I just turned $562 into $10,645…here’s how

Typically we do not reveal the content of our projects to non-members, but this one particular project raises a great point that I believe is important for everyone to know. Especially now that I believe we are on the verge of a major market rally.

So today I would like to talk about a cryptocurrency within our portfolio called Hex.

Now as some of you may know, Hex was (and still is), a very controversial cryptocurrency that I wrote about back in February. I was not concerned with what the general public was saying about the project, instead, I looked at the numbers, and the numbers added up.

Because I know a profit when I see one.

In fact, 1,794% in 138 days is extraordinary!

Especially when we consider that the S&P 500, which is an index that measures the top 500 companies in the US, has done 37% in the last 5 years!

Now does this mean I have completely abandoned Hex for good?

Not at all, in fact far from it, but I am well and truly in this position now for the free ride.

Let me explain.

In December I invested a total of 4.5 Ethereum which bought me 3.7 million Hex.

 

 

At the time 4.5 Ethereum was worth around $125 USD, which means the total amount of capital at risk was always capped at $562 USD.

Fast-forward 138 days, and you can see below that I have now closed out 2.6 million Hex which earned me $10,645 USD while still holding onto 1 million Hex which is currently worth $4,200 USD.

 

In other words, I invested $562 USD and locked in a profit of $10,645 USD. That’s a profit of 1,794% plus I’m currently holding $4,200 USD of Hex which comes at zero expense.

A win-win situation in 138 days…that’s an excellent outcome!

The reason I wanted to share this with you, is not to simply boast about these gains but instead, I saw this as an opportunity to re-emphasise a simple yet effective method that I have been sharing with clients for the past few years now.

Firstly, small position sizes in this market are key.

You may have heard me say this before, but I’m a big believer in having equal small position sizes across multiple different assets. You don’t want to be over-invested in any losing trades and under-invested in any winning trades.

Now admittingly, due to the controversy, I invested less than normal into Hex and it’s been, by far, one of the most speculative plays in the portfolio.

But after thoroughly reading about this project it made sense to have some exposure rather than none, and it has paid off 17-fold!

So never disregard the fact that a small investment of even $100 or $200 could see your portfolio grow exponentially whilst this market is still just getting off the ground.

Secondly, you can have the best of both worlds.

When I first started with Cryptocurrencies, I was either all in, or all out, and I can honestly say it was an emotional roller coaster.

Sometimes I would enter trades and watch in awe as they climbed 20%, 50% or even 100% in a single day. Which naturally made me very reactive by selling out of those positions for a quick profit.

Days would pass and I would see these trades continue much higher, 200%, 300% even 500% in a matter of weeks, and by this point, I would start to experience FOMO (Fear Of Missing Out), to which I would then get back in.

Another few days would pass and, before I knew it, everything had gone into free-fall, and all of sudden, I was right back to where I started.

That’s why with most things today, I aim to get the best of both worlds, by taking some profits when I see them, but not completely selling out when I believe there is more room for growth, just like in the example given above with Hex.

I still locked in a great profit, and if it continues to rally, then, I still have exposure to this particular asset.

Although the best part here is that I now have zero risk because I removed my initial investment, and now I am playing with nothing but the profits.

This is one way to have the best of both worlds.

Thirdly, diversification is key.

I see Cryptocurrencies as a tool we can use to dramatically increase our entire investment portfolio, and mitigate risk!

As I mentioned earlier, the S&P500 has grown 37% in 5 years, which is a good result if you have millions invested directly into this index.

With enough money, there’s a good chance you could quite comfortably live off the dividends that these companies pay out.

But if your banking on the fact that your $50,000 or $100,000 investment into the S&P500 will set you up in the next few years, well you’re in for a rude shock.

And this is why we diversify.

Below you can see the performance of 4 different portfolio structures based on different asset allocations.

 

What I find really interesting here is the fact that 2% of Bitcoin alone can dramatically increase your portfolio, but once you start adding other cryptocurrencies into the equation well then, we really start to see a difference in returns.

Remember, it’s not just about the gains you can make, but also how cryptocurrencies can mitigate risk too.

You see, when the Pandemic was made official by the World Health Organisation, we saw Cryptocurrencies take a slight dip, but bounce back rapidly.

Even some Cryptocurrencies such as Hex continue to rally and make all-time highs while almost all other markets went into free fall during this announcement.

If your investment portfolio was made up only of stocks and bonds then you would’ve been hit pretty hard by the current state of the economy.

But if you had a small position in Cryptocurrencies, then your overall portfolio would not be looking so bad today.

Remember, it’s not about re-mortgaging the house, getting credit loans, or selling out of all your other asset classes to be 100% invested in Cryptocurrencies. It’s about using this market as another tool to greatly increase your overall profits, and mitigate risk. A tool that only requires a conservative investment as these digital assets are asymmetrical.

Meaning, for every $1 you invest, you have the potential to make $10 or more dollars, while your risk during this time is always capped at $1.

Or in the case with Hex, for every $1 invested I made $17 dollars in return.

That is truly the opportunity with Cryptocurrencies today, and if you begin to utilise this market as the correct tool that it is, then you can profit greatly in the future.

Right now, we are gearing up for what I believe, will be one of the biggest bull markets we’ve seen in Cryptocurrencies.  We’ve already seen signs of that happening today with Hex.

The key here is to simply be smart about your investments, position size correctly, and diversify well.