Why Stock and Shares Investors are Missing an Opportunity with Crypto Investment
Stocks, bonds, real estate, business ventures, commodities and now cryptocurrencies. The choice can be overwhelming for investors.
Traditional options that don’t include crypto investments are nearly always favoured by the investor as a “safe bet”, with many investors shunning the infamous volatility of cryptocurrencies.
Despite the well-documented peaks and crashes - not least the recent crypto crash this year that will be at the forefront of all our minds - investors who choose to invest their assets solely in stocks and shares could be missing out on what could be the greatest investment opportunity of our lifetime. This is not about scaremongering or adding to the FOMO (fear of missing out) culture that shrouds crypto investments but based on my experience, I firmly believe that where there is risk, there is also great opportunity for those willing to educate themselves and take advantage of the possibility of high returns.
Cryptocurrencies aren’t going anywhere
Since the debut of Bitcoin in 2009, the volatility of trading in crypto has been no secret. Even 2022, which was predicted to be one of the best years for crypto investment, has been rocked with bad PR for the blockchain industry, as it battles the FTX scandal amongst other issues.
The crashes and booms documented on a chart are dramatic in their peaks and troughs - but looking at the bigger picture, what is clear is that as each storm is weathered, the industry bounces back with even more fervour. For investors, this is our opportunity to gain. For example, shortly off the back of the latest crash just this year, the news quickly broke that the world’s largest asset manager, BlackRock, partnered with the world’s biggest Crypto exchange, Coinbase. It’s clear in my mind and the minds of those who follow the market, that cryptos are here to stay. Once investors are prepared to acknowledge this, the possibilities are endless but to ignore this, is possibly missing out on lucrative investment opportunities it provides.
It's also worth noting here that crypto is the currency used in the metaverse – another indication that crypto could be the currency of the future.
Ride with the ups and down
Volatility can seem scary but can also be a benefit for traders. As one of the fastest-growing markets that we are likely to witness in our lifetime, the possibility of losses has to be taken into account alongside the equal possibility of high returns - higher than could ever be gained through traditional investments. Prices can collapse and rise again at the drop of a hat, but these fluctuations can help investors earn significantly. The sky is the limit for those who watch the market closely and hold their nerve. One of my favourite quotes by Warren Buffet encapsulates this: “Be fearful when others are greedy and greedy when others are fearful.”
Portfolio diversification
Diversification of investment portfolios has always been one of the most important pieces of advice I encourage traders to follow. Cryptocurrencies naturally lend themselves as a new and different option independent of traditional investments, which might not always follow the market. It makes sense for traders to have such an alternative within their portfolio. This gives them the opportunity to not put their eggs all into one basket, which is a big benefit when expanding into cryptocurrency investment.
Easy, fast, secure transactions - accessible 24/7
One of the key selling points that arguably triggered some of the early success of cryptocurrencies is the ease and security of transferring funds. With no third-party intermediatory like a bank or credit card, almost anyone can complete a transaction almost anywhere. In addition, investors are no longer tied to weekdays and business hours. Crypto markets can be accessed at all hours of the day or night. This accessibility opens up the world of investments to a new type of trader who might not have had the opportunity to do so otherwise.
Crypto is an opportunity not to be missed
With opportunities for high returns, diversifying portfolios and taking advantage of easy, secure and fast transfers, it’s hard not to see why crypto investors believe that those avoiding the market altogether are missing out on the opportunities and benefits offered by cryptocurrencies over and above traditional investments.
As we enter a new era of instability across all markets, it seems ever pertinent to take stock and review our preconceived notions of what it means to invest in cryptocurrencies.
I am very much looking forward to seeing how this plays out over the next few months and what’s in store for the cryptocurrency market in 2023.
Marcus’ Top Tips
For investors looking to take the first step into crypto investment, here are some quick dos and don’ts to get you started:
1. Start small – there’s nothing to be gained from putting all your investments into one pot. A small percentage of your overall portfolio invested in crypto can start you off.
2. Appreciate your appetite for risk – the up-and-down nature of crypto investment might not be for the faint-hearted. Once you understand your own personal appetite for risk this can help you make informed judgements rather than snap decisions in the heat of the moment.
3. Education - take 20 minutes of your day to educate yourself on investment. Follow the market closely as you would with traditional stocks and shares. Get interested in new and emerging coins and be prepared to immerse yourself in the cryptocurrency world. It’s important to understand that what drives the price of crypto is very different to what drives the more traditional markets.
4. Hold your nerve. You don’t need to sell just because the market is dipping.
About Marcus de Maria
Renowned stock market and wealth educator, investor, and entrepreneur Marcus de Maria is the founder and chairman of Investment Mastery, one of the world’s leading investment and trading education companies.
A sought-after keynote speaker on wealth creation who has shared the stage with some of the world’s leaders in business, success and philanthropy, Marcus has gained mutual respect from many high-profiled individuals including Richard Branson, Robert Kiyosaki, Tony Robbins and Brian Tracy.
Marcus is also the author of three books including The Lunchtime Trader, a guide on how to build indestructible wealth by trading stocks for just 20 minutes a day.
After experiencing financial difficulties, Marcus went from being £100,000 in bad debt and sleeping on his brother’s floor to taking control of his financial future and learning strategies to become financially fit, building multiple pillars of wealth for security. He now uses all he has learnt to help others follow this path of wealth creation.
About Investment Mastery
Founded in 2003, Investment Mastery is a premium training and education company delivering easy-to-follow and profitable trading and investing strategies.
Today, Investment Mastery delivers training seminars and workshops, online and live in-person, annually. They have educated thousands of people across 25 countries, while also developing and delivering industry-leading online support and training that is delivered in three different languages.
Led by founder and chairman Marcus de Maria and his expert team of real traders and investors in the fields of stocks, cryptocurrencies and forex, Investment Mastery’s training education is influenced by the exact same proven techniques that Marcus uses to trade and invest his own money.
The team at Investment Mastery do not just help clients to strengthen their finances, but their mindset too. This helps clients uncover, address and break through their limiting beliefs behind wealth creation and find their reasons ‘why’. This unique approach is what sets them apart from other wealth creation educators and is why clients achieve such incredible results.