So welcome back to my channel. And in this video, we're going to talk about cryptocurrency investing and specifically how I research when it comes to cryptocurrency. And we're going to dive a little bit deeper into one of the key cryptocurrencies I currently have, which is decentralized and the ticker is manna. So in this video, we're going to talk about understanding cryptocurrency, the research process, the limitation to purpose and understanding the overall market as a whole, boiling that down into an investing strategy in terms of timeframe, portfolio allocation, and also understanding something called white paper. And afterwards, we're also going to talk briefly about technical analysis and trying out the product. So these are basically the steps I would go through. If I were to invest in a cryptocurrency, you need to understand the limitation and what you should expect when it comes to cryptocurrency. Now, before we dive into the research process, I actually need to clarify that when it comes to investing, my vision is really to achieve 30% return.

So if you're looking at investing in an index fund or ETF fund, they generally give you around 10% return. And my strategy it's about using options at a long-term investing and a target is 30% and that's already beating the market. The what about cryptocurrency? That sounds something that is exotic, and a lot of people were talking about it. And that's why we're going to talk about how to research and get comfortable. So then you can research cryptocurrencies as well. Now, if you're interested in my regular stuff, which is investing in the market, which I have 200 feet, then you can grab the free case study here. And this is perfect for you. If you're learning, investing in the stock market and you are a full-time professional, you're busy and you want to master investing as soon as possible. So a lot of the techniques I use here in cryptocurrency is actually similar to my stock investing approach, except for stock investing.

I actually dive a lot deeper. So in terms of investing a Sellerator this month, I'm looking for 20 professionals without a financial background to help them master investing. So to target is 30% return a year. And a stretch goal is 30 people. So investing accelerator, they are Serena that made 35% from chef in 10 days. Fennec cash that made 70% from AXP just around a week. And Andy made 45% from AXP 25% from chef CAE, 25% and work 25% and C R Y Y F 150% gain altogether. He did a bulk exit for his portfolio. So congratulations to Serena, Andy, and Fang to cash. So let's dive in to the research process. So first let's think about cryptocurrency and understand that limitation. When you think about cryptocurrency, this is very similar to invest in foreign currency, like USD, Canadian, Switzerland, or whatnot. And it's also very similar to investing in a commodity like gold and silver people might not accept cryptocurrency as an actual legitimate medium of exchange, but now it's becoming more and more apparent.

And there are even credit cards are issued using cryptocurrencies as well. When it comes to analyzing cryptocurrency, the biggest limitation is that you cannot use technical analysis on it. And I think news to a certain extent, there is degree of influence, but it mainly is driven by hype. So you can't use financial analysis, you can't analyze the income statement. He can analyze the balance sheets. Some cryptocurrencies can get the listed, and it is also less regulated. When you think about that, it is higher risk because there's less research you can do on a cryptocurrency. But even though there is less research, you can still do some homework before you invest. Now, when it comes to cryptocurrencies, there are a lot of different little coins and a lot of different purpose. Like some is for managing pets. Some is for facial recognition. Some is for a game.

Some is just for regular exchange. Some is for a payment network. So you need to understand the purpose of the cryptocurrency and you need to understand the market as well. Now, when it comes to understanding the market, let me bring you to Statista. And here is the number of cryptocurrencies worldwide from 2013 onwards. If you think about it, initially, you started with 66 and then it just exploded to 4,500 as of February, 2021. So you can see that trend is exponential. And this is actually one of the fundamental problems with cryptocurrencies. Now, when you're looking at each currency, they usually have some sort of limits of supply or some sort of expansion mechanism that is either inflation similar, or they just have a limit on exactly the amount of cryptocurrency that is circulating. But when you look at the crypto markets, you can see that stair more and more cryptocurrencies being launched.

People are trying to get rich quick. The total supply of cryptocurrency as a whole is unlimited. If you look at all the coins together, but individual coins are limited, and that's kind of one of the reasons why Bitcoin and ETH are going up. So that's something you need to consider when investing in cryptocurrency. And this is also one of the reason why I hold off on investing a lot into cryptocurrency, because if the supply for the cryptocurrency explodes standard eventually becomes a zero in terms of the value of the cryptocurrency. So the talent you're trying to solve here is really finding cryptocurrencies that are going up instead of going down, because you don't get dividends, you don't get interest. All you can do is buy and hold unless you're somehow day trading crypto, which is a lot more risky. The next thing you want to understand is really your timeframe.

And when you're looking at your timeframe, when it comes to crypto, some people can buy and sell within a day. Some people can buy and sell within a year. Some people can buy and sell and hold for multiple years. And when you think about cryptocurrency, and if you're actually holding onto a winner, then you should be holding. Because if you are holding onto a winner, there's no point in jumping in and out of the market because cryptocurrencies can go up and down plus, or minus 20% easily. You might try to outsmart the markets by timing it, but because the trend itself is so strong, it actually doesn't make sense to try to time to market. So you just need to exercise a reasonable amount of judgment and try to get in at a discounted price. Then that's all you can do. So before I jumped to portfolio, co-location thinking about timing.

This is actually technical analysis, and I do have a free course down below that talks about technical analysis and it applies to cryptocurrencies as well. So if you want to learn that in detail, then you can actually take the free chart course below. Now, the next thing is really portfolio allocation. When you think about cryptocurrency is very high risk, possibly unlimited supply. When you look at the entire markets, possibly cryptocurrency projects can fail as well. This is a very new markets, not very regulated. People can do whatever they want, and you can hear that there are hackers. And there was actually an instance where a hacker changed a code for a specific cryptocurrency and inflated the supply so much and dumped it onto the market and the value of that cryptocurrency turned into zero. So when you think about that, you need to be very careful when it comes to investing in cryptocurrency, when it comes to investing cryptocurrency, whether that is Bitcoin or ETH or another Alcorn, which is the smaller coins, I treat that as extremely high risk.

And when it comes to extremely high risk, what I would put in terms of my portfolio is 1%. So I don't put anything more than not. So if you look at my overall investing strategy that I mentioned here, 99% of what I do, in fact, a hundred percent of what I do is actually investing in stocks. I find great companies that is at a discount and I multiply my profit. And I'm only using a very small amount here. I don't want to make you feel like I'm investing a lot of money into crypto because that is not the case. And when it comes to longterm, the next five to 10 years, stocks is still going to play a major role like 99% of my portfolio. That's why I want to give you a warning. Basically proceed with caution. Now, the next thing I want to talk about is white paper.

So if you're going to be researching on crypto, well, the first thing you want to do is really to take a look at the market cap and see where it is at. So depending on your strategy, you want to invest in something that is not too big, that has a lot of potential to grow. Basically, you're trying to replicate the initial condition or to scenario that Bitcoin started, because if you invest in Bitcoin now, yes, there's a lot of people investing in it, but the gain is also a lot less. So you want to invest in something that is a little bit more junior, since it is high risk anyways, and you're only allocating like 1% of your portfolio to it. Then here, you can go down and find some coins that might interest you. And once you find a coin that interests you and you can see this list goes on and on and on.

So just on Coinbase alone, I'm already yeah, 200 here. And I can keep going. Once you find something that interests you let's say in this case D central, and then you can look at the chart. So this is technical analysis, and there are actually a lot of techniques when it comes to this approach. It works really well when you're trying to predict movements in a relatively short term. So short term, meaning less than a month or even a couple of days, so on and so forth. And I do have a free course below. So if you want to dive into technical analysis, you can take that. And what do you want is really first understand what the coin is doing? What is decentral land? So decentralized is a virtual reality platform powered by ETH blockchain allows user to create experience, monetize content and application. So basically it is like a game.

So you can control an avatar and decentral land. And we're actually going to dive into that in a bit and you can like talk to other people so on and so forth. You can read a little bit at both founders. Uh, but I don't think that is actually quite important. Now what you want is to read what makes decentral land unique. If you're going to be investing in a coin and holding long term, then you better understand what it is for, because if the purpose is not very strong, then, well, why are you holding onto the coin for five years? Basically it is the currency of the game, and you can read it in detail, but in this case, I'm just going to give you the main point and move forward with it. So the next important point is actually, how many decentral land coins are there in circulation?

This is important because when you're investing in the coin and you want the coin to go up, basically it's a supply and demand issue over time. Hopefully the coin that you have chosen has an increase in demand. And at the same time, the supply should be increasing less than that decreasing, or even just holding constant here. You'll find out as of January, 2021, just North of 1.4, 9 billion Manoj tokens were in circulation. Okay. Which is 68% of the total supply. Now, something interesting about manna is that there is a burn mechanism to basically reduce the circulating supply, which includes a 2.5% man up burn on decentral land marketplace transactions. Now, this is something that I came across for the first time when I was analyzing manna. So basically the more transactions that there are, the more Manock gets burnt. So there's less and less supply. So you can imagine this is like a transaction costs within the community.

So the more popular Manock gets, the more Manock gets burnt. So basically more users using manna, the more money the currency gets burnt. So this reduces the supply, which should cause manna to go up. So Madda was originally designed to inflate 8% in the first year and decreasing gradually to a reduce rates of inflation, but currently inflation is disabled again. So then the supply is actually reduced and there are no plans to initiate this inflation until necessary. So in total, 40% of Madda supply was sold in 2019 and the ICO and additional 20% was reserved to incentivize to community. So that's like giveaways and events. And so on and 20% went to the development team and other early contributor and the remaining 20% was held by the central app. Lead a tokens are no longer vested. So then the next one is security. So that's also quite useful to know, but it's ETH.

So it should be okay. And where can you buy Matta? So you can buy it in B finance. You can buy it in Coinbase. You can buy it in a lot of locations like crackin, or even just within the game itself. Now this is actually not the white paper. This is actually just the profile for manna. And you can actually go to read the white paper. So the white paper is kind of like a technical documentation of the coin itself, and it has a lot of pages. And here you can see they are 15 pages. So if you plan to invest in manna, like I have, then you should actually read through the entire document just to get a feeling of what it is about and how is it work. And whether you think this will gain in popularity, and this is really the key word, because if you think that's there is isn't really a use case for it.

It's not going to be popular, is not that important. Then don't invest in it because you're going to end up wasting your time and money on a coin that nobody's going to use. So for example, you can see that they kind of created a piece of land and then this is, you know, nothing on it. And then people start building stuff onto this virtual world and you can buy and sell land, which is called why it's called de-central land, and you can build whatever you want on the land. So basically the most recent piece of news for decentral land is that there is a casino that is going to be built in it. And that actually caused the price of the sexual ad to go up, which is kind of interesting. You can read through it, I'd read through it already. So I'm just trying to see if there are any images that I can bring to your attention.

The next thing you can do in terms of timing is really a technical analysis. I also go through technical analysis in other videos on my channel. So you can look at that as well. So the last one is really trying out the product. I think out of all the cryptocurrencies, this is probably one of the only cryptocurrencies where you can have a hands-on experience and basically interact with other it, when it comes to trying to product, I'm going to go through your website to give you a feeling of what it is like to be on decentralized and whether the product itself is good or not. And here you can already see, this is actually the page. And in a later video, I'm going to log in to decentralized and basically share my experience in terms of using this platform with you. Basically, I think there are quite a few things to explore in the central lab.

Uh, so then we'll go from there. So here you can see that you can create your own avatar, like I mentioned earlier, and basically these in-game items you need to buy and sell as well. You can also create items to sell for mannequins. So, which is great. And then after that, so you can see the background is actually a map of decentralized land and you can go visit different locations and there are a lot of different what they call realms that you can visit in the next video. I'm going to kind of go through a couple of realms. I actually haven't figured out exactly how it works yet. So I just created my avatar a couple of hours ago. So I'm going to record a video on exploring decentral land. And this is going to be part of my, basically in field study of the investments I'm planning to make.

And this is something I do when it comes to investing in the markets. When it comes to stock markets. For example, I invested in shake shack. I actually had their burger. I actually think there are burglaries. Fantastic. I invest in Starbucks because I like the coffee I invest in FedEx because I also use FedEx. And I know how many people are using FedEx during COVID to send masks from Hong Kong to North America. And that is really the process I go through when it comes to investing. And now this is kind of my documentation on my investing journey in decentral. And so I'm going to try out the platform to see if I like it. And I already did my research. So I kind of have a position in decentralized already. What would be really valuable to solidify? My understanding of the central line is to actually just use the platform. I know not everyone here is going to try to use decentralized, even if they invest in it. So I'm going to basically be the Guinea pig and explore the land with you here. So I'll see you in the next video.