Today we are going to talk about the most loved and hated topic, which is… Cryptocurrencies. We have invited Chris Long, who is the trainer of the CryptoKnight Armor Series, to share with us his views about the trends in Cryptocurrencies. Hi Chris, so how did you get started in Cryptocurrency? I was actually working in a bank before this. I was doing something called Debt Capital markets, which is Investment Banking. The hours were really long, and one day I just thought, “you know what, I need to get out of this cycle” So I went to look, actually first at stocks. In the midst of searching for it right, I came across Bitcoin. and during that time it is, i think seven or eight hundred dollars. And it really got my attention, because when I was studying in university right, it was a dollar. And I thought; “oh… this cryptocurrency or electronic cash is not going to last, it’s probably fake. But who knew after seven, eight years, it is still here and it’s $800. that is what caught my attention. I started reading about it, learnt about blockchain, and realised that it’s actually something very revolutionary. So from there, I went in, started investing and had a pretty good return so far. Since there are so many asset classes out there with longer-established track record, There’s always this constant worry about cryptocurrency’s longevity like what you just shared just now, why do you have that kind of confidence, that it’s going to be a valid asset class for investment? Great question Actually, contrary to what many people think… majority of my investments are
actually in stocks and shares, the blue chip companies. So, how I do it is that I proportion my risk. Cryptocurrencies are new. Anything that’s new, that’s infant, have a higher risk profile compared to more established asset classes. But, for me I think what I want to avoid is that I want to avoid missing out. So if I could go back in time and I think about how people invested in the internet or even when the bubble burst. There were actually some pretty good
companies out there that even if you had a small exposure to it, right now it would have been a terrific return. One case is Amazon, right if my memory doesn’t fail me, I think it dropped to maybe ten dollars or less, when the Internet bubble burst, and now, it’s more than $1000. So even if you had invested just $1000 then, it would have been a 100 fold return. It’s not much risk to take for such a good return right? And in technology I think it moves
really fast. Look at Alibaba, gone up more than 100% since IPO. So for me, it is after I done my research, I feel that this is something that the world has a use for, something that people can find value in, manage my risk a little bit, and just start, Would you advise or recommend what is good number to limit that exposure to cryptocurrency in a portfolio, in terms of percentage. I think it depends on a number of factors. First, as an investor so just by talking to you, you are very young, should be very tech savvy I think a good number for someone that is a perhaps a millennia, maybe Gen X to start with maybe 5% just to get a flavor first. However, if you belong to a category of
people that really have no knowledge of technology at all, Then I would say go even smaller because Really, you are investing in something you don’t understand. I think the best and the first investment that one should make before actually even investing in stocks, equities, bonds or currencies, the first investment a person should make is to educate themselves invest your time maybe abit of money in a book or a course to learn about this asset class first. So from there I think you are better able to gauge what your risk appetite is, better able to gauge even whether or not you wanna invest. Bitcoin has been breaking new highs and just across US $12,000, At this point in time, there are people who dismissed it as a bubble, so is it too late to invest in Bitcoin? I think the problem with asset classes that are very very bullish is that it keeps hitting new highs. So. when Bitcoin went from $1 to $10, everyone say this is a bubble. when it went from $10 to $100, everyone said it’s a bubble. When you went from $100 to $1000, they said its a bubble, 2000, 3000, 4000, 5000, 6000 and now 12000, it’s a bubble. so I think that it is not an easy question to answer but if I stop and think about how many people are actually using Bitcoin, how many people out there are understanding the technology behind it, and I think about the publicity that has been given out the awareness ever since it has hit US$10,000. My personal opinion is that… we may just be at the start, because the reality is we never are able to predict the future. But, the fact that it is still relatively unknown. In fact, even people who read about it or know about it, they don’t know how to invest in it. So what happens when all these people start to find out and they start to come in, and Bitcoin in relation to Gold, for example the market capitalization is still much smaller. It is billions versus trillions. And we are not even talking about US dollars or fiat currency. So I think that still room to grow, but as a disclaimer, that’s my
opinion. Everyone should still make their own research or do their own research
before investing. Besides Bitcoin, there’s so many other cryptocurrencies, so let’s say one person has $10,000 to invest in cryptocurrency, how would you allocate that among all these cryptocurrencies out there? When it comes to cryptocurrencies, most people just define it as cryptocurrency but really, we have crypto-tokens, we have crypto-assets, we have the actual cryptocurrency itself, so that’s my own personal take on it if we look at altcoins, and altcoins are anything that is not Bitcoin, each of these are altcoins actually have probably a business idea behind it or technology that the team is trying to develop So it is liken to angel investing. or you’re investing in a tech startup. I think that the best way for me personally is to invest mainly in the large cap stocks. So maybe I’m thinking 50%, so if it’s my own portfolio, probably… 50% will be in Bitcoin, perhaps 20% will be in the next one, which is ethereum. It’s like Bitcoin 2.0. and there are mainly 30%, I would actually keep 10% in cash. in case there’s some trading opportunities and the remaining 20%, I’ll spread it out over 15 to 20 different altcoins, just to diversify my risk. And I’ll hold long term because the thing about cryptocurrency is if it rises and if it works, you’re not talking about 100% or 1000%, you’re actually looking at 10,000% or even 20,000% which is 200x the gains. so if you have $10,000, and if you put even a $100, in an altcoin that goes up 100x times, we are looking at $10,000, which is a 50% gain overall and you kind of have almost 20 shots at it if you use 2000 to diversify it out. So that’s my personal take on the matter. But I think majority should be in the bigger cap cryptocurrencies. So, what are resources that a beginner can use to find out more about cryptocurrencies? The Internet is a great place to start. Since it’s afterall, cryptocurrencies. I use a website called weusecoins.com as a start. it gives a great breakdown of how the blockchain works, how Bitcoin works and it’s written in a simple to understand manner. There is also Bitcoin wiki which gives you more detailed information about Bitcoin. To my understanding, aside from myself, there are a lot of trainers that are in the industry right now who are giving training, I think you can do a search to look for some people with better reputation, to go and listen to their classes or to learn from them. There are several books on Amazon as well, I don’t personally have a favorite but I think that if you go Amazon and look for one of the higher rated ones, it should be a great place to start, yeah. But weusecoins.com For complete beginners it’s good. Thank you Chris for your time and your valuable sharing with us and the audience, hope to see you in future sessions and all the best in your trading programs all right, thank you for having me.