You Can Still Beat the Big Money into Cryptos

By: TradeSmith Research Team

Apr 02, 2021 | Investing Strategies

Editor’s Note: The markets are closed for Good Friday, and we will return on Monday. Our good friends at InvestorPlace have some excellent research on altcoins that we think you will find interesting. Without further ado, here is Matt McCall. –JCL

Upon hearing the news that Thomas Edison was working on an electric light bulb, a committee in Britain’s Parliament said that was “good enough for our Transatlantic friends… but unworthy of the attention of practical or scientific men.”

Okay. Missed that one.

Of the first smartphone that would change so much in our lives and our world, former Microsoft (MFST) CEO Steve Ballmer famously said, “There’s no chance that the iPhone is going to get any significant market share.”

Another swing and a miss.

Listen, I’m not trying to pick on Ballmer or Parliament or anybody else. They weren’t alone in their thinking…

This is simply the nature of innovation.

Amazon (AMZN) founder and CEO Jeff Bezos, who also happens to be the richest person in the world, said, “If you’re going to do anything new or innovative, you have to be willing to be misunderstood.”

Breakthrough innovations are frequently misunderstood at first… but that makes it the absolute best time to invest.

And that’s exactly why I’m focused on a game-changer that is still misunderstood…

Cryptocurrencies and the blockchain technology they are built on will change just about everything. The way you buy everyday goods and services… purchase a home… pay your taxes… vote… even how you order a pizza.

This transformation is already underway. We can see it happening.

And yet, there is still a ton of misunderstanding and outright misinformation about what cryptocurrencies and the blockchain really are… and what they are not.

Still, the seismic shift is starting. More consumers, investors, corporations, and governments are waking up to the fact that cryptos and the blockchain are some of the most valuable and revolutionary technologies ever created.

This realization is still in its early stages, which makes right now the time to invest for potentially massive returns.

I would say that 99% of people still misunderstand cryptocurrencies. They are not fantasy internet money. They should not even be thought of as another form money, though that’s part of it.

They are decentralized, open-sourced technologies that run on a network of linked computers called the blockchain.

That makes them incredibly valuable software.

Decentralization – where no one source controls the coins – makes blockchain the cornerstone of a populist revolution that’s sweeping the country today. DeFi, short for “decentralized finance,” is a huge catalyst turbocharging what I call Blockchain 2.0 – the next phase of awareness, adoption, and applications.

The biggest winners in this next phase will be altcoins, which are any cryptocurrencies besides Bitcoin. Like lesser-known small-cap stocks, the best altcoins have even more upside potential than Bitcoin… and that’s saying something.

DeFi may be one of the hottest sectors in cryptocurrencies right now, but as crypto pioneer Charlie Shrem says, the concept goes back to the release of Bitcoin more than 10 years ago. Charlie was one of the first people to read the founder of Bitcoin’s initial thoughts on what was envisioned. Eleven years later, the DeFi movement is more fully executing on Satoshi Nakamoto’s original ideas.

The best thing about this Blockchain 2.0 breakthrough is that it is like a second chance to get in at the very beginning… before the big money.

I spent years working for one of the largest firms on Wall Street, and I saw time and time again how Wall Street is often late to the party. It’s still that way.

But when Wall Street eventually does show up, it does so in a major way.

Legendary investor Peter Lynch used this idea to his advantage. He managed Fidelity’s Magellan Fund for 13 years, posting spectacular average annual returns of 29.2%. He is one of the most successful investors ever.

He also wrote a best-selling book on investing, and he said he likes to buy a stock when “institutions don’t own it.”

That’s because nothing makes a stock soar like billions of dollars flooding in for the first time from Wall Street’s deep pockets.

I see DeFi in that exact situation. We are about to see a DeFi boom, and the best altcoins are set up like early-stage technology investments.

Wall Street doubted Bitcoin… but it’s now piling in. DeFi’s boom is coming. We are seeing new hedge funds launched with the sole purpose of buying DeFi coins, and I wouldn’t be surprised to see major banks and money managers get into this space soon.

This will build on the money already flowing in. That’s why five DeFi coins in my Ultimate Crypto portfoliohave gained more than 530% on average since I recommended them.

Consider this: The total market capitalization for all other cryptocurrencies outside of Bitcoin – altcoins, in other words – is now more than $700 billion, according to Coinmarketcap.com. That’s more than 3X what it was just three months ago.

And yet, we are still very early in this new and exciting phase for cryptos. Smart investors still have the opportunity to beat the big money into DeFi and other altcoins.


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