S&P 500 vs Coinbase Assets

My best friend wanted investment advice. “Something safe and long term. But also a little interested in some more risky investments.”

There’s an investing rule of thumb that you should subtract your age from 100 — and that’s the percentage of your portfolio that you should keep in stocks. For example, if you’re 30, you should keep 70% of your portfolio in stocks. If you’re 70, you should keep 30% of your portfolio in stocks.

I’d amend this and replace stocks with cryptocurrency. And you can do this yourself, without a broker.

Here’s why it’s a good idea in April, 2018:

The S&P 500 average rate rate of return averages to about 7.5%, and 9% if you reinvest dividends. (This avg depends on how may years included, but 10, 20, 60, it’s all in the ballpark). The likelihood of the Coinbase assets delivering an 8% gain or more by years end is practically certain. In fact, if BTC reaches a new ATH this year (as it does most years), it will have outperformed the compound interest of 10 years reinvesting dividends in the S&P.

Any American with a bank account can outperform the S&P 500 with the CoinBase assets. I’m bearish on LiteCoin, but it tends to go the same direction as the rest.

So, set a goal for yourself. Are you trying to outperform the S&P 500? Then buy today, take account of transaction costs, and sell when the price rises. As I write, the price is $8,495. When Bitcoin reaches $9,259 (a 9% increase) sell. You will have just outperformed the S&P 500, and 90% of hedge funds.

Don’t invest money you cannot lose. It could also go to $0 due to some quantum computing revolution. But the benefits of joining the cryptoverse are significant. Learn about it. Let it welcome you.

S&P 500 over 5 years
Bitcoin Prices over the same period

CEO of @NINAYOcom, East Africa's online trading platform for agriculture. Dedicated to building great technology in emerging markets.

CEO of @NINAYOcom, East Africa's online trading platform for agriculture. Dedicated to building great technology in emerging markets.