Since my last posts in various social media, I get asked a lot about the basics of cryptocurrency investments. So I figured, I'll just write up something easy to digest for people that are still new to this. For this purpose, I'm gonna stick to only the safer options.
WARNING: Invest only what you can loose. You have been warned.
Let me start off with another warning, cryptocurrency is very very volatile. Therefore, whatever investments you'd be willing to invest at will naturally be high risk. These are the opportunities though:
- Since my first investment in late July, Bitcoin value against USD has gone up from ~$3000 to ~$4200 as of this writing.
- In the last 3 days from this writing, Bitcoin has gone up to $5000 and dropping back to ~$4200.
If the above doesn't scare you than perhaps the facts below will:
- There are numerous HYIP (High Yield Investment Program) out there that are only alive for ~30 days.
- After ~30 days (or even much less) they just shutdown their website and run away with your Bitcoins.
- The types of investment in Bitcoin is usually for you to just do nothing and watch the compounding interest add crazy value to your investments.
- There is no governing body regulating the trading activities, the value against fiat currencies is theoretically influenced only by the laws of supply vs demand.
- Since there is no governing body, it's not impossible to control Bitcoin's value, read here.
- If you loose access to your cryptocurrency wallet, the coins there will never be able to be recovered. Here is a link on how to keep your coins safe.
I'm Still Curious
It took me 2 weeks of on & off research to finally just say fuck it, I'm going to invest. I'm a software engineer, I got a pretty good idea of how Bitcoin works under the hood and still took me 2 weeks. As a comparison, I decided to build my last startup in 20 minutes; I almost went bankrupt.
The first and foremost reason why I finally decided to take the plunge is I have $1500 I can spend that will not hurt me. So I figured let's spend it NOT on toys. Further more, my past business ventures cost me way more than $1500. So it's still reasonable.
The second trigger is that I've tried mining coins before. Because of that, I made a spreadsheet detailing how much I'd need to spend. The catch is, however much I spend, I will always be defeated by increasing mining difficulty which will render my machines obsolete.
The value of Bitcoin in the last 1 year increase 4.1x while the difficulty has gone up 3.7x. That's a tight margin, I'd need to spend a large sum of money to be able to start. The final nail in the coffin is the electricity use. It's cheap in Indonesia but I'd need to rewire my house to be safe, that's another expense I don't want.
The third and last trigger is I found out about Bitconnect (referral link). I will explain about this later in detail.
So what is Bitcoin? My perspective about Bitcoin is that this is something the human race need in order to survive the future. I'm a Trekkie, I love crazy ideas so crazy that we need to make it a reality. Imagine when humans are a multi planetary species. Will fiat currencies still be acceptable?
The question above made me rethink what fiat currencies are. One thing for sure, we the average citizen have no control over the value of our nation's currency. Fiat currencies value are supposedly governed by the economic power of the respective country. There is no hard limit on how much money can be circulated.
I'm sure the trailing paragraph above can be disputed by someone more knowledgeable than me. But that's exactly my point, you'd need to be knowledgeable enough to comprehend.
Bitcoin comes with a distributed ledger that everyone have a copy of. That ledger record how much Bitcoins are transacted globally.
Since the rise of Bitcoin, there are plenty other coins are out there referred simply as Altcoins. Any other cryptocurrency brings about the same volatility of Bitcoin to themselves. This makes it perfect for players to trade crypto-pairs. Buy low and sell high.
Bitconnect is a platform for us the average joes to lend money to them, for their bot traders to trade our money against crypto and fiat currencies and in return receive daily interests. These daily interests can either be reinvested to your account or also withdrawn daily.
Here's a referral link to Bitconnect.
They claim that they are a self regulated financial platform. I believe that. Watch this video to debunk Bitconnect.
Everyday I record the performance of my Bitconnect investment on a spreadsheet. You are free to take look on the link below:
Trading or investing in cryptocurrency is definitely high risk. Of all the high risk ventures I've tried, this is by far the most highest risk of all. I don't recommend this to anyone without the stomach for this.
I have no idea how long this run will last, if you've read all my warnings and still find this kind of investment is for you, then join me. I've put my referral link in this article, in any case I'll help you start.