Web3 is taking shape
Portfolio: Smart investors cannot ignore the opportunity
Most of us are not tech experts. Investing in cryptos is a bit intimidating and confusing. “If Mark Cuban says that Ethereum is the place to invest, then who am I to question a successful billionaire?”. “Hey, Elon just tweeted a picture of a dog…we better buy Dogecoin.”
Smart investors do three things:
We follow the smarter money. Where are venture funds investing? They poured $30B+ into crypto projects in 2021.
We do not dismiss a potential opportunity just because it is popular with the younglings, replete with memes and rocket emojis.
We look to invest in picks and shovels technologies working behind the scenes.
These underlying crypto projects might be forming the next evolution of the internet…Web3…and we want to be in them as long term investors:
The Graph (GRT) indexes data on a blockchain to help find information quickly.
Ocean Protocol (OCEAN) enables exchanging data across blockchains.
Chainlink (LINK) uses multiple sources to provide the best answer to a given query.
Curve (CRV) is a sophisticated crypto market maker platforms that gained over $24B in transaction volume (referred to as TVL Total Value Locked) I just a few months.
Algorand (ALGO) could gain traction as governments start issuing their own CBDCs (central bank digital currency).
What else is on my radar?
I own a few other cryptos like Solana, Avalanche, Cardano and Polygon…all of these as a hedge of sorts against Ethereum.
I don’t believe in Bitcoin.
I am on the fence about the much stated potential of Ethereum and DeFi.
I like Filecoin (FIL) which provides decentralized storage services, however I think that storage could become ubiquitously cheap soon.
I am intrigued by quantum computing, but that is still in the R&D lab.
I am looking into mining companies and their business fundamentals. Would love to find a good one as an LTBH.
Bottomline, we don’t need to buy the latest non-fungible token (NFT) or chase a piece of virtual real estate to profit from cryptocurrencies. We can use tried and true investing approaches to find the best probable future returns.