Won’t you join the crypto boom?

In the spring of 2017, I looked at the money I had saved and invested. I had spent 3 years diligently investing in a well-balanced portfolio of stocks, index funds, bonds, commodities and gold, for a very respectable 22% return. And I would have been happy with that, had I not recently seen a headline that Bitcoin had shot up 71% in the last 3 weeks.

I wanted in on the fun, with cryptocurrencies like Bitcoin and Ethereum making headlines not just for their rapid rise in value, but with very knowledgeable people commenting on the possibilities presented by this seismic technological breakthrough, the blockchain. They compared the investment opportunity to being able to buy tech stocks in 1999. Amazon at $25, anyone?

Ethereum was riding an all-time high of $95, and Bitcoin was around $1500. I took some money I might otherwise have spent on old records and bought in right at the top of the market. At the time of writing, Ethereum and Bitcoin have gone up about 4.5 X since then. If you had bought at the same time as I did, you would have done very well.

But I’ll be the first to say that this we pure dumb luck, that I had no real motivation for my timing apart from irrational optimism, and that the money I did put in was just a small amount, something I could afford to lose. Please don't be stupid.

The cryptocurrency markets are extremely volatile, so it’s impossible to time these things. If you buy into just one coin today, whether you choose Bitcoin, Ethereum, Stellar or Zcash, you are at the mercy of one price, which is tethered to a single moment in time. There’s a much better way.

If you want to start investing in cryptocurrencies, then what makes more sense is to buy into an index fund and dollar cost average your investments in over time. That way, you spread your risk over multiple assets and multiple price points. You still get almost all of the long-term benefits of investing in the crypto boom (this is 1999, remember), but with significantly reduced risk.

In typical financial vehicles, you might dollar cost in monthly, but since the crypto market prices move so quickly, you might choose to average in weekly, or even daily. The best crypto index fund I know of is called the HIVE Index, which spreads your risk over 25 different coins.

Now I’ll show you how to do that.

Step 1: Open a Coinbase account. This is one of several exchanges you could choose, but it’s very simple to use and the one I recommend.

Step 2: Set up a recurring purchase of the amount you want to invest in Bitcoin and Ethereum, recurring weekly.

Step 3a: Open an Iconomi account.

Step 3b: Transfer the Bitcoin and Ethereum you have just bought to your wallets on Iconomi.

Step 4: Buy into the HIVE Index. You can buy with either Bitcoin or Ethereum. These tokens are called HIX.

Step 5: Come back weekly (or daily, if you have the diligence) and repeat Steps 3b and 4.

Step 6: Congratulations, you’re ahead of 99.99% of investors as wealth moves onto the blockchain. Now all you have to do is enjoy the journey. As long as you have the patience to ride out any ups and downs, you’ll be golden.

Please comment if you have any questions!