Cryptocurrency Investing & Wealth-Creation Fundamentals
Become part of the greatest transfer of wealth in history
Note: Since writing this, my view of crypto has shifted quite a lot, though I still see a lot of value in this post. I definitely recommend reading my more recent post, ‘Delete Your Cryptocurrency App’ in tandem with this post.
[With this information alone, if you follow these instructions, you could quite easily 5x your crypto investments over the next ~5 years, possibly sooner.]
We are still very early in the revolution of cryptocurrency, blockchain, NFTs, and decentralization.
This is the greatest transfer of wealth in history. ✨
To invest in crypto is to vote for and bet on the continued downfall of the parasitic centralized entities that have transgressed mankind's sovereignty and dignity for far too long.
If you're just getting into crypto, the most fundamental thing you can do is start gradually buying some Bitcoin and Ethereum (BTC and ETH). Put approximately 0.1% - 1% of your total wealth in each week or so, depending on your level of risk tolerance. If your net worth is lower (~$50k or less), I recommend putting a larger % into crypto, as this will give you a much greater chance to dramatically increase your wealth over time.
I presently have about 70% of my wealth in crypto; this is highly aggressive; I have a high risk tolerance. Others I know have only 2-5% of their wealth in crypto. You have to assess what is right for you. I believe crypto will take over so I am rolling the dice; I also don't have megatons of dough to play with, so I am taking a chance to dramatically increase my net worth so I will have more freedom to manifest whatever I dream of manifesting in life.
Read this great guide to crypto investing from Stephen Reid ASAP, and also ask questions in the cryptocurrency channel on Ouroboros Discord. As you get some BTC and ETH locked in you can then start to research/buy (slightly) riskier coins with larger growth potential. I recommend buying some BCP from piedao.org. Below you can see an image showing my entire portfolio as of Sept 2021; since then I've also bought a bit of HEX, AUDIO, MATIC, and XRP:
For beginners, Coinbase is the easiest way to buy crypto. When you join via this link and buy $100 of cryptocurrency, you'll get $10 worth of Bitcoin for free (as will I). I highly recommend using the Coinbase Vault + 2-factor Authentication to hold crypto you don't want to touch for long-term (mostly the strategy for beginners is HOLD long term). I use LastPass and LastPass Authenticator for Password Protection and 2-factor Authentication.
If you are serious about buying larger sums of crypto you'll want to get a Hardware Wallet such as the Nano Ledger and keep it in a safe in your home with a lot of your long-term holdings on it.
Important Note: HOLDING CAN BE DIFFICULT !! —> Cryptocurrency is known for its volatility. It can be very tempting to buy when it's skyrocketing and sell when it's plummeting — this is the exact opposite of what you must do. Do your best to buy coins that are significantly below their all-time-high price and HOLD long-term. This is what makes the most sense for most people. You can also start getting in the habit of 'taking profits on the way up' — i.e. 'cashing in' 10-20% of a given coin after it rises a lot so that you're sure to secure profits on the coin. THE BIGGEST REASON PEOPLE LOSE MONEY IN CRYPTOCURRENCY IS THAT THEY GET SCARED AND SELL WHEN THE MARKET IS GOING DOWN. BUY QUALITY PROJECTS AND HOLD!!!
These are the basics. With this information alone, if you follow these instructions, you could quite easily 5-10x your wealth over the next 5-10 years, possibly sooner. Depending when/if the US dollar crashes (it's been losing value for years and is being propped up by financial wizardry), the rise of cryptocurrency could dramatically accelerate.
Love,
JB
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Other Resources:
- Market Meditations Newsletter
- Stephen Reid's crypto course (I've taken this and it's great; not sure when he'll offer it again)
- My list 'best crypto' on Twitter — if you follow this regularly, you will learn a ton and find great opportunities
- My list 'NFTs' on Twitter — perfect for learning about / finding opportunities in the NFT space
- /r/cryptocurrency community on Reddit — good place for general crypto chat
- /r/smallcapcoins community on Reddit — good place to research little-known projects with ‘moon’ potential — i.e. they may go up a lot
NOVEMBER 2021 UPDATE
An IMPORTANT ADDENDUM on this:
I don’t feel that NOW is the best moment to pour a lot of money into crypto. My personal sense is that we are going to see another large correction sometime in the next few months. I feel like this macro-bull-run is starting to lose steam and a healthy correction will inevitably come.
I’ve been pulling some wealth out of crypto (~15% of my holdings so far) so that I am in a good position to buy a lot after the correction. I intend to continue taking profits as BTC climbs into the $70-80k range; I don’t foresee BTC getting much beyond the $80-100k range before this macro-bull-run ends. This is my opinion; not ‘official financial advice.’ I recommend keeping an eye on the market and when BTC/ETH drop 40-60% and most alts drop 60-80%, THAT IS THE MOMENT TO LOAD UP AND HOLD long-term in a disciplined fashion.
However, dollar-cost-averaging a small % of your wealth into crypto with intent to HODL long-term is basically a solid idea at any time, as I still feel that in ~5-10 years the coins that are still around are going to be worth much more than they are today.
So read the above guide with this pinch of salt and act accordingly.
I’d also reckon that this correction will heavily affect NFTs. Guessing we’ll be seeing a significant dip in NFT prices at some point in next few months too, so I’m not personally seeking to buy NFTs right now for the most part. I’m deeply interested in the NFT space, but it’s always essential to use discernment in the crypto space to understand when the market is closer to mania VS depression in its highly-volatile cycles.
Love,
JB