Bitcoin supporter Charlie Schrem believes that new crypto investors should not be intimidated by the volatility of this asset class, should be bolder in choosing the token of interest near today's market border and take a long-term investment position.
Charlie Schrem - "Learn and Have Fun"
Speaking to Yahoo Finance at the MoneyShow conference in San Francisco on Thursday, August 23rd, Shrem advised new crypto investors not to be overly exposed to crypto assets.
While acknowledging the unpredictable nature of cryptocurrencies, he said:
“You put your wealth into these things and they break down. Things happen. The values decrease by 90% and then increase by 100%. I always tell people who want to enter the crypto market: "How much money are you willing to lose right now so that you have everything in order?" $ 500, they tell me. So invest $ 500 in a crypto portfolio and then just have fun with it. Just enjoy and learn. There are many good assets there: Bitcoin, Ethereum, Dash, Litecoin. Just find out what makes them different. "
Shrem also advises investors to buy cryptocurrency for the purpose of investing within five years, after which they will have an increased likelihood of making a profit. This, he said, is due to the fact that the bull and bear markets usually change in two-year cycles.
As a reminder, Shrem was released from prison after being sentenced in 2014 for conspiracy to sell bitcoin to users of the illegal Silk Road market. At the time of his arrest and indictment, Shrem was the founder of BitInstant, a crypto exchange that once processed up to 30 percent of all bitcoins in circulation.
Since his release from prison, Shrem has been a co-founder of Crypto.IQ, launching Crypto Education, which offers resources, ideas, daily newsletters, market access and text alerts for crypto traders. He admits that the cryptocurrency space has changed a lot since he founded BitInstant, but he doesn't see the rise in cryptocurrencies as bad or as a threat to Bitcoin.
Explaining his point of view, he said:
“As of today, the 1600 coins available are engaged in guerrilla marketing. They do this job by experimenting with the original idea. This intrigues people ... Bitcoin will always be that daddy, that long-term gold that everyone has an investment in. You will soon see bitcoin's transaction volume drop as people start using it more as a store of value. But it is definitely interesting that other projects like Steem experiment and show what they are. "
Shrem also believes the long-awaited SEC approval for bitcoin ETFs will take place around 2019, but he warns that the crypto market should use this opportunity wisely because she will only have one chance to prove herself.
According to him: “We only have the first shot. If we get ETFs and something happens, they can be closed. For the second time, we will already know what to expect from the ETF. "