Dear Reader,
Cryptocurrencies are now a legitimate investment vehicle.
Cryptocurrencies, outside bitcoin, are essentially tokens bound to companies growth and its projects. The investing premise is the same as with stocks - if the company that issued the cryptocurrency, the token, does well, increases its revenues and profits, the company's stock will rise and its cryptocurrency token will appreciate in value.
However, since cryptocurrencies do not have legal residual claim on the company's assets if the company goes bankrupt, cryptocurrencies are much more volatile, or their price moves ever so much more, than the company's stock price.
Essentially, investing in cryptocurrencies should be done with great care and carefulness. Either you invest for the short-term, be prepared to go in and out quickly or you invest and "forget" your investment for 2-3 years. In the latter way you can expect higher returns, but also to lose almost 100% of your initial investment. In the former quick and nimble investing style, one can control better risk, but has to be right many more times.
All in all, cryptocurrencies are here to stay as an investment vehicle. The much more we read up on cryptocurrencies and analyze companies that issue cryptocurrencies the better we will understand cryptocurrencies.
Disclaimer: The blogposts and comments on this blog and posts on social networks(Twitter, LinkedIn, Facebook etc.) are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is".
Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blogposts on this blog and posts on social networks.
Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blogpost and posts on social networks(Twitter, LinkedIn etc.)!
Respectfully yours,
Petar Posledovich
1 comment:
I fully agree. A tiny portion of portfolio can be allocated, but timing is important, so the investor should look for opportunities to buy the dip.The downside risk is political as for the precious metals. Transactions are vulnerable, because they are easily traceable and can be taxed.
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