As mentioned in the first article of this starter course, if you bought $1 USD worth of Bitcoin in 2009, it would be worth $105,000,000.
So am I saying that if you invest $1 today that in 13 years it will be worth 105 million dollars? No, and there's many reasons for that.
The higher the "market-cap" increases, the more money it takes to move the price. And as it becomes more popular and more hedge funds invest in it, it becomes a lower risk but also lower return investment compared to before.
So what is possible then? Say you bought just one Bitcoin at say, $15,000 USD, it's highly likely that it one day will be worth one to two million dollars (not financial advice) but many analysts around the world agree that we are still early in the Crypto industry and that mass adoption is still ahead of us. As the global currency systems inflate at record pace due to pandemics and war, the need for a safe place for funds is increasing in demand like never before.
So if you bought one Bitcoin at $15,000 USD per Bitcoin you are looking at a 100x of your money if Bitcoin hits $1,500,000 value in the next 10-15 years.
So whats a low risk high reward way to partake in Crypto?
Lets say you have $100,000 in your investment account; you could invest 20% into Bitcoin and have 80% in the stock market in a safe index fund like the s&p 500 (the top 500 US stocks) as a safety net (averaging 8% a year) and you would greatly increase your investment account return with a low risk and peace of mind since your $20,000 in Bitcoin would be money you could afford to lose in the long run.
For example:
Scenario 1:
If you invested the whole $100,000 only in the S&P 500
$100,000 in the S&P 500 (8%/year x 10 years) = $215,892 total.
Total investment return = $115,892 (a double)
Percent return after 10 years = 116%
Scenario 2:
$80,000 in the S&P 500 (8%/year x 10 years) = $172,714 total.
$20,000 in Bitcoin after 10 years = $1,000,000
Total investment return = $1,072,713
Percent return after 10 years = 1072.71%
So you see having just 20% of your investment account in Bitcoin could gain you an additional 956% return. This is a low risk, high return investment strategy.
So what if you have only $1,000 to invest? Is it still worth investing?
Well, that depends. It's always recommended before investing to have a minimal of 3-6 months of bills saved in a cash bank account.
That means if you spend $1500/month on your basic living expenses (housing, food, phone, internet, etc)
that you have a minimal 3 months saved ($4500) or ideally 6 months to a year. 6 months = $9000 or 1 year $18000.
This puts you in a place that no matter what happens, car breaks down, you get laid off work, or whatever it may be, you can leave your investments alone and live off this emergency fund until you find new work.
Smart investors recommend if you have only $10,000 to invest that you invest in your education so that you can increase your income . Once you increase your income, then investing in risk assets (Stocks & Crypto) makes more sense. Sure there is exceptions of people who buy risky alt-coins with a $1000 or Tesla early on, but that approach working out is rare.
So let's say you have a 6 month safety net in your bank account, and you have $10,000 to invest. Should you invest? Well, if we're in a bear market in great buying zones (i'll show you how to identify great buying zones later in the course), then yes it possibly is worth to invest in Crypto if you either have a decent income setup or enough money for some education on the side to increase your income. There is many resources online to learn skills, some free (like this one) and some paid.
A business has a much higher earning potential than investing in most cases unless you get lucky and find a 1000x gem (which is unlikely, but there is a higher chance than a lottery ticket.)
So am I saying that if you invest $1 today that in 13 years it will be worth 105 million dollars? No, and there's many reasons for that.
The higher the "market-cap" increases, the more money it takes to move the price. And as it becomes more popular and more hedge funds invest in it, it becomes a lower risk but also lower return investment compared to before.
So what is possible then? Say you bought just one Bitcoin at say, $15,000 USD, it's highly likely that it one day will be worth one to two million dollars (not financial advice) but many analysts around the world agree that we are still early in the Crypto industry and that mass adoption is still ahead of us. As the global currency systems inflate at record pace due to pandemics and war, the need for a safe place for funds is increasing in demand like never before.
So if you bought one Bitcoin at $15,000 USD per Bitcoin you are looking at a 100x of your money if Bitcoin hits $1,500,000 value in the next 10-15 years.
So whats a low risk high reward way to partake in Crypto?
Lets say you have $100,000 in your investment account; you could invest 20% into Bitcoin and have 80% in the stock market in a safe index fund like the s&p 500 (the top 500 US stocks) as a safety net (averaging 8% a year) and you would greatly increase your investment account return with a low risk and peace of mind since your $20,000 in Bitcoin would be money you could afford to lose in the long run.
For example:
Scenario 1:
If you invested the whole $100,000 only in the S&P 500
$100,000 in the S&P 500 (8%/year x 10 years) = $215,892 total.
Total investment return = $115,892 (a double)
Percent return after 10 years = 116%
Scenario 2:
$80,000 in the S&P 500 (8%/year x 10 years) = $172,714 total.
$20,000 in Bitcoin after 10 years = $1,000,000
Total investment return = $1,072,713
Percent return after 10 years = 1072.71%
So you see having just 20% of your investment account in Bitcoin could gain you an additional 956% return. This is a low risk, high return investment strategy.
So what if you have only $1,000 to invest? Is it still worth investing?
Well, that depends. It's always recommended before investing to have a minimal of 3-6 months of bills saved in a cash bank account.
That means if you spend $1500/month on your basic living expenses (housing, food, phone, internet, etc)
that you have a minimal 3 months saved ($4500) or ideally 6 months to a year. 6 months = $9000 or 1 year $18000.
This puts you in a place that no matter what happens, car breaks down, you get laid off work, or whatever it may be, you can leave your investments alone and live off this emergency fund until you find new work.
Smart investors recommend if you have only $10,000 to invest that you invest in your education so that you can increase your income . Once you increase your income, then investing in risk assets (Stocks & Crypto) makes more sense. Sure there is exceptions of people who buy risky alt-coins with a $1000 or Tesla early on, but that approach working out is rare.
So let's say you have a 6 month safety net in your bank account, and you have $10,000 to invest. Should you invest? Well, if we're in a bear market in great buying zones (i'll show you how to identify great buying zones later in the course), then yes it possibly is worth to invest in Crypto if you either have a decent income setup or enough money for some education on the side to increase your income. There is many resources online to learn skills, some free (like this one) and some paid.
A business has a much higher earning potential than investing in most cases unless you get lucky and find a 1000x gem (which is unlikely, but there is a higher chance than a lottery ticket.)