By Matt McCallJan 08, 2020
When you’re a trend investor, like me, the right stocks tend to reveal themselves. You’re not just putting your faith in one CEO or one company’s next-quarter earnings. You’re making a much bigger – and more profitable – investment in the revolutionary trends that shape our world.
Very often, these trends start with a technology breakthrough. So investing this way tends to mean investing in something new and, possibly, alien.
Or, at least, they sound that way. But here’s what I’ve learned: Most winning tech companies all do one thing. They provide a better way to gather, sort, and communicate data.
Think of Google’s (GOOGL) famous search engine… Intuit’s (INTU) TurboTax software… or even Microsoft (MSFT) Excel. If you could travel back in time and show someone Microsoft Excel, they’d be astounded. After Excel hit the scene in the early ‘80s, an entry-level worker could do the work of an entire accounting department from 100 years before.
Today, blockchain technology is doing the same thing for transactions – everything from currency to real estate to transferring medical records. Within the blockchain, you can do these transactions directly (with no costly middleman!) and with built-in security.
I know the whole idea of blockchain and cryptocurrencies can seem puzzling, so the most important thing for investors to understand about the blockchain is this: At the end of the day, this is just another software program.
A breakthrough and transformative software program, but still software.
Therefore, you can use many of the very same methods to invest in this technology as you would at the dawn of any other software revolution. In fact… if you want the best profits with less risk… you have to. So, let’s take a look at that today.
If you know anything about the blockchain, it probably has to do with its most widely known application: bitcoin.
Did you know that the price of bitcoin has more than doubled in the past year? And did you know that bitcoin, the original form of cryptocurrency, has been around for more than 10 years?
In that time, lots of other cryptocurrencies – commonly known as altcoins – have come on the scene as well.
This is what we always see in the first boom of a new technology. Dozens of entrepreneurs come out of the woodwork, working furiously to win the race… and become the next Microsoft or Apple (AAPL) of their industry.
At this stage, the growth potential is explosive. Investors have a second chance to reap bitcoin-like profits as these altcoins catch up in price.
That chance is now. The catalyst that’s about to push altcoin prices into the stratosphere – known as the “halvening” – is right around the corner. So, my team and I dedicated the past few months to crafting a 10-factor system for picking cryptocurrency investments.
Given the track record of explosive gains in the crypto market, I’m here to tell you that people who invest modest stakes in altcoins could make millions of dollars.
Now, at this early stage, trying to pick the one investment that can make your financial dreams come true is very difficult – and risky. Remember, for every Google, there’s an Ask Jeeves, now defunct and forgotten.
Instead, tech investors like me tend to buy a basket of investments in the sector.
In other words, you pick four to 10 of the best names… and buy all of them. (Right now, I’m recommending five altcoins for purchase.)
By purchasing a basket, you get upside potential plus the hallmark of any well-crafted portfolio: diversification and downside protection. In other words, you won’t lose all your chips on a single, concentrated bet. This is the same principle that’s made exchange-traded funds (ETFs) such a hot trading vehicle in the past few years.
Here’s how it works:
Let’s say you’re a stock investor who buys 10 companies at the forefront of a revolutionary technology.
You hold shares for four years. Some of your investments don’t work out. Some do okay. A few do spectacularly well.
Your returns look like this:
You bought 10 different stocks. Four went up. Six went down.
That’s just a 40% success rate.
But because you hit a few really big winners (Stock #4, #7, and #9), you made an outstanding average return of 188%.
And you made this excellent return while being right just 40% of the time. That’s the power of hitting some big home runs.
Now, if you want to apply that same thinking to cryptocurrencies, you’ll see much larger numbers. For example, one altcoin – litecoin – went from $0.06 in November 2012 to $4.55 by April 2013. That’s a 7,483% gain in five months! (And it’s nothing compared to Microsoft’s 150,000% gain since its IPO.)
Yes, this industry is a special case. But the investing strategy is the same as for any early stage technology.
And it’s the same thinking employed by the world’s top venture capitalists – the backers of early stage, privately held companies.
The best VCs know that even if half of their investments don’t work out, the hits will be so large that their portfolio returns huge profits.
That’s why I’m deploying this technique in the cryptocurrency market today: We’ll get exposure to the highest-quality altcoins… with the least amount of risk.
We’ll also have something else in our corner: key market-moving events that turn blockchain exchanges into a gold mine – and they’re built right into the code. All you need is to see them coming and take advantage.
That’s the very profit strategy I outlined last night in my latest webinar. Click here to catch the reply of my 2020 Crypto Millionaire Summit while it’s still available.
Tomorrow, we’ll take a closer look at the major profit catalyst I see on the horizon – and the even bigger long-term thesis I see beyond that.
P.S. If you missed out on bitcoin’s fantastic run-up in 2013 or 2017…
Today is your second chance at positioning yourself for life-changing cryptocurrency profits.
In order to give you the full story, I sat down last night and was interviewed by an Emmy-nominated journalist for the 2020 Crypto Millionaire Summit.
Watch the replay now for full details on the special cryptocurrency catalyst event that’s right around the corner and how it could end up making you more money than any other investing you may have ever done.
Click here to listen to Matt McCall’s MoneyLine podcast! This week, Matt discusses Thursday’s drone strike that killed a top general in the Iranian military, which sent stocks lower as safe haven investments rallied. Then, he looks ahead to the next 10 years – what he is calling the Roaring 2020s. One sector poised for a big transformation is transportation. Finally, learn about investing in electric vehicles and self-driving cars.
You can subscribe to this podcast on iTunes, Stitcher, Spotify, or wherever you listen to podcasts.
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