Sep 9, 2021
Bitcoin was the first cryptocurrency, and everything that came after it was known as an “alt coin” — an alternative cryptocurrency to Bitcoin. With over 11,000 alt coin projects available, Alex and Jacki speak to the importance of vetting a project, types of alt-coins, indexes, and staying current with the regulatory environment of your state or country.
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0:34 - There are over 11,000 cryptocurrency projects to invest
in
0:45 - People compare this to the 90s internet dot com bubble where
90% of projects failed.
1:00 - But some survived! Who will survive crypto?
1:26 - You must DYOR (Do Your Own Research) and due diligence
before investing
1:35 - There are people who use trading tools, like Market Cipher,
to trade purely on data
1:40 - When researching, find out who is working on the project,
what it solves, and who is funding it
1:52 - Follow the money! Who is expecting a return on investment
and how soon?
2:07 - Alt coins are a great way to learn more in crypto
2:08 - We are not financial advisors, but it’s always safe advice
to never invest anything you can’t afford to lose
2:14 - Alts are a double edge sword, they can explode in value
quickly, but the higher up, the harder they fall.
2:30 - Alex likes to find projects that have unique use cases &
utilities and also partnerships with well-known companies or
institutions.
3:00 - It’s important to not invest with emotion, it’s easy to get
attached to a project, but sometimes it doesn’t make financial
sense to hold them
3:17 - Crypto market tends to run in a 4 year cycle—crypto markets
tend to hit all time highs 12-18 months after the Bitcoin halvening
(every 4 years, last one in May 2020)
3:45 - In bear markets, alt coins tend to lose 85-99% of their
value.
4:25 - This bull run saw a big bump in NFT trading, and introduced
the Metaverse Index to more people
4:50 - Indexes, or Token Sets (on the Ethereum network), are
similar to traditional financial index funds.
5:00 - With a token set like Metaverse or DeFi Pulse, when you
invest in the token you’re investing in a basket of cryptos, so the
performance of the token is based on a weighted index.
5:36 - Stable coins offer some relief for new crypto adopters.
These coins simply represent a real asset (like gold or silver)
stored somewhere in the world.
5:58 - The USDC is a stable coin backed by a US dollar.
6:40 - Some common pitfalls when getting into alts: the exchange
you use might not carry the coin, you may need another wallet, the
coin may not be legal in your area
6:52 - It’s very important to understand the regulation in the
state and/or country you live in.
7:00 - For example, New York State requires a bit-license for
available exchanges.
7:20 - Cryptos with utility are good to look at, such as Ether
because it is the “gas” that “fuels” the Ethereum network.
8:00 - Binance offers a ton of coins, but we don’t have it here in
New York State
8:26 - When MCA works with clients, we steer from Binance and
instead direct them toward regulated, reputable exchanges that
offer some type of insurance or protection for their users.
8:43 - Heads up! Moving your crypto around or cashing it out can be
a taxable event!
9:13 - There are tax softwares out there - like cointracker.io -
that can help you keep track of things.
9:44 - What is the correlation between Bitcoins price and the alt
coin market?
10:00 - Generally, Bitcoin is the benchmark for the industry - back
in ’17 Bitcoin would pump, and Ethereum and other coins would
follow suit.
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(Disclaimer: Cryptocurrencies are volatile and can move quickly in any direction. My Cryptocast is not responsible for any trading loss incurred by following our advice. Any opinions, news, research, analysis, prices, or other information provided by My Cryptocast is given as general market commentary and not purported to be fact. Please do not trade or invest based solely on this information.)