3 Levels of Risk & Profits in Crypto Currency Investing (BITCOIN, BURST, DOGE, STR, FCT, XMR, LTC)
3 Levels of Risk & Profits in Crypto Currency Investing
Hey gang this is Mike with my RealEstateDOJO and today, we’re going to talk about 3 Levels of Risk & Profits in Crypto Currency Investing, many of us are new to crypto currency and this is the way I explained this to my sister, before I go into this, I want to put a disclosure I’m not an attorney and CPA financial adviser, I’m just a refugee to America guys but this the way I explained it to my sister so always do your own due diligence all right?
So crypto currency are very high velocity, what that means is they’re moving very fast, they’re moving fast up and they’re also moving very fast down, they’re nothing like the gold prices market, they’re nothing like the stock market even though they have similarities but they are nothing like that because they are fast phasing, they’re open 24 hours a day seven days a week unlike the stock market, unlike the precious metal market. They are high velocity which is great because people all over the world are up at different times, people in America are up 2 in the morning, 3 in the morning and so they want to do their trading there which allows them, it allows people to have freedom to do things on their own time versus some established times by the institution.
So that said, I want to break down the first three level of investing in crypto currency, the first one, I want to say low risk, all crypto currencies have extreme amount of risk because they’re new and they’re fast moving, but if I was going to break it down, I want you to understand that there are risk involved and it’s like anything like if you want to invest in real estate there’s a risk, if you want to buy stocks, there’s risk, bonds there’s risk; if anything in life there’s risk, if you want to go from here to your mom’s house you can get to a car accident, so actions have risks. They break it down and there’s three types of levels; you have what’s called low risk coins and low risk coins are basically one and one thing only in my mind which is bit coin and this is the one which everyone has heard about and seen on the news. Bit coin right now, the last time I looked at the price was almost like 8,000 and some change almost 9,000 bucks, a couple of weeks ago it was 19,000 and it crashed it was on sale 50% that’s why I bought some I want everyone to know it was on sale. This is low risk, what that means is the price is already 8,000 can the price go up to 20,000 I believe so, can it go 50,000 – 100,000 I have no idea, but I have faith that the price continue to go up as more people come on board as I feel like I’m the beginner of getting into the business of crypto currency even though I wasn’t the very first adaptor. So I think this is the lowest risk because everyone knows about it, the media talked about it, most people know bit coin cyber currencies are they know anything, they know bit coin, they know other stuff I’m going to talk about.
The price of this is like I said $8,000 for 1 coin plus the price of a medium risk coin. That means that it’s not going to have the lows in the risk, it’s going to have the medium risk. Those coins will be like roughly about $600 per coin, this goes up and down I’m just rounding off for you guys so you know, you have ethereum and last time I looks it was like 800-900 and then you have other things that I personally invested in like lite coin. And lite coin when I got into it it’s 158, today high was about 200 and some change. So these are what I call your mid risk, they already somewhat proved themselves like ethereum there’s lot of ICO, initial coin offering like if you want to start a business or currency or token, they’re using ethereum to launch that or dash, dash does what bit coin does and other stuff like privacy, has a great community. So these people somewhat proved themselves and that’s why the price is like 600 or 900 or 200. Another one that roll up with these would be Monero and that’s roughly 200-225 and this one is for the dark web, people that want turn on their privacy they uses the dark web, anyone that wants privacy. So as you can see, 8,000 versus the medium risk which is 600, 900, 200. Out of all these, my favorite, I have all these that I’m talking about and a bunch more but if I was going to bet on this category, I would bet on monero and on lite coin, ethereum sounds very good did programming since 1999 and that sucker have a lot of bugs and been hacked multiple time and people have lost their money and they provide the most flexibility for people but all that flexibility cost a significant bugs, if there’s no function feature more bugs and so on. So I think one of the most important thing we have to realize is that for me, I don’t care about features or functions so much that I care about safety because this is our money and one of the great things about bit coins is that like it started in the virus hacking area which is the baby online and people are trying to hack it from day 1 and improved and improved. Let’s say like if you’re human, you have anti-virus or anti germs in your body to fight the bad things. So bit coin has been out there, it has been bullied on, all the hackers had to hack it and it’s the biggest one so it grew up in the swamp. Ethereum is out there but it’s already been hacked but what I consider is all the functionalities are great but how secure are they, because the more secure it is the more belief system that other people around the world is going to have a good safe place. If your money in your wallet have no value, tomorrow if you have 100 bucks in your pocket and it wasn’t worth anything and somebody stole it they wouldn’t be that great if I wouldn’t carry that money, and that’s why some of us don’t carry the money and put it bank because we think bankers are going to keep it more safer versus us. The medium risk, I think the profit on this overtime, it can be significant like if think if I told my sister if you invest in maybe 5-10 years it can go to zero or in 5-10 years it can be a lot more but over here the profits are going to be slower, they are going to be slow, not that high.
On the medium one, you’re going to have more opportunity from dash going from 600-1200 like it was right before the crash happened just a couple of weeks ago from 600-3000. Same thing with all these guys, I’m betting on lite coin because it brought functionality called lite pay work, people retailing can start using it without paying the 3% PayPal fee in just only 1%, and I’m betting that this is going to be like 1000 bucks or 500 bucks. So here, your money can grow medium, where there’s medium risk, there’s medium growth; where there’s lower risk, there’s lower growth.
And the third one which is called really high risk would be like tokens that are almost less than a dollar, some that I hold, that’s less than a dollar. So the higher risk would be like this company called FCT Falcon they did something like phone line security and this one is like $32 or $33 per coin, there is other ones like DOGE and this one is, I can’t remember, almost like 7 cents, very low, very cheap. But again, they are higher risk. So there’s a higher risk that if you buy them, nothing is going to happen, but on the flip side, there’s a high potential to make a profit, if this goes from 7 cents to the mid-level, it goes to 200 or close to 100 bucks or even close to 20 bucks, so this have a higher risk but high profit, this have medium risk but medium growth, this have lower risk and lower growth. Even though the low growth is lot more than you see in stocks or gold or coming into CNN TV’s because it’s a fast velocity moving investment. So some other ones that are in here what is called burst and these are the actual initial that are on exchanges where you can buy this. So burst is like almost 2 cents or something. There’s other ones that I own which I like, there’s other one like STR and it’s also different exchange, XLM and basically this is stellar if I’m pronouncing it right, and the reason why I like this one is because IBM bought into them a partner so I can pay, that’s big company, they have a lot of money, it’s like 2 cents or something like that when I bought it, I think it’s 45 cents so 45 cents for this one. There’s other ones out there I have a bunch, if you guys are interested on what I have, just leave a comment, I would be happy to make the videos for you guys. I don’t have a crystal ball, I don’t know if they’re going to go up, the only thing I know is the same thing as you know if you did your homework, but the only difference is a lot didn’t do their homework, I have a lot of time and I always do my homework.
I have invested in all of these, I’m not saying that you should do it, but I just want to break it down like I was trying to teach my sister, if you’re going to get into crypto currencies know that there’s a low risk, medium risk, higher risk. The higher the risk in losing your money, the higher the potential; for example if she spend a hundred bucks and she bought this, maybe in five or ten years it may worth a lot more but in the next month it’s not going to be that much, but if she bought let’s say a hundred bucks of the stellar STR, backed by IBM, it might go from 45 cents to 20 bucks and now for a hundred bucks it can grow significantly. So what I’ve done is I will spend let’s say like a hundred bucks, the way I divided is I put 50% into what I call lower risk because in the long run, in 5 years or 10 years I hope that bit coins is going to get up off the moon, it already has and it’s going to continue, it’s going to be the backed one in all the other currencies, and then the remaining, I have put probably like 25 and then what I’m probably going to do is change this or I only have maybe like 10% over here and then 60, 40% over here and the reason is that what I’m trying to do is I want to take higher risk; I’m not trying to take lower risk, I put my money here in the long term hopefully to grow but it’s going to take a long time because it’s already a high amount. But if I put my money into the higher risk and goes to buy stellar backed by IBM, 45 cents and let’s say I buy 100 tokens or I buy 1000 tokens and if it goes to $20 I get a way bigger return. So at this point I’m going to change tactic, put 40% here 50% here and then 10% here because I’m looking to magnify my money especially because the crash just happened right? Bit coin was like 19k, dash was like 1200, and ethereum was like almost 3 grand, lite coin was like 300.
But the reason why I’m being like all in because the crash just happen, if it was going up like this, I wouldn’t be taking this kind of risk, but actually the crash just happened in my mind and it’s coming like this and I start buying on the way down, now. There is no history behind bit coins like what the real estate like could get a realtor, CMA, a market analysis you can see data like 5 years from now, how long did they take the to get sold. So I didn’t have all this stuff, this is a new technology I could put a couple of hundred bucks, thousand bucks where I feel like high moving assets and I can burn and crash or I can maximize that money in any other vehicle that I can know of right now, not from real estate, not precious metals, not stocks, not bonds. So if you have the guts for risky stuff like I do, that’s why I invested into this, I think for my sister I wouldn’t tell her this, if I did I would say a hundred bucks 50 into this and the other 50 into this, not this because you really want to, she’s young 24, 25 trying to move her money, maximize her money, that would be my recommendation to her guys. If you have any questions, leave a comment, if you like this go ahead and share, don’t be a hater, give love so you could receive all the love the universe has implemented in your soul guys. Hustle and bustle, don’t take no for an answer. Remember, investing is risky guys. See you gang.
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