very well. Pretty deep red. I did know of this risk and it seems that the market is facing some major headwinds. I do however, in the longer run, believe in the potential of crypto and I did not make this investment on a 2 month timeframe. I will wait at least till the end of this year to fully revise the investment. There are some very promising projects in development and they need more time to deploy and mature.

      I think that it has been overhyped in November-December which spiked up the price and now a correction has happened. I believe the market needs time to develop but my hopes are high for the future.

      Btw, I try to not check the market prices too often as the high volatility is not well for the faint-hearted. It’s more a buy-and-forget investment and we’ll see in a couple of months/years.

      Liked by 1 persoon

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