If you are 25 years old then you have a good 30-40 years of investing ahead of you. Ohhh I know, you want to throw $300 on a hot tip, double your money and take a trip to paris this weekend. This type of mentality will work sometimes, but not as often as you think. The result will be working well into the years you thought you were going to be fishing, and golfing every day. Every $100 you blow now is potentially $15,000+ of your retirement or more! THAT'S REALITY and THE TRUTH WILL REALLY HURT if your not prepared!
So how do you with minimal means turn 100's into 100's of thousands. It's simple. Invest for the long term! believe me $10-$25 a week grows into 100's then 10,000's then 100,000's.
Don't believe me? Well start with $100, and 10% return every 3 months on one coin (which is more than possible) after 12 years that $100 is now $9700. if you take $1000 and do the same it's $97,000. do the math yourself! Look at a coin like OMG, way more than 10% return. BTC LTC all of them are doing better than 10% per month. Now if your investing $50 a month, imagine what you will have in 12 years?
So what do you do. Look to invest into 5-6 coins at most over the long haul. I know some already have 30 with $500 account, but let's get that narrowed down to under 10 for now, and ones in various markets. Look for coins that are BEST IN BREED, and already have market penetration with a working system. Example BTC is sorta the gold of Cryptos, you should own some, ETH is the basis for contract alt-coins (or many of them) You should own some. DASH has market penetration as a payment coin, Maybe you like CVC because of the equifax scandal. and then XRP for financial transactions. Now the last three are examples and you should do your own research. But why only 5-6 coins. First diversification is often miss interpreted. It means various markets, not a bunch of coins. Second you can be an expert on 5-6 coins and can follow updates, how the company is doing, Most importantly in a new technology IS THEIR COMPETITION DOING BETTER (maybe you need to switch) etc. Third and last share accumulation. Nothing like seeing your horse win, and realizing you only had a 10 cent ticket, because you picked to many horses. So pick 5-6 coins you want to be in for the long haul.
Now similar to the graph I have above you slap your coins up there percentage wise. If your investing monthly you want to invest in the one that is under performing as you will get your best bang for your buck. Of course if one continues to under perform well then maybe you make a change. Your goal is share accumulation over a long haul. Keeping your coins around 20% each, definitely no more than 25%. Get's to that you shave a little off and spread it out among the others. This will also increase returns as normally over achievers become under achievers and vice versa. I know how boring, crytpo master just gave a buy on BLAH coin. NO be consistent, invest timely and wisely.
In the short term THE TRUTH HURTS, in the long term you'll be happy you listened!
If you went to the poker room last night with your paycheck and lost most of your money, you do NOT go back there today with the rest and try to make it back. You quit playing poker until you can afford it. Same with trading.
you only live one time - and you should take some chances.
I couldn't agree more. However, does this mean with no sailing experience you go out and buy a 30 foot sailboat, take one class on sailing, because you think you want to be a sailor, and then head for cape horn to "live life". NO This is not taking a chance this is stupidity under the guise of taking a chance.
Taking a chance is opening up a coffee shop because you have a PASSION for coffee. You worked for years at a coffee shop learning the trade, saving your blood sweat and tears, and then after you have done all that, you take your life's savings and open your own coffee shop. This is taking a chance and living your dream.
Know the difference!!
Many thanks again and would love to hear your thoughts on that.
consider this statistic from 2012:
6.6 billion people on earth. If you would divide all the known previously mined GOLD amongst us, we would each have 1/3 of an ounce.
If we would do the same with SILVER then each of us would have 1/14th of an ounce.
Also consider that while gold is mostly hoarded, A good deal of silver is actually consumed by industries in ways that it will not be recovered.
Gold currently = $1297
Silver currently = $17
This bears consideration. IMO, Let silver be thy rock, and crypto be thine wings!
A good person to search via youtube on this topic is Mike Maloney for those wanting to learn more.
Happy investing all!
"The Truth is a bitter pill, but it is the only true medicine." -unknown
Another one from a great man that touches upon what you are discussing here..
"The roots of education are bitter, but the fruit is sweet." - Aristotle
I must attest that patience is a very big thing to have to come to grips with, and gain control over when entering this highly volatile and fast paced crypto sector but it will absolutely out perform other tactics. It is very easy to become accustomed to the astonishingly fast pacing here vs other markets.
Some of my best successes here have arisen from exercising patience and and my larger disappointments from not. The race is not for the swift, but whom can endure it.
Your much needed advice on the diversification of portfolio : We sometimes notice some of the altcoins like OMG, neo and many more, they behave differently in relation to ETH & BTC. Sometimes they act in tandem to the core coins and otherwise they act inversely to their behaviour! How do u trade / invest or rather how can one shuffle the portfolio especially during times when the core coin is tanking down and so is the altcoin coz when the inverse is in play ur core coin remains at the same value giving u a better hedge!! Your guidance in this matter wud be really appreciated Sir!! ;)
You mention 20-25% a fair spread between the coins
I have read a lot of literature about portfolio weights; either doing a standard even amongst all, or some other weight which is usually based on performance, but that is usually trading strategies and NOT individual Coins/ETFs/etc.
I wondered if you had considered a % for a BTC allocation to be a portion of the sqrt of the market caps of the coins invested:
=SQRT(BTC MarketCa[) / SUM ( SQRT(BTC MarketCap), SQRT(LTE MC),SQRT(ETH MC),SQRT(DASH MC), SQRT(....) )
Including the following coins would suggest a % allocation to BTC of 36%; if you wanted to SQRT it twice, which normalises it further, you get: 22% to BTC,
CapRatio SQRT Double SQRT
BTC 60.2% 36.7% 22.9%
ETH 25.8% 24.0% 18.5%
RIPPLE 6.9% 12.4% 13.3%
LITE 2.6% 7.6% 10.5%
DASH 2.5% 7.4% 10.3%
MaidSafe 0.2% 2.3% 5.8%
OMG 0.9% 4.4% 8.0%
KORE 0.0% 0.4% 2.5%
NEO 1.0% 4.7% 8.2%
I've been on the edge with crypto since I started, just wasn't sure if it would endure. I think I'm ready to dive into crypto with some long term holds.
Just wanted to say thanks + will be watching for future posts!