Hi–

Two quick things…

One, as a reminder, the opportunity to claim a Charter Membership to RiskHedge’s new crypto research service expires tonight.

As a Mauldin Economics reader, you are eligible to claim one for a 70% discount.

Two, we’ve seen a lot of great questions about crypto lately. So we asked Stephen to answer the most common ones.

Please take a moment to read his responses below.

Q1: Could the government ban crypto?

I highly, highly doubt it. Sure, the government could try to make crypto illegal. But the decentralized nature of the technology makes it unstoppable. The government would essentially have to shut down the internet to stop people from owning crypto. That’s simply not going to happen.

Just look at how badly China has failed to stop crypto. It has tried to ban crypto EIGHT TIMES in various ways. Every attempt knocked the price of bitcoin down temporarily… only for it to bounce back to new highs.

The authoritarian Chinese government holds a chilling amount of power over its citizens. What does it tell you that most invasive government in the world has been powerless to stop crypto, despite its best efforts?

Q2: Are regulations coming to crypto? Could they take the wind out of its sails?

Yes, the government will most definitely regulate crypto. And I welcome regulation as an opportunity that will lead to much higher crypto prices. Regulations will provide clarity to the industry, and ultimately attract tens of millions of new investors who haven’t gotten involved yet.

That includes many big-name investors, like Citadel’s Ken Griffin. He recently told Bloomberg: “We don’t trade crypto because of the regulatory uncertainty… if crypto was regulated, I would trade it.”

In other words, the lack of regulation in crypto has prevented many big-money investors from getting involved. When regulations come, it should open the floodgates and cause major price appreciation in select cryptos.

Q3: What about crime? I heard criminals use bitcoin to stay off the government’s radar.

Yes, some criminals have used bitcoin. But criminals use cars, phones, and US dollars, too. In fact, when it comes to money that criminals use, the US dollar is far and away #1. I wouldn’t let this stop you from taking advantage of the historic opportunity in Phase 2 cryptos.

Q4: How does a novice get started and learn how to buy and sell crypto?

I think most folks assume buying crypto is harder than it really is. In an interview with Business Insider last week, billionaire “Shark” Mark Cuban said:

“You're seeing millions and millions of people investing in crypto, because it's far cheaper and simpler than investing in stocks.” 

Buying crypto is a little different than buying a stock. But it’s not necessarily harder. In fact, in many cases, buy crypto is easier than buying a stock. Because cryptos trade 24/7, you can buy them anytime. Including on nights and weekends when regular markets are closed.

I won’t pretend there’s zero learning curve to cryptos. And you shouldn’t invest in things you don’t understand. But if you can buy a stock, you can buy a crypto. In my new RiskHedge Venture service, I walk through how to buy every recommendation with simple, step-by-step instructions.

Q5: Can I buy crypto in a retirement account like an IRA?

Yes. IRS Notice 2014-21 declared cryptos to be property for tax purposes, which means they can be held in IRAs. Self-directed IRAs in particular give you maximum freedom to invest in a wide variety of cryptos. You should absolutely get a great CPA or tax attorney to help you. But as crypto gets more and more popular, this process should only get easier.

Q6: How much of my portfolio should I put in crypto?

Not a lot. I suggest starting with a couple hundred to a couple thousand dollars. Due to their asymmetric qualities, it only takes a small investment in Phase 2 cryptos to potentially pay off big.

As for what percentage of your portfolio to invest in crypto… I can’t give blanket answer since everyone’s financial situation is different. My guidance is everyone should own some crypto. Even if it’s just a little bit, no one can afford to sit this crypto boom out.

Crypto is the future of investing, and I believe its where most of the biggest gains in the market will come from for the next 10 years. Even if you’re skeptical, I urge you to own some crypto so you don’t get left behind.

Q7: What about hackers? How do I keep my crypto safe?

You’re smart to be concerned about security. The fact is, the vast majority of crypto theft happens due to user error. When you store your crypto the right way, it is absolutely 100% impossible for hackers to access it on the internet.

Q8: During the Summit you said there’s a little-known but easy way to buy small cryptos for 90% less than what others pay. I’m very interested in doing this, can you elaborate?

This opportunity is available for one simple reason: most tiny cryptos aren’t buyable on a major exchange like Coinbase. But you can buy them before they’re on Coinbase. And when you do, you not only get a big discount… you can amplify your potential profits by up to 10, 20, or even 45 times, like in the case of RLC.

RLC was a tiny crypto that eventually listed on Coinbase at $4.36. That’s the price you had to pay if you waited until it appeared on Coinbase to buy—even if you bought on the very first day.

Or, you could’ve bought RLC for as low as 15 cents before it debuted on Coinbase.

You would’ve made good money either way, as RLC appreciated to $11.65.

But if you bought at $4.36, your profit was 167%. If you bought as low as 15 cents, your profit was 7,460%. Big difference!

There are 104 cryptos on Coinbase, and 6,000+ not on Coinbase yet. So, these kinds of opportunities come along quite often.

Q9: How do you decide which cryptos to invest in?

I analyze cryptos like Warren Buffet analyzes stocks. That is, I treat them as businesses. This is the same approach that allowed top Venture Capital Fund Multicoin to buy the crypto Solana at just $0.04 before it soared to $150.

Most people don’t realize that Phase 2 cryptos generate revenue and profits—just like stocks. But unlike stocks, you can see exactly how fast a crypto’s revenue growing is with real-time, daily financial data!

Most companies share their financial results once a quarter. Because Phase 2 cryptos trade on the blockchain where information is transparent, you can see exactly how much their revenue grows every day.

Q10: Why are you limiting the number of Charter Members to your new crypto service? If I don’t act now, will I get another chance?

I hate to exclude anyone from this opportunity. But the simple fact is many of the Phase 2 cryptos I’ll recommend are tiny. Their prices will spike if too many people buy them all at once. So unfortunately, we can only accept 750 Charter Members at this time.

I do expect to offer a regular-member option at some point in the future. But the opportunity to claim a Charter Membership, and the $7,000 discount that comes with it, will close soon and will not be available again.

-Stephen McBride, Chief Analyst at disruption research firm RiskHedge

Thank you for being a Mauldin Economics reader.

PS: If our friends from RiskHedge don’t hear from you today, they will assume you’re not interested in crypto, and you won’t get any more emails about it. If that assumption is incorrect—please respond to them today so they can reserve a Charter Membership for you. Tomorrow it will be too late. Go here to now to decide.