Solving financial (which includes digital assets) illiteracy – the turtle always wins the race.
By Don Friedman
I was at a party this weekend speaking with a financial advisor who told me that I’m an outlier when it comes to investing. He rattled off that I have IRAs, 529s for my kids and I understand that, in most cases, ETFs are better investment vehicles when compared to mutual funds. One of things he said that I practice that most people will never have the discipline to do is be patient and buy low.
Ironically, within an hour of having this discussion I received an email notification that I had been filled on my 6 month old resting order to buy Ethereum. I don’t know if Ether will go up or down from here, however, I’m a chartist and $200 was a price I was comfortable starting to scale in at. What I do know is that if you believe cryptocurrency has a long-term future NOW is the time to start nibbling. It’s human psychology to buy when things are racing up as FOMO kicks in. And it’s also human psychology that it’s scary to buy when things are selling off and you can see the white in people’s eyes.
Oftentimes, it’s the contrarian investors who are the most successful. Is that always the case? No. For me, investing like so many other things in life, is about playing the probabilities. And in the case of cryptos, if you’re willing to lose all the money you invest (remember – presently cryptos are a very speculative investment) then now is a great time to start investing.
To me, knowing which cryptos to buy is a far more complicated decision process. There are other things I’d like to learn about blockchain and crypto as well which is why, for me, now is the most exciting time to learn about it. The shininess has worn off. Many of the newbie speculators have been flushed out. And with the euphoria gone now we can have serious, thoughtful dialogue about the space and the opportunities. As an investor myself, I’m really looking forward to our Digital Asset Strategies Summit where I, along with all the attendees, will have an opportunity to hear from and ask questions to an illustrious speaking faculty of Wall Street veterans.