With the skyrocketing of Gamestop and AMC came a large influx of retail traders to the crypto sphere. Cryptos like Dogecoin, Ethereum and ADA have seen substantial spikes this year and I predict that this is just the beginning. I am going to briefly go over why I believe everybody should be investing in crypto right now.
It’s About to Blow Up
A lot of people have realized by now, but in case you haven’t, Crypto is here to stay. Over the past decade, the naysayers have been wrong again and again. Take investors like Warren Buffett and Bill Gates. They stated years ago that they would have shorted bitcoin if there was an easy way to do so. If they had, they would have lost a lot of money. Although Bitcoin is not the most promising crypto, in terms of its real-world usage and the tech behind it, the industry has been proven to be innovative, revolutionary and has a ton of backing. With institutions and governments around the world starting to hop in, the next 5-10 years is going to be massive for the space. Those who get in early will surely reap the benefits in the long-run.
Massive Investments Aren’t Necessary
Another great thing about investing in crypto so early into its life cycle is the fact that you don’t need to invest that much to see sizable returns. Take Bitcoin for example, if you invested $100 in 2009 you would have roughly $90 million today (This fluctuation with Bitcoin’s value of course). That is insane. Obviously, investing $100 into Bitcoin today is not likely to give you the same return 10 years from now, but I would argue there is plenty of alt coins hitting the market or are already in circulation that have the potential to explode in value over the next decade and small investments can be your retirement. Do your research, learn about the space, get involved. A measly $100 investment can change your life, I’d recommend investing more than that but the point is; Crypto is still in its early stages, its like investing in the stock market in 1920, you’re almost guaranteed to make money long term (if you pick the right cryptos which I will teach you how to do).
Lots of Variety
Although it may not seem like it, Crypto has something for everybody. Although the stock market has far more offering s from cars, to consumer products, to food, energy, and space, crypto still has a wide variety to offer and its growing rapidly. From meme coins like doge, to deflationary assets like bitcoin, and revolutionary tokens like Ethereum, all the cryptos promise different things and all have the potential to rise as the space grows. I’m even bullish on coins like doge (which I’ll go over in a later blog post) simply for the fact that as the industry grows, more money is pumped into all coins. So do your research! Find out what a crypto is trying to do, and if it makes sense to you, dips your toes in and see what happens.
Far greater returns than all other assets
The returns that the crypto market has been making are unprecedented. Bitcoins average yearly return of the last 5 years is a whopping 70 times larger than the average return of the 5 major indexes. And that’s just bitcoin. Other alt coins are just getting started and are priced below a dollar, some even below a cent and so they have tons of room to double themselves 1000 times over. It might seem skeptical that the crypto sphere can maintain the same returns it has over the past 5 years. I would argue that the returns are actually going to be greater as they are brink of transforming our society is more ways than none and widespread adoption is right around the corner. Invest in the next Bitcoin and you’re set.
2 Important things to remember
- Do not invest any money you cannot afford to lose. This should go without saying but if you’re new to investing then this is the number 1 rule. Investing is all about long term, if you invest money that you are going to need a week from now or a month or a year and you pull out, you risk selling at a lost but also missing out on potentially massive gains. Although I am very bullish on crypto, nothing is guaranteed in the investing world. If you invest money that you may need but it is a losing investment, well I think you get the picture. Always be safe with your money, risk reward management is crucial!
- Play the long-term game. Humans are emotional beings; we all know that. The problem is, when we start to see that we are losing money we start to panic, and we sell. This is the biggest mistake people make when investing. You have not lost any money until you sell. Your crypto is down 50%? Doesn’t matter unless you sell. If you invest in a crypto, and you’re right about it, then in the long-term it will go up. Anything can happen in the short term, all assets fluctuate on news, emotions and technical elements but at the end of the day, the assets that are fundamentally strong, will go up in the long run!
Thanks for reading and let me know if you have any questions! In future blog posts I’ll be going over how to evaluate cryptos, and stocks and also shed light on which ones I’m looking at.
Happy Investing 😊