How can I make money with cryptocurrencies?
Cryptocurrencies, digital money that is transforming the way to view transactions. Blockchain, a decentralized ledger system on which these cryptocurrencies operate, is here to stay. Arguably the concept of Cryptocurrencies is here to stay, as well. As revolutionary as they are, the space remains a speculative and extremely risky place for investment. We’ve seen wild run up and quick crashes in the market over the last number of years.
If you are new to cryptocurrencies, Bitcoin and blockchain, you can read an introductory guide I wrote here. Cryptocurrencies have made a lot of people a lot of money other the last number of years. But there’s a whole other domain of the crypto world that blew up in popularity starting in 2017 and has made many overnight millionaires even quicker. Initial Coin Offerings; ICOs. Similar to the concept of an IPO, where an company uses crowdfunding to gain capital to produce and scale their product and company.
Buying Bitcoin for Beginners
I remember hearing about Bitcoin years ago. Back when it was $200. Mysterious internet money that increases quickly in value as I was told by some weird computer guy.
He called it the future. That fucking psychic.
How to maximize your buying power with leverage
Today I broke a cardinal rule of investing: Only invest what you are able and willing to lose.
By using leverage to purchase Bitcoin with money I didn’t actually have. Leverage is using debt to purchase assets. Before you conclude how crazy and reckless I am, continue to read for the full story.
Why you need diversification.
Upon beginning this blog and in the initial stages of my exploration into the world of investment I thought I could succeed based on a minimalistic and single stepped approach. In stocks. I knew enough about diversification to stick to mainly market index funds and held entire countries or industries in a fund. I calculated contributions, previous returns and time to reach a naive conclusion that all would be fine if I stuck to a cookie cutter plan. Simplicity, time and consistency would do the heavy lifting.
What I didn’t really account for, or didn’t take into consideration was the ever changing landscape of the world, the markets and economies. Highly unlikely circumstances, such as what if the countries, industries and even type of investment I was putting my whole net worth in and betting on became obsolete, lost their dominance or experienced decades of downturn.