Crypto Chaos for a Brighter Future
On this episode of The Wiser Crypto Investor Podcast, Casey Smith and Robert Swarthout talk about crypto hackers, Coinbase, the launch of a new ETF, and the Ripple v. SEC lawsuit. They also give advice on the percentage of cryptocurrency you should have in a wealth building portfolio.
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SUMMARY:
Hackers in the News
Recently, hackers drained around 200 million from a crypto start up. They were able to hack into the system due to a bug in the code. Unfortunately, that allowed the hackers to steal the money. This hasn’t been the first time and will not be the last by any means.
If you often invest in startups, understand the risk associated with them. This could happen to anyone so beware of cryptos that are not yet mainstream.
How do we protect ourselves against hackers?
Unfortunately, the short answer is you can’t fully protect yourself from hackers. Cryptocurrency is a risky sector, so try to do your due diligence. If you have coding knowledge and the ability to access the code, you could look for bugs to prevent an attack.
Remember even if a website looks nice, it doesn’t mean it is fully protected. Find someone you trust to guide you in this sector, and be careful!
Coinbase, the SEC, & Congress
Most cryptos have been vetted on Coinbase and undergo a rigorous process to be listed. Recently, the SEC sued eight different tokens for saying they are securities. Coinbase backed the coins and was able to avoid being sued. Because of this action by the SEC, the problem has been brought to Congress. It is slowly moving in Congress as they are being educated more about cryptocurrency. Interestingly, there will be a vote on CBDCs in September. This will show major progress!
Ripple v. SEC Lawsuit
The Ripple v. SEC Lawsuit is one of the biggest SEC cases since the 1940s and will play a huge role in the future of cryptocurrency. If the SEC wins, there will be ramifications on the entire industry. It would change the way crypto is used in the U.S. as they would be regulated exchanges.
Crypto in a Wealth Building Portfolio
You may be asking yourself, what percentage of cryptocurrency should I have in my portfolio? The answer depends on your interest. If you are interested in cryptos, you should invest over one percent. Five percent is a good percentage as it is relatively aggressive, and you will notice slight changes to your portfolio. It is not recommended to go above 10% because the risk is much higher.
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TIMESTAMPS:
0:00 Intro
0:25 Hackers in the News
4:09 How do we protect ourselves from hackers?
10:00 Schwab Launching New ETF
17:42 Coinbase, the SEC, & Congress
25:03 Ripple v. SEC Lawsuit
28:08 Crypto in a Wealth Building Portfolio
LINKS:
Learn more about Casey Smith and connect with him on Twitter.
Learn more about Robert Swarthout.