Be prepared. The rabbit hole runs deep, if not forever. #followthetech not the rabbit… nor the money.
Table of contents (ish):
101: Welcome to CryptoLand!
102. Crypto Basics
103. Sushii Crypto Investment Advice
204. Portfolio aka brokefolio: Link with the spreadsheet. 😀
101: Welcome to CryptoLand!
We are at the inception of a revolution. And hopefully, for once, there won’t be a bloody affair. The current world/ecosystem we all live in is rigged in favor of a minority who have power, money, influence and resources. Many verticals, industries, and technologies are finally becoming democratized and decentralized for the greater good.
Main reasons why crypto assets are the future:
- Decentralization. People are tired of the establishments and the 1% controlling the flow of money, legal frameworks, and pretty much everything they want their hands in. Capitalism by definition doesn’t help everyone. The world isn’t as democratic as most people want it to be.
- Cryptography+Blockchain. This technology is changing the world in so many ways. Almost all records, data structures, and applications should be and hopefully will be recorded on blockchain or similar technology for the benefit of increased credibility, better transparency, and true democracy.
- Lower fees. Banks and credit card companies charge a lot of fees. Typically 2-4%. Depending on the type of coin cryptocurrencies transactions are either FREE or under 1%. In today’s world, banks still make 30-40% of their money through remissions aka sending and receiving money! As of 2015, banks make 30% of their money through remissions (just sending money). Through blockchain we can cut out the middleman or middlewoman :D.
- Speed. Transactions can happen at the speed of light. If you send money through banks it can take 2-5 days to complete an international transaction.
- Anti-inflation. Most cryptocurrencies will hold their value because an institution cannot simply print/pump more money. Your purchasing power will be protected. See 10 times Inflation Destroyed Economies.
102: Crypto Basics
Just google the basics… and double check.
103: Sushii Crypto Investment Advice
1. Do your own research. When you buy an asset. You need to be very confident in buying it. Have a plan in place. Most people panic after the price drops and sell low. But if you do your research you know what you have and you understand the value of your asset. “Price is what you pay, value is what you get.” – Warren Buffet
2. Get multiple viewpoints/perspectives. There’s a saying that you are the average of the 5 people you spend the most time with. If you are all drinking the same cool-aid, you’re all going to agree with each other and rep that brand of Koolaid. When you get different perspectives from different people you will see similarities and differences that can be a great learning point.
3. Practice safe crypto. There are a lot of Ponzi schemes, hackers, and scams. If you’re holding long-term, (which you should with most of your portfolio because that is where you will realize the most gains – it’s impossible to time the market perfectly). Store your coins in a hard-wallet. We like the Ledger Nano only because it looks slicker than the trezor and it seems a bit ahead in true tech. No other reasons to be honest. Make sure to double check the urls and links that you are visiting.
4. Investing is a science and an art. All of the basic and fundamental financial investing principles (which have been passed down for centuries) apply to cryptocurrencies as well. We get our fundamental financial advice from people who have a great track record – Warren Buffet, Peter Lynch, Charlie Munger. In Cryptoland, the “OGs” are still yet to be determined IMO.
5. Make sure to remove your biases. Confirmation bias is the worst for most. For example, if you google, Apple is a great stock to own, you will confirm your bias. If you google, sell Apple stock, I’m sure you will find some pretty good arguments of why not to invest in Apple. Remove your EMOTIONS and BIASES as much as possible.
5. Don’t expect to make millions overnight. The greatest investors have patience and stick to their guns (sorry, we couldn’t find a better idiom). Exchanges are platforms that can make fools rich overnight and overtime transfer wealth from the impatient to the patient.
6. #FollowTheTech. Most people just follow the money, but there is a lot of market manipulation as Cryptoland is mostly unregulated. In our opinion, fundamental analysis is more important than technical analysis, especially in crypto. You never know what’s going to happen. Technical analysis doesn’t always work. 10 people can look at the same chart and have 10 different opinions. There are a lot of pump-and-dump groups that just hype coins and herd a bunch of sheep to buy random coins. “Price is what you pay, value is what you get.” – Warren Buffet
7. Since it’s the most important, we’ll say it again – do your own research. As I mentioned, the rabbit hole goes very deep. There are a lot of concepts that not all of us understand to the full extent, like zero-knowledge proof, double counting, proof-of-stake vs proof-of-work, hashrate, 51% attack, block, halving, fork, distributed ledger vs. central ledger, multisig, node, supernodes, smart contracts.
Questions to Ask Before Investing
- Are they solving a problem? Are they solving it the right way?
- Is the team solid? Do they keep their promises and stay on schedule? Do they have integrity and a vision?
- What’s the competition look like? Can they fend off the competition? Are there barriers to entry?
- How good is their IP (usually tech)? In a lot of cases, it’s not a winner take all. I.E. the financial services industry. Many of them have their own niches, many of them do the same thing. New York Life, Goldman Sachs, JP Morgan, Morgan Stanley, SushiiAllDay for example. #followthetech
- Is there too much hype? Are you overpaying? Can you wait before you buy?
- What’s your gameplan? How much do you plan to invest? If this investment, loses 10%, 20%. 50% do you plan to sell?
- Are you diversified enough to make this investment? Should you perhaps, look at other sectors or types of investments like real estate, bonds, stocks, gold (LOL), etc.
- If you had to make only one trade in this day or week or month, would you still make it?
Check our financial books section.
Coinbase: Safest place in the U.S. to purchase Bitcoin, Ethereum, and Litecoin.
CoinMarketCap: See the market capitalization of all the cryptocurrencies.
Coinigy: Best cryptocurrency charts and tools with a trading platform.
CoinTrackr: The simplest tool for tracking your cryptocurrency portfolio.
LocalBitcoins: Trade bitcoin for fiat cash.
Coin Development Index: Tracking Core Software Development of Bitcoin, Altcoins and ERC-20 Tokens
ICO Drops: Calendar and info of ICO’s (initial coin offering)
KuCoin: Lots of “hottest cryptocurrencies on NEO are coming out. It seems like they have the first dibs.
Bittrex: Next generation digital currency exchange. Probably the largest and most advanced.
Binance: Based in Hong Kong. Very progressive and they add a lot of quality coins/tokens.
Cryptopia: A cryptocurrency exchange based in New Zealand. Lots of gems in here.
HitBTC: Lots of Gems on Here
Gdax/Coinbase: Most people don’t realize GDax is owned by Coinbased and coinbased is a simplified version of a way to buy crypto. But GDax fees are way less.
Where to read up on Cryptocurrencies:
- Bitcoin Magazine
- Business Insider
- The Street
- Coin Telegraph
- Cryptocoin News
- Brave New Coin
- Bitcoin Talk
- Crypto Insider
- Telegram Groups (most of them are pump and dump groups
Current Portfolio (updated 11/1/17):
Need to add into Portfolio
Block Cat (CAT), ARK (ARK), Cloak Coin (CLOAK), Deep Onion (DEEP), Rivetz (RVT), Stellar Lumens (XLM)
About Blockchain Technology
The applications are endless – payment processing, payroll, data storage, fraud protection, etc.
Still looking for a few better, and more general guides.
Thank You for Reading!
Any questions? Any feedback? Want to contribute or synergize? Feel free to contact us at firstname.lastname@example.org