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

cflood|November 30, 2017

By Andy Snyder, Founder, Manward Press

Ah, the “almighty” bitcoin.

The controversial cryptocurrency has been in the news a lot lately.

Joseph Stiglitz, the Nobel Laureate and outspoken Columbia University professor, says it “ought to be outlawed.” Meanwhile, the notorious Winklevoss twins – the true founders of Facebook, if you hear them tell it – recently proposed a bitcoin-based ETF.

Bloomberg reported that self-proclaimed “doomsday preppers” are starting to favor bitcoin over precious metals. And every day another high-profile investor or bank spills their thoughts on the crypto craze.

All of the attention has helped push bitcoin’s value up thousands of percentage points over the past year.

It’s trounced gold, real estate and smallcap stocks… and yet it’s more volatile than all of those assets combined.

Liberty is our mission here at Manward Press. And while we have no doubt bitcoin will 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 bitcoins 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 bitcoin 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 our most precious core values – Liberty. Without freedom, a man cannot be truly happy. (More on this later…)

#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 bitcoins at brick-and-mortar stores.

With bitcoins 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. (For our extended take on the concept, click here.) 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 bitcoins, 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 bitcoins back in 2009. A few years later, his bitcoins were worth $886,000 – a 3,330,727% 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. Stick to that plan.

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

The Liberty of Bitcoins

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

But that freedom comes at a cost… you have to take on a lot of 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. As we mentioned above, bitcoin is currently free from Washington control. But rest assured… Uncle Sam will come for his share of the bitcoin profits. It’s only a matter of time. And that’s not even the worst of it. Even if you avoid cryptos entirely, Big Government is working tirelessly to track how and where you spend your money. We’ve included all of the details in this short presentation. It’s recommended viewing for every Liberty-loving soul. Click here.