Invest in Crypto NOW - Why it’s a Great Time to Start or Invest More!

Before you read the article, make sure to watch the video I made about this topic with more details HERE.

With crypto, it's a completely different world. People can show you market cycles, but they fail to relate that to a different world of Cryptocurrencies. In this world of crypto, banks are actually manipulating the news, and sending out negative mass media press releases to get you to stay away.

Why are the banks putting out ‘fake news’? Never before has the major banks been threatened by an asset like crypto and bitcoin. Not only are they scared, but they are already losing money because of it. So it’s their duty to put our false and misleading information to try and scare people out of this new asset class. You can post market cycles, but it’s really about the news trends I see in 2018 that is their way to try and rule your mind.

I believe we will witness huge and violent swings soon, when the large funds, pension funds and institutes start to march in to this crypto asset space. The value of many cryptocurrencies have reduced a lot in the past few months, confirming that we have been in a bear market. Times like these are when the potential for massive profits is at it’s highest.

ETF’s Coming!

What are Exchange Traded Funds (ETFs) and why do they matter? According to Investopedia, an ETF is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. ETFs typically own the underlying assets (such as Bitcoin) and turn that ownership into shares. The great thing about ETFs is the simplicity of access via the public stock exchanges. Buying and selling ETFs is just as simple as buying and selling stocks.

Once the Securities and Exchange Commission allows Bitcoin ETFs, anyone with a 401K, IRA, or an investment account, like with the top broker-dealers (Fidelity, etc.), could invest in Bitcoin with a simple click. This means  no wire transfer or credit card fees, no explaining Coinbase and other crypto exchanges.

A poll done in January of 2018 shows that a mere 5% (12.6 million) of American adults own Bitcoin. Another poll suggests that 54% (135.5 million) of American adults own stock. That’s 122 million potential buyers for Bitcoin ETFs! This estimate does not factor change in market size over time. Furthermore, a similar survey from finder.com confirmed the 5% figure but also discovered US adults bought about $3,500 worth of Bitcoin on average.

Bitcoin Market Journal estimates that there are around 20 Million global BTC investors. If 12.6 Million Americans invest in Bitcoin, that represents 63% of the total Bitcoin investors!

Bitcoin is a fixed asset; there are only a total of 21 Million coins, and just 17 Million mined to date. There are also an estimated 4 Million coins lost forever. So it’s safe to say that there are about 9.8 Million coins in circulation.

If the introduction of Bitcoin ETFs attracts 20% of the available equities trading market (122 Million), that would add 24 Million new investors! It makes sense for the rest of the world to follow the upward momentum. Factoring in the current US ratio (63%), we could see 58 Million global investors in Bitcoin just from the introduction of ETFs!

So, what does that mean for BTC’s price?

January’s average Bitcoin market cap was $222 Billion. The US investors represented 63% of the 20 Million global investors, and the US investor purchased an average of $3,500 in Bitcoin. US investors equate to $44.1 Billion, or 20% of the total January market cap, leaving $178 Billion or $24,000 per investor for the rest of the world.

If ETFs add 24 Million US investors and the upward momentum adds 14 Million from the rest of the world, then that adds $84 Billion and $336 Billion, respectively, to the market cap. Over the past six months, Bitcoin’s market cap has swung from $326 to $110 billion.

Adding $420 Billion to the market cap could put Bitcoin’s price range from an estimated range of $26,000 to $44,000.

The Securities and Exchange Commission continues to discuss Bitcoin ETFs. In January the SEC said no ETFs in response to the futures-based ETFs. In March the SEC said it was considering them again. Since then, new ETFs have been presented for consideration and approval. The real question that should be on every Bitcoin investor mind is “when will the SEC approve Bitcoin ETFs?”

Before I end the article, I want to talk about popular sayings in the investment world…

"You don’t make your money when you sell, you make your money when you buy."

This saying refers to the fact that profit is all about the margin between the buying price and the selling price.

For example if you bought Bitcoin when it was $1,000 and sold when it was $18,000 you have made a $17,000 profit.

Another example is Ripple, if you bought $1,000 worth of Ripple when it was $0.05 and sold when it was $0.52, you would have made $10,000.

Buying into a cryptocurrency when it is cheap (like it has been the past few months) allows you to gain more profit when the value increases. However this does not mean that it is too late to buy since we are still in the early stages and have quite a long way to go.

"Be greedy when others are fearful and be fearful when others are greedy."

The principles of this saying are similar to the one above however this saying advises people to be wary of buying into an investment once it skyrockets and everyone starts buying in.

A good example is the 2017 period for cryptocurrencies when Bitcoin grew from $900 to $20,000, at the beginning of the year the average person didn’t even know what Bitcoin was, but as soon as the price blew past the $2,000 mark people started talking about it.

Once the price of one Bitcoin went past $15,000, all of a sudden everyone was talking about Bitcoin, people who barely even understood cryptocurrency where putting money into it.

Bitcoin’s price continued to spike and it reached $20,000, by this time EVERYBODY wanted to invest in Bitcoin. Sadly jumping on the bandwagon doesn’t always work out. The price soon dropped and declined to it’s current price point of around $8,000.

The funny thing is, this has happened before and the price will rebound, so anyone who has bought high and sold low will probably regret it. At the same time, anyone who bought in before Bitcoin was $8,000 is still in profit and they will be in even more profit once the price recovers.

Moral of the story: Buy when the prices are low, and sell when the prices skyrocket.

"Buy when the blood is running in the streets, even if it is your own."

Instead of trying to time the market, I believe the best and most reliable way to be profitable when investing in crypto (a highly volatile market) is to have time in the market. What this means is that you should buy as early as possible (right now) and don't sell off until you need the money or predict a major (80–100%) crash coming.

Final thoughts…

Buying into cryptocurrency is a great strategy during a downturn since historically Bitcoin and other good Cryptocurrencies have always rebounded and gone onto higher levels.

I expect most good Cryptocurrencies to recover to their previous highs and then reach higher evaluations possibly by end of 2018 or into 2019.

Good luck in your trading and/or investing!!

I wanted to quickly call out my favorite Cryptocurrency Trading Bot called Cryptohopper. This bot allows you automate your trading and/or investing based on several strategies.

I’ve been using the bot now for many months and will continue to do so. If you’re not familiar with Cryptohopper, checkout a write-up I did on it HERE. Also, if you want an in-depth user manual on how to setup and configure the Cryptohopper bot, I’ve written a 40-page user manual you can download HERE.