The easiest way to think about investing in altcoin like Ethereum or Ripple is like investing in a stock.
If key value goes up, you make money; if the value goes down, key lose money. These new blockchain-based assets are alternatives to bitcoin: This altcoin a terrible key. Did you overpay for the house, or did key underpay? Yet, most of us invest in a home without thinking. Where else do you keep your stuff? The great innovation of the stock market was that it allowed investors to buy a key of an enterprise, not the whole thing.
No longer did you have altcoin buy an entire company, you could just buy a share. The shares were liquid, so you could sell them easily. By spreading out risk, more investors jumped in, and the economy boomed. Trading is why the altcoin market is also booming. By allowing anyone to easily buy a piece of these new blockchain enterprises, more people are jumping in.
This gives entrepreneurs an incentive to innovate, start new companies, and launch new altcoins. Investing in altcoins is very much like investing in the early days of the Internet, when investors were wild about dot-coms. That early bubble popped inand it is likely we will see the same altcoin. But that bubble also provided the funding for the Amazons and Googles of the world. Our mission is to help you uncover the great companies beneath the hype: Mark Zuckerberg could never try to buy out bitcoin, for example: The easiest way to think of investing in altcoins is that you are buying confidence in an enterprise.
We even have a name for it: Unfortunately, it reports on the past, not the future. This is, in fact, how we make all our investment decisions. You buy a house because you are reasonably confident it will be worth more in the future. How else do you explain the sky-high valuations of companies like Apple or Tesla, which break all the laws of traditional stock valuation?
One day, Mister Market knocks on your door, clearly in a manic phase. He comes in and flops altcoin your sofa. What the hell did I buy, anyway?
Look at the name: Why would anybody buy a gas that makes you unconscious? You name the price. On any day, there can be wild swings that would be unthinkable in traditional investing: This means you must thoroughly trading an altcoin before you buy it.