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Use Asymmetric Investing to Grow Your Crypto Wealth With Little Risk

If you could earn 10 or 20 times you investment with little risk, would you accept that risk? Unless you’re already starting with millions, it’s about the only hope you and I have to get wealthy from our investments.

Asymmetric investing is the term given to using this disparity between reward and risk to grow wealth.

Two Real-Life Examples of Asymmetric Investing

When Canada first changed its $20 banknote from a rather puky green to a green shot through with other colors, one person bought a handful of those brand new bills and stood outside a bank, offering to sell each one to passersby.

The catch? He was selling them for $1 each. That meant a 20x gain on a $1 investment.

He couldn’t convince anyone to buy one. Everyone he offered a bill to assumed that it was counterfeit.

Asymmetric investing means the potential for a high reward for taking a low risk.Asymmetric investing is about staying in the high reward/low risk quadrant. Source

In 2011, the price of gold and silver shot upwards. One person decided to run an experiment. He attempted to sell one-ounce American Eagle silver coins for $1 each. They’re legal currency in the U.S., indicated by “In God We Trust,” “E pluribus unum,” “United States of America” and “One Dollar” stamped into each coin.

The price of silver at the time? Over $40 USD per ounce. Anyone who was willing to risk $1 could have taken a coin to a coin shop and sold it for better than a 40x return on investment.

This person had few takers.

These two examples are minor compared to the opportunities when investing in crypto.

Asymmetric Investing in the Crypto World

There are over 17,000 coins and tokens in the crypto world. Many, perhaps most, of them are what are called shitcoins, because that’s about all they’re worth.

The remainder have a solid use case, or a unique use case, which gives them a good shot at going from pennies a coin/token (or fractions of a penny) to a dollar, $10, $50, or more.

Some have already gained upwards of 50,000%, or 500X. To put that in perspective, a $100 investment in a coin/token with that type of gain would have returned $50,000.

How Do You Find the Winners?

That’s the question. The answer is, with a lot of research. And an understanding of what each coin/token is proposing to do. In other words, what is it that will make it valuable?

Take the LUNA token, created to run the Terra Protocol. Terra allows people to buy tokens, such as UST, that consistently track the price of a fiat currency. (UST is the ticker for TerraUSD, the Terra stablecoin for the U.S. dollar.)

A fiat currency is one issued by a government, or by its central bank. The U.S. dollar is a fiat currency, as are the Canadian dollar, the euro, and the British pound.

A stablecoin is a token that’s pegged to a fiat currency’s price. In the example above, UST is Terra’s U.S. dollar stablecoin. It trades within a very narrow range above and below $1.

Some believe that Terra could become a major currency exchange system, allowing people to convert any fiat currency into any other, without the huge commissions charged by currency exchanges and banks.

LUNA is the governance token for Terra. It also soaks up any of the price volatility of the various stablecoins.

That all may sound like Klingon to you. Take a look at this chart though, from Coinmarketcap.com:

LUNA price chart on coinmarketcap.comThe LUNA token price chart. Source

On December 26, 2021, LUNA reached $102.90 per token. Exactly 18 months before, on June 26, 2020, LUNA cost just $0.2088 (a bit under 21 cents).

If you’d bought that day in June, and sold LUNA when it hit its top, you total gain would have been 492.8X, or over 49,000%. A $100 total investment would have earned you more than $49,000.

Of course, it’s almost impossible to time the top. And it’s unusual for anyone but people connected to a coin or token to get in that early. But this example shows you what’s possible with the right crypto investments.

When the reward is so great, there’s no need to go crazy on risk. An asymmetric investment like LUNA can greatly contribute to your wealth, without undermining it.

As of early February 2022, experts were predicting that LUNA would increase 2-3X from its current price of around $56 USD. That means they thought it could go to $112, even over $150 a token.

If it were to get that high, it would mean a 718X return for anyone still holding LUNA who bought it on June 26, 2020.

It did go to over $100. However, by May 2022, LUNA imploded. It’s now trading for about one one-hundredth of a cent. So it’s worth less now than it was on that day in June 2020.

Staking Rewards Can Add to Your Return

Some tokens allow you to stake the tokens you buy and earn a dividend on them. So, while a token’s price is appreciating, you can earn anywhere from 5% to 43% on your holdings.

Staking is part of a blockchain verification called Proof of Stake (PoS). Rather than use Proof of Work, which is energy-intensive, PoS involves staking a huge number of the token to ensure honesty.

These validators then accept tokens from others to reduce their cost and risk. In return, those who provide the tokens receive a share of the income the validators receive.

If you reinvest those staking rewards, compounding kicks in and you earn even more.

Rewards also take the sting out of price drops. When the crypto market falls, as it did in January 2022 and again in May 2022, many people panic and convert their crypto assets to cash, fearing a continued price drop. The classic buy high/sell low way to lose your wealth.

If you’re earning regular dividends on your holdings, you’re much less likely to lose out on future gains. It’s often a great time to buy more, and start earning even more with rewards.

Where Do You Find the Winners?

I mentioned this a different way, earlier. Finding the tokens that are going for big rides isn’t easy.

If you don’t have enough experience with crypto (and since you’re here reading this, I’m assuming that you don’t), you’re unlikely to find these opportunities on your own.

There are investment newsletter services whose sole purpose is to help crypto investors grow their wealth. They’re not cheap. However, if you want to take advantage of asymmetric investing, I suggest investing in at least one of these newsletters.

Palm Beach Confidential – PBC costs $5,000. Definitely not cheap. However, Teeka Tiwari, the editor, has helped create a lot of crypto millionaires using asymmetric investing. Each of them invested just a few hundred dollars at a time.

PBC focuses on coins and tokens that its team thinks have huge potential for price appreciation.

Palm Beach Crypto Income – PBCI costs $4,000. Also not cheap. This one focuses on tokens that will earn you staking rewards. Teeka recommended LUNA when it was cheap. Readers who took his advice have seen some serious asset growth.

PBCI focuses on coins and token that earn staking rewards. If a token meets the criteria of both newsletters, it could appear in both. Usually months apart though.

Palm Beach Research Group (PBRG) also offers Infinity, which gives you access to just about every investment newsletter PBRG offers, for one payment. For a small annual renewal fee, you never have to pay out the big bucks again.

FYI: Teeka Tiwari is the publisher, and the face, of all the PBRG newsletters. Each one has an editor who’s an expert in that area of investing.

James Altucher’s Early-Stage Crypto Investor – James Altucher has put together a team that looks for tokens that haven’t yet “popped.” With these, there’s time to get in early enough to see some serious gains.

The price of ESCI is $2,500 per year. However, you can join the Altucher Alliance and get ESCI and all of James Altucher’s other investment newsletters for $2,500, with no renewal fees at all.

I have all three of the above newsletters, and find each of them full of valuable information each month. Altucher’s The Big Book of Crypto is full of information and ideas that make an investment in the newsletter worthwhile.

But don’t go into debt (or more debt) to buy these newsletters. Get some (or more) crypto experience first. Invest in a few coins or tokens. Earn some rewards.

In other words, become more comfortable with the world of crypto investing in general. Start earning some income. Then take advantage of asymmetric investing to boost your gains.

The easiest way I know to earn rewards is by putting your crypto or fiat assets on the Freeway platform. If you’re a retiree, I recommend keeping your money in the USD, Euro, GBP, CAD and AUD Superchargers, which have no crypto volatility. You’ll earn up to 43% annual interest.

If that sounds appealing, click here to learn more about Freeway.

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