#2 Picking winners, losers & what to HODL
Building Crypto Today
Turn off your ad blocker if you can't see the player below this.
Important terms to know coming into this: ICO (initial coin offering), VC (venture capitalist), HODL (hold)
There are a ton of varying perspectives in terms of what you should be looking at for cryptos to buy, sell, HODL, or initially invest in via ICO. A popular theory is that of the the traditional VC; I think it’s wrong. Wrong might be a bit strong, but in general, it’s not quite accurate because of how new the industry is. Crypto is just different. We’re average people investing in these new companies, we’re VCs. When we’re investing in an ICO or any token for that matter, we are acting as a VC.
HODL or not, this is why we’re different
Some ICOs have been very strict about taking only accredited investors, that is to say, rich people. There is nothing wrong with that, they have a right to do their own thing as long as they’re not harming anyone. They’re missing a massive market by excluding so many people. This is where and why crpyto diverges from traditional investing. When you have 100K different people investing anything between $1Mil USD to $20 USD, you don’t need any incredible marketing staff, you just need to let people come in, then talk about what they’re so excited about. This is a driving factor of most crypto, someone tags a coin on Twitter and the price jumps or dumps because people didn’t realize it existed or simply forgot about it. When you limit your investors to those in the upper-middle class of Americans, you pretty well push out 3/4 the world. By allowing regular people in, you significantly increase your free advertising and decrease your need for the traditional VC needs. Continue reading