You probably missed the boat with BitCoin, Ethereum and all the other crypto coins; we’ve all read about people investing in BitCoin back in 2011, which is now worth millions. It seems like a dream to be able to drop a quick $500 on a crypto currency, sit on it for a few years, and hope to make some easy money.
The truth is, the ship has sailed.
It is my opinion that long term holdings of the major crypto currencies, BitCoin, Ethereum, Ripple and others, is now comparable to holding Bluechip stocks. BitCoin continues to climb and make good growth on paper, but the potential growth in these coins is falling by the day. Over the past 6 months alone, Ethereum has shown between 500-1000% growth, with BitCoin around similar levels. That’s not a small growth, making 5-10x your money is an amazing feat; but the likelihood of making similar gains with the mainstream crypto coins is fast disappearing. Making 5x your money on BitCoin today will require BitCoin’s AUD price to rise from $7000 to $35,000 per BitCoin! It’s just not going to happen.
So where can you still make a good investment?
That depends on your trading profile. Are you open to higher risk, higher gain outcomes, or do you want to make a lower risk investment with almost guaranteed, but lower, return? If you’re looking to invest $20,000, you would be best to spread your risk across multiple cryptocurrencies. The sheer number of coins available to invest in, especially with platforms such as CoinSpot (which today allows for the trading of over 50 crypto currencies), means you have a lot of choice, but also a lot of confusion as to where best to place your investment.
BitCoin has been around the longest, and is the dream investment everyone knows about. It’s history and value is testament to it’s security; it’s quite possibly the least volatile and steady moving currencies available for investment. It’s unlikely that you will be able to make 5x your money in the space of 6 months; but as a 5 year investment, it’s not out of the question. BitCoin will continue to be the largest and most popular cryptocurrency, and as a long term investment, it belongs in every portfolio.
Ethereum came to fruition more recently; it’s rise to fame was bolstered by the Ethereum Enterprise Alliance, acquiring partnerships with the likes of Microsoft, JP Morgan and many large organisations including global banks and consulting firms. Ethereum saw gains of close to 1000% earlier in 2017 as people jumped on board this relatively new crypto currency, and since then it has maintained a solid price point between $300-400AUD. Ethereum has one of the largest market capitals amongst all of the crypto currencies, second only to BitCoin, and it’s ecosystem is just awaiting a ‘killer-app’ to really take it north. I expect that Ethereum may over the long term deliver a 3-5x gain to patient investors.
I’m currently interested in the following “altcoins”.
All of these possess some amount of potential with real world applications.