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Topic: Making your investment grow in a bitcoin economy (Read 5687 times)

legendary
Activity: 1582
Merit: 1064
December 05, 2014, 07:52:55 PM
#38
If you are willing to take the risk you could select some of the exchangers that allow you to leverage your position up to ten times or more. It's sort of like option one but this one goes another step further. I was tempting to try initially but anyway i didn't cause i rather go slow but safe.

In such a volatile asset like bitcoin, I don't think leveraging is really necessary. People can make substantial profits by just trading the underlying.
hero member
Activity: 532
Merit: 500
Invest in diceco.in bank roll.

Remember all investments have risk.

Please differenciate gambling from investment, even in this world it is hard  Grin
Every investment is a gamble. You are just wishing the outcome is positive when you dont know what will happen, so there. Specially in the crypto world, which is brand new.

He means the correlation between risk and reward is always proportional and exponential, so the more risk, the more possible reward  Grin
Q7
sr. member
Activity: 448
Merit: 250
If you are willing to take the risk you could select some of the exchangers that allow you to leverage your position up to ten times or more. It's sort of like option one but this one goes another step further. I was tempting to try initially but anyway i didn't cause i rather go slow but safe.
full member
Activity: 153
Merit: 100
Invest in diceco.in bank roll.

Remember all investments have risk.

Please differenciate gambling from investment, even in this world it is hard  Grin
Every investment is a gamble. You are just wishing the outcome is positive when you dont know what will happen, so there. Specially in the crypto world, which is brand new.
hero member
Activity: 644
Merit: 500
Hi,

I saw this article http://nakamotoinstitute.org/mempool/the-correct-strategy-of-bitcoin-entrepreneurship/ . So I was thinking what is the correct way for me invest my money in a bitcoin economy so that it grows exponentially.

So suppose I have 10,000$ , so what are my options:

1. Buy bitcoins worth 10, 000$ and wait for bitcoin to explode , this seems like a safe bet and is most likely to happen
2.  Invest in a bitcoin startup that earns and stores  in bitcoin and not in dollars  : This way the startup itself may accelerate like 5 times over the next two years and multiply that with the growth of bitcoin and we have a compound effect. I think bitpay or other payment gateway would be an example of this. But the concern is these gateway lose their coins and someday the owner could just transfer all bitcoins to his address and vanish. So tracking the company revenue maybe difficult.
3. Bitcoin mining contract: You expect to increase your btc using this , but I guess If this really increased your btc, mining company would never offer a contact in the first place. Instead it would just spend the btc buying and investing in more mining equipment. Good analysis here https://bitcointalksearch.org/topic/bitcoin-mining-contracts-671304

Any other ways I can do better? (I am not talking abt gambling btc Cheesy) !


#1 is your best bet.

#2 would be a great option if you had something more to the tune of $1,000,000 to invest. These startups are all private companies as of now and hold seed rounds only for accredited investors. The space is too new.

Well I'd just like to suggest trading a small percentage of your Bitcoin on the daily swings of the market in hopes to get more Bitcoins.  Can be risky and you said you weren't into gambling so I guess that could be a matter of your opinion on trading.  Their are services for those looking to trade that claim to profitable.  Investing in start ups is another good option if you have the money and can find something worthwhile.

In traditional markets, 90% of day traders lose, while the number with crypto currency is probably slightly lower. It is a zero sum game. The majority of people fail because they don't understand the complexity and might of what they are up against (i.e. high frequency trading).

Swing trading can be profitable for those who are excellent with risk management, unemotional with the money they are risking, and have an above average understanding of what they are doing.

Best bet is to go with a long term investment.

Indeed. Invest it in BTC and wait a few years.
hero member
Activity: 532
Merit: 500
Honestly, if you believe in bitcoin invest in bitcoin. Why bother with these start up companies to make a quick buck when there is so much risk. If you do decide to invest, just do your research (as always when investing).

Stay on this point of view, it is really the best way, specially if you are looking to learn something new...

So start from the beggining  Smiley
newbie
Activity: 11
Merit: 0
Maybe buying some low cost coins is better bcs BTC is not only one crypto and maybe some other coins are more profitable in future,But i dont know which one maybe LTC or DRK.I dont know but maybe maybe look at long invest time in scale min 1 year.
sr. member
Activity: 434
Merit: 250
Loose lips sink sigs!
Hi,

I saw this article http://nakamotoinstitute.org/mempool/the-correct-strategy-of-bitcoin-entrepreneurship/ . So I was thinking what is the correct way for me invest my money in a bitcoin economy so that it grows exponentially.

So suppose I have 10,000$ , so what are my options:

1. Buy bitcoins worth 10, 000$ and wait for bitcoin to explode , this seems like a safe bet and is most likely to happen

Any other ways I can do better? (I am not talking abt gambling btc Cheesy) !


interesting question, what makes you think that an explosion in prices is "most likely to happen?"
hero member
Activity: 532
Merit: 500
Invest in diceco.in bank roll.

Remember all investments have risk.

Please differenciate gambling from investment, even in this world it is hard  Grin
full member
Activity: 350
Merit: 104
Invest in diceco.in bank roll.

Remember all investments have risk.
full member
Activity: 209
Merit: 100
The most profitable position in any economy is control of the cost of money.  The closest you can come in the bitcoin economy without a semi fab is owning bitcoin.  As long as a venture involves exposure to fiat the likelihood of outperforming bitcoin is vanishing rapidly with that exposure.  The only position I know of which is likely to outperform 100% bitcoin holdings during a bubble is leveraged holdings.

You should also mention that is the riskiest way to invest.

For business, there is turn over and profit. Owning coin without profit is just gambling.

By owning bitcoin, you have a stake in the overall bitcoin economy.  Smiley
You need to do more then just hold bitcoin to hold a sake in the bitcon related economy and grow your bitcoin. In order to grow your bitcoin you must likely need to engage in some amount of trades. The best way to do this is to post offers to both buy and sell items that are at prices that are in your favor; people who want to buy or sell what you are dealing in will take your offer and you will make money and participate in the bitcoin related economy.
legendary
Activity: 1358
Merit: 1000
mm interesting...

Quote
Watch out for scam if you want to invest in start up companies. Check out the market security sub-forum and see how many of the so called start up end up going bust either due to scam, incompetent or government regulation.

Right !
Creating a ponzi schema or a pump and dump coin is sounding attractive to me !!
you will be a scammer! still risky for you! If no one is interested at the coin, you will be dead!

Not really. In a ponzi scheme, the scammer doesn't have much to lose. The people who invest at the peak - they are the ones left holding the bag.
legendary
Activity: 1596
Merit: 1000
mm interesting...

Quote
Watch out for scam if you want to invest in start up companies. Check out the market security sub-forum and see how many of the so called start up end up going bust either due to scam, incompetent or government regulation.

Right !
Creating a ponzi schema or a pump and dump coin is sounding attractive to me !!
you will be a scammer! still risky for you! If no one is interested at the coin, you will be dead!
hero member
Activity: 988
Merit: 1000
Honestly, if you believe in bitcoin invest in bitcoin. Why bother with these start up companies to make a quick buck when there is so much risk. If you do decide to invest, just do your research (as always when investing).
The start-ups are less risky because they can easily change from bitcoin to another altcoin that (could) becomes more successful then bitcoin. The start-ups are merely betting that crypto currencies in general will be widely used. I don't personally think an alt will ever overcome bitcoin, but if this were to happen the start-ups could still profit.

which is one reason why venture capitalists are pouring their money into bitcoin-related start ups.
I think this is true to a point. I think that VC does believe that BTC will be successful over the long term, but is hedging their bet (with little/no added cost) that another crypto coin is successful. 
legendary
Activity: 1358
Merit: 1000
The most profitable position in any economy is control of the cost of money.  The closest you can come in the bitcoin economy without a semi fab is owning bitcoin.  As long as a venture involves exposure to fiat the likelihood of outperforming bitcoin is vanishing rapidly with that exposure.  The only position I know of which is likely to outperform 100% bitcoin holdings during a bubble is leveraged holdings.

You should also mention that is the riskiest way to invest.

For business, there is turn over and profit. Owning coin without profit is just gambling.

By owning bitcoin, you have a stake in the overall bitcoin economy.  Smiley
full member
Activity: 181
Merit: 100
The most profitable position in any economy is control of the cost of money.  The closest you can come in the bitcoin economy without a semi fab is owning bitcoin.  As long as a venture involves exposure to fiat the likelihood of outperforming bitcoin is vanishing rapidly with that exposure.  The only position I know of which is likely to outperform 100% bitcoin holdings during a bubble is leveraged holdings.

You should also mention that is the riskiest way to invest.

For business, there is turn over and profit. Owning coin without profit is just gambling.
legendary
Activity: 1596
Merit: 1030
Sine secretum non libertas
The most profitable position in any economy is control of the cost of money.  The closest you can come in the bitcoin economy without a semi fab is owning bitcoin.  As long as a venture involves exposure to fiat the likelihood of outperforming bitcoin is vanishing rapidly with that exposure.  The only position I know of which is likely to outperform 100% bitcoin holdings during a bubble is leveraged holdings.
legendary
Activity: 1358
Merit: 1000
Honestly, if you believe in bitcoin invest in bitcoin. Why bother with these start up companies to make a quick buck when there is so much risk. If you do decide to invest, just do your research (as always when investing).
The start-ups are less risky because they can easily change from bitcoin to another altcoin that (could) becomes more successful then bitcoin. The start-ups are merely betting that crypto currencies in general will be widely used. I don't personally think an alt will ever overcome bitcoin, but if this were to happen the start-ups could still profit.

which is one reason why venture capitalists are pouring their money into bitcoin-related start ups.
hero member
Activity: 988
Merit: 1000
Honestly, if you believe in bitcoin invest in bitcoin. Why bother with these start up companies to make a quick buck when there is so much risk. If you do decide to invest, just do your research (as always when investing).
The start-ups are less risky because they can easily change from bitcoin to another altcoin that (could) becomes more successful then bitcoin. The start-ups are merely betting that crypto currencies in general will be widely used. I don't personally think an alt will ever overcome bitcoin, but if this were to happen the start-ups could still profit.
legendary
Activity: 1582
Merit: 1064
Honestly, if you believe in bitcoin invest in bitcoin. Why bother with these start up companies to make a quick buck when there is so much risk. If you do decide to invest, just do your research (as always when investing).

I think the play is in bitcoin adoption, and not necessarily bitcoin price.
Bitcoin adoption could outpace bitcoin price increases, in which case investing in these companies will be better.
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