TL;DR
- Binance Coin
- Monero
- Bitcoin
In 2019, while still a Hedgefund Portfolio Manager (of Crypto), I bulked up on Crypto once Bitcoin fell below $4k. These were my picks.
Bitcoin (BTC)
Bitcoin has a lot of hype surrounding it, but the actual technology is worth the hype. At the most basic level, Bitcoin lets you make a money transaction without anyone in between you and the person you're making the transaction with... a Libertarian's dream. When you make a transaction, a bank is between you and the person you make the purchase with. Even with paper money, the U.S. government is right there controlling the worth of that paper money. The verification of all BTC transactions are done by a collection of miners around the world instead of a central authority. This decentralization of monetary transactions is why Bitcoin is worth the look.
Monero (XMR)
But did you know that if you look at Bitcoin's blockchain, you can see every transaction ever made on the Bitcoin network? What does this mean? Well, the Bitcoin blockchain is nothing more than a large notepad file with garbled (encrypted) Bitcoin transactions. Every Bitcoin transaction you have ever done is on it. You may not care about this, but with a little investigation, a tech savvy investigator can find the transactions of very large organizations on the blockchain. A large cap company, like General Electric, would not like this because other competitors could get insight on what the company was purchasing. This is the essence of crypto's "privacy issue". Monero proved to me it is the privacy coin because I couldn't get that data from its blockchain... and in 2019 it was the only cryptocurrency that could achieve that.
Binance Coin (BNB)
Bitcoin is a decentralized currency. But what else could we decentralize? That is all the rave, decentralizing everything. One of those ideas is the decentralizing of cryptocurrency exchanges themselves. Of all the decentralized exchanges (DEX), Binance has the technology, and the incentive, to make this a reality. Their DEX is powered by BNB coin. A DEX is much slower than a normal exchange (BTC is much slower than a credit card transaction, it can take up to 10 minutes... longer if there is congestion). But why would Binance want to make a slower Exchange? They are themselves a decentralized company, having to move from southeast Asia to Malta to set up shop. So they understand the significance of removing themselves from centralized authorities.
Final Thoughts
When the cryptocurrency bubble bursts again, crypto will fade from people's attention. But my suggestion is to not forget about crypto. It is here to stay and by finding the right coins to hold for the long term you can succeed at cryptocurrency investing.
I/we have a position in an asset mentioned
TL;DR
In 2019, while still a Hedgefund Portfolio Manager (of Crypto), I bulked up on Crypto once Bitcoin fell below $4k. These were my picks.
Bitcoin (BTC)
Bitcoin has a lot of hype surrounding it, but the actual technology is worth the hype. At the most basic level, Bitcoin lets you make a money transaction without anyone in between you and the person you're making the transaction with... a Libertarian's dream. When you make a transaction, a bank is between you and the person you make the purchase with. Even with paper money, the U.S. government is right there controlling the worth of that paper money. The verification of all BTC transactions are done by a collection of miners around the world instead of a central authority. This decentralization of monetary transactions is why Bitcoin is worth the look.
Monero (XMR)
But did you know that if you look at Bitcoin's blockchain, you can see every transaction ever made on the Bitcoin network? What does this mean? Well, the Bitcoin blockchain is nothing more than a large notepad file with garbled (encrypted) Bitcoin transactions. Every Bitcoin transaction you have ever done is on it. You may not care about this, but with a little investigation, a tech savvy investigator can find the transactions of very large organizations on the blockchain. A large cap company, like General Electric, would not like this because other competitors could get insight on what the company was purchasing. This is the essence of crypto's "privacy issue". Monero proved to me it is the privacy coin because I couldn't get that data from its blockchain... and in 2019 it was the only cryptocurrency that could achieve that.
Binance Coin (BNB)
Bitcoin is a decentralized currency. But what else could we decentralize? That is all the rave, decentralizing everything. One of those ideas is the decentralizing of cryptocurrency exchanges themselves. Of all the decentralized exchanges (DEX), Binance has the technology, and the incentive, to make this a reality. Their DEX is powered by BNB coin. A DEX is much slower than a normal exchange (BTC is much slower than a credit card transaction, it can take up to 10 minutes... longer if there is congestion). But why would Binance want to make a slower Exchange? They are themselves a decentralized company, having to move from southeast Asia to Malta to set up shop. So they understand the significance of removing themselves from centralized authorities.
Final Thoughts
When the cryptocurrency bubble bursts again, crypto will fade from people's attention. But my suggestion is to not forget about crypto. It is here to stay and by finding the right coins to hold for the long term you can succeed at cryptocurrency investing.
I/we have a position in an asset mentioned