It’s no secret what kind of assets we’re looking for here when we choose new cryptos to invest in. The project team, its timing, the project “tokenomics,” and compelling use cases are some of the factors that produce an asset that’ll benefit from positive adoption pressure.
But knowing which assets are mostly likely to be good isn’t enough on its own. There are still plenty of ways to screw it up from there, and wind up behind where you started, or at least behind where you need to be.
You need a strategy, and to understand that strategy, there’s one thing to keep in mind at all times: We are looking to multiply our initial investment in each new asset by ten times or more that’s our objective.
Everything else we do is geared toward making that happen…
We’re Shooting for 10X Returns Every Time
Most shareholders are lucky to scrape together a few extra percentage points worth of wealth per year. They could consistently double in a year, and it still wouldn’t be enough, and they don’t often do that. As crypto and digital asset investors, our goal of 10x returns per asset may seem like a lot… because it is. And sure, we aren’t going to succeed every single time.
And time isn’t necessarily on our side here. We could have as few as two or three years before artificial intelligence (AI) adoption really starts shaking up labor and investment markets. Even if we had more time, crawling along at the growth speed of the average stocks-and-bonds investment portfolio isn’t going to cut it.
Currency is gradually losing value as more is printed, so just keeping pace with the pack is going to amount to basically nothing, especially if you want to set yourself up as well as you possibly can for, say, the arrival of Universal Basic Income when getting ahead might no longer be possible.
So, we need to be aiming for 10x returns on our capital. And it’s not an impossible ask either, because unlike equities, which have been traded for going on 300 years now, cryptocurrency is a brand new asset class. I believe the entire space has the potential to multiply in value by 4000x, so 10x isn’t too much to ask.
Not if we’re careful, and apply the 5T’s system rigorously.
Short Term Vs Long Term
Now, while we’re looking for those 10x gains, we need to keep in mind that there are two kinds of positions we can hold. Trades and Investments are not the same thing. A trade is fast – it could be closed out as quickly in as little as a few seconds. Or it can last up to a year. Never longer than that, though.
The idea behind these “trade positions” is that they’re the kind of moves that need an eye on them, just in case. They may need to be sold at any given time. Now, I prefer to recommend positions that don’t take much micromanagement, but in today’s world of fast-paced tech, that’s just not always possible.
I mean, any given night, some programmer could make a typo and have their computer achieve sentience. We need to be ready to respond.
And with any kind of long-shot, like a trade or one of the out-there lottery ticket play, a double or triple is often a good time to recover our initial capital if nothing else. After all, they could turn for the worse fast.
On the other hand, we have “investments.” These are the more stable positions. The intention is to hold them for more than one year, maybe for two or three, until A.I. really takes off, and until they make us back 10x gains.
These are the tokens I have more confidence in taking a more stable path to massive returns.