Small Risk, Huge Reward

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Matt’s Ultimate Crypto portfolio is surging … the crypto world is maturing … how altcoins offer a portfolio both offense and defense … the attractive risk-reward set-up

 

Numbers don’t lie.

Given this, let’s look at the numbers in Matt McCall’s Ultimate Crypto portfolio (names of recommendations omitted).

Below, look at the “buy date” column on the far left, relative to the “current return” column on the far.

 

 

 

 

(Note: the return of 630.69%, and the two returns of 551.67% all relate to one altcoin. They represent Matt’s recommendation to sell a 1/3 portion of the position, the official confirmation of that gain, and the remaining open-gain of the 2/3rds position.)

On the whole, Matt’s Ultimate Crypto portfolio (which launched in January) is up an average of 206.49%, with zero positions in the red.

That’s gains of 200+% in less than 8 months!

In today’s Digest, let’s talk about why the crypto world is surging — and more importantly, why it’s not too late to be a part of it.


***The interplay between bitcoin and altcoins

 

For any newer Digest readers, let’s make sure we’re all on the same page.

Altcoins are simply “alternative” cryptocurrencies beyond the granddaddy cryptocurrency, bitcoin.

There are hundreds of different altcoins with various degrees of individualization and value (or lack thereof) — it’s truly a fascinating ecosystem.

They can be gimmicky “me too” products which are just trying to capitalize on investor interest in the space, or they can provide a unique twist on the crypto/blockchain/financial world that makes them truly unique and valuable.

Matt distinguishes between these two groups thanks to a proprietary selection process called the MAG System. It involves weighting various crypto criteria to arrive at a composite score that indicates whether any particular altcoin is a “buy” or not.

While Matt is bullish on bitcoin, his Ultimate Crypto portfolio only contains elite altcoins. That’s because he believes they have the ability to grow your money much more, and much faster, than bitcoin.

At the same time, their growth is interconnected with that of bitcoin. That’s because bitcoin is doing the hard work of paving the way toward mass crypto adoption. You see, as more and more people invest in bitcoin and even use it in transactions, it sets the stage for explosive gains from the smaller altcoins that follow.

Here’s how Matt recently put it in an update to subscribers:

As demand for cryptocurrencies grows, we’re seeing a lot more mainstream adoption.

PayPal (PYPL) and its Venmo division plan to allow users to buy and sell cryptos directly from both websites.

Their competitor, Square’s (SQ) Cash App, is now getting much of its revenue from bitcoin trading.

The “big money” is noticing, and institutional-level investors are also jumping aboard.

Famous hedge fund billionaire Paul Tudor Jones announced in May that he was investing nearly 2% of his assets (about $106 million at the time) in bitcoin.

While growing crypto adoption is interesting, what’s the actual case for investing in altcoins?


***Why elite altcoins deserve consideration in your portfolio

 

Altcoins offer investors two primary benefits today — defense (wealth preservation) and offense (wealth acceleration).

Let’s look at each …

Beginning with “defense,” here’s Matt:

When Jones made his investment in bitcoin, he said we could be witnessing the “birthing of a store of value.” He further argued against parking money in U.S. dollars or traditional currencies because modern governments tend to debase their value by spending more than they bring in.

I couldn’t agree more. So does Michael Saylor, CEO of business analytics software company MicroStrategy (MSTR). Just this week, Saylor announced his company would allocate all $250 million of its funds that are currently set aside to hedge against inflation into bitcoin.

“This investment reflects our belief that bitcoin, as the world’s most widely adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash,” Saylor said.

In Matt’s update, he went on to note how the U.S. government has already spent an incredible $3 trillion in economic relief related to COVID-19. And Congress members are currently debating whether to add as much as another $1 trillion for another round of stimulus.

As to how this impacts your wealth, Matt points toward the purchasing power of the consumer dollar in the U.S., as tracked by the Bureau of Labor Statistics.

It hit an all-time low of 38.6 in July.

 

Back to Matt:

Please don’t overlook the importance of this.

Inflation is one of the greatest dangers facing those of us saving for retirement. It can massively impair the future buying power of the money you save today …

As government spending continues to grow and the threat of inflation climbs along with it, so does the allure of today’s cryptocurrencies.

Simply put, digital currencies — like bitcoin and other select altcoins — cannot be debased through inflation.


***So, we have the defensive benefit of wealth preservation. What about offense?

 

We could ask this a different way …

Looking back to how this Digest began — namely the huge gains in Matt’s altcoin portfolio in a short timeframe — what’s behind that? What’s the actual reason for the firepower behind many of these specific altcoins?

Most people don’t really understand what an altcoin is — does it actually do anything? Is there any real value to them?

Without good answers to these questions, most altcoin investments boil down to a gamble. You just pick one and hope that it will climb for, well, some reason.

Let’s clarify the value behind elite altcoins.

Here’s Matt to describe one commonality between many of them:

Some of the most lucrative software companies on the market right now are working to cut out the middleman. Many of these are altcoins.

That surprises a lot of folks, but it’s often easier to think of altcoins as just really, really, really valuable software … some of the most valuable software programs ever created.

I describe them as the oil of the 21st century, as they’re about to mint another generation of millionaires — in short order.

The tsunami of wealth that’s coming with altcoins and the blockchain technology backing them up is due to their ability to make our time vastly more efficient and productive …

Investing in altcoins is just like backing Microsoft (MSFT) in the early days. Or like backing Google (GOOGL) or Uber (UBER) or Oracle (ORCL) in the early days.

Software companies have provided enormous wealth for investors from the ’90s through today because of their ability to save us time and headaches.

So, what we find with the quality altcoins is that they serve an actual purpose. It’s not just a buy-and-hope strategy.


***The outsized risk-to-reward ratio of investing in elite altcoins

 

If you look at many of the world’s most successful investors and how they make their enormous wealth, you’ll find a commonality …

They’re masters at understanding the interplay between risk and reward.

The typical investor doesn’t really think this way. Instead, he or she finds a stock they like, invests, then hopes for the best.

Not the pros.

They pick their shots. They wait for a set-up that offers vastly more payoff if they’re right, relative to the amount of loss they’d incur if they’re wrong.

Today, elite altcoins are offering one of the most compelling risk-to-reward setups you’ll find in the market.

To illustrate, we can look back to actual returns from some of these altcoins during prior boom-periods.

Here’s Matt from back at the beginning of the year:

… over the same timeframe it took bitcoin to rise 2,000% … a cryptocurrency called litecoin (LTC) rose 7,483%.

Another altcoin called dash shot up 2,658% during the first half of 2014 while bitcoin rose 53% over the same period.

In this risk-reward setup, you don’t have to invest large sums of money in order to make large sums of money — and you shouldn’t.

In recent years, we’ve seen altcoins both boom and bust. Given this, wise investors won’t allocate an aggressive percentage of their portfolio into crypto. But as we just noted, they don’t need to.

Consider a $500 investment in the example of Litecoin that Matt gave above.

At a 7,483% growth rate, every $500 you invested would have grown into $37,915.

On a relative scale, that’s tiny risk, massive reward.

As we look forward today, the threat of currency debasement still looms large. Meanwhile, the promise of economic efficiencies from certain altcoins carries huge investment potential.

Offense and defense.

Small risk, big reward.

If you’d like Matt’s help finding such opportunities in altcoins, click here.

Here he is with the final word:

… if you think you’re too late to the party, think again. We’re nowhere near the end of such explosive profits …

As big as the gains have been so far, I expect much more to come. You don’t want to miss out on crypto’s powerful surge.

Have a good evening,

Jeff Remsburg


Article printed from InvestorPlace Media, https://investorplace.com/2020/08/small-risk-huge-reward/.

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