{"id":5904,"date":"2017-11-04T07:30:00","date_gmt":"2017-11-04T07:30:00","guid":{"rendered":"https:\/market-minute\/follow-this-strategy-to-rip-profits-from-the-crypto-boom\/"},"modified":"2017-11-04T07:30:00","modified_gmt":"2017-11-04T07:30:00","slug":"follow-this-strategy-to-rip-profits-from-the-crypto-boom","status":"publish","type":"post","link":"https:\/\/stage.jeffclarktrader.com\/market-minute\/follow-this-strategy-to-rip-profits-from-the-crypto-boom\/","title":{"rendered":"Follow This Strategy to Rip Profits from the Crypto Boom"},"content":{"rendered":"

\tEditor’s note:<\/strong> In today’s featured essay, cryptocurrency expert Teeka Tiwari shows you how to consistently bank profits from a booming market…<\/p>\n

\n

\tJust recently, a newsletter guy wrote that the cryptocurrency space felt like 1998–1999.<\/p>\n

\t(He was referencing the latter stages of the dot-com bubble.)<\/p>\n

\tI’ll explain why I hope he’s right about that in a moment.<\/p>\n

\tThis, of course, is just another way of expressing the same fear I’ve heard for two years: “Is it too late to get into bitcoin?”<\/p>\n

\tWhen he wrote his article in October, bitcoin was at $4,400. Since then, it’s reached new highs over $6,160.<\/p>\n

\tFriends, over the next three years, bitcoin will trade for more than $25,000.<\/p>\n

\tAnd if that newsletter fella is correct—and this really is like 1998–99—bitcoin will shoot to over $60,000.<\/p>\n

\tIn this essay, I want to show you why you must own some bitcoin now.<\/p>\n

\tI’ll also show you how you can protect yourself from the day when (like all assets) bitcoin corrects in price.<\/p>\n

\tThere are many reasons why bitcoin will continue to rise.<\/p>\n

\tToday, I am going to focus on one single metric. An analyst I respect says this metric has been responsible for 94% of bitcoin’s growth.<\/p>\n

\tThe Network Effect<\/strong><\/h3>\n

\tTom Lee is a polarizing figure…<\/p>\n

\tFrom 2007–14, he was chief equity strategist at JPMorgan. He’s been top-ranked by Institutional Investor every year since 1998.<\/p>\n

\tToday, he heads research at Fundstrat, one of Wall Street’s top research firms.<\/p>\n

\tWhen everybody was bearish on stocks in 2015, Lee was pounding the table to buy. When the world went all-in bullish in 2017, Lee counseled caution.<\/p>\n

\tLee is a guy who’s unafraid of going against the crowd. That’s why I wasn’t surprised when he started getting bullish on bitcoin.<\/p>\n

\tHis argument is based on Metcalfe’s Law.<\/p>\n

\tYou see, Lee views bitcoin as a social network. And Metcalfe’s Law says the value of a network is the square of the number of its users.<\/p>\n

\tWe don’t need to get into all the math involved in Metcalfe’s Law. In short, it’s an equation that shows as more people join a network, the more valuable the network becomes.<\/p>\n

\tMetcalfe’s Law is why Google, Facebook, and Alibaba are worth $689 billion, $500 billion, and $450 billion, respectively.<\/p>\n

\tIn a recent interview, Lee explained that over the last four years, 94% of bitcoin’s price move is explained by this equation.<\/p>\n

\tNetworks tend to be self-fulfilling prophecies. That means as more people use them, they attract even more users.<\/p>\n

\tThink about Facebook.<\/p>\n

\tTen years ago, my 75-year-old father-in-law would have called it a stupid waste of time. Today, he’s all over Facebook because all of his friends are on Facebook.<\/p>\n

\tThis same “network effect” is now working in bitcoin’s favor.<\/p>\n

\tBitcoin usage is growing at 122% per year. It’s one of the reasons why Lee thinks bitcoin will hit $25,000 in three years.<\/p>\n

\tBut it could go even higher than that…<\/p>\n

\tHow to Profit (and Protect Yourself) in a Bubble<\/strong><\/h3>\n

\tPeople who don’t understand the network effect will continue to question bitcoin’s valuation… just like they’ve done with Facebook, Alibaba, and Google.<\/p>\n

\tBut if you had the courage to defy the naysayers and just pick up a small position of $500 in each when they went public, you’d be sitting on $15,173 today.<\/p>\n

\tAnd that brings us to how to handle the eventual day when bitcoin’s rise comes to an end.<\/p>\n

\tAt Palm Beach Confidential<\/em>, we use a technique called “asymmetric risk” investing.<\/p>\n

\tThis is when you invest a small amount of money into an idea that can have a massive move higher.<\/p>\n

\tThe beauty of this approach is if the idea goes to zero, your loss is very small. But if the idea skyrockets, your payoff is huge.<\/p>\n

\tAs the market moves up, you want to harvest profits. This is exactly what we did recently in one of our crypto plays.<\/p>\n

\tSubscribers who invested $400 in this particular recommendation have taken profits three times.<\/p>\n

\tThey’ve pulled out their original investment—plus an additional $2,300 in realized profits. That’s money in the pocket… and they still hold 40% of the original position.<\/p>\n

\tSo even if this idea went to zero tomorrow, they’re still up 475% on their initial investment.<\/p>\n

\tOne of my subscribers, Jon M., is an example of this strategy in action. He used this same approach to turn $250 into $125,000.<\/p>\n

\tRecently, we used this approach on another idea. We’ve been able to harvest gains of 582%, 1,522%, and 1,016% all from the same idea.<\/p>\n

\tThis is how we manage “bubbles” at Palm Beach Confidential<\/em>. We profit from them.<\/p>\n

\tWe’re not just going to ride it up and then ride it down. We’re going to continue ripping profits out of the market all the way up.<\/p>\n

\tAnd when the bubble does burst… we’ll be safely nestled on top of the big pile of realized profits that we’ve taken along the way.<\/p>\n

\tThat’s why I sure hope that newsletter guy is right about this being like the 1997–98 dot-com bubble.<\/p>\n

\tFrom 1997 to 2000, Amazon went up 800%… Oracle went up 523%… and Cisco went up 447%. The entire Nasdaq grew by 99%.<\/p>\n

\tIf bitcoin grows at a similar rate, we’ll easily see $60,000 per coin. And you can bet we’ll be harvesting gains all the way up.<\/p>\n

\tLet the Game Come to You!<\/p>\n

\"\" <\/p>\n

\tTeeka Tiwari<\/p>\n

\tEditor, Palm Beach Confidential<\/em><\/p>\n

\tP.S<\/strong>. On Thursday night, I held an emergency cryptocurrency training webinar. More than 250,000 people registered to attend. But we know many of you were unable to view it… That’s why I’m making a replay of the webinar available for a limited time. You can click here to watch it.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

There\u2019s a very simple way to avoid getting burned by bubbles\u2026<\/p>\n","protected":false},"author":28,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[16],"newsletter-type":[],"ticker":[],"class_list":["post-5904","post","type-post","status-publish","format-standard","hentry","category-uncategorized","publication-market-minute","person-teeka-tiwari"],"acf":[],"ai_tts_audio_outdated":false,"ai_tts_legacy_post":false,"_links":{"self":[{"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/5904","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/28"}],"replies":[{"embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=5904"}],"version-history":[{"count":0,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/5904\/revisions"}],"wp:attachment":[{"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=5904"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=5904"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=5904"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=5904"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=5904"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=5904"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=5904"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}