Learn to use a cryptocurrency investing strategy like a pro
Binvested founder Nathan Birch has been heavily invested in cryptocurrency for years; his first Bitcoin purchase was when it was valued at around $500. Well, at the time of writing, Bitcoin has hit $60,000 in value, Elon Musk has allegedly said he’s putting money into cryptocurrency and a lot of people are running out to buy Bitcoin because they think it’s the best investment in the world. Remember, one year ago, Bitcoin was worth $3000 so it’s now gone up by 20 times.
Nathan enjoyed buying it when it was $500 or $1000, but at $60,000 he views it as too risky. But he hasn’t sold any of his just yet, he is still holding them.
There’s not just Bitcoin
A lot of people are investing in different cryptocurrencies at the moment for the first time and could potentially see massive gains.
Some people bought coins for 1 and 2 cents that are now trading for $700. If you’d put $10,000 into one of those, you could have millions.
But would you sell out then, or keep waiting? If you sell, are you missing out on future gains? And if you wait, are you risking the value plummeting again?
Nathan has seen people sell out with $100,000 and be very happy on the day, but now that money would have been worth a lot more and they’re not so happy. But other cryptocurrencies have risen high and then crashed. People who get too greedy with those can lose everything. There are also a lot of scams in the market.
So how do you settle on a strategy that allows you to keep earning when values rise, or avoid disaster when they fall?
Tranches of 10%
When Nathan disposes of assets like crypto, he does so in tranches. He might sell 10% of his holding, then wait a few days, sell 10% more and if it shoots up in value, he might sell another 10%. This method is the way he maximizes his return and avoids selling too early or too late.
So, it’s important to enter these markets with caution, understand your strategy as to why you are buying it and have a strategy as to when you’re going to sell it off and what you’re going to do with it.
Are you going to leave all your money in the crypto, are you going to sell some down once it goes up and buy physical assets such as silver, gold, businesses, or real estate?
The Musk factor
When Elon Musk came out and said he’s bought into cryptocurrency, it made Nathan cautious. He wonders what people like Musk’s agenda might be. Did he go and buy it at $3000 last year and is now pumping it up?
One good thing is that it gives Bitcoin legitimacy. Going back 10 years, it was used for buying drugs, weapons, body parts and other shady things on the dark web.
Now the richest person in the world, who also created a payment system called PayPal that everybody uses today, is backing and endorsing this.
How high can it go?
Are you going to be sitting here in 5 years saying ‘I wish I had thought about this better and planned better’?
Today we’re in the very early stages of what appears to be a bull market and there’s a lot of positivity coming into the marketplace.
So what will your strategy be? Do you need help with your strategy? Reach out to our team on 1300 367 925, or via email at firstname.lastname@example.org. We can help you with a strategy of how to transition from your digital assets over into physical assets, once the asset meets its criteria.