Isn't it funny that one of the hottest investment trends of our times is something the average investor knows the least about? I've got all sorts of initials after my name. I've been licensed to sell just about every security out there. And no textbook I've read, no licensing test I've taken, has ever mentioned crypto. It's not a surprise. After all, after reading through those textbooks and now spending decades in the investing world, it's quite clear the best investments are those that the masses know the least about. It's why all of us want to know about the items that aren't on the menu... the houses that aren't yet on market... and the tiny $2 stock that nobody has heard of. That's where crypto is at today. Lots of folks know of it... but very few folks know all that much about it. It's a shame. The crypto market is flat-out on fire. Let's see if we can let you in on the secret. Your Questions... Answered My good friend Matt Benjamin recently published a piece on buying Bitcoin that generated a ton of feedback. Lots of folks had very good questions. Knowing what I do with Manward Press and my track record with crypto, he reached out to me with a simple request... Answer the questions. I'm ever so happy to oblige. Here they are in no particular order... Will bitcoin be the next currency? Will it replace the dollar? Nope. Someday we may have an entirely decentralized currency that is 100% out of the hands of the government, but I won't be around to see it - and neither will anybody else alive today. Every new idea has its fringy tenants. When 3D printing first hit the world, many folks thought it would immediately start to replace traditional manufacturing. They promised we'd all have 3D printers in our homes and we'd be printing everything from pens to car parts. It's been 20 years... and I bet you still don't have a 3D printer. I don't. But here's the thing. It's important, so pay attention. 3D printer sales are hot. The technology does have its place... and so does Bitcoin. We've already seen Paypal (Nasdaq: PYPL), Square (NYSE: SQ) and a host of others using it as an alternative to sovereign currency choices. It's a smart move on their part since it allows customers a choice. But it's a long way from usurping the dollar, the currency that makes the world go 'round. I see Bitcoin as an alternative to the dollar, not a replacement. That doesn't mean I'm any less bullish on it, though. In fact, it makes me more bullish. After all, if full-on replacement were the goal, the coin's future would be bleak. But if its aim is to stand alongside the greenback, its valuation has a lot of room to grow. If it takes just 5% of the dollar's dominance, today's buyers will be rewarded handsomely. Won't the government just outlaw crypto? This is perhaps the No. 1 question I get. It could. But it won't. To be frank, Washington can outlaw anything it wants. It's certainly tried. But it seems to be ever so slowly learning its lesson that prohibition of things the people want is a bad idea. So far, several countries have tried to pinch crypto usage, and they've failed. In fact, the only thing they've seemed to do is push demand higher and raise prices even further. But here's what most folks who ask that question fail to consider... Very few cryptos are actually working to replace the dollar. The very best coins have real-life functions. They create ways to swap critical data. They allow machines to talk to each other. And they keep contracts honest and unchangeable. The government has no need or intent to outlaw such useful things. In my off-centered opinion, Washington will ban books before it bans crypto. But keep that to yourself... we don't want to give them any ideas. Where should I buy crypto? There are lots of places to buy crypto, and just about all of them are good to use. But for new investors, I always recommend Coinbase. It's simple, secure and one of the easiest to start using. The downside with Coinbase and most other exchanges is that they offer a limited number of coins. In its case, Coinbase offers access to about 50 of the largest coins. I'm fine with that. Almost all of the coins I recommend in my trading research service Alpha Money Flow are available on Coinbase. It gives us access to the largest, most liquid coins, and that's where you want your money. What are your thoughts on Dogecoin? I'd rather buy oceanfront property in Arizona or the bridge in New York that guy keeps trying to sell me. In grade school, there was always a kid in the class who ruined field trips. There was always a class clown that got the whole class in trouble. Sometimes these kids grow up to do something good. But I won't put my hard-earned money on them. Dogecoin is the class clown. It gets all the attention, but it does nobody any good. The coin is backed by nothing more than a bunch of folks having some fun and investing in a hope and a prayer to some weird god. It gives a bad name to cryptos that are actually revolutionizing the markets. Buy the good ones... and enjoy the humor from the bad ones. How do you know when it's time to sell a crypto? This is a great question. It's one that I gave my readers a detailed report on recently. Here's my "I'm running out of space" answer: Sell half when you double your money, and then let the remainder ride until the real interest rate on the 10-year Treasury (that's the nominal rate minus the rate of inflation) turns positive. It's not the advice most people would give. That's good. See above. But let's be 100% crystal clear: the crypto boom is being fueled by trillions of dollars in dirt-cheap money. As long as rates are negative, the money will continue to flow. After that, things will start to slow down. It's the backbone of my entire investment thesis. It's not to say cryptos will suddenly crash when rates climb. They won't. But they will slow down, giving you a good chance to reassess what you own... and why. I do not use a trailing stop like I do for my equity positions. Cryptos are simply too volatile (and that DOES NOT mean risky) and the risk-reward structure too askew for traditional strategies. Aren't cryptos just like buying tulips during the tulip mania? Nope. At least not with the good cryptos. The tulip mania was complex - much more complex than how folks talk about it today. But it was largely caused by derivative contracts and the leverage that comes with them. With many of the contracts, nothing physical was backing them. They'd trade hands and few folks ever took delivery. The tulips were merely the symbol behind the speculation; the real speculation was finding a fella to sell your contracts to. If anything, it was more like the 2008 housing mess than what we're seeing with cryptos today. Again, good cryptos are actually backed by some utilitarian purpose. They're doing something and have some intrinsic value. Those are the ones you want, and there are plenty of them. Stick to those... and don't let unfounded comparisons keep you out of a strong moneymaking opportunity. The bottom line is this: Cryptocurrencies are not "widow and orphan stocks." They remain in their infancy. If that fits your risk tolerance (never invest more than you can afford to lose), then they're a great trade. They're red-hot and climbing higher. If you'd like more on my unique strategy or would like to learn how to get the details of my favorite crypto to own right now, click this link. Good investing, Andy | 
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