Money Morning Director of Technology & Venture Capital Research Michael Robinson is an expert when it comes to cryptocurrency and the technology that surrounds it.
He was one of the first people to recommend Bitcoin back in 2003, when it traded near $90 per coin. It's no secret where it traded late last year, above $19,500 per coin. That's a gain of over 21,500%.
And he didn't just know that cryptocurrency prices would soar; he also spotted conditions where they were about to correct lower. In December, he warned the advent of Bitcoin futures would create a rocky path forward. It would now be possible to short the coin, meaning Wall Street could run its shenanigans all over the market.
And it did. Bitcoin fell 65%, to $6,840, in short order before rebounding. Robinson's subscribers managed to sidestep that carnage.
That's why Robinson is sharing more of his wisdom on the subject. Many people have heard bits and pieces about cryptos but don't really know enough to trade them profitably - and safely.
Here are his three key points that you must know...
He calls them the "Insider's Edges" that will surely make you popular at your next gathering of friends - and your portfolio will thank you, too.
Cryptocurrency Insider's Edge No. 1: Volatility Is Essential
Volatility is an often-feared component of the markets. And with cryptos lately, the volatility has been a bit much for the average investor to handle. But without volatility, there can be no price movement. And without price movement, there can be no profits.
The key is to understand volatility and then put it to work for you, not against you.
The Cryptocurrency Everyone Else Will Regret Not Owning: To See Tom Gentile's No. 1 Crypto Pick and Exactly How to Trade It, Click Here Now
Thanks to recent volatility, Robinson thinks Bitcoin is still in a "wait-and-see" mode. But, he also thinks the crypto chaos, as he calls it, is actually good for the long-term future of the field.
The huge gain Bitcoin made last year - thanks in large part to short-term speculators - was simply not sustainable. And now some countries, including China and South Korea, have been cracking down on Bitcoin as U.S. investors and large firms have been embracing it.
Asian traders accounted for roughly 25% of Bitcoin trading. As they began unwinding their positions, the price naturally fell.
So right now, we're seeing the market sort out rumors versus true news (signals versus noise), adoption rates among enterprise firms, and government crackdowns. We're also seeing new, professionalized Bitcoin miners coming online to increase the supply.
As that all gets worked out, we'll see the Bitcoin market become stable before its next big upswing.
Here are two more of Robinson's cryptocurrency "must-knows" that are sure to make you the crypto expert in any room you're in...
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Cryptocurrency Insider's Edge No. 2: All Money Is Virtual
No matter who or what backs or does not back a currency, the piece of paper or bits and bytes themselves are not what you are investing in.
The real value of money is its ability to serve as a way to facilitate trade. And for Bitcoin, that includes powering smart contracts in an encrypted format or solving complex algorithms that require massive computing power.
This is the fundamental truth about money today: All major currencies are de facto virtual ones.
Just take a look at the U.S. dollar. It isn't backed by any hard assets. We have no idea how much gold the government is storing at Fort Knox. Nonetheless, the dollar thrives as a fiat currency the government controls and that we all agree is worth more than the value of the paper it's written on.
And the dollar is rapidly becoming a digital currency in its own right. The fact is, millions of us now receive our paychecks online and buy goods the same way.
We're basically just debiting and crediting our accounts with digits that run through a computer network. And that holds true for all the major currencies, from the euro to the yuan.
How many millennials do you know that have no paper money in their pockets at all? Yet they purchase goods, sip lattes, and even pay their friends in the virtual world.
Cryptocurrency Insider's Edge No. 3: It's All About the Blockchain
While Bitcoin gets all the headlines, the real revolution lies in the technology that powers it. The underlying platform known as "blockchain" is where the world will change forever.
Blockchain is a massive global computing system that's becoming popular with large firms. These firms want to use it to settle contracts in a secure manner, without fear of government intervention or the risk of having a client cancel the transaction.
Simply stated, blockchain provides a permanent record of every transaction that occurs on the network. The database is not located in any single location, but rather is distributed over many databases. And it is un-hackable. The same records are stored everywhere. It would take an inhuman effort to hack each and every one of these databases.
However, you can change transactions and contracts. You do it by adding a new record, called a "block," to the chain. The original one lives online forever, and the new one gets logged into the system.
Unlike with the dollar or the euro, you can actually go online and monitor the network in near real time. Check it out for yourself at Blockhain.info, where you can see the market value, number of transactions, and the latest blocks to enter the system, among many other things.
And then send to your friends. They'll be impressed.
All of these Insider's Edges will make you the center of attention whenever people gather to talk about Bitcoin. But more importantly, they will give you a solid understanding of what is going on, so you can actually profit from your knowledge.
The "Buy" Signal Is Flashing on This Crypto Trade
Tom Gentile, America's No.1 Pattern Trader, uses stringent criteria to vet his trade recommendations - showing readers 81 triple-digit-winning moves in 2017 alone.
Now he's seeing the "Buy" signal on a cryptocurrency trade he thinks could turn a small stake into more than $40,000, based on his analysis.
In a special video presentation, Tom walks you through the process for placing this crypto trade. You'll get the name of the coin, watch Tom make the trade, and get all the key details - at no cost, and in under three minutes.
He's expecting this little-known coin's price to surge very soon - and everyone holding it beforehand could see massive profits. Everyone else... they may have to miss out.