Please click the link below to listen to the 50th episode of my weekly crypto podcast ‘Two Minute Crypto.’ These are intended to be short, single-topic ramblings on some aspect of the cryptosphere. Consider dropping a like and or a review on iTunes or Podbean if you enjoy the podcast. Comments and critiques welcome.
Welcome to Two Minute Crypto. Is there a relatively painless way to invest in cryptocurrency? Glad you asked. Let’s face it -crypto is hard. As a disruptive emerging asset class, it exhibits high volatility, hype, ease of manipulation and a lack of regulatory clarity. In addition, since most blockchain projects are start-ups -picking an eventual winner requires a lot of research, perseverance and a healthy dose of good fortune. Staying in the game is as difficult and perhaps more so than selecting a good investment vehicle in the first place.
Many crypto enthusiasts seem to walk a hard road – hopping from failed token to soon to fail token and back again. While abundant returns do lurk in the pages of CoinMarketCap, for many potential crypto investors there’s an easier and likely more rewarding way to leverage the potential financial returns of crypto.
Please bear in mind that what follows is only one of a range of equally viable options you might choose to engage with the cryptocurrency market.
Step One: Allocate Funds.
Take a few months of savings say 3 or 4 months – enough to matter to you but not enough to significantly impact your life should your investment fail. This is left this vague because of course, each of you has their own financial situation. The key thing is you absolutely must be able to forfeit the whole amount and still be able to move on with your life.
Money raised – check
Step Two: Buy Bitcoin.
Fret not the timing – this is a 10- year investment. Now before you do this you need to understand the risk you are taking on. This is likely a binary investment – in that over a long enough horizon you will either be rewarded very handsomely or lose the entire amount allocated. If you aren’t willing or able to accept this reality – wait until you are or don’t invest at all – you’ll be better off.
Bitcoin bought – check
Step Three: Store safely.
A hardware wallet is best but if your investment is a little small to justify the additional cost use an established wallet provider like Blockchain.com which has been around since 2011. Enable every security feature offered then forget about it for six months. That’s right six months. Put a reminder on your phone and move on with your life. You’ll still get to be hip at dinner parties but be spared the stressful awareness of BTC volatility. Year by year Bitcoin posts higher lows – should it post lower lows over a year or two then perhaps it might be time to reconsider your investment. Bi-annual assessment is more than enough to keep you as informed as you need to be.
Bitcoin safely stored – check
Step 4: Record the date you purchased BTC add ten years.
Expect to cash out then. Such an investment horizon allows you to ride out an economic cycle or two by which time Bitcoin’s place or lack thereof should be much more apparent.
Realistic investment horizon – check.
Lastly, strive to ignore the hype, fear, and nonsense that comprise the majority of the narrative surrounding crypto.
Will such a plan make you rich – probably not. However, should Bitcoin deliver on its promise – a fine return on investment can be expected. You won’t have missed the boat – nor will you have frittered away your time and energy on the sea of distracting detritus that is much of the crypto space. Should BTC fail, such is life and the potential involved in any high-risk investment.
Before investing in any crypto – above all take our time and do some due diligence – it’s your capital after all and you likely worked hard for it. Ignore the hyperbolic headlines -you certainly won’t miss the boat – there are many years of price discovery ahead so take your time and only invest when and if you honestly feel comfortable doing so.
If you enjoyed this the 50th episode of the podcast – I would greatly appreciate you leaving a rating and very short review on either iTunes or PodBean so that others may find their way here.
Thanks for listening.