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Don’t Treat Crypto as a Fad – Do This Instead
From Baltimore – I was an early adopter of Bitcoin, first getting in about seven years ago.
And today, I consider myself a successful investor in cryptocurrencies, by every measure… including the lessons I learned from mistakes I’ve made along the way.
Today, I want to share those important lessons with you… as well as this must-see interview with Andy Snyder, founder of Manward Press – a Pillar One Advisor. Andy is one of the Club’s favorite crypto experts and the Editor of Alpha Money Flow. In this Market Wake-Up Call interview, host and Associate Franchise Publisher Rachel Gearhart asks Andy to explain how he’s shifted his approach to investing in crypto.
Andy talks about why mainstream adoption of Bitcoin is suddenly surging – noting recent investments from large, established financial institutions, like MassMutual. And he explains how his Modern Asset Portfolio approach to diversification can help you spread out your risk and succeed in this sector.
I first bought Bitcoin at around $635 in early 2014, right before a long period of price stagnation.
By 2016, I was bored with the sector. I was also anxious. Because even though I invested only money I could afford to lose, I was worried I would simply forget about my small account. It was held outside my mainstream account on a different kind of platform, and I worried I could lose access to it. So I sold my Bitcoin for a small profit and got out of the sector entirely.
Then came the big surge to nearly $20,000 in late 2017, followed by several pullbacks. And then there was the recent record-breaking surge to more than $40,000 this January. Had I ignored the crypto naysayers and listened to the believers, my original $1,270 speculation would be worth nearly $65,000 today. Not a bad return.
Of course, it’s no use harboring regrets… except as reminders of the lessons I learned and the mistakes to avoid making again.
I did buy back into Bitcoin during the 2017 surge. Along the way, whenever there was another spike, I pulled out some of my original reinvestment. As a result, my entire investment in crypto today is on a “free ride.” And what a profitable and fascinating ride it’s been!
Sure, there’s much satisfaction in getting in on a growing trend early and making money from it. The good news is… as our friend Andy likes to say…
It is still “early on” when it comes to crypto.
Fear of missing out is absolutely real for this unique asset class. As you know, regrets from not getting in early can feel even worse than losing small amounts of money. We all know that feeling too well!
I’m still kicking myself for not listening to Chief Investment Strategist Alexander Green years ago about buying Amazon (Nasdaq: AMZN) and Netflix (Nasdaq: NFLX), as well as Energy and Infrastructure Strategist David Fessler’s recommendation to buy Tesla (Nasdaq: TSLA)!
All of these picks were originally huge speculative bets on disruptive new services and technologies. Like Bitcoin, these companies had plenty of naysayers all the way through. And it’s always the same warning: It’s a bubble, and it will crash. So what? If you’re investing only a small amount to start… why does the volatility matter?
When it comes to making any smart speculation, here are the lessons I’ve learned in my 30 years as CEO of The Oxford Club.
Lesson No. 1:
It pays to participate as a beginner investor in disruptive platforms early on IF you can buy in with a small amount and scale up as the sector surges. Why?
- As Andy reiterates in Market Wake-Up Call, the potential upside impact on your wealth is exponentially higher than the downside.
- Today’s cost of entry is low. Plus, you have reliable research, which is readily available and all around you, to guide you through the inevitable long periods of volatility and stagnation.
- Even when it comes to such different-looking new investor platforms – like the exchanges that allow you to trade crypto – the ease of use for these exchanges increases rapidly. Coinbase, Gemini and the other now-mainstream crypto platforms have become much more user-friendly in recent years.
- Whether or not you lose money, you’ve gained important knowledge – firsthand – about how these new technologies and services will impact our lives, our children’s lives and our grandchildren’s lives. You will not be ignorant of these impactful forces around you.
- The world is adopting crypto as a currency, whether we like it or not, in places of severe fiscal crisis. Just look at Venezuela, where citizens are already exchanging Bitcoin as a peer-to-peer currency. Ask disenfranchised citizens in unfree countries around the world – where inflation is out of control and government confiscation of assets is a constant risk. Do citizens of these countries prefer to hold only cash, stocks or even gold coins? I think not. And crypto coins are still a scarce commodity. Global demand exceeding supply? We know what that means for prices.
Lesson No. 2:
Investing in the crypto sector will test your patience. Recall that, even though I was an early adopter, I have not yet made a huge fortune in Bitcoin for one simple reason – boredom.
Bitcoin – the No. 1 blue chip crypto by far – may bore you with long periods of stagnation. Or it may exasperate you with its volatility. Don’t let it. The long-term benefits of holding crypto are too strong to let fleeting emotions and impatience get in the way of your success.
Lesson No. 3:
Whenever you buy into a disruptive sector, do it properly, starting with money you can afford to lose. And be patient. Also, subscribe to research from a select few reliable, intelligent and experienced “true believers.” Commit fully.
Cut out the noise and the naysayers. This will be hard to do because the naysayers are everywhere. And their voices get louder during periods of high volatility and the inevitable short-term corrections. They may even prove to be right eventually. But that doesn’t matter. Just remember why you got into that smart speculation in the first place – and hold on for the long haul. And, if it makes you sleep better at night, do what I did: When the next surge upward hits, pull out your principal for a risk-free ride.
For those of you who have already made the decision to build a crypto portfolio, start with Bitcoin as your foundation. And diversify your holdings from there. If you are ready for the thrill of “next level” trading in crypto, be sure to click on Andy’s presentation.
As Andy points out, while Bitcoin is stealing all the mainstream headlines, several other crypto coins are surging past it and should continue to do so this year. While some top stocks went up 700%, these cryptos did 10 times that return last year. Andy’s strategy can help spot which cryptos to use to leverage up returns this year.
Enjoy your Sunday,
Julia