Are you intrigued? of course, you are, like and subscribe and all that stuff. but now let’s get straight into the business! this is Your daily Altcoins by the way. If you invested 1000 dollars in Chainlinks currency, called Link, where would you be right now? Well, it is easier to know this than you would think. First, we go to a website that is going to tell us where was the price of Link a year ago. Let’s say Coinmarketcap. A year ago, on July 4th, 2020, to buy one Link you would need roughly 4 dollars and 80 cents.
For simplicity’s, sake let’s not get any more specific than that. Then one year passes and it is July fourth, 2021. Happy America day by the way. So as of writing this content, on July 4th, 2021 the price of one Link is 18 dollars and 70 cents. Now we can go two ways, we can convert it using math, or we can google the cryptocurrency profit calculator and use one of those websites. Of course, me being me, I prefer to use the easiest option, which is the website.
So 1000 dollars invested at 4.8 dollars, and sold at 18.7, will give us the number – 3,895 dollars and 83 cents. So it is about four times the amount we put in a year ago. That means that we got 2895 dollars in return on our investment. That is a 389% increase in the invested amount.
But let’s go a step further. What if instead of letting that thousand dollars sit as an investment for exactly one year, you paid attention to what was going on and sold your investment at exactly the best moment that Link had for the past year. Let’s assume we had the hindsight and foresaw when would have been the biggest point of growth for the Link over one year. And here it is – For just one day, on May 9th, 2021, the price of Link was, drum roll please – 52 dollars and 20 cents.
Yes, it was that high, and just wait until I tell you what we would have. So a thousand dollars invested at 4.8 dollars per LINK. and sold at 52.2 dollars. Our 1000 dollars would turn into an astounding 10,875 dollars. Yes, the portfolio would have been 10 times as much as the initial investment. We would have gained 9875 dollars as a return on investment. And we are talking about Chainlinks Link, not about Ethereum or Bitcoin. This has to show you how much potential a good investment has.
We already made great content explaining what Chainlink is and what it does which you can see HERE. Now that your jaw probably already returned from the floor to its rightful place, I am going to go another step further. Let’s say we knew what a crazy thing the crypto world would become. So when we saw the rise of other currencies, we choose a new currency that had a price to be laughed at and invested 1000 dollars in that.
What if we invested 1000 dollars in Link at the exact moment it was available to buy. The earliest time the Coinmarcetcap shows of Link is September 21st, 2017. At that time the price of Link was a laughable 17 cents. After buying literally thousands of Links, we waited for a couple of years and using our superpower of hindsight we sold it at the highest price it has reached so far. That is of course already mentioned on May 9th of this year when Link’s price reached 52.2 dollars. Now let’s do the conversion. Hold your jaw, my friend, because the money that we would have made would be more than 300 thousand dollars.
307,058 dollars to be exact. Imagine how many things you would do with an extra 307 thousand dollars in your wallet?! It is fun to think about what could have been. The thought experiment has been completed, you know what you would have if you invested 1000 dollars a year ago and sold it exactly one year later. But there is still a sizeable part of the content left for you to see. I think this is more important than the thought experiment.
There is a great Chinese proverb that says following the best time to plant a tree was 20 years ago, the second-best time is now and while you might not have even existed 20 years ago, you do understand what it means. If you want to succeed in the future, the best time to act is right now.
You are already interested in cryptocurrencies, I can tell because you are reading this content. That is a good start, but financial success takes a bit more than one great investment. Even if you did the impossible, and went back in time to invest that thousand dollars in 2017, and got that 300 thousand dollars right now if you don’t know how to manage the money, you would quickly lose it.
You can believe it or not, but 70% of the people that win the lottery go broke, and a third of that has officially declared bankruptcy. Why do you think that is? Of course, that is because having a lot of money and managing money are two different things. Building wealth and getting wealth by chance are two very different things. And in a sense, you could invest a 1000 bucks in Link right now and see what will be a year from now.
But are you confident that you would manage that money properly? That is why you should start planting a tree right now, by that I mean that you should start reading more and more about finances, money management, and so on. So, let me give you three important tips to gain more knowledge on investing, and if you know the basic rules and techniques of investing, then you can really start to get close to your goal, which I presume is financial freedom tip number 1 – read books about finances.
This is a crucial step in anything that you are trying to learn. “Personal Finance for Dummies” by Eric Tyson is a really good start. I have read it, I have benefited from it, and you should read it too. “The Richest Man in Babylon” is another great book that you should read, even if it was written almost a hundred years ago, it is still as useful as any other financial book, and one of my favorites. reading overall is a great path to success and reading books about the topic that is a crucial part of your goal is a proper thing to do.
Tip number 2 – there are many things one must consider before investing, but probably number one best tip is this – you should invest invaluable things. it is as simple as that, if chainlink does not have value, nobody will buy it. if you invest in a company that produces something that people value, you are guaranteed to grow your investment. what about Dogecoin then? I hear you asking, people value fun, Dogecoin is the very definition of a fun time, so people are using it. so remember investing in something valuable will always be more profitable than investing in something that produces nothing valuable.
Tip number 3 – research. we say it in every post, but that is not a mantra, it is good advice.
You should definitely, absolutely, research each company or currency you invest in. just reading one or two articles about a cryptocurrency might show you everything in a whole different way reading posts and like this might give you the details you never knew you needed and overall a good research is an indestructible shield against scams.
Tip number 4 – yes there is an extra tip here which is – subscribe to our Website newsletter.
Your daily Altcoins is a channel that will give you many new ideas to think about. If you value our site and the posts that we make, liking this content and subscribing to this channel would be a great investment. Both metaphorically and literally because soon we will start giveaways, which will be somewhere from 10 dollars to 100 dollars worth of investments in different coins. Here is the question for today – when working towards the goal of financial freedom, what is the first step that you are taking? Let’s write your answer to the comment section.
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