HOW TO BECOME A CRYPTO MILLIONAIRE IN 20 YEARS -What are your thoughts?
I have written this guide with the intent to cut through the hype surrounding crypto currencies.
There are many people making thousands off of "swing trading", a process of buying cryptos with the intent to sell in a few months or weeks, usually for 5-10x profits.
Here's a breakdown:
ICO (initial coin offering) - a company or business group makes it known that they will release a coin for their project.
Investor's buy ico with the intent to "dump' the coin at peak value.
Coin goes on market, everyone who didn't buy during the ICO period may now buy the token or coin.
These are the second stage investors. They are either people who have just heard about it, "dumb money" people - people who just caught the hype and want to make profit (these people are the first to lose money), or value investors, the people who missed the first set of profits but are looking for a 2-5 year investment.
What I would like to point out is the value investors. These are the average people, like you and me, who have regular jobs and don't want to do the amount of work that swing traders do, and also don't want the amount of risk that hype traders (the too late traders) go through.
These traders are what I focus my attention on, and what I want you to think of yourself as.
Value traders:
Buy into things that have immediate as well as future value.
Swing Traders: Use hype and economic factors to make predictions as to future value. They then buy into those predictions. Buys and sells usually last 2 to 6 weeks.
Stupid Traders: Buy 3/4ths into a spike, sell after the price has come down. The last people to show up and the last to leave. They are needed for swing traders to make money.
Day traders: Use Technical analysis to predict where the price is going short term, usually within four hours.
Recipe:
Time: 7-10 Years
Makes: $1,000,000
Ingredients: Ethereum, Bitcoin, Neo, Eos, Iota, Lisk , Litecoin
Optional: Ripple, OmiseGo
Ethereum:
Eth, ether, or ethereum whatever you want to call it, is a base coin. What I mean is it's a coin that you buy and hold and keep as a store of wealth. Its not super volatile, won't make insane gains rapidly, but will increase in value at a steady pace.
Ethereum has wide use cases, many partnerships including ones with Microsoft, and a great team. Eth is a platform for building "smart contracts". These are like legal contracts except written in computer code and can't be broken, even if a person tried. That's just the way they work.
Given Ethereum's structure and potentiality, we believe the source of price increase will come from more and more businesses using the ethereum platform, this will increase demand for eth which will result in a price increase.
This is a long term and non-speculative play.
Bitcoin:
Bitcoin is cash. In the entire crypto ecosystem, all currencies' prices are related in terms of Bitcoin. For example "how much is ethereum worth?" "well last time I checked it was trading at .1 Bitcoin. Bitcoin is the measure of value (an economic term) which gives it dominance over all other crypto currencies.
Bitcoin will be used for large transactions between businesses or for large personal purchases. If ethereum is a $50 bill, Bitcoin is the mac daddy one hundred dollar bill. Bitcoin is Benjamin.
People will also use Bitcoin as a store of wealth (another econ term used to describe money). Bitcoin is the most stable currency and people will buy it just to make sure their wealth does not go down in value.
Bitcoin's price increase will come from super savers who think long term as well as increased short term demand from businesses and large money buyers/sellers.
Neo:
I am in love with Neo. Let me tell you why I'm so obsessed. Its no small joke that the Unites States is not the most powerful country in the world anymore. U.S. may run things, but many younger child countries are eyeing the throne. Russia, China, North Korea, and even Mexico are looking for solutions in order to control the world. What creates power? Economic influence that's what! USA become what it is today due to cheap sugar, cotton, and tobacco. With it's unlimited landscape full of resources the USA became wealthy enough to influence the decisions of other countries.
Times have changed.
Russia has put a lot of money into projects such as solar power, and is currently thinking about building a multi-million dollar mine for crypto currencies.
But China already has mines. China's solution is to create its own block chain platform, and that platform is called Neo.
Neo is "China's Ethereum". Neo can do anything Ethereum can do and more. It's programming languages are easier, transaction fees are less, and transaction times are much faster. This all leads to Asian citizens having home field advantage. European and United States businessmen will be smart to offer their services on ethereum as well as Neo's platform. China also boasts one billion people, one seventh of the consumers of the entire world, just let that sink in.
Neo's price increase will come from people using the currency as a means of exchange (the last economic attribute used to describe money). People will use Neo in stores to buy candy and such. Big business as well will use it to trade on China's native crypto currency platform. China has spent millions or more on this and are giving this platform to it's citizens for free. They are also welcoming foreign businesses and investors to engage on their platform. This all gives me the feeling that the United States is f*cked when it comes to remaining at number one.
Neo can be related to the $10 bill.
Iota:
Iota is based around the internet of things. Machines will use Iota currency to pay each other for services or goods rendered. You're robot's arm fell off? No problem! Your robot goes to the robot repair shop, pays with Iota, and gets repaired. The repair shop then pays Iota to a goods company to buy more robot arms, and the ecosystem keeps going indefinitely.
I know, you're probably thinking wtf did I just read. It is quite overwhelming but this is the reality now.
Iota is still in the works, but it offers much potential and will be releasing its beta version summer 2018.
This gives the clever investor a long period of time to accumulate Iota on a consistent based before the price jump happens.
Iota's price increase will first come from swing trades and speculators. However, that money moving in and out of Iota will be pennies compared to what will happen once the platform is implemented by big business.
Iota will increase in price due to increased demand over time.
Litecoin: Silver to Bitcoin's gold.
Litecoin was one of the first crypto currencies ever created and has actually led to technologies that have been adopted by it's bigger brother Bitcoin.
Litecoin's developer's never wanted Litecoin to be number one, but always had the vision of being #2.
Litecoin is much, much faster than Bitcoin, and will be used by everyday people due to its fast speed, reliability, and low transaction fees.
Litecoin's price is naturally stable, it does not go up or down often. It will be used as a safe store of wealth as well as petty purchases.
Litecoin price will increase due to small mom and pop type companies accepting it over Bitcoin due to it's ease of use. Small businesses but not large ones will use Litecoin. Think retail stores and restaurants.
Lisk: Because why stop at Ethereum?
Remember when you learned the alphabet? Well JavaScript is like the alphabet in terms of how easy it is to learn. JavaScript is one of the easiest programming languages to learn as is considered kind of an ice breaker language for learning code.
Lisk is related to Ethereum, with it's smart contracts and the ability to create platforms on the parent platform. However, Lisk has two cards up it's sleeve.
Lisk is Java friendly. So unlike Ethereum with it's confusing program language, Lisk can be programmed by any amateur computer programmer. This gives it an ease of use advantage over Ethereum. Lisk's other card is it has a technology called "side-chains", the first of it's kind.
Side chains are not run on the parent platform. Meaning if you and I start a platform on Lisk, and we send each other the token we created, the transaction does not happen through the parent platform, but rather through the personal platform we set up. This is akin to having a personal internet, that one may shut down, change, or manipulate at any time. You're platform is getting hacked? No problem just shut it down without shutting down the entire Lisk platform. This platform model also allows for extremely fast transfers and transactions due to things happening on a side chain and not on the main channel.
Lisk's price increase will happen organically form increased demand and use, especially given that their platform will launch late 2017.
Eos:
Eos is a parent platform, like Neo, Ethereum, and Lisk. It is my understanding that all languages will be supported, it will also make programming easier for non tech savvy people. I don't know a ton about Eos so I don't have a lot to say.
Eos is an incredibly ambitions project. It intends to be the center that will tie basically all other crypto currencies together. It won't be a parent network, but it will be a network that allows other networks to communicate with each other.
I would recommend accumulating EOS slowly, then accumulating more when its shows consistent signs of moving up in price.
Price increase will be caused by speculators and day traders, but that will be inconsiderate compared to banks' and businesses' money.
Optional : OmiseGo and Ripple. I won't go into explanation of these but I will say that a great strategy would be to buy $10 worth of OmiseGo and $10 of Ripple every month. This strategy works stellar for getting into investing while also adding a little bit of speculation and fun into your portfolio.
Happy trading friends.
Forgot the mention all the ppl on margin losing a ton...still an equal sum game
True, I made a great amount of money buying and holding. 17.33X gain to be exact. Then I started following the hype, buying highs then selling lows. Made money, lost money, until I realized there's no way to win unless you get in before the big crowds come in. Time is one's friend, even with more mainstream currencies. Now I just buy and hold no matter what, I buy highs, I buy lows, and I'm holding all these for at least 7 years.
Agree? Disagree? What else should I write about?
I read econ books, self studied, and have a few college courses under my belt. My biggest passion is economics and I see block chain as the future of econ.
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