Topic: Cryptocurrencies or private equity? (Read 153 times)

True, 1k$ is not a small amount, but for some equity funds, being considered a qualified investor, requires having a capital well above 100k$.

If by real cryptos you mean the top 5, I agree. That said, if we exclude Ripple, the rest is not really baked by physical assets, so unfortunately the risk is still there. 
They are for this reason too susceptible to FUD. The other point is that although I hope to be wrong, I do not expect those cryptos to do a 100x in few years. A good startup could.

I choose crypto too. Those are absolutely crucial points. I would also add the team, a competitor analysis and the time to market. We need to know how are they going to generate profits. Unfortunately, most of the ICOs today are all about marketing, and the ICO investors must cover those expenses in a way or another. We should stick more to the substance, but that's very difficult for most of the average people.

When presented with a choice between making equity investment and cryptocurrency investment, i will choose cryptocurrency. Though cryptocurrencies are very volatile as today you can be a millionnaire and tomorrow you are all at loss. The higher the risk when properly understood and harnessed, the higher the reward.

ICOs would profit an individual if he or she knows the one to choose by applying simple fundamentals. I personally consider uniqueness of technology or idea or product, marketing and adoption.

ICOs often to have a certain minimum amount one can contribute to the project and often this minimum is not a small sum, it can be about $1k. Cryptocurrencies are unstable but this is what makes them profitable for trading.
You are right that one needs a strategy as well as be prepared to lose, but I am not sure why you are only talking about investing in icos. Diversification is a good choice, but it's a lot safer to invest in real cryptos which already showed what they are capable of, instead of giving your money on the project that will most likely never make it to the market.

I agree. Anyway the more projects you pick, the lower is the risk of something getting really wrong with your investment. There are still too many variables that cannot be 100% foreseen and controlled.

Although ico investing is risky but it is the most profitable as well, the same basic investment rule applies, the bigger the risk the bigger the reward, i believe if the project and team is really good then there is no chance of loosing, you may have to wait a little but you will gain.

ICO investing has been very volatile: one can gain enormous profits in as quick as a few hours, but for the same reason can lose everything, just as fast. Traditional investing has been historically more stable and has not experienced the same magnitude of stock value spikes and plunges as cryptocurrencies have. If you have no clue about what you are doing, you should definitely avoid investing in ICOs.

There are anyway a couple of crucial points to be discussed before one can drive a conclusion on this topic. Private investment is often not accessible to common people. You either need to be a qualified investor, or a huge amount of money to begin with. And typically both of them. Investor capital is often locked up and investors must wait until the fund is liquidated or for specific and restricted time windows to get in and out. ICOs, despite some recent government regulations and interventions, are instead still quite accessible to anybody. Since tokens are owned by investors and can be traded on exchanges, there are no investment restrictions, neither in terms of initial capital, nor in terms of operative time windows.

It is not all good, unfortunately. Cryptocurrencies value is often dependent on speculation and perception with no real-world assets backing them. They are easy to manipulate through media influence and pump and dump schemes, often very hard to be detected (hidden behind expensive marketing campaigns). Unforeseeable events like hacks, crimes and scams involving blockchains and cryptocurrencies, can easily knock them down as well. Whales (big holders and investors) can also affect these values simply by cashing out or trading to a different token. All these variables can make a token’s value very unstable.

What should we do then? First of all, we need to educate ourselves. I personally truly believe in the blockchain technology. That's the reason I'm already investing in it. If you know nothing about the technology, about the project and the team, about the roadmap, and you want to pick a token just to realize a quick profit, then just do yourself a favor and stay away from this form of investment (it is not suitable for you). Assuming you are instead a careful crypto investor, although a casual one, there are still at least another couple of rules you should follow.

1 - Be ready to lose all the money. That implies that you should only invest an amount that not only you can afford to lose, but you can also do that comfortably (no stress, no anxiety).

2 - No matters how good you have been in carefully picking a project and no matters how good it seemed to be, always spread your money across multiple ICOs.

3 - You must have a strategy before you commit your money. You must be prepared. If the token price is going up, what are you going to do? Holding it, selling it totally, selling it partially? What if it is going down? You also need to have at least a rough time horizon for your investment. Long term, mid term, realizing a profit right once the token is listed. If you have no plan, you are already doing a mistake, because your next action will be dictated by the emotions of the moment instead of by a rational plan.

Ok, so what is my final answer? If you have no idea about what we are talking about, most likely neither of them is good for you. If you are a classic investor, that likes to have things well under control, with little to no clue about blockchains, I would rather go for a private equity.
If you are instead like me, now that's an easy one, ICOs win hands down.

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