Tag Archives: investing

Dollar Cost Averaging With Cryptocurrency

Dollar Cost Averaging With Cryptocurrency

This article is really about Dollar Cost Averaging (DCA) and how it relates to investing money into cryptocurrency. DCA is an investment philosophy, well known to equities investors. It became a hot investment topic when the general public began to learn about mutual funds back in the 80’s.

I first heard about DCA in the late 80’s when I was a licensed seller of mutual funds with the A.L.Williams Company, the originator and pioneer of the “Buy Term and Invest The Difference” personal financial planning philosophy.

One highly reputable mutual fund which we sold at that time was the Templeton family of funds. Sir John Templeton is now deceased but he was one of the original pioneers of smart mutual fund investing. His company was very successful… partly because it wasn’t even headquartered in NYC so his research was always more independent.

In fact, his company was one of the first mutual funds which diversified internationally. He was very innovative and somewhat contrarian for his time but he had a highly respected reputation as an investor, businessman, and philanthropist.

His company later merged with Franklin Funds and is now known as Franklin Templeton Funds.

DCA was one of a three part investment strategy which has pretty much always been effective for those who have followed it. The three parts of the strategy are:

  1. Diversify

  2. Invest Long Term

  3. Dollar Cost Average

Assuming you know what mutual funds are, you’ll know that many funds are diversified. You’ll also know that most people who hold mutual funds do so for the long term. But you might not know about DCA.

DCA always works….in a rising market. It does not work in a consistently falling market (unless you’re looking for tax write-offs). It does not so much ensure a profit (at least not in traditional equities) but it does protect against a significant loss.

Little blips in the market don’t matter. In fact, they’re expected. But any problem with minor downturns is always negated by a long-term perspective — in a rising market.

The key to making DCA work is to invest a consistent amount of money at regular intervals. Using equities as an example: Investing $100 @ month, the investor gets 4 shares when the shares sell at $25 each. But if the price of the stock goes down to $20 he/she gets 5 shares. Which is better in the future? 4 shares or 5 shares?

But what about if the price of the share goes up, i.e. it costs more. For example, $33 @ share. That means that the investor still invests $100 but now only gets 3 shares instead of more. That’s still OK because if the market is rising, it’s still a good investment.

As an example, I sold a program of just a small amount of money invested in one of the funds to my pastor back in Galveston, TX. A couple of years ago when I touched based with him (he’s now retired) on the phone, he said to me, “Art, I’ve got to thank you for something.”

I of course had no idea what he was talking about. But he proceeded to tell me that he had maintained that investment program in his Templeton fund for a long time. And he told me it had turned out very well for him.

That’s the proof of the pudding for Dollar Cost Averaging.

So how does that relate to Bitcoin and cryptocurrency?

It means simply that most people need not worry about ‘technical trading’ in their cryptocurrency part of their portfolio….unless it’s something they just ‘get off’ on. And, make no mistake about it. There are lots of people who ‘Day Trade’ in cryptocurrencies. But day-trading is not for the average person.

But for the average person, long-term investing of tolerable amounts of ‘money’ in cryptocurrency carries not only minimal risk but also relatively assured capital preservation and upside potential.

Certainly getting in on a coin launch at 10 cents @ coin is a great opportunity when the coin launches at $1 and is reasonably expected to appreciate rapidly thereafter. But even if you have to get ‘in’ at $1 or $2, that’s still a good deal if the coin appreciates rapidly.

Cryptocurrency is an investment but it’s a very new kind of investment. In my opinion, it only barely falls with the traditional definition of “investments” (mostly because it’s not something tangible like a stock certificate, bond, deed, or other better-known type of investments). But again, ‘money’ isn’t really what most people think it is any more,is it?

Investing is not gambling. Gambling is putting money at risk by betting on an uncertain outcome with the hope that you might win or make money.

However, at this point in time putting some money into a reputable cryptocurrency, in whatever amount is comfortable to you, is not a gamble. The existing growth charts, when combined with prudent research and due consideration, definitely make Bitcoin, and many reputable altcoins (such as MyCryptoCurrency), a wise investment and almost immeasurable risk.

Just ‘play’ it wisely by Dollar Cost Averaging. Or put a lump sum into it and set your alarm to come back and check it in a year or two. And don’t think you’re going to be a ‘trader’ if you’re not already one. You don’t need to do that… to win your game.
 

Art Williams
Freelance Copywriter
Case Studies and eMail Copywriting
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Series B – Say What!?

"Series B – Say What!?"

I hate it when people assume I know something I could easily understand if they'd just get out of their own little world and get into mine. Such an instance occurred just a few days ago with this article which discussed the new buzzword, 'market network'. 

Notice that at the end of the very first sentence you see the phrase, "…HoneyBook announced a $22 million Series B*.

My very first reaction to that was, "Whaaat??!!" But as I read through the article I sort of got the general idea of what they were talking about…"Series B"….yeah, sure. Like…money and investiing and stuff. But frankly I don't like it when writers use terms that their readers probably aren't familiar with. It's very frustrating to people who actually read. NB: Some people talk that way too… but that's another article. 

It's frustrating because written communication doesn't have the benefit of the spoken word and face to face contact….i.e. visual signaling through eye contact, body language, and trial closes. For that reason, a writer who wants people to understand and appreciate what they're writing will seldom, if ever, use terms the reader isn't likely to know.

As the inquisitive guy I am, I did some research on the term Series B. That term simply refers to one of the earlier stages in the equity funding of a company (NB: "equities" usually refers to stock ownership, i.e. ownership interests or positions in a business entity).

Here is an informative page with some text which explains what Series B means and also has a very short video explaining the term. If you're a Markethive community member you would be wise to have an interest in such things because we´´ might be closer than most of us realize to being involved in such a thing…i.e. we might be doing our own Series B in the near future.

Another item from the article that I thought worthy of reiteration and illustration is the following diagram:

It thought it would be worthwhile to remind readers that the green circle is a type of site that most of us are already very familiar with. The green circle is social sites like Facebook. Our fearless leader, Tom Prendergast, CEO of Markethive, has recently pointed out something that many us already knew, i.e. the world doesn't need another Facebook. The majority of content on Facebook and similar sites is worthless drama, meaningless sabre-rattling and posturing, pontificating, and bullshit. The world really doesn't need any more time-wasters like Facebook.

The other type of site, the 'marketplace' type of site on the left side of the diagram, is a more recent development on in the internet environment. We know those too. They are sites like AliBaba, Amazon, and Etsy, and other, where vendors sell stuff. People go to these sites because they have a regard for the quality and/or service they get there.

The third circle, the blue one, is represented by a term that few people outside certain niches of the internet know… "SaaS" or 'Software as a Service'. This is simply a useful functionality of some sort which you use via your computer. The difference is that the software that makes it happen isn't on your computer. It's somewhere else.

What is unique about 'market networks', as represented by the confluence of these three circles, is that it uses SaaS to facilitate the connection between the networks of people (i.e. the consumers) to the marketplaces that have something they're looking for.  

The market network also removes most of the burden of traffic generation from the vendors on the marketplace too. Traffic that they have previously had to acquire on their own, by more circuitous and laborious means, is now facilitated by the interconnection with the 'networks'.

For example, eBay, Amazon, and AliBaba sellers previously had to hustle to get attention to their 'stalls' in their respective marketplace. As I understand, on a market network site, the presumption is that their value proposition will be a bit more apparent and they will be able to focus more on their own quality and service and less on 'getting traffic' with the presumption that the consumer, i.e. the average dudes from the green circle, will have a better buying experience.

In my view, the most unique factor in this new marketplace paradigm is the software itself and the design elements of the systems themselves. Conceivably there could be some differences between various market networks relative to what product or service they actually deliver, i.e. consumer goods vs. travel services vs. financial services, etc.

One this is certain: People or organizations who can figure out and actualize these ideas will make a lot of money. In fact, considering that the term itself is brand-new, it might even be that there are some entities on the internet that are closer to already being a functional market network that even they themselves realize (Markethive.com?)

It's even conceivable that there could be market networks specifically for home based business opportunities…. keeping in mind that it is no longer true that a legitimate business has to even have a centralized geo-presence anywhere. It doesn't.

So, we see how the face of business is changing as the ways that buyers and sellers connect with each other. The internet has made this possible. Basic fundamentals indeed are changing and this is a good time for entrepreneurs who see it for what it is and/or are interested in pushing boundaries.

And it's also easy to see that these changes are probably pretty scary to established players who aren't very excited about having to go back to work to reinvent their business model.

To project a bit further into the future, just imagine what a new definition of 'money' itself will do the nature of entrepreneurship, business, and society. I'm referring of course to cyber currency.

If you're a home based business entrepreneur you will recall that over the last few years there have been several cyber currency scams in the MLM niche. All of them have gone down in flames. People apparently really 'ate it up' what they were offering.

I was one who wrote in several articles (with a previous employer) that I would never consider any cybercurrency centric MLM opportunity. But what would happen if somebody was able to really pull it all together, do it correctly and legally, and make the idea of cyber currency work in a Denentralized Autonomous Organization (DAO) encompassing Market Networks?

Depending on your perspective, these ideas are either fascinating and exciting or scary and foreboding.

Glenn E. Fleming, MD, MPH on MarketHive: Welcome to My Page!

Physician, small business owner, budding real estate/land investor, & educator on MarketHive, a social marketing platform for entrepreneurs that has the combined power of Facebook and LinkedIn.  

I think of myself as just a regular guy who is passionate about those issues I believe affect us all. Those matters include (but are certainly not limited to): LGBT equality,  healthcare reform (which would include health information technology reform), education reform, prison/criminal justice reform, politics, government, business/investing, and more. 

MarketHive is a multi-million dollar platform which evolved from Veretekk and offers the following features:

auto-responders, virtual conference rooms, blog casting, blog sharing, campaigns/press releases, capture pages, email plugins, daily live workshops, and lead generation exclusively for entrepreneurs.

In essence,  MarketHive is all about empowering entrepreneurs through social engagement and marketing.

To learn more or to join for free, go to 

Glenn E. Fleming, MD, MPH on MarketHive

I hope to see you there!

Best Regards,

Glenn