$800,000 long-term investment strategy

[EDWARD78]

Hi all.

First, congrats on creating such an amazing resource for the rest of us newcomers. I’ve spent weeks reading.

Crypto currency is quickly gaining traction and to those who understand it, it’s obvious that it’s only a matter of time before the institutional banking systems of the world must confront it: either fight it, or integrate it. Integration can be taxed and regulated. With CME’s pending futures offering, VISA/MC facilitating its use, mainstream media’s positive coverage, and trusted brokerages adding it to their asset class investment options, it looks like integration in the US is the route. As is said, so goes the US, so goes the world.

Still, while perhaps 30% of people have heard of bitcoin, 99.5% aren’t yet invested. As you know, this is an expected pattern of technology adoption and maturitization, known as Gardner’s Hype Cycle.  And as an investor, provided integration continues, this suggests to me that there is an enormous amount of upside potential.

This is my question: At this still early stage, volatility considered, how would the experienced investors of this group invest a large sum of money, i.e. $800,000USD? Diversification among alts? Scaling into BTC during the price corrections and dips?

My strategy is long-term, 1-10 years, more if warranted. I think in the near future this will be a question asked by many. Thank you.

[Hydrogen]

There could be a 3rd option to the "fight crypto" or "integrate crypto" paradigm you mentioned.

"Confiscate/steal crypto." This option was put on the table with the proposal of US senate bill 1241 earlier this year.

New US Senate Bill Could be a Threat to Bitcoin Innovation

On May 25, Senator Chuck Grassley has introduced Senate Bill 1241 also known as “Combating Money Laundering, Terrorist Financing, and Counterfeiting Act of 2017".

More limits than solutions

Along with fellow Senators Dianne Feinstein, John Cornyn and Sheldon Whitehouse, the bill aimed at modernizing and strengthening criminal laws against money laundering which is a potent source of funding for terrorist organizations, drug cartels and other organized crime syndicates.

Moreover, US Bill S.1241 also aimed at deterring individuals entering the United States borders from bringing with them undeclared assets in the form of Bitcoin or other digital currencies.

It would allow for civil asset forfeitures of Bitcoin and other cryptocurrencies, and require users to declare cryptocurrency assets exceeding $10,000 whenever they cross the US border.

In separate statements, the four Senators pushing for the bill say it is crucial time for United States to address terrorist threats and other criminal activities by targeting the source of their funding, thus the need to recalibrate their anti-money laundering law to keep up with the digital age.

Senator Chuck Grassley says:

“Terrorist organizations, drug cartels, and other criminals are actively looking to exploit and harm Americans, whether by attacking our way of life, flooding our country with highly addictive drugs, or defrauding unknowing victims.  The recent terrorist attack in the United Kingdom is the latest somber example of how real these threats are to our country and its allies.  We must continue to fight them on every front, and that includes going after the profits of crime that are also used to fuel the ongoing activity of these diabolical enterprises.  Our bill updates our money laundering laws for the 21st Century”.

Senator Dianne Feinstein comments:

“Terrorist groups like ISIL and other transnational criminal organizations wouldn’t be able to finance their activities without illegal funds. Blocking these funds is an effective way to disrupt these organizations and prevent crime and terrorism. Our bill adopts many of the recommendations made by the Justice Department to ensure that transnational criminal organizations, including terrorist groups, face consequences for laundering illicit funds, evading laws and promoting criminal activity”.

Senator John Cornyn:

“We’re living in a time where the threats from our enemies are constantly evolving and it’s not enough to fight terrorism and crime in a reactionary manner.  To protect our country and Americans, we must aggressively and proactively go after their funding streams, and by strengthening our money laundering laws, we can help curb the illegal flow of money to terrorist organizations, drug cartels and crime organizations that fund their illicit activity”.

Senator Sheldon Whitehouse:  

“One of the best ways to track crime and serious threats to our country is to follow the money.  That’s why we need to crack down on the range of tricks criminals and terrorists can use to launder their dirty money to sustain their illegal enterprises.  I’m glad to join this bipartisan bill to bring our money laundering laws up to date”.

Counterproductive bill
While the bill was lauded for crossing party lines to address the nation's pressing problem, experts warned that the bill, once enacted, may actually stifle current innovations in the financial world.

Center for New American Security (CNAS) report reveals:

“There is no more than anecdotal evidence that terrorist groups have used virtual currencies to support themselves".

Thus, questions of the bill’s necessity are becoming a concern to the Blockchain community.

According to Jerry Brito, Executive Director of Coin Center, Blockchain technology which underpins Bitcoin and other cryptocurrencies, is somehow as important as the web. While like the web which also attracts illegal activities, fighting those illegal actors should be down by reducing and not adding regulatory burden on digital currency companies.

"One particular challenge in this area is the requirement for a virtual currency firm to obtain licenses in all states in which it operates and maintain compliance consistent with both federal and applicable state standards where they are licensed to operate. With only a single federal registration for virtual currency firms, compliance costs would be more manageable for smaller firms, and regulators would be better able to oversee firms”.

Expect some form of regulation

Most government organizations are still exploring Blockchain and cryptocurrencies potential. Whether it be to augment existing innovation plans such as the case for the state of Illinois or the US Navy improving the security of their manufacturing process.

Truth is, different states have different stance on cryptocurrency. Lastly, it is only a matter of time until some sort of regulation is put in place for Bitcoin and ICOs as there’s still a growing interest in various government regulating bodies, especially the SEC and Senate.

https://cointelegraph.com/news/new-senate-bill-could-be-a-threat-to-bitcoin-innovation

The article may not mention it but the bill could give law enforcement the power to confiscate crypto without due process. This may already be occurring. There are posts on this forum made by people who claim police in germany (and wherever else) tried to confiscate their crypto. I can't verify any of it. But there are faint rumblings.
...

I get the impression bitcoin consistently trends upwards at the end of the year, during the holidays. Investment at the beginning of the year could be a good strategy, particularly if there's a dip and expectations of good news for the calender year. That type of seasonal investment strategy could be viable if year end up trend remains consistent.

Its been said that bitcoin's user base doubles in size every 12 months or so. This could make buy and hold strategies viable IF bitcoin/crypto doesn't reach a technical bottleneck based on its transaction performance, beyond which it can't support additional users.

Arbitrage across exchanges can be profitable in some cases. If bitcoin is selling for $7,500 on one exchange and $7,000 on another with a 1% withdrawal fee and negligible additional costs, it can be worthwhile sometimes.

[layoutph]

I do trust bitcoin but for security measures as we do not know what might happened tomorrow. I never borrow money to someone or lend from creditcard or to bank just to buy a coin. Better stay with small money without any debts and worry.

[merchantofzeny]

There could be a 3rd option to the "fight crypto" or "integrate crypto" paradigm you mentioned.

"Confiscate/steal crypto." This option was put on the table with the proposal of US senate bill 1241 earlier this year.

Yikes, what's happening to America? They're like, already missing the cryptotrain. Many countries, even third-world ones, are coming up with regulations that are somewhat positive towards bitcoins.

Seizing bitcoin is just outright stealing.

[aardvark15]

With any amount of money, I would want to diversify at least a little. The reason is that from this point forward we don’t know which coins will do the best over the next few years. For example, we know that Bitcoin has done very well for the last 2 years. It has risen in two years from around $400 to $8000 which is 20x increase. But even as good as that is, other coins like Etherium did even better over that stretch. Two years ago Etherium was probably at around $10 and is now at $330 which is a 33x increase.

Since you have a large sum of money, you can diversify even more. I would suggest putting together a portfolio that included BTC, ETH, LTC, DASH, IOTA, NEO, EOS and maybe a few others. You notice that I picked coins that are top 10 market cap because most of these will probably survive long term. There are potentially others that will have good gains over this period as well.

[coolcoinz]

The article may not mention it but the bill could give law enforcement the power to confiscate crypto without due process. This may already be occurring. There are posts on this forum made by people who claim police in germany (and wherever else) tried to confiscate their crypto. I can't verify any of it. But there are faint rumblings.
...

You're spreading rumors. I've read that post about a girl in Germany who was trading Bitcoin and got raided by the police. First of all it wasn't clear what she was doing apart from Bitcoin trading. There were voices that some illegal activity might have been on the line (drugs). Also the amounts she was selling were quite high. It's not some occasional €5k they were dealing with in there. In general the authorities in Europe are ok with Bitcoin. In Germany there's a number of functioning cryptocurrency exchanges and they have no Bitcoin tax and no VAT on transactions, which is great.

[EDWARD78]

With any amount of money, I would want to diversify at least a little.

Diversification is key, your suggestions sound similar to the ecurrency IRA that GoldCo is now offering. I’ll post the link if anyone wants it, but don’t want anyone to think I’m plugging it since I’m a newbie still. This GoldCo IRA package may be a preview of what’s to come because when institutional/IRA money starts entering the ecurrency market, that’ll be their strategy as well, to offer only the safest.

Still, thinking about keeping maybe 15% aside for volatility trading.

[Hydrogen]

You're spreading rumors. I've read that post about a girl in Germany who was trading Bitcoin and got raided by the police. First of all it wasn't clear what she was doing apart from Bitcoin trading. There were voices that some illegal activity might have been on the line (drugs). Also the amounts she was selling were quite high. It's not some occasional €5k they were dealing with in there. In general the authorities in Europe are ok with Bitcoin. In Germany there's a number of functioning cryptocurrency exchanges and they have no Bitcoin tax and no VAT on transactions, which is great.

If you read the post, you know the story. She wasn't raided. They tried to raid her and gave up. Applying deduction, we might conclude if she was guilty of selling drugs & they had evidence, they wouldn't have given up so easily. That gives me the impression that she is innocent. Also if someone is dealing drugs, I doubt they would post about being raided on a forum to draw attention to themselves. It would only give the police more evidence in court.

The way law enforcement and intelligence works is, they focus on cases involving the most money first. It makes sense she might be targeted for transferring larger sums of crypto than average. Its worth repeating. Sometimes with financial policy its good to plan for worst case scenarios and know the worst possible cases for risk assessment.

Senate Bill 1241 in the USA does explicitly contain references to law enforcement confiscating crypto with no due process or probable cause(if I'm remembering right). That part isn't a rumor at all.

[VeiweiLo]

Hi all.

First, congrats on creating such an amazing resource for the rest of us newcomers. I’ve spent weeks reading.

Crypto currency is quickly gaining traction and to those who understand it, it’s obvious that it’s only a matter of time before the institutional banking systems of the world must confront it: either fight it, or integrate it. Integration can be taxed and regulated. With CME’s pending futures offering, VISA/MC facilitating its use, mainstream media’s positive coverage, and trusted brokerages adding it to their asset class investment options, it looks like integration in the US is the route. As is said, so goes the US, so goes the world.

Still, while perhaps 30% of people have heard of bitcoin, 99.5% aren’t yet invested. As you know, this is an expected pattern of technology adoption and maturitization, known as Gardner’s Hype Cycle.  And as an investor, provided integration continues, this suggests to me that there is an enormous amount of upside potential.

This is my question: At this still early stage, volatility considered, how would the experienced investors of this group invest a large sum of money, i.e. $800,000USD? Diversification among alts? Scaling into BTC during the price corrections and dips?

My strategy is long-term, 1-10 years, more if warranted. I think in the near future this will be a question asked by many. Thank you.

longterm in crypto i think is good still under 3 year
if until 10 year with big capital money 800k dollar is bad, can't prediction 10 year, maybe youre coin can gone

[P2Pfinder]

Hallo,

You need to split your investment in more assets, trough differents trading strategy. So you should have a static amount in altcoin and at same time you should have a dinamic amount for trading ( from day trading to medium terms trading). You should also need to have an amount stored as liquidity for future investment in new coin or on well definitely trend coin. Is better you you ask advice to professional advisor for build a good asset allocations.

If you want you could contact me, I have a strong experience in financial services.

[Razick]

Hi all.

First, congrats on creating such an amazing resource for the rest of us newcomers. I’ve spent weeks reading.

Crypto currency is quickly gaining traction and to those who understand it, it’s obvious that it’s only a matter of time before the institutional banking systems of the world must confront it: either fight it, or integrate it. Integration can be taxed and regulated. With CME’s pending futures offering, VISA/MC facilitating its use, mainstream media’s positive coverage, and trusted brokerages adding it to their asset class investment options, it looks like integration in the US is the route. As is said, so goes the US, so goes the world.

Still, while perhaps 30% of people have heard of bitcoin, 99.5% aren’t yet invested. As you know, this is an expected pattern of technology adoption and maturitization, known as Gardner’s Hype Cycle.  And as an investor, provided integration continues, this suggests to me that there is an enormous amount of upside potential.

This is my question: At this still early stage, volatility considered, how would the experienced investors of this group invest a large sum of money, i.e. $800,000USD? Diversification among alts? Scaling into BTC during the price corrections and dips?

My strategy is long-term, 1-10 years, more if warranted. I think in the near future this will be a question asked by many. Thank you.

Are you seriously thinking about taking investment advice from random strangers over the internet? Much less for $800,000... not a smart idea man. You need to contact experts and do some serious research on your on, without the opinion of people who do not know your full situation and probably know nothing about investing anyways. I don't want to give you bad advice, so I will stay out of it and not give any suggestions (other than buy and HODL).

[dumbdragon]

A huge investment of 800k dollars. You need to divide at least 4 pieces. For example 25% BTC, 25% ETH, 25% Rippple and 25% Dash or Monero.

[EDWARD78]

Hi all.

First, congrats on creating such an amazing resource for the rest of us newcomers. I’ve spent weeks reading.

Crypto currency is quickly gaining traction and to those who understand it, it’s obvious that it’s only a matter of time before the institutional banking systems of the world must confront it: either fight it, or integrate it. Integration can be taxed and regulated. With CME’s pending futures offering, VISA/MC facilitating its use, mainstream media’s positive coverage, and trusted brokerages adding it to their asset class investment options, it looks like integration in the US is the route. As is said, so goes the US, so goes the world.

Still, while perhaps 30% of people have heard of bitcoin, 99.5% aren’t yet invested. As you know, this is an expected pattern of technology adoption and maturitization, known as Gardner’s Hype Cycle.  And as an investor, provided integration continues, this suggests to me that there is an enormous amount of upside potential.

This is my question: At this still early stage, volatility considered, how would the experienced investors of this group invest a large sum of money, i.e. $800,000USD? Diversification among alts? Scaling into BTC during the price corrections and dips?

My strategy is long-term, 1-10 years, more if warranted. I think in the near future this will be a question asked by many. Thank you.

Are you seriously thinking about taking investment advice from random strangers over the internet? Much less for $800,000... not a smart idea man. You need to contact experts and do some serious research on your on, without the opinion of people who do not know your full situation and probably know nothing about investing anyways. I don't want to give you bad advice, so I will stay out of it and not give any suggestions (other than buy and HODL).

Your suggestion is appreciated and correct. But, perhaps I’ll attract some intelligent crypto investing advice with this post that is unique. Surely, any advice would be strongly considered and vetted by myself and my advisor before any decisions are made. Diversification is key, obviously.

I am finding it a challenge to identify “experts” in crypto currency that have a positive understanding who are also institutional, ie Goldman, Fidelity, etc. and are able or willing to give recommendations. Such is the challenge of investing in a commodity before its officially adopted by the masses...

[P2Pfinder]

Goldman? Fidelity? No Bro, you are on wrong way.

Institutionals will recommad you a "Buy" on an asset only when they will need to sell it... So, if goldman call a Buy on BTC, i'm pretty sure that it has lot of BTC to sell... I'm on financial market since 1999 so i have seen lot of bubble... And usually a bubble is someting that in past institutional as called as "STRON BUY" or "BUY & HOLD".

Rimember that Goldman is a bond issuer too: it has all interest to sell you his products. I gave you my suggestion. Take high risk only on a little part of your investment, because prices could fall at any time. When people get scared, panic takes over! Keep these work in mund before take any decision!

Good luck! 

Hi all.

First, congrats on creating such an amazing resource for the rest of us newcomers. I’ve spent weeks reading.

Crypto currency is quickly gaining traction and to those who understand it, it’s obvious that it’s only a matter of time before the institutional banking systems of the world must confront it: either fight it, or integrate it. Integration can be taxed and regulated. With CME’s pending futures offering, VISA/MC facilitating its use, mainstream media’s positive coverage, and trusted brokerages adding it to their asset class investment options, it looks like integration in the US is the route. As is said, so goes the US, so goes the world.

Still, while perhaps 30% of people have heard of bitcoin, 99.5% aren’t yet invested. As you know, this is an expected pattern of technology adoption and maturitization, known as Gardner’s Hype Cycle.  And as an investor, provided integration continues, this suggests to me that there is an enormous amount of upside potential.

This is my question: At this still early stage, volatility considered, how would the experienced investors of this group invest a large sum of money, i.e. $800,000USD? Diversification among alts? Scaling into BTC during the price corrections and dips?

My strategy is long-term, 1-10 years, more if warranted. I think in the near future this will be a question asked by many. Thank you.

Are you seriously thinking about taking investment advice from random strangers over the internet? Much less for $800,000... not a smart idea man. You need to contact experts and do some serious research on your on, without the opinion of people who do not know your full situation and probably know nothing about investing anyways. I don't want to give you bad advice, so I will stay out of it and not give any suggestions (other than buy and HODL).

Your suggestion is appreciated and correct. But, perhaps I’ll attract some intelligent crypto investing advice with this post that is unique. Surely, any advice would be strongly considered and vetted by myself and my advisor before any decisions are made. Diversification is key, obviously.

I am finding it a challenge to identify “experts” in crypto currency that have a positive understanding who are also institutional, ie Goldman, Fidelity, etc. and are able or willing to give recommendations. Such is the challenge of investing in a commodity before its officially adopted by the masses...

[waynechong1995]

Considering the increasing number of better competitors venturing into cryptocurrency, i believed alts is the way to go, scaling BTC for price correction and dips require some solid expertise which is not an investment i think, but a full time job to cope with its volatility and it's not fun to adapt such strategy for a long time, as for alts, some projects are seriously meant to be success, it's just about time if you consider the product/services created and values that they could provide. Some 'blue-chip' coin aren't really one considering their current market cap, which is far less than any success organization today from other industry.

[Rahar02]

If you have $800,000 and don't really need it for 1-10 years, don't hesitate to invest in cryptocurrencies.
But, there will always a risk to lose all of it, that's why people always recommend not to invest everything.
Consider the risks to invest a big amount in 1 year, 5 years and 10 years that must be different, divide your funds into several creliable coins is a good strategy, and maybe you will be a millionaire within 1-5 years. Bitcoin will always be the number one of cryptocurrency, invest 50% isn't a bad idea at all. The biggest obstacle that we should aware is political or government regulations, as long as biggest (players) countries in crypto-world such as Japan, US, South Korean, Europe, China and Russia do not ban bitcoin, no need to worry.

[kryptqnick]

Hi all.

First, congrats on creating such an amazing resource for the rest of us newcomers. I’ve spent weeks reading.

Crypto currency is quickly gaining traction and to those who understand it, it’s obvious that it’s only a matter of time before the institutional banking systems of the world must confront it: either fight it, or integrate it. Integration can be taxed and regulated. With CME’s pending futures offering, VISA/MC facilitating its use, mainstream media’s positive coverage, and trusted brokerages adding it to their asset class investment options, it looks like integration in the US is the route. As is said, so goes the US, so goes the world.

Still, while perhaps 30% of people have heard of bitcoin, 99.5% aren’t yet invested. As you know, this is an expected pattern of technology adoption and maturitization, known as Gardner’s Hype Cycle.  And as an investor, provided integration continues, this suggests to me that there is an enormous amount of upside potential.

This is my question: At this still early stage, volatility considered, how would the experienced investors of this group invest a large sum of money, i.e. $800,000USD? Diversification among alts? Scaling into BTC during the price corrections and dips?

My strategy is long-term, 1-10 years, more if warranted. I think in the near future this will be a question asked by many. Thank you.

If you have such big sums of money then there isn't probably a lot of sense in investment for profit, because you can already allow yourself lots of things. Just enjoy exploring new countries or pay for your kid's good education. People usually invest smaller sums. Anyway, I would suggest to invest 70% in bitcoin, 10% in IOTA, 10% in ethereum, 10% in some random coins (small sums in each of them). Yet surely you should look at what's happening with your investments from time to time, because nobody can guarantee btc won't crush one day.

[jessicawelsh]

How you dealing with your needs in 10 years ? People have needs that need to solve. That's why things are complicated with people .

[h4yfans]

BTC, ETH, XRP and IOTA. %40, %15, %15, %15, %15.

[Lucius]

It's about a huge amount of money which you plan to invest,and investment in cryptocurrency is very risky but on the other hand it can be very profitable.There is no doubt that BTC is number one cryptocurrency today with tremendous potential and as you say maybe 30% of people in world have heard about it.So with time more people will show interest and start buying BTC,more demand+less supply over the time will push price up.What is certainly to be taken into account is the attitude of the greatest governments of the world to BTC.

Most people will advise you to invest most part of money in BTC,it somehow seems the most logical move today and my opinion is no different than that.There is many coins out there,and some of them exist for some time,but what is future of ETH,XRP,LTC,DASH and some others It's really hard to say.

I would personally invest more then 50% in BTC,and I think this will bring me very nice profit in next 10 years.The rest of the money would go equally on today top altcoins,but with some deep research maybe you can find some low value altcoin which is worth investing.

If you invest all that money and buy coins be sure to take the greatest possible security measures,coins are easy to buy,but even easier to be stolen.