URGENT: Five Things You Must Know to Score Huge Profits From Bitcoin

kalexander|May 24, 2017

URGENT: Five Things You Must Know to Score Huge Profits From Bitcoin

Ah, the “almighty” bitcoin.

The controversial cryptocurrency has been in the news a lot lately… especially since it’s once again making investors a lot of money.

Joseph Stiglitz, the Nobel laureate and outspoken Columbia University professor, says cryptos “ought to be outlawed.” Meanwhile, Facebook is reportedly working on a coin of its own.

Bloomberg reported that some investors are starting to favor bitcoin over precious metals. And every day another high-profile investor or bank spills its thoughts on the future of crypto.

It’s all very exciting.

But it could also lead to trouble.

While we have no doubt crypto will once again mint its fair share of millionaires, we must urge readers to look beyond the hype… and tread carefully.

Before you dive headfirst into the murky waters of bitcoin investing, there are some things you should know. Starting with…

1: How It Works

Bitcoin is about as far from a traditional fiat currency as you can get. Each “coin” is created by solving a series of complicated equations.

Unlike the promissory notes you’re used to, bitcoin is little more than electricity converted into long strings of code with monetary value. It’s based on a monetary policy that puts a cap on the maximum supply of bitcoin at 21 million.

Its value is dependent on the market and its demand. If there is a higher demand for bitcoin, the price will increase. If demand goes down, the price will drop.

Bitcoin’s value is not established by a governing entity. Like we said, it’s very different from fiat money or cash, which is maintained and controlled by the government.

This squares, again, with one of Manward’s most precious core values – Liberty. Without freedom, a person cannot be truly happy.

2: Liquidity Concerns

Sure, the profit potential for bitcoin investing is huge, but what about the liquidity? How can you take advantage of price spikes if nobody wants to accept your overpriced bitcoins?

Since the inception of bitcoin, investors have struggled with the illiquidity of the cryptocurrency. But that’s all about to change.

Bitcoin used to be the income of choice for hackers and high-tech drug dealers. It was practically off-limits to the casual user. But now you can use bitcoins at e-commerce sites like Amazon, Newegg and Overstock.

They’ve even started to accept bitcoin at brick-and-mortar stores.

With bitcoin growing in popularity, illiquidity won’t be a concern for much longer. And as bitcoins become more liquid, volatility is expected to decline as well.

3: Diversify, Diversify, Diversify

With an asset as volatile and untested as bitcoin, you must invest cautiously. We recently heard from a company that wants to roll folks’ retirement accounts into bitcoins.

That idea is not just terrible – it’s terrifying.

Bitcoins are extremely volatile. It’s one thing to invest in them when you’re 30 and have time to make it back. But if you bet the farm when you’re planning for retirement, you could find yourself in big trouble.

It’s why we often point investors – new and old – to the idea of asset allocation. It’s an essential idea for any portfolio… but it’s especially relevant to bitcoin investing.

Make sure to balance your bitcoin investment with a healthy mix of asset classes.

4: Secure Your Bitcoins

With bitcoin, there are no regulations. It’s the Wild West of currencies. That means you can’t complain to a customer service rep if somebody hacks your money. It’s gone, and you’re not getting it back.

But if you store your bitcoins properly, you shouldn’t lose any sleep.

If you plan to use bitcoins as an investing device, you’d be wise to store them on an encrypted USB drive. Referred to as cold storage, this provides a strong defense against cyberattacks.

You can also keep your bitcoins in a digital “wallet.” Just know that this is about as secure as a physical wallet. If you don’t like walking around with a lot of cash in your pocket, this storage method is not for you.

5: Keep Your Emotions Out of It

Emotions have wreaked havoc on many portfolios. With an investment as volatile as bitcoin, emotions are bound to come into play. Resist the urge to sell as soon as prices dip.

Consider the case of Kristoffer Koch. This Norwegian investor bought $26.60 in bitcoin back in 2009. A few years later, his bitcoins were worth $886,000 – a 3,330,730% profit.

Make no mistake, Koch had to weather his fair share of downturns while he waited. But with only $26.60 on the line, his stress level was next to nothing.

This story speaks to the astonishing profit potential of bitcoin. Of course, the possibility of netting such a huge return comes with tremendous risk. That’s why you should determine, early on, what’s an unacceptable loss… and stick to that plan.

Remember: You should never invest more than you’re comfortable losing – with bitcoin or any other asset.

The Liberty of Bitcoin

Bitcoins certainly exemplify Liberty. For the moment, they are virtually free of government regulations. It’s like exchanging currency over open waters.

But that freedom comes at a cost… You have to take on some risk.

You could get rich. Or you could lose everything you invest.

We’ll continue to cover the crypto saga and other developments that impact – or threaten – our Liberty.

As a Manward Digest subscriber, you’ll get our unfiltered take on these important issues, plus lots of ideas to lead you to a richer, fuller and more liberated life.

 

Be well,

Andy Snyder
Founder, Manward Press

 

P.S. It’s not bitcoin… it’s not ethereum… but this crypto is the No. 1 investment in America under $1. It’s backed by some of the biggest names in finance… reportedly even Donald Trump is on board. Learn why independent analysts raised their price targets as high as $20… Click here now.