Ladies and gentlemen,
today I want to talk about my current investments and my plans for the future. I was already interested in investing and read a lot about it, but I just got started with investing money myself. That is why I feel this is a good moment to tell you on which horses I put my money and then later on tell you if and how it paid off.
My current investment portfolio consists of:
I started this investment on Sunday 08/25/2017. On eToro I am using something called “Social Trading” or “Copy Trading“. Essentially instead of learning about stock, indices, cryptocurrencies, commodities, etc. yourself, you copy the actions of another trader. You can see stats of said trader, before you decide to copy someone. Also you can decide how much funds you want to add to a certain trader. One of the big differences between trading stocks yourself and copying someone on a platform like eToro is that you don’t actually have to have 700$ for one single Google Stock, but you rather invest in a small share of one stock. So if a trader decides to buy Google and Apple Stock in a sum which is 5% of his total equity, you would invest 5% of the funds you added to this trader. This is not possible on the normal stock market, as here you can only buy whole stocks. The disadvantage in this case is of course, that you are not the owner of said stock. So in case of eToro going bankrupt, your money would be gone.
Another risk is that you don’t know the traders you copy personally. But here is where stats step in. Let me just show you an image of one of the traders I am copying:
As you can see here, you can look back over all years since the trader is active on eToro. If you then see he has winnings of 35% in the last two years only and already 65% for this year, it gives you a little sense of security when copying him.
My strategy here is smaller investments over different traders, with different risk levels and different profits. Right now I have invested 2300$ in 7 different traders. I will keep you posted with the outcomes after my first month.
I started this investment on Sunday 08/18/2017.Plan C is all about cryptocurrencies. I think crypto currencies take a big part in the future. Many countries in Europe already fight against cash and try to make most of the transactions happen over the banks. This has many advantages for the banks, one of the biggest being data. In the moment the bank will know each and every one of your transactions, they gain power over your life. While this sounds exaggerated, imagine the following scenario:
- You buy cigarettes every two days
- You buy alcohol a few times per week
- You went to the club for three times this month
If this information gets to your insurance, what do you think will happen? There will be higher rates for people with higher risks of disease, than for people who never buy cigarettes or alcohol. This is where coins like bitcoin come into play:
With bitcoin you have a decentralized currency, meaning there is not one big bank who owns your money. Behind bitcoin there is a technology called “blockchain”. This means that rather than having one single “person” or “company” owning your money, you have many networks working together to verify how much money you have. Basically what happens when you make a transaction is that these synchronised networks work together to verify that you indeed have a certain amount of coins on your wallet. If the verification fails, your transaction will not come through.
This is also why it is secure, as it is nearly impossible to have bad money. In order to “fake” a transaction, a person would have to hack all of these networks at the same time to make them verify a certain transaction. Another advantage of bitcoin is anonymity. You create a wallet, which is basically the same thing in the real world. A wallet simply holds your money. The difference is that you don’t have to put personal information. So while someone could possibly find out that a transaction was made to wallet X, it is unknown who owns that wallet. You must have different wallets for different coins. So if you would want to buy Dash and Bitcoin, you would need two different wallets. In my opinion people will always be some kind of rebellious against full control of the state and banks. That is why in my opinion many people will invest in coins as an alternative to a world in which each transaction is tracked by banks.
The foundation of investing in crypto currency though is that you understand the basics behind it. Therefore you should read up on a few terms. I found a really helpful links which gets you started on nearly all important terms: 21 terms to understand cryptocurrency.
I hope this is enough of an introduction. The topic is much more complex than that and there is much more to read and my example about banks was just one example as to why the prices for certain cryptocurrencies could go up. Let’s move on to my investments in cryptocurrencies.
I invested in a platform called Plan-C. On Plan-C money is being made through three big players:
- Mining (60%)
- Trading (20%)
- Altcoins and ICOs (20%)
This differs Plan-C from many different platforms of the same kind, who sorely focus on Mining. When the moments comes in which mining is not be profitable anymore, Plan-C could just readjust it’s priorities and invest more money into trading to keep the same profits. Currently there are three packages.
- Bronze package (250$, 1 share)
- Silver package (1000$, 5 shares)
- Gold package (5000$, 30 shares)
That means if you invest in the gold package, you have the highest invest but on the same hand you get more shares, which gives you a higher profit. Another advantage is that you get weekly profits. That means each week you get bitcoins on your wallet. If that is not enough being paid in bitcoins means that when bitcoins gain value, you gain value automatically.
I bought one gold package for 5000$, because I think while bitcoin might not have the best technology out of all cryptocurrencies, it definitely still gets the hype and is already implemented all over the world. So while in a few years there could be a change in the leading cryptocurrency, I think that right now is still a good time to make money with it. A friend who recommended Plan-C to me showed me the earnings throughout the last months. The gold package earned a stunning amount of 15% in just the last month. That means that with just one gold package you got 750$ in bitcoins. If this system just works out for 8 months, I get back my moneys worth.
Also I got 2000$ invested in Ripple(XRP). Ripple has ties to the banks which makes me think that banks will be interested to push it, and a few banks already adopt the ripple protocol. With ripple my strategy is to make a short term investment. I think that ripple will raise over the next few weeks / months. I will then use this money to reinvest in other topics. I will keep 500$ in ripple, which currently is around 2500 XRP.
In 08/2017 I also invested in 2 ounces of gold, talk about diversification. The price for 1 ounce of gold is currently at 1286$. My gold investment had two major reasons. One is that metals and resources in general will always have a value to them. That means even if everything else fails, you will always be able to trade materials(gold for food for example). For me gold, real estate, any metal and every object made of resources are a good way to evade inflation and any other negative effect money could experience. Also, if you read up on gold, you will find out that nearly every major site predicts gold prices to go up in the upcoming years.
My second simple reason for investing is gold is that I want to have something in my hands. When I invest in stocks, crypto currencies or have money on my bank I don’t really feel the power or motivation behind it. But when I hold a beautiful ounce of gold in my hands, it takes me a step closer to the responsibility of money. When you buy something in the internet for 1286$, all you see is a number on your bank account, and when you lose it, all you see is a -1286$ on your bank account statement. You don’t really feel a connection to what you just did. When holding gold in your hand on the other hand, you would think twice about spending this beautiful piece of gold on something like an iPhone. And last but not least owning gold motivates me more to get richer than just a few pieces of paper.
My future plans and aims for investment:
In the next few weeks / months I will invest in a few altcoins. I will invest 500$ each for Dash and Etherum mining. Furthermore I will invest 500$ in Iota. A few advantages of Iota can be found here and here(Iota AMA).
I will keep checking out new altcoins and see if the technology and the team behind them are decent, if they are I will invest a small sum into it. One amazing thing about many altcoins like Iota is, right now they are just at 0.8$. Other altcoins are even lower around 0.003$ for example. That means that if Iota gets implemented by big applications, the price will skyrocket and the 500 coins which you bought for 500$ will be worth a whole lot more. That’s basically my strategy with altcoins: Smaller investments into different coins and just hold them. You won’t get any profit out of them in the short term, but if any of your chosen altcoins skyrocket, you will win big.
Also depending on my profit on eToro I will definitely reinvest some money there.
I think the best way to evade big losses is to simply diversify and invest smaller sums into different projects. If one project works out, you can reinvest x% of your earnings. I am not saying you should invest into 10 completely different things, because you should always knows the basics of the product you invest into, but for example if you invest into cryptocurrencies, do not spend all your money on just bitcoins.
My first big aim for investments is pretty simple. I want to be able to afford my living expenses through passive income. That means that basically I wouldn’t have to work anymore and gives me freedom to work for things I am interested in, rather than to work just for money. In the moment I achieve that, I will search for bigger projects to invest in and also give back to society by giving money to charity.
That is pretty much it. I will keep you posted with the outcomes of my investments and inform you if I invest into anything else. If you feel like something I wrote about is not right, please feel free to leave a comment.
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Please keep in mind: I am not a financial expert. The topics I am writing about in financials are purely my own predictions and actions and should not be considered as investing advice. If you feel like what I am talking about makes sense though, I advise you to try it out for yourself in small amounts, see how it goes and then only if you are confident in the product: reinvest.
This post contains referral links. I will never use any paid advertisement on my blog. That means that everything I write about is my and only my opinion. Also, the platforms I am referring are sorely platforms I use myself.