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What is my take on cryptocurrency?
First of all, I have to say that I am invested in cryptocurrencies and it’s quite a new thing for me
and probably for most of you as well
At this point, I think we should all have a little bit of money invested in cryptocurrencies
and I thought I would tell you why.
This is my opinion, so take it for what it is.
First thing is, cryptocurrency is a brand new currency. It’s the first one in forever
and it might be the next big thing, or it might just die off.
Regardless, the potential upside is huge!
This is one of those things where; if you make it big, you can get rich just off cryptocurrency.
There are many people; early investors, who are stinking rich today because of cryptocurrency.
If you invested just a little bit, back when Bitcoin first came around, you would be a millionaire by now.
That might continue, who knows…
It’s very volatile, a lot of ups and downs, but there is still a massive potential upside, and downside of course…
As an asset, cryptocurrencies is liquid.
Which means you can buy and sell it at any point, it’s basically like stocks.
You can buy and sell it in a day.
You can get in and out very quickly and cheaply, which is a big advantage.
It makes timing your investments a lot easier and if you need the cash you have in cryptocurrency, just get it out.
And there are always buyers so it’s very easy(to sell)
Beacuse it’s a liquid asset, it’s very good that it’s volatile.
There are a lot of ups and downs, which for us investors, is a good thing.
The more ups and downs, the more opportunities to get in and out with a good timing.
So because they’re volatile it’s good they’re liquid and the other way around.
The more volatility, the more opportunities.
This is a very good combination.
If you’re not patient, there will probably be buying or selling opportunities in the coming weeks or months.
So you never have to wait years for a good buying opportunity.
Even for you traders out there, this is a good thing.
Fourth thing: This is almost a brand new asset-class, just like stocks, bonds, real-estate, bonds, gold etc.
This is another way you can diversify your investment portfolio. It’s a way to diversfy.
This is very important(diversifying)
You can’t have all of your money in stocks, real-estate or cryptocurrencies. You should spread it out a little.
Let’s say, since cryptocurrency is a little bit uncertain…a lot of ups and downs.
So let’s say that today, you should have 2% of your portfolio in cryptocurrencies.
That’s at least where I am at the moment, and I’ll see where this adventure goes.(nervously smiling)
Last thing, it is a currency.
It’s a very unique currency though. It’s not like the euro or the US dollar, or the chinese yen.
Cryptocurrency is an idea, it’s a concept which might take off.
A normal currency like the euro, is simply a very stable currency which moves against another currency.
People might be trading the US dollar against the euro, euro vs the yen or GBP vs the yen,
But cryptocurrencies moves independently from all the rest of the normal currencies.
It’s a currency because you can buy stuff with it, but it doesn’t trade like a currency.
Instead of using it as a hedge or simply a way to hold cash; which the dollar and euro are.
This is actually like investing in a currency, which might take off.
The US dollar is not gonna “take off”. It’s not going to double tomorrow.
Currencies moves in (pear?) uhm..pairs. This/crypto) is a completely new thing.
So get invested in cryptocurrencies, it might be the next big thing or maybe not
but I think you’re gonna make some money and it’s a great way to diversify.
Stay tuned for the next video.