How to "Invest in Crypto-currencies" !!

• It's price is going up in "Parabola". The price in itself is enough to induce "Greed" into Human beings as a species.

• The "Supply" is limited. The "Miners" can only mine so much. You might be a bit surprised to know that "Gold" has no shortage of "Supply", in-fact if you take out all the shiny "Gold" out of the Earth, then you can cover the surface of "Entire freaking planet" that too more than once. It is the "Cost of Mining" which has turned "Gold" into a precious "Commodity". Plus there is very high demand based on the factors that "It is treated as an Ornament, It is shiny, It is durable, It is malleable, It is super conductive in nature". So, in short, what i am saying is that "Supply" is only one side of the "Equation".

• It is available in "Fractal" amount. It means that if you do not have 35+ lakh rupees to pay for "Buying 1 Bitcoin" then hey you can "Invest even 100 rupees" in it. It is just a fancier of "Splitting the shares" if the price for a single share is deemed too high by the market for average "Retail Investor" participation which i am sure everyone knows "How it ends up".

• Technology wise "Bitcoin" is already outdated but being the first coin, the sentiments are pricing it to go for the moon.
  

• It is based on a "Revolutionary/ Groundbreaking Blockchain Technology". Yes, indeed i am not arguing with that fact. Although it is not like "The Blockchain Technology" is patented by the "Bitcoin" that nobody else can copy the "Model" and launch their own "Digital Currency". How about famous Singer Akon planning to launch his own Akoin ?  Smack that !!

• There goes the same story for everyone's new favorite "Ethereum".

All this might have "Shattered a few souls & gained me some critics" so i would like to present some advantages of "Investing in Crypto-currencies" as-well.

• Preparing the World for Web 3.0. The concept is based on exchanging digital assets rather than physical assets.

• Blockchain enabled ledger system with private keys giving you the maximum security.

• Tokenizing will lead to a "De-Centralized" system which means that not a single party will control the mechanism of "Web 3.0".

• Eventually one would not have to worry about the "Correction in other currencies or assets" affecting the value of your "Holding coin".

• Ability to connect other projects to an ongoing open-source public blockchain.

• Real world utility in "De-Centralized finance", "Supply-Chain management", "Customer data management", "Peer to peer lending", "Staking", "Wallets",  "Smart chains", "Non-fungible tokens", "Better safety" & "Digital Currency".

So what is the "Big Picture" here ?

 

There are some "Known & Unknown" risks here also.

 

"Risk Management & Position sizing" will play a crucial role.

 

Know that the "The Market Capitalization of a Coin" really affects the sentiment of "Big players".

 

From a financial standpoint, i will not advice anyone to "Invest more than 5 % of their Total Capital in Crypto-Currencies".

In May 2020, the Supreme Court ruled that "Indians" can trade in "Crypto-Currencies" overturning the ban levied by "Reserve Bank of India" in 2018. After-all, the Government wants that additional "Tax Income" falling into its lap.

 

Note : An "Altcoin" should be bought against "Bitcoin" only when "Bitcoin" has given significant rally. You wont gain much by "Buying Altcoins" when the "Price of Bitcoin is near the floor level". In that case one should "Buy Altcoins" against a "Stable coin".

 

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