Updated: Apr 11
Let’s talk about money. Even before the world went bonkers I always tried to teach the kids about economic systems as it sort of tied into our government studies. I’ve always been an anarchopcapitalist or “ancap” even before I knew I was. Without getting too far into different labels and the inevitable ensuing debates over which is superior, let me just say that I’m strongly influenced by the Austrian school of economics which supports a more individualistic approach to economics.
If you’re anything like me, holding this less than mainstream position, you know how challenging it can be to find like-minded professionals to work with. Particularly so in Canada. Until recently it was impossible to find a tax accountant familiar with cryptos or a financial planner who didn’t raise an eyebrow at my personal investment strategy. Things have gotten somewhat better as the crypto world expands to include big players like Square and PayPal. Even still, I feel better knowing what is going on in the economic world and more so in my own portfolio.
So thus begins my journey into the world of finance. Scary. It’s something I was never really interested in. I took the advice of Joe Banker down at RBC when I was 20 and bought into a few funds and I forgot about it. Then something happened. I began noticing more and more that the world was spiralling toward self-destruction at the hands of corrupt politicians and a corrupt system. I guess you could say I found my tribe back around 2010 when I began following Jeff Berwick’s YouTube channel, aptly named The Dollar Vigilante. It was full of interviews with anarchists and people who were opting out of societal slavery by doing things like getting rich off cryptos. I was suddenly interested. These were my people. The subject matter resonated strongly with me and I began paying attention. They discussed up and coming investments, second passports, minimizing tax obligations and getting your gold out of Dodge.
Now cancelled from YouTube for telling too many truths, his show has since evolved into walks and talks with his adorable little chihuahua Lucy. (They’re alive and well over on DTube, BitChute, Rumble, LBRY/Odysee by the way. Please go check them out.) As indicated in the intro, they talk about bitcoin and banksters and tacos and kisses. Gotta love it. I’ve been a subscriber to his insider circle for a few years now. Aside from his well known annual anarchist gathering in Mexico fittingly dubbed “Anarchapulco”, he also hosts a crypto summit ever year. Admittedly I have been slacking when it comes to really paying attention to the investment advice that I signed up for.
You can imagine my regret back in March when I first heard the word lockdown being tossed around. Pretty sure my hair stood on end. This is what I was (supposed to be) preparing for. The shit has finally hit the fan. Now of course we’re hearing world leaders using terminology straight out of conspiracy theories. Yikes! Time to hit the books.
Here’s what I’ve learned so far:
Central banks, bad - decentralized monetary systems, good
This craze is not a craze at all, it's the future of money
Bitcoin and other cryptos tend to run on a 4 year cycle and are currently on their way up (since Halloween I’ve 5x my investment)
Contrarian advisors recommend holding up to a 20% position in cryptos as long as you are comfortable with the risk. It is still considered a new asset class and can be quite volatile (although we’re seeing that volatility gradually decreasing with each cycle)
It is expected go through a few minor corrections on the way up which is healthy - these are great opportunities to buy more)
Bitcoin is very transparent so the future of cryptos is likely in privacy coins such as Monero (XMR) and Pirate Chain (ARRR)
It’s best to buy privacy coins through local exchanges where you trade directly with another individual rather than through a registered public exchange. This way your transactions are totally private
Some analysts and experts would say that the way to earn real generational wealth is through alt coins. These are the lesser known, newer players that some speculate will be the Bitcoin of tomorrow
He who holds the keys, owns the coins. Cryptos are bought and sold on exchanges but it is prudent to then move them to a cold storage wallet where everything is offline and safe from hackers (eg: Ledger or Trezor)
A well-balanced portfolio looks like 20% cryptos, 30% equities, 30% precious metals and 20% cash/trading
Metals are only guaranteed to be accessible if you store them at home but security can be an issue. For those of us who travel a lot, offshore vault storage is a good option. (Also comes in handy when the government decides to call on crisis powers and confiscate your gold) *Check out my comparison of the most popular bullion vaults.
Give the critics a little airtime as well when researching, not too much but it's good to understand all perspectives
Take your financial advice from someone who has gotten rich themselves over the advice of Joe Planner from the bank who is making $60k/year and driving a Ford (no offence to Ford owners)
Get registered with multiple exchanges because when there is a lot of movement in the market (buying or selling) they are going to be busy and you don't want to get caught in that traffic jam
Some finance experts say you should take profits periodically and some say hold as much crypto as you can forever as this is the currency of the future so I guess I need to dig deeper into that
Being in Canada I had to do a little extra research into which exchanges allow you to use CAD to fund and which ones allow you to link to a Canadian bank account. These are the ones I recommend for starting out:
*They all seem to offer their own version of a referral program which is a nice bonus.
My main go-to for BTC and ETH trading. They offer wealth services for transactions >$25K CAD and an OTC trading desk with lower fees than the self-serve online platform.
*Referral program: Invite a friend and earn up to 45% commission on fees
A super basic, easy layout for beginners. They only offer a few coins but it’s a great place to get started.
*Referral program: Every time you invite a new friend, you'll both get $20 after they make a $50 trade
I also have a Coinbase account which is a great exchange to start with if you're in the U.S. but I've found more CAD friendly places to trade.
Want more than just Bitcoin and ETH? Check these out.
The clean, easy to use interface of Newton allows you to buy Monero with CAD which is convenient but not as private. *Does not support BTC:XMR trades at this time
*Referral program: Invite a friend to Newton and you will both get $25 CAD when they trade over $100 CAD
Not specific to Canadians - Binance supports a wide variety of fiat currencies and coins, has all the bells and whistles and a competitive spread on buy/sell rates.
*Referral program: Earn up to 40% commission on fees every time your friends make a trade on Binance
*Intermediate: Here's a tutorial on how to buy tokens on Uniswap