Crypto currency investing
CRYPTO CURRENCY INVESTING
Cryptocurrencies have emerged as a transformative force in the financial landscape, offering investors a unique opportunity for diversification and growth. Unlike traditional assets, cryptocurrencies operate on decentralized blockchain technology, providing transparency, security, and accessibility. The borderless nature of digital currencies opens doors to a global market, unburdened by traditional banking constraints.
It is important to note that central bank digital currencies aka. CBDC’s are cryptocurrencies, but they are centralised and issued by the central bank and under the control of the government. It is a centralised closed system
of control over you and your money, how you spend it, where you spend it and when you spend it. Just like any technology, it can be used for good
or nefarious outcomes.
THE BITCOIN HALVING
Bitcoin undergoes a process known as "halving" approximately every four years, reducing the reward for miners by half. This scarcity-inducing mechanism is hard-coded into the protocol, designed to limit the total supply to 21 million coins. The halving events, historically correlated with substantial price increases, create a supply-demand imbalance, heightening the potential for upward price movements. As Bitcoin recently experienced its most recent halving in 2020, the current period aligns with the post-halving phase, historically marked by significant price appreciation. This four-year cycle, coupled with increasing institutional interest and mainstream adoption, positions now as an opportune moment to invest in Bitcoin, potentially capitalizing on the anticipated bullish trends associated with the post-halving period.
INVESTING IN CRYPTOCURRENCIES
Successfully investing in cryptocurrencies requires diligent research and an outlook into the future based on that research, to determine which coins are likely to do well. This may sound easy, but in practicality it is not, as there are 20,000 odd coins on the market all wanting to make it in the big time. In a BTC bull market it is relatively easy to do well, but you also need to know when to take profits. Greed is indeed a killer and so is fear. The main aim of the research is to extrapolate and work out where the action will be in the future, where the swarm will be active and in which sectors.
How you invest in cryptocurrencies is entirely up to you, but I will suggest put most of your investment money into the least risky coins and less investment on the more speculative higher risk areas. I will break up the market into sectors.
THE BLUE CHIPS
The blue chips of cryptocurrency are Bitcoin and Ethereum and as such, I would allocate 40% of my investment money to both or just 1 of these. Bitcoin is the sole choice for me.
Bitcoin (BTC) has the potential to reach anywhere between
USD $ 130,000 – 250,000
Ethereum (ETH) can reach $5,000- 10,000
ISO20022 coins
The next sector I want to be involved in is ISO20022 coins, which will be used by the banking system as a means of cross border payments. This system will replace the swift system in place now. Unfortunately, the banks are not going away. There are 8 cryptocurrencies in this sector. The major coin in this set is Ripple (XRP), which will appreciate substantially when all is set up.
I also have Hedra Hash graph (HBAR)
There are 8 coins in this sector. Others to consider are
IOTA (MIOTA)
Algorand (ALGO)
Quant (QNT)
AI sector
Another sector set to be the flavour of the month is the AI sector.
There are many coins to consider. I have 2 coins in mind.
Fetch.ai (FET)
And Render (RNDR)
GAMING COINS
The final sector I would consider is the gaming sector. This sector performed well last bull cycle and continuation of upward momentum is expected in this bull run.
The coins I have considered are
Immutable X (IMX)
Gala games or just gala (GALA)
And I have included a speculative gaming coin as well called
Beam (BEAM)
As can be seen there are 4 sectors. Just as a guide, I would allocate 40% to the blue chips and 20% to the remaining 3 sectors.
Just as an aside, there are meme coins, meaning they have no utility or useful function, but in a bull market and especially when characters like Elon Musk tweets or talks about them they take off. Plenty of snotty nosed kids have made millions in these. Easily done when you have all your life to make up for any losses.
3 coins in this category to consider.
Doge coin (DOGE)
Shiba Inu (SHIB)
Bonk (BONK)
If you wish to invest in any of those, it should be no more than petty cash.
Between $200-$300
Disclaimer: The information provided herein is for informational purposes only and should not be considered as financial advice, investment recommendation, or an endorsement of any specific investment strategy. The financial markets, including cryptocurrencies, are inherently unpredictable and may involve substantial risks. Past performance is not indicative of future results. Individuals should conduct their own research, seek advice from financial