Could Investing In Crypto Be The Ultimate Hedge For Forex Traders?
We all know diversifying is the “smart” way to invest in anything, right? So why do so few of us actually do it? In reality, most investors tend to ignore this proven advice and funnel investment dollars into very few places, and the reason for this is not a big surprise. It’s the dream of a big payday that tends to keep people doubling down in one or two places that they think will pay off big at some point.
So what’s wrong with that? Nothing, if you’re right! Chances are you’re not though, in fact the odds are overwhelming in favor of you being wrong, and you will be in good company by the way.
Even the very best investors among us admit that they don’t know what is going to hit or miss or when it might happen. If there were a reliable way to accurately predict any market there would be many many more wealthy people walking around today.
The truth is that none of us really know for sure when a given market will crash, when a stock will soar, or when a currency will make a big move, and that is the case for diversification. We take up positions in a few different markets at the same time to increases the chances of being in the right place at the right time when a big move occurs.
The best way to view diversification, so that you are more inclined to want to do it, is to think of it as having an edge over everyone else. A serious edge. People tend to like the idea of being a leg-up over the next guy, so classifying diversification in this way may be helpful.
For those who agree and want to find other lucrative investment opportunities with high potential, crypto should be top of mind for a few very good reasons.
Reason #1 To Consider Crypto:
The cryptocurrency market is the most volatile market on the planet which opens up a raft of new & highly lucrative ways to invest in crypto that simply don’t work in traditional markets.
Reason #2 To Consider Crypto:
At the time of writing this article, Bitcoin holds the #12 position of highest market cap in the world at approx. $364 Billion, right above none other than Walmart. What makes this even more impressive is that Bitcoin holds the 12th position even at the (presumed) bottom of a long market crash. At todays value here is a quick look at the worlds top 12 companies by market cap:
- Apple $2.2 Trillion
- Saudi Aramco $2T
- Microsoft $1.6T
- Google $1.2T
- Amazon $1.1T
- Tesla $671 Biotin
- Berkshire Hathaway $588B
- United Health $466B
- Johnson & Johnson $427B
- Exxon $407B
- Visa $376B
- Walmart $360B
Reason #3 To Consider Crypto:
Right now crypto is still considered a ground floor investment. When is the last time you had chance to get in on the ground floor, especially on an investment with truly enormous potential? Even if Bitcoin only reaches 25% of its’s projected potential over the next 5 years, that would arguably still make it the most lucrative investment in over a century.
Reason #4 To Consider Crypto:
If cryptocurrencies were part of the regulated world of finance, the top coins would be classified as a top-tier investment, and they are open to anyone to invest in. This has never happened before, at least not since 1910 when the earliest inception of “The Fed” was created along with a long list of regulations and policies, many of which are still in place today and are geared to keep a sizeable divide between the rich and everyone else.
The best investments available are only available to “accredited investors” and are kept well out of reach of the vast majority of the population. These crème de la crème opportunities are gobbled up by the rich leaving the watered down left overs and derivatives laced with with heavy fees and mediocre returns for the rest of us.
The biggest differences between the regulated markets in traditional finance (stocks, bonds, forex, mutual funds, options, etc) and the unregulated word of cryptocurrencies are:
- nobody can tell you that you’re not smart enough, or rich enough to invest in crypto,
- crypto investments are not guaranteed or backed by any insurance of any kind
- there is no recourse or body to go to for complaints or compensation
- there are no management fees or hidden admin costs
- profits from investing in crypto are often considerably higher and can be made much faster than by trading stocks or currencies
- crypto investing requires some level of knowledge that is not needed to buy stocks or bullion.
It is easy to spot both pros and cons in the list above however, the overwhelming points in favor of investing at least some capital in crypto are:
- The complete absence of financial discrimination allowing anyone the option of investing in crypto with nearly any amount of capital, while maintaining 100% control over the investment.
- Today there is blood in the streets of the crypto market and seasoned investors know that makes this a generational-wealth building opportunity.
Reason #5 To Consider Crypto:
Because you know the gut-ache that follows sitting on the fence and letting sound opportunities pass you by. Nobody wants to wake up to the stellar reports on growing assets that they failed to take a position in.
Don’t let that happen to you this time. With that said this is not the time to go all-in either. Professionals recommend allocating up to 10% of ones risk capital on a new investment of this kind, and one should never invest more than they can afford to lose.
For readers interested in learning about conservative ways to invest in crypto and want a safe way to get started, the #1 crypto currency course in the world (The Plan by Dan Hollings) offers various forms of free training to help get people started on the right track. CLICK HERE to see what resources are available at no obligation today.
DISCLAIMER: The information provided here does not constitute investment advice or financial advice and should not be treated as such. We are not licensed accountants, financial advisors, attorneys, or tax advisers, and cannot and do not give financial, tax, or legal advice. The Crypto market is considered risky and you can lose money. Do not invest money you cannot afford to lose. Investors should “do your own research” (DYOR) and consult a licensed professional in your jurisdiction for advice. Links on this website might be affiliate links and we may receive compensation (at no cost to you) if they are clicked.