Investing in Cryptocurrency- Part 2

CASH KID

What's up with cryptocurrency? Do you know enough about this new-age digital currency that never rests? Find out more about why my generation needs to understand this financial concept in part 2 of "What is Cryptocurrency?" on the Cash Kid podcast! Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

“I really wish I would have started investing in the stock market at your age and learning the stock market, because I didn't start learning about it until I was just graduated from college.”

Welcome back to episode 9 season 2 of the Cash Kid Podcast. Whether you're listening from Amazon Music, Apple Podcasts, Spotify, the cashkidpodcast website or wherever you like to listen from, we’re glad you are here!

Today, we are jumping right back into part 2 of our discussion on Cryptocurrency. If you haven’t already, be sure and listen to part 1 first.

There is so much confusion and unknown on this topic, we decided to split it into two episodes. Did you know that cryptocurrency trading is open 24/7 365 days a year? The market never closes! What’s the future of cryptocurrency? What is Bitcoin? And what should my generation know about investing in this new-age currency? Those answers and more coming up. The Cash Kid Podcast is underway!

Intro tease:

So you’ve got some cash. Maybe from an allowance, or that money your grandma gave you for your 7th birthday. Here you go, sweetie. Thanks, Grandma.

Whatever it is, what are you going to do with it? Spend it, hide it away… or maybe invest it? Let’s start learning how to make that money grow.

Time to learn how to be a cash kid.

Joining us again today is Mr. Grant Newell who is an entrepreneur and a financial professional. He is the co-founder and CEO of Abundant X Inc, Amana X royalties and Abundant X Investments, LLC.

As the CEO of AbundantX, Grant Newell has been at the forefront of optimizing accounting efficiencies, devising cutting-edge tax strategies, exploring innovative investing, and promoting financial education.

Let’s jump back into our discussion from the previous episode.

The Cash Kid

Okay, so where do you see cryptocurrency going in the future?

Grant Newall

So the government has actually already started creating their own digital currency. And so what I think will happen in the future with cryptocurrency, especially because each country has seen how successful Bitcoin and Ethereum have been in the market. And usually how it works is the government's want to get in on the action. They don't want to they don't want to miss out. And so my thoughts on it is that the governments will come in, and each country will have their own cryptocurrency. Kind of like how, you know, each country has their own physical currency, currently, and I think we'll end up venturing into that it'll be a little bit easier to transact with our own currencies. And as a result, I think it will have some downward effect on the larger currencies currently. Unless the government comes in and says, Hey, we're we're going to join with Bitcoin or join with Ethereum in which could happen as well. They can adopt those cryptocurrencies as their main currency for the country. So there's kind of two options, I think the governments have figured out that, that it's not going away that cryptocurrency is going to be a thing moving forward. And it's just going to be about whether they want to create their own or they want to adopt one of the mainstream ones as you know, their form of currency for the country.

The Cash Kid

So now a lot of people hear the term Bitcoin a lot, but what exactly is Bitcoin?

Grant Newall

So it is one form of cryptocurrency that, like I kind of explained to earlier, it's decentralized. So it is not regulated by anybody. There is no one authority that rules over it. It is all on the blockchain, which is just kind of a fancy way of if you think of Legos, they stack on top of each other and they get stronger and stronger as If you build on top of them, and once you plug in a Lego on top of another one, it locks it in. And that's what bitcoin does is every time somebody trades, buys a Bitcoin and sells a Bitcoin, it creates a new block. And they just stack on top of each other, since there's no central authority for it.

The Cash Kid

Are there other cryptos besides Bitcoin?

Grant Newall

Yes, yeah, so there's lots and lots of cryptocurrencies. You know it for some people, they'll try and find the next Bitcoin or next Ethereum. I try and stay away from that. It's, it's a little bit of a guessing game at that point. So I try and stick to investing in the main two, which is Ethereum and Bitcoin, just because trying to guess the winner is really difficult. And you'll lose more than you win in that game. So I try and trade the charts for the large ones and stay away from, you know, all the little ones that anybody can make.

The Cash Kid

Yeah, so what are you investing in? Exactly? When you invest in a Bitcoin or type of currency? Like, what are you trying to look for in that company?

Grant Newall

Um, so when it comes to currencies, I'm really, you know, it's different from the stock market, because in the stock market, you're investing in a company and the products that they make, and the way that they run their business, you're investing in those sorts of things, when it comes to currencies, you're really investing in the worth of that currency against anything else. And so with Bitcoin and Ethereum, I strictly look at charts, and where it's at on the four-hour and daily charts. And then if it's at a low area, I'll buy if it's at a high area, I'll sell. And, you know, some of it also has to do with news as well, some people like Elon Musk, if he says he's buying Bitcoin, it's really it's usually going to go up. If he says he's selling it, it's usually going to go down. So keeping an eye out on the news, and what main people are saying, and then paying attention to the charts, because like I was saying, it's a little bit different than the stock market. So you can't really base it off of the actual coin, themselves. You're basing it off of the value on the charts.

The Cash Kid

Yeah, I can remember a friend or an adult telling me this. But there was a soccer player and he was supposed to, ah, after the game, he is supposed to represent Pepsi. And he goes, no drink water. And after that, everybody thought that since he was a really famous soccer player, everybody thought that the company wasn't going to do well. And so they started selling, and then everything just started going down. They eventually regained. But that just kind of reminded me when we talked about how news affects things, and you can definitely do stuff like that. So, um, what do you feel my generation needs to know about cryptocurrency and how it's going to affect our financial investing options.

Grant Newall

So I think the best thing that your generation can do is just keep an eye on the news like you were saying and continue to learn charts. But I think the biggest thing that, you know, your generation can learn is, you know, from an early early age, learning charts, and why they move the way they do. Because if you can put those two together, investing really becomes a game of patience, waiting for certain things to get to certain places. And then those moves that happen, you'll catch them. And so for you guys, I really wish I would have started investing in the stock market at your age and learning the stock market, because I didn't start learning about it until I was just graduated from college. So I'm definitely excited that you are learning about this so early on, and you will have a tremendous, tremendous advantage later on in life. Because the great part about trading is every year, every month, every week, you become better at trading and investing. And so the extra years that you guys get to have in learning about this so early is going to be such an incredible advantage that you'll have later on in life that you guys are really going to be thankful for.

The Cash Kid

So, Mr. Newell, we appreciate your time and expertise. Thank you for joining us on the Cash Kid Podcast in boosting the financial knowledge of fellow cash kids everywhere.

Grant Newall

Thank you for having me.

Wow, I learned so much from Grant. It’s great to have experts like him to help us understand terms like this.

Cash Kids, we have more terms, discussions, and skills to learn. Thank you for tuning in to this episode. If you have a question, please, reach out to me at [email protected] and I’ll answer it in a future episode. You can also reach out via our website at cashkidpodcast.com.

Follow us on Instagram and wherever you are listening, leave a review! We need your help reaching a larger audience and building the financial skills of the next generation.

Cash Kid, out!

Disclaimer:

The information presented represents the views and opinions of the guests. This show does not intend to provide personal investment advice through this podcast. This content has been made for informational and educational purposes only. To make a full and informed investment decision, we advise you to speak with a financial advisor and for kids, definitely your parents first before investing.