t can be really easy to jump on the band wagon and buy what's hot off the press that everyone is raving about. Whilst this can sometimes pay off, there are massive risks that are increased significantly if you aren't zoomed out and looking at the big picture.
This conversation touches on some interesting aspects of politics and how the world is governed by forces much larger than we can even conceive however for this post I'm going to keep it brief and just outline my 10,000 foot view of the situation.
Bitcoins creator and this mysterious new thing - crypto
Bitcoins creator who goes by the pseudonym Satoshi Nakamoto has never been tracked down and may not even exist.
The digital currency was originally touted as secure, without government interference and something which could be used as a store of wealth. Just what we needed at a time were corruption exposure within the government is rife within the main stream media.
Fast forward however many years and this cryptocurrency that we, ourselves thought it would be a good idea to adopt, is suddenly the perfect tool for tracking every single purchase someone has made and not only that, the technology can serve as a backbone for an entirely new digital system with which to run a new internet on.
Somethings seems fishy. Especially as now governments are talking about adopting and regulating crypto.
A global shift
We are going through a huge global transition right now and when markets move, there is money to be made.
Fiat currency (the pounds, dollars and yuan we are currently placing our imagined value in) is inflating at an unsustainable rate (by design) and with crypto as an exit point, it's inevitable that the worlds money supply will at some point be shifting from one system to another in it's entirely.
This shift over is going to be monumental and we are going to live through it - exciting times.
This is not financial advice, I'm just sharing my strategy
Choosing what to invest in is somewhat an art. I personally went with the strategy of, when the market is really really low (I drew a line on a graph to show where the bottom of bitcoin was) and then put all my savings in at that point when there was a very high statistical chance it would increase - and it did - 8x - I was thrilled.
Anything else over a shorter timeframe I feel, personally is much higher risk however, over time, your pounds and dollars are dwindling away so you have to start thinking about the space so that you're ready to make your move when the time is right.
In order to not left behind, you have to be crypto ready.
This includes things like
- Setting up your first wallet
- Create a methodology for remembering your secret pass phrase
- Understanding the basics of the different networks
- Common pitfalls where you can accidentally loose your money. Better to practice with £10 rather than £10k.
Once you're on a platform, you'll start getting familiar with it. You don't need money to get started however putting £10 on will keep you invested.
It's only an app after and they are designing them to be more user friendly each day.
Keep your eye on the crypto space. It is going to be transitioning for years so don't make the mistake in thinking "oh I'm too late".
This is less about trying to make a quick buck, it's more about making sure you don't end up with a worthless currency and food costing you your monthly salary.
This is serious. Pay attention to the space. Kee your mind open and you'll slowly pick things up. Ask questions and stay curious.
More information on this to come.