When we spoke on Dec. 19, I warned you to be careful about getting into Bitcoin as we head into 2018.
No, I'm not pessimistic about cryptocurrencies in general or Bitcoin in particular. In fact, just the opposite is true – I firmly believe these e-currencies are the wave of the future and still face huge upside.
My concern is for individual investors like you. At the time, Bitcoin had literally just hit the futures markets for the first time ever. And Wall Street traders, hedge funds, and other high rollers were sharpening their knives – setting Bitcoin up for massive volatility.
My call couldn't have been timelier.
Practically as I hit "send" on that report, Bitcoin fell $1,070 in a day. Not only that, but it weakened over the next few days, falling from a high of roughly $20,000 to $12,500. That's a 37.5% peak-to-trough loss.
Today, Bitcoin has swung back up to around $15,300.
For you Bitcoin veterans out there, that kind of swing is pretty normal. You folks can handle it. But for new investors, that type of volatility is hard to swallow.
So what I want to tell you today may sound a bit counterintuitive, but here we go…
Please don't cash out of Bitcoin completely.
If you do that, you'll miss out on the hard forks.
If you set yourself up correctly, these Bitcoin spin-offs could mean gains of several hundred percent.
Here's how to do that…
Why Bitcoin Was the Investment of 2017
In the past year, the price of Bitcoin has hit peak gains of some 1,900%.
Some of that can be chalked up to the crypto craze we've been seeing, no doubt. I don't know about you, but nearly every conversation I had at Christmas parties this year revolved around Bitcoin.
But what all those folks are buying – what they're hanging their hopes on – is good, old high technology. As we all know, the road to wealth is paved by tech.
See, the technology underlying Bitcoin and other cryptocurrencies – known as blockchain – adds new dimensions to data that layers in both time logging and other ledger characteristics that create layers of security by design.
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That's what has Silicon Valley, Wall Street, and just about everyone else so excited about getting into a field that almost no one had heard of when I first started telling folks about it way back in early 2013.
Blockchain is a highly secure, cryptographic system that functions as a global distributed ledger. This system not only undergirds Bitcoin and other currencies, it also bypasses banks and governments, operates transparently, and is virtually hack-proof.
That means, almost immediately, many of us will be settling contracts with blockchain. By doing so, we'll avoid bank fees, possible litigation, and all lot of other issues that economists like to refer as "friction." Plus, you can go online and watch these transactions occurring in near real time.
Plus – and here's where it gets good – blockchain technology is the source of those hard forks… if you own some Bitcoin.
Here's what I mean…
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About the Author
Michael A. Robinson is one of the top financial analysts working today. His book "Overdrawn: The Bailout of American Savings" was a prescient look at the anatomy of the nation's S&L crisis, long before the word "bailout" became part of our daily lexicon. He's a Pulitzer Prize-nominated writer and reporter, lauded by the Columbia Journalism Review for his aggressive style. His 30-year track record as a leading tech analyst has garnered him rave reviews, too. Today he is the editor of the monthly tech investing newsletter Nova-X Report as well as Radical Technology Profits, where he covers truly radical technologies – ones that have the power to sweep across the globe and change the very fabric of our lives – and profit opportunities they give rise to. He also explores "what's next" in the tech investing world at Strategic Tech Investor.
Right now I have coinbase as my wallet. For me to benefit from these forks, I have to be in a wallet that will support all of these new coins or I won't get them. What wallet or wallets to you think my bitcoin should be in?
I wanted an answer to that question what wallet can one use to get bitcoin forks deposited into them if coinbase doesn't
Do you have Services…eg. MONEY MORNING SERVICES I can use to trade on cryptos? 2. Do you have wallets you can recommend me to use to in buying Bitcoins?
Seriously wanna learn how to trade Cryptocurrency
Hi Keenen,
Thanks for reading Money Morning. This story rating the various cryptocurrency exchanges is a good place to start.
Good luck!
Dave Zeiler, Associate Editor, Money Morning
Thank you!