Strategies for Successful Blockchain Investments in 2018
Since the day I made my first Bitcoin transaction, I was transformed into a cryptonaut and never looked back. This fairly new blockchain technology is surprisingly not as sophisticated but in fact simple to understand, safe and easy to use.
Understandably, as with anything new, there are bound to be sceptics but typically you will find that the majority of critics tend to be people who have had no first-hand experience with this revolutionary technology.
2017 was a good year for Bitcoin and cryptocurrency in general. Being a podcaster, my position on Bitcoin and other cryptocurrencies have been public knowledge for a while now. A recurring topical theme for discussion on my platform, I have conversed with many experts in the blockchain domain and constantly receive requests for information and questions around this polarizing subject.
In this piece, I will address some of those concerns and share my thoughts on the developments in the blockchain space:
1. Speculation AKA buy and HODL
Bitcoin price is based on supply and demand which means that as long as there are more people willing to buy it relative to the supply, the price will likely continue to see an upward trajectory over the long term. This is due to the inherent limitation of its supply – only 21 million BTC are set to ever exist once all coins have been mined.
2. Bitcoin is very volatile, it can go up or down by +/-20% a day which makes it quite easy to trade. You buy when the price is low and sell when it’s high thereby capitalizing on these fluctuations. A repetition of the right trades can make you considerable profits. However, this is no easy feat and not for the faint-hearted. Again, this is why most people opt to just buy and hold.
3. The last one is for the hustlers out there. Go All IN!
If you’re a natural business person you’ll look beyond Bitcoin, understand blockchain, and realize that this is an entire industry in its own right. Since it’s still in the infancy stages, there is a lot of promise for those early adopters who invest wisely in blockchain businesses that may be become very valuable in the near future. If you can learn faster than most people, you can always have first-mover advantage and potentially make lots of money.
Here are some simple steps you can follow to have a successful investment strategy:
Get paid in Bitcoin by bringing your talent, expertise and skills to the blockchain community. Lots of startups are running ICOs, raise lots of money and try to build products on the blockchain. Since the blockchain is still a relatively new industry, there is a shortage of talent.
Most people mistakenly think this sector is restricted to entry by only technologists and programmers but like any industry, there are many aspects of these blockchain-based businesses that may align with your already existing skill-set if only you are able to apply it to this arena.
Where there is software there’s hardware. There is a huge demand for computer components that people need for mining cryptocurrencies, hardware wallets, books etc. You can also build blockchain based apps for different industries using smart contracts, build payment systems and more futuristic projects.
Start accepting Bitcoin as a method of payment for your business
If you already run a business, this is an easy one for you. You can choose which of the cryptocurrencies to accept as payments. It’s most beneficial if you deal with larger asset classes such as cars and real estate since there’s huge demand but not many vendors accept crypto as yet.
Understand that there are more than 1000+ cryptocurrencies and new ones come into existence daily. You can study them and distinguish which ones may be undervalued and cheaper but have potential to be worth more in the near future. I’ve personally made more gains doing this than just holding Bitcoin.
Invest in ICOs
These are Initial Coin Offerings which take place when a coin is just getting issued. Most coins are sold for under $1 when launching but grow significantly in value within a short period. I remember turning $100 into $3000 in a few months on an ICO. However, there are lots of scam ICOs so you have to perform your due diligence. Enhancing your knowledge by reading whitepapers and having a fervent interest in blockchain goes a long way in making some of those determinations.
Furthermore, you can teach other people about it. The more people understand this phenomenon, the speedier its adoption will be, and ultimately the greater the impact this technology will have on the world – changing our lives for the better!