Cryptocurrency can make you rich - if you do your own research!

I've said it before and I'll say it again, cryptocurrency is quite possibly the biggest opportunity of your lifetime to make life changing wealth. There are many innovative projects employing some of the brightest minds who are working on technology that will literally change the landscape in which many business sectors operate. Out of these projects many will fail, but there will undoubtedly be winners and anyone holding those cryptocurrency coins or tokens, just like holding a stock in a successful start up company that gets listed on a major exchange, will be like holding a winning lottery ticket. So cryptocurrency will make many people rich, however as you are about to find out you most definitely need to do your own research!

Cryptocurrency promotes freedom

Cryptocurrency promotes freedom. When Satoshi Nakamoto wrote the Bitcoin whitepaper that's what he seemed to be his vision. When you hold cryptocurrency in your own wallet, you are effectively free to exert self sovereignty in ‘being your own bank’. By virtue of their design, cryptocurrency and decentralised applications offer and even incentivise many more outlets and definitions of ‘freedom’ than any industry in the history of mankind.

By having full control of your digital assets is very liberating. At a bank or financial institution you hand the control of your assets over to a third party. Once you have experienced the freedom to not only be able to move your money around the world, but also choose how that money is deployed be that through investing that money, participating in a project, buying or selling a particular cryptocurrency, buying or selling NFTs―the controlled, restricted and somewhat cumbersome nature of the traditional financial system becomes all too apparent and then its hard to look back.

With freedom comes responsibility

Some people are reluctant to use cryptocurrency for exactly the same reason that it's so attractive to others: it puts your money, and responsibility for your money, entirely in your hands. Ownership of decentralized assets is defined by the holding of the relevant private key, and nothing else. In other words, if you lose your password, your assets will become "lost."

Although operating safety in the crypto space is of paramount importance and getting proficient at mastering the do's and don'ts is not a particularly steep learning curve it is a pointless exercise if your hard earned money is invested in things that aren't going to make you money, because let's face it everyone who invests in cryptocurrency wants to make money! Right?

The idea that every cryptocurrency token or coin is 'going to the moon' and will make you rich is rhetoric that far too many new cryptocurrency investors get sucked in by.

Winners and losers

The cryptocurrency space has literally exploded in 2021. At the date of writing, according to the coin ranking site, there are 12,587 actively traded cryptocurrency coins and tokens.

Just like in the world of traditional stocks where companies are categorised by their size (from large cap stocks down to penny stocks) the crypto space is much the same - well established projects are regarded as 'blue chip'' coins or tokens and those projects that languish at the bottom of the ranking charts are deemed to be 'micro-cap altcoins'. As a general rule of thumb the smaller the coin or token the riskier it would be to invest in. However, as the space evolves and grows some of the micro-cap altcoins that are able to bring their innovative ideas and real world solutions to market will grow and will be amazing investment opportunities. The key is being able to find those hidden gems, but that's not clear cut.

Cryptocurrency investing in smaller projects is much like venture capital (VC), a form of private equity and a type of financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential. In the traditional market VC generally comes from well-off investors, investment banks, and any other financial institutions who see that the potentially massive returns outweigh the associated risks.

This is where the cryptocurrency space differs. Being able to identify and invest in projects that have huge potential is accessible to anyone and not just the wealthy. It is not unheard of for people investing a few hundred dollars and literally becoming millionaires by being astute in their investment selections and decisions. But equally the investment could go to zero, and it often does.

Learning to think for yourself

Sadly this is where new cryptocurrency investors invariably fall foul of the predatory landscape of bright shiny objects.

The cryptocurrency market is very cyclical in nature. When the prices in the market are rising, i.e. it is in a bull market, there tends to be a lot of euphoria in the space and the sentiment favours the belief that everything is going to be able to make you lots of money in a short space of time. Some coins do appreciate very fast, however new investors are often naïve and think that the price will keep on going up forever, but they don't, especially when the market turns bearish, i.e. when the market turns and the prices fall for a sustained period of time.

Investing should be viewed with a long term perspective in mind, if you have genuine conviction in your investment, just like VC's you should be happy to sit on that investment for years and definitely not months. Sadly that is the mistake too many people make in the crypto space.

Without going into too much detail (as I do that in my courses 😉) here is a list of some of the common mistakes that I see made time and time again, but I'm sure you'll get the general idea:

  • Jumping from coin to coin trying to chase the next hyped up project that is appreciating rapidly

  • Not having a clear plan or strategy in place

  • Not being prepared to gain any understanding of what is being invested in

  • Trying to get rich quickly

  • Listening to the wrong people for their financial advice

  • Not doing any research whatsoever

  • Not understanding or appreciating market cycles

  • People investing far more than they really should

  • Having no patience

  • Etc....

I find it really amazing that people approach investing like they are going to a casino. Cryptocurrency is a genuine opportunity, but just as easy as money can be made in the market it can just as easily be taken back.

In the last bull market in 2017-2018 one guy that I know saw his portfolio rapidly grow to over $1 million, but without a clear plan in place he subsequently saw that dwindle away to just a few thousand dollars over the next couple of years. Don't be him!

The other area that I find really annoying is the general laziness and apathy which is borne out by people literally taking their investment advice from random strangers online.

There are some genuine people who provide really valuable and intellectual cryptocurrency related content, however the vast majority, especially on YouTube are basically entertainers who are producing content for personal gain and popularity.

The following pictures were recently being circulated on social media having been leaked by someone working for a PR company in Dubai. I cannot verify their authenticity, so please take them at face value, however having been in the space for a few years now I don't doubt that this is the reality.

So, if you find yourself listening to a Youtuber and you are tempted to jump in on a coin because you are being told that it's the next 100x gem ask yourself are they are saying it with sincerity or is it because they are being paid to say it or they hold a big bag of it themselves and they want you to help raise the price?

Please don't think that I am being salty, I just want to tell you how it is and hopefully open your eyes to the reality and in doing so make you see that you can use your own intelligence in making sound investment decisions.

Investing in cryptocurrency really doesn't have to be over complicated, in fact anyone who is starting on their investment journey now is still extremely early. However to stand a chance of success you just need to spend some time learning, understanding and have patience.

There's much much more depth to the subject of 'doing your own research' so this merely scratches the surface and I hope that this highlights its importance. I don't purport to know everything, however in my courses I try to give people genuine information from which I believe a good foundation can be built that will allow anyone to start on successful and long term cryptocurrency investment journey.

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I'm Paul

I am on a mission to help people start a journey to financial freedom. The key to long term success is education and understanding the incredible opportunity that exists right now.

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