To invest now or later - can one time the cryptocurrency market?
Whether you're just starting out or have already dipped a toe into the pool... In this series brought to you by Revix, The Money Show's Business Unusual presenter, Colin Cullis offers answers on how to navigate your way through the world of digital currency.
Click below to listen while you read...
You're listening to episode three. If you've missed the first, second and fourth episodes, catch up below:
- Episode 1: Crypto explained - a guide to understanding digital money
- Episode 2: Crypto regulations - friend or foe?
- Episode 4: What makes crypto so volatile, is it Elon Musk?
In this episode, Cullis asks the Founder and CEO of Revix, Sean Sanders to unpack some quotes about investing which could possibly help you choose the smarter way to invest in crypto.
“The idea that the future is unpredictable is undermined every day by the ease with which the past is explained” — Daniel Kahneman
In the past, solving problems was like solving a puzzle. Today, there is no shortage of information and problems are no longer puzzles but rather mysteries that investors need to navigate using pieces of information to predict outcomes.
Do people approach investing like a puzzle?
"That's the thing about the crypto space, it's that unpredictability where you actually can't forecast the future, that makes the space so much more difficult," Sanders explains.
So, how does Revix's crypto offering help investors navigate this unpredictable space?
Sanders says, "what we're trying to say is that you shouldn't try to predict the next winner in the crypto space, rather go and own a diversified basket of the top cryptocurrencies."
Revix's Top 10 Bundle can help reduce some of the risks of investing in this new asset class. The bundle is equally weighted, spreading your investment over the top 10 cryptocurrencies.
“Far more money has been lost by investors preparing for corrections or trying to anticipate corrections than has been lost in corrections themselves” — Peter Lynch
Timing the markets might be a bad idea but over time, some options do perform better. Sanders weighs in on what he believes are the winners in the crypto space.
"If you're looking at the latest cryptocurrencies in existence right now, the largest cryptocurrencies have gotten more money from the market, more people have invested in these and have assigned value to them and, that's really how you would determine the long time winners," he notes.
“Diversification is protection against ignorance, but if you don’t feel ignorant, the need for it goes down drastically” — Warren Buffett
Many retail investors are ignorant. So, how much should one diversify?
"The main problem that some investors land up getting with diversification is, they land up thinking that they're diversified but they're not actually diversified," says Sanders.
“If you think of the stock market as a cauldron of minestrone soup that occasionally somebody sticks a ladle in and stirs up, it takes a while before all the vegetables float back to the level that they were at before” — Seth Klarman
Is using market volatility as an opportunity for returns a good idea? Sanders debunks the myths and misconceptions around it all.
"If you could still have a very good investment opportunity and it's declined in value through volatility then that's the entry opportunity that you've been waiting for," Sanders advises.
“Bitcoin will do to banks what email did to the postal industry” — Rick Falkvinge
There is no question that digital currencies will impact banking. If banks are valued by their share prices, what will crypto do to owning shares?
"Shares are going to be tokenised," says Sanders.
He believes that the big opportunity with cryptocurrencies becoming more mainstream is that the legal ownership of stock could potentially be held in a token and that token could be traded peer-to-peer without any intermediary.
"Bitcoin is just the start of a much bigger thing here and you are going to see disintermediation happening on a mass scale... You're not going to have these big financial institutions sitting between you and your money," Sanders concludes.
Visit revix.com to find out how easy it is to start investing in this exciting new space.
This article first appeared on 702 : To invest now or later - can one time the cryptocurrency market?
Source : https://www.revix.com/