Investing in crypto is becoming a safer bet each year as Bitcoin and altcoins get older, improved and better established. We are still in the very early days of crypto and the opportunity to strike it rich is well within reach of most people, provided they have access to the internet, modern banking and a little disposable income. However, for most investors deciding which coins to invest in and how much is a very complicated issue.
There’s so many of them, so much information, high tech jargon and amazing promises that sound like lies uttered by politicians. Every new coin is hyped, packaged and sold like the next Amazon... Indeed, there's the remote possibility they could all come crashing down but it’s very unlikely at this point that all coins crash to zero. Some of them will very likely make it big in the future but which one(s)?
The reality is, no one knows, whoever tells you they do, they are flat out lying, fooling you and themselves. This market looks very much like the early car industry in the United States. Thousands of car brands appeared everywhere but most eventually went bankrupt, only a few succeeded in the long run.
So, how do I know which coins will succeed?
The simple answer is you DON’T. Trying to pick winners is very dangerous game that most people lose, those who don’t are demonstrably just plain lucky and end up losing everything the next time they bet big. The strategy that I’m introducing guarantees the winners come to you, rather than you pick them up.
How much money should I put in each?
This is a huge conundrum for most investors. With so many coins available and limited disposable income to invest it’s hard to distribute the funds in a sensible way.
Introducing the Millionth of Supply Passive Indexing strategy:
The following spreadsheet feeds from Coinmarketcap’s API and lists (or indexes) the top coins by market cap and daily trading volume. The coins at the top give you a pretty good idea of the current coins being favored by the market as of the day of publication of this post.
Download spreadsheet image showing USD value of millionth of supply and percentages to invest to own the top coins by market cap. Follow @CryptoEagle for updates.
The goal of this strategy is to own a millionth of the supply of each of the top coins by market cap. This way you guarantee that if any of them succeeds in the future you will be part of the elite, the top 0.1 percenters and millionaires of the future. If any of the coins (or some of them) succeed(s) and become(s) a widely used reserve currency you will be guaranteed to own a millionth of its supply.
In columns T and U of the spreadsheet you'll find the percentage of funds you should invest based on market cap and the USD value of the millionth of supply of the coin. This is calculated by dividing the USD value of the millionth of supply by the total amount you should invest to own the top 10 or 20 coins.
It doesn’t matter if you invest $100 dollars every month or $100,000 at once, your goal will be to own the millionth of the supply of the top coins as soon as possible without spending any income that's not disposable to you. So, if for example, all you had is $100 dollars to invest monthly, you would invest this amount in each top coin according to the percentages shown, no more, no less. At the bottom of the columns is the total amount in USD you would invest to do this for the top 10 and 20 coins.
How rich will you be if you follow this strategy?
There are currently an estimated 10.5 trillion dollars in existence. If you owned a millionth of the supply of US dollars right now you would own about ten million five hundred thousand dollars. Just to give you an idea, in the United States alone, at end of 2016, there were 10.8 million millionaires, according to a study from Spectrem Group's Market Insights Report 2017.
There are approximately 18 million millionaires in the world according to the 6th annual Credit Suisse Global Wealth Index. This doesn’t even account for the disruption of other industries such as remittances, Gold as a store of value and many other new uses of crypto currencies that we can’t even dream of today. As an example, if Bitcoin overtook just 5% of the market cap of Gold, a single bitcoin would be worth approximately $24,000 USD.
But, “introduce any crazy coin name here” is so great, the technology is amazing, so exciting. It’s the future, my guts tells me!
Yeah right, the market doesn’t care about your hunches, white paper promises, or all those great technologies that people sell as the best thing since Coca Cola. Nope, only market cap, volume and related network effect can tell you what coin will end up being favored by the market.
You must re-balance every once in a while
About every 3-6 months you should take a look at this index and re-balance it. Follow me for updates to this post. If any coins dropped in market cap sell them and re-invest the money on the top coins until you own the millionth of their supply. If there are new coins in the list you should invest in them until you reach the goal as well, no more (over invest), no less (under invest). If you don’t do this you are risking missing the upcoming coins and keep investing in the long term losers.
Don’t invest on coins that only briefly come to the top
(Especial thanks to @famunger for contributing to this point)
Advantages of this strategy:
- You will be almost 99% guaranteed to become a multimillionaire by owning the top coins the market finally ends up favoring. You will certainly sleep like a baby!
- You can start investing with very limited funds and continue investing periodically. Even if you don't get to own the millionth supply of every top coin you'll be certain you did as best as you could with your limited resources.
- You won't over or under-invest in any particular coin and thus keep risks at a minimum.
- You’ll skip all the typical drama of investing in cryto. The Fear of Missing Out (FOMO), the Fear, Uncertainty and Doubt (FUD), the daily crashes, the pumps and dumps etc. will not rattle your nerves and send shivers down your spine every time they happen.
Disadvantages:
- This is a boring, long term, no feelings involved, passive strategy, you will not have the adrenaline rushes and enjoy or suffer all the crypto drama. Picking winners is reduced to a simple to follow probabilities game.
- There may be coins that gain 1000 percent in a few weeks that won’t show up in the index until their market cap grows to the top and which you will miss but, on the bright side, you’ll also miss the big losers, the suicide inducing and family wrecking crashes.
- There’s still the slight possibility (the 1% chance) that the entire crypto world is a huge bubble that will never work, the Internet could come crashing down after an EMP attack or a meteorite could strike earth... In which case we are all screwed anyways and should worry more about food and bullets to fight the zombies...
Crypto is siphoning off gold’s market cap. Bitcoin could increase 50x in price by stealing Gold’s thunder
AS PREDICTED: The U.S. Market is entering a bear market. Crypto and Gold expected to soar!
Trump is NOT threatening nuclear war with North Korea. He is talking about this non-nuclear but incredibly powerful weapon!
Tell me what you think of this strategy in the comments below. This is not professional investment advise. I'm not your financial advisor. Only invest money you can afford to lose!
Follow me for updates to the spreadsheet.
Happy crypto investing!
great article. can you please supply an updated spreadsheet? even better, a public link to the sheet in google docs
Hello Property,
The spreadsheet evolved into an Android app. Check it out. It's free. my regards https://steemit.com/bitcoin/@cryptoeagle/become-a-crypto-millionaire-with-this-investing-strategy-app-updated-1-29-2018
That's good guide on crypto investment...I was suffering to invest process . That's why I loss money. From your post I have got transparent picture to invest. I will try to invest according your valuable and positive guide.
@cryptoeagle got you a $1.52 @minnowbooster upgoat, nice! (Image: pixabay.com)
Want a boost? Click here to read more!
good witeup. timing is as important as % holdings
Worst case scenario. This:
Best case scenario. This:
3 word summary: Invest, Diversify, HODL
Too many coins trying to reinvent the wheel. The creative solution-driven coins (mostly platform or privacy/security focused) end up in the top of the charts anyway.
I would add: Do some research before investing [in ICO's especially]. What is Unique about it? Peruse the White Paper. Does it solve a problem?
Excellent advice @cryptoeagle. Passive, long-term investments are boring and hard. But nothing worth doing is easy.
"The reality is, no one knows, whoever tells you they do, they are flat out lying, fooling you and themselves. ." this alone
followed
This post is seriously undervalued
Yes, it is! ;) regards
very nice post
I love the rationale of the strategy. It's not all the eggs in one basket. It's diversified some, and it picks the winner based on current performance.
There is a certain sanity I see to this strategy that I have not see anywhere else. it's like setting up a moving index fund for crypto. Very interesting.
nice info sir. I have also invested some money on bitcoin please tell me what is the future if Bitcoin?
Shame I didn't saw this post earlier :(
great post
I wish to see this post earlier...
Congratulations @cryptoeagle!
Your post was mentioned in the hit parade in the following category:
Hi! I am a robot. I just upvoted you! Readers might be interested in similar content by the same author:
https://steemit.com/bitcoin/@cryptoeagle/what-percentage-should-you-invest-in-each-cryptocurrency-a-guaranteed-winning-strategy-index-updated-8-13-2017
Lets say my payjob is 1000 dollar per month and I only have 300 dollar to invest, ill need to buy until 140k which will take me approx 38 years to achieve that!!! Well my salary will increase ofc in those years so around 30 years... Hmm this is practically possible and should only be plan c or d never plan A to be a millionaire. 30 years still a big risk to take since the coins are constantly rebranding, changing their operating system and etc. Coins that you hold might not be valid anymore. Just my 2cents..
It is good idea to invest in crypto currency but you should know your limits, if you are lucky you will make money.
RULE OF THUMB - "Always invest amount of money that you can afford to lose".
You can't predict future so try to avoid speculations that you will invest 300$ every month to become a millionaire some day, ultimately, you will end up thriving to become a millionaire without knowing whether you will ever become one or not. It is better enjoy your present i.e. earn your daily bread and some beer :) and enjoy with your loved ones.
You can even become millionaire with 12$ if your destined to, read https://www.cnbc.com/2017/06/20/bitcoin-millionaire-erik-finman-says-going-to-college-isnt-worth-it.html
I cant agree no more. With all the money in the world without the loved ones. Life is still meaningless. Thanks for advice! Loving steemit community!
Just think about this: Over the years some coins will increase 1000x, most will drop to zero. Even if you don't reach the millionth of supply you'll do as best as you could with the least risk.
Oh so you're saying I might be millionaire even though I don't reach that millionth of supply? Are there any tested result out there? I don't mean to confront you, by the way, I just like educational and honest conversation. Sorry for being too direct.
The millionth of supply is just a goal to avoid over-investing and secure a place among the elite holders of the top coins.
I see. I guess this is the safest and proven way to be millionaire :D
http://www.businessinsider.com/how-i-became-a-millionaire-by-30-2014-11?international=true&r=US&IR=T
Those work too but keep in mind this crypto revolution will only happen once in your lifetime.
Very interesting strategy any download link to the spreadsheet?
I am interested in starting this no feeling strategy, until now I have based my picks on feelings, which the market doesn't care.
The spreadsheet feeds from the Coinmarketcap api and needs a especial third party script to function in other computers. If I send you the link it won't work. I'll post updates at least once a week
nice read,upvoted!
Awesome post @cryptoeagle ! Thanks so much for these great insights!
@cryptoeagle I wanted to know what formula you used to calculate columns T and U (%'s to buy top 10 and top 20, respectively) in your spreadsheet?
Good job! I like the numbers! The only thing is you only took into consideration of the USD while cryptos are global :)
You are right, with a bit more time I will try to include other top fiat currencies on the sheet. Which one are you interested in particular? Thanks for the suggestion!
Man with 208 up votes on this you would think this article would have a pay out closer to $25.77 Very interesting algorithm that they used to value comments and articles.
But at least these bots will boost your popularity of your post right?
Do you remember beanie babies? Those little stuffed animals were supposed to send my kids to college. I do think crypto currency is a better investment than stuffed animals.
My dad was once hey millionaire on paper before the.com bubble burst. He lost $600,000, but on the other hand he had $400,000. Millionaires know when the market is at its peak and aren't afraid to Sell! The next crypto millionaire will be able to call the top.
goood oneeeeee
good going... like it
great post.
Great Article. I have found an article written by a successful investor about how to gain from ico. It may help you to make a decision Take a look : https://steemit.com/crypto/@bijeeshtk/how-i-made-566-gains-by-investing-in-icos
great article. can you please supply an updated spreadsheet? even better, a public link to the sheet in google docs
The advantage is that with crypto, you can have basically an unlimited supply of resources to spread around since the value of the currency tends to appreciate with more usage. Hence something like steemit enables each person to amass wealth without it coming at the expense of others.