How to invest in cryptocurrency

24th Jul 2019
|

Not investment or financial advice. This is not an endorsement or recommendation to buy, sell or hold.  The staff of this site may own the asset/s mentioned on this page. Investing is risky and you may lose all your capital. Do your own research. See full disclaimer.

We receive no direct payments from the mentioned companies. Some links on this page are affiliate links, at no extra cost to you, we may receive commissions when you use them. However, we try our best to keep our articles fair and balanced.


   

Investing in cryptocurrency. The hard way.

Investing in cryptocurrencies is risky. According to the Modern portfolio theory, diversification is one of the few ways to limit risk; it is a reflection of the adage: do not put all your eggs in one basket. Diversification is key. Unfortunately, it is not so easy to diversify amongst cryptocurrencies. You will find a lot of complex ways to invest in Crypto most often involving analysis of each project. In this article, I give you the quick and dirty way to invest in crypto, the shotgun approach. Who has the time to spend 100 hours or more in picking the crypto project that will be the next Google? You can buy all the promising projects in a few clicks and increase your chances that next behemoth in crypto is in your portfolio.

If you would like to go directly to the solution you can go here: Triaconta

Investing in crypto could be the edge, the hedge and the one opportunity this decade to see gains (or losses) which will not be paralleled by any other markets.

The pros and cons of investing in only one cryptocurrency.

Bitcoin is the king of the cryptoverse. This fact is uncontested if the market cap is taken as a benchmark. Market cap is simply a measure of the price of one coin multiplied by the total amount of coins available. Not all the supply of coins can be sold at the price the last coin was sold, market forces would not allow that to happen.

Should you invest only in Bitcoin?

Bitcoin maximalists believe that Bitcoin can deliver all potential value from blockchain technology. This thinking is akin to assuming that only one configuration of a body encompassing hands, legs and eyes can be successful in eating and reproducing on earth. The truth is there are billions of configurations from insects to fish to birds to animals which have successfully exploited different niches on earth to their own advantage.

Which Blockchain project will be the best performer?

Blockchain tech has many different configurations. Some consider Bitcoin to be Gold, Dash to be Silver, EOS as a smart contract system with cheap transactions and fast speeds, Ethereum has an established Defi ecosystem. It is impossible to know who will be the ultimate winner at this time, that is if there ever be one ultimate winner. Will the end game look like the search engine space, when there is Google ruling them all or will it look like the car manufacturing where there are several strong companies continuously competing for market share?

An advantage of investing in only one crypto is that it is relatively easy to stay abreast with its development, evolution and risks. Information is the edge of the diligent investor. However, if that one crypto turns out not to be the one, it will be too late to do anything to diversify. The best time to diversify is at the start not when your core investments become dubious.

See Also: How to invest in Ethereum

The pros and cons of investing in several cryptocurrencies.

Investing in multiple cryptos can reduce your risks, the shotgun approach has its benefits. The chance of bagging a winner is higher. Having that one winner can recoup the losses from all the others.

Investing in a basket of cryptocurrencies gives you exposure to some of the winners and also some of the losers in this space. Blockchain is still young, and there is a high chance that the winners will more than make up for the losses the losers will experience. Index funds and dollar cost averaging have outperformed speculators in stock markets, and this phenomenon will most likely repeat itself in the crypto markets, trying to guess which cryptocurrency will be the winner is difficult, futile and costly.

What are the challenges of owning several cryptocurrencies?

One needs considerable technical expertise, nerves of steel and a discerning ear to filter out all the noise from the actual actionable information floating around on the various Reddit, Twitters, Whitepapers and YouTube interviews. Keeping up with this process for several currencies is very time consuming and energy draining.

Holding a number of cryptocurrencies individually is hard work. Most of the top 30 cryptos have their own chain, meaning that each crypto has its own wallet. There are a few multi-currency wallets, but they do not cover all of the top 30, also, these currencies require careful management with hardware wallets and updates.

Buying multiple cryptos takes a lot of time. Buying the top 30 currencies and moving them to an exchange can easily take you a full day, in addition, to make an adjustment to your stack/investment you would need to move the currencies back to the exchange buy and sell them and then transfer them back to your wallet.

What happens to your crypto stack if you die? Another challenge to owning crypto is incorporating an excellent plan to leave your coins to your kin in case of death. This problem is quite hard if the death is sudden. However, there is no safe and easy way to do this. Giving them access to your coins today means there is a risk that a rogue nephew will do the unthinkable with your coins.

How does Triaconta solve the problems of crypto investing?

Triaconta offers a simple way to invest in multiple cryptocurrencies by investing in crypto bundles. Their flagship product is the top 30 crypto bundle. Users who are not interested in following the crypto markets carefully can set it and forget it. The top 30 crypto bundle divides your investment into 30 equal parts each having 3.33% of your value when you initially buy. Other providers offer index funds, but their problem is that their product is fixed, the percentage value of each crypto within the fund cannot be modified. With Triaconta bundles you can surgically adjust the weight of each crypto in your investment. This is advantageous for the advanced user.

The advanced crypto investor who has a good grasp over the pulse of the cryptoverse can manage their crypto bundles by adjusting the value invested in each crypto — thus moving away from the default of 3.33%.

The advantage here is that crypto investors who already hold some cryptocurrencies can focus on the cryptos they do not have via the Triaconta custom Bundles. This is a hedge. Seasoned crypto investors who have most of their bets/bags/ investments set on several cryptos can hedge their bets by investing in all the other cryptos efficiently and with a few clicks.

What are the core advantages of using Triaconta

  • Diversify the risk: Investing easily in multiple currencies. You can own a total of 43 cryptocurrencies through Triaconta, more will be added soon.
  • Manage your bundle automatically: Change the distribution of your cryptocurrencies within the bundle
  • Automatic revision: Automatic rebalancing of crypto according to either manually or automatically.
  • Cryptocurrencies within the bundles will increase and decrease in value. This movement will change the percentage value of each crypto within the bundle. Some will increase their share others will grow it. Rebalancing allows your bundle not to become too invested in any one crypto.
  • Cryptojacking is the kidnapping of individuals to extract out of them their crypto. When owning your keys this is a risk. Using Triaconta gives you a buffer between you and your keys, this means that you do not have much value to a crypto jacker.

How does Triaconta crypto investing bundles work?

At this time Tria offers four bundles

  •    Big Three
  •    Top 30
  •    Penny Stocks
  •    Custom Bundles

Using Triaconta to own a bundle is one of the best value for money propositions to invest in crypto. You can buy any of the above bundles using your bank account and doing a direct bank transfer.

  • Belgium: MisterCash / Bancontact
  • Germany and Austria: Giropay
  • Austria: EPS uberweisung
  • European countries: MyBank

BTC and ETH payments are accepted for amounts of more than 5k.

When the money transferred arrives at Triaconta, Triaconta will then use the funds to buy the cryptos in the selected bundle. Triaconta connects with all the major exchanges and can find the best price to buy the cryptocurrency from. All the process is automated but is closely monitored by Triaconta staff.

Tria token – Passive income from crypto investors

The TRIA token was issued during the ICO of Triaconta, no more will ever be created. It is an ERC 20 token. Holders of the TRIA token will earn 50% of any profits made. Triaconta makes profits by charging fees to the bundle holders, part of these fees are paid to exchanges and another part are paid to Tria for their services. The team has survived the crypto winter and delivered on their ICO promises. Besides Triaconta run particular arbitrage and other algos which generates an income for the company.

How can Triaconta improve?

Triaconta has some room to improve, but who doesn’t.

  • It is currently not possible to stake or run masternodes using the cryptocurrencies in your bundles. Probably this is because Triaconta operates most of its funds in secure cold wallets, and their current setup does not allow them to stake without taking the funds out of cold storage. The same issue is with masternodes. Dash earns more than 6% a year, and these funds are being “lost” because Triaconta chooses not to deploy masternodes. Staking and MNs are an added risk which Triaconta might not want to take, but some of its users might want to take. Today there are many custodial services that offer exactly this service.
  • With masternodes, the issue Is also one of liquidity as a master node cannot be operated with less than a certain amount of coins. If users withdraw their coins the MN might not be able to operate. Dash, for example, gives out 6% a year!
  • Another potential revenue generator is to allow token holders to lend their tokens at their own risk to services such as BlockFI, Celsisus or Nexo.

Conclusion

Triaconta bundles are a versatile tool for the crypto investor. Their functionality is aeons beyond any other crypto investment service. They allow investors to invest in the top 30 currencies with a few clicks. The functions of custom balancing each crypto weight within the fund and automatic rebalancing make a tool with unique functionality in this space.


Not investment or financial advice. This is not an endorsement or recommendation to buy, sell or hold.  The staff of this site may own the asset/s mentioned on this page. Investing is risky and you may lose all your capital. Do your own research. See full disclaimer.

We receive no direct payments from the mentioned companies. Some links on this page are affiliate links, at no extra cost to you, we may receive commissions when you use them. However, we try our best to keep our articles fair and balanced.


   

Author: Jim Reynolds
Jim Reynolds. Is passionate about finance, passive income and cryptocurrencies. He writes about his passions on NodesOfValue.com. He has worked in the tech and financial industry for a few decades. He holds a masters in business admin and a bachelors in IT. All his writings are not investment advice.


Submit a question or Suggest a passive income asset for our review:
By using this form you agree with the storage and handling of your data by this website.
Subscribe To Our Newsletter

Subscribe To Our Newsletter

Join our mailing list to receive the latest news and updates from our team.

You have Successfully Subscribed!