What’s up guys! This is Tai Zen again. I got my buddy the doctor with me. We are driving through the Westside, Louisiana right now, and we’re headed toward Florida, make a little roll trip here with the doctor here.
In this video, I wanna share with you guys the 3 ways that you can invest into the DAO Hub because I’d been getting a lot of question from people about how to invest into it. And there’re 3 ways that my friends and I figured out how to invest into the DAO Hub.
The first way is to invest into it directly with the Ether that you have, that’s one way. The second way is to invest into it by using the Bitcoin that you have and going to an exchange like Poloniex and buy the Ether from there and then come back and buy the DAO tokens that way.
The third way to invest into the DAO Hub is to use the combination of the first 2 methods, use the portion of the Ethers that you’ve already had in your portfolio, and use some of the Bitcoin that you have in your portfolio and converse them into Ethers. So those are 3 different ways that our team figured out that you can invest in the DAO tokens sale here.
Anyway, those are 3 different ways that you guys can invest into the DAO tokens. Now I’m getting a lot of questions on exactly how to purchase the DAO tokens. The best way to do that is to go to the Slock.its Youtube channel and they got some good videos on how to purchase the DAO tokens.
Anyway, what happens if you guys can use those videos there, they do a much better job, they’re explaining it. If you guys notice that most of the stuff on my Youtube channel, I talk about Cryptocurrency and investment strategies that are relevant even a month from now, 2 months from now, a year from now.
I don’t wanna get into making those tutorials on how to tutorials, because they’re always relevant for that month or that event, and after it’s done, those videos are no longer relevant. In the past, when I first got into invest in the Cryptocurrencies, I made a bunch of video on how to purchase, like NXT and things like that, and then after a month or 2, those videos are no longer relevant because they updated their software and so.
So I’m gonna make some Cryptocurrency investing videos, I wanna spend some time making videos that I consider them to be evergreen, where they will last a few years. So those are different ways, guys. Now I want to talk about the advantages and disadvantages of each method that you decide to use to invest into the DAO token sales, so that you guys will know it now and into the future when they have a token sale available.
So look at the first one where you use the Ethereum that you have in your current portfolio. I’m just going to make up a number so that it’s relevant to anybody. So let say that you originally invested 1 Bitcoin into the Ethereum ICO or the Ethereum presale back in the summer, July 2014.
If you invested 1 Bitcoin back then, the 2000 Ethers that you have, it’s now worth about 24 Ethers. Right now, at the time I’m making this video, around 24, that means that you have about 44 Bitcoins-worth from your initial investment of 1 Bitcoin. So you make a thousand percent return.
Hopefully, you took some profits out because remember guys, you don’t make money, any type of investments until you exit the investment. So no matter how much you have on the table, you can say that you have 5000% profit, or 15X, sometimes people call 15x return, which means 5000 times, every 100% profit is called 1X, so the 15X return is 5000% profit. So you can say that you have a 5000% profit, but if you never took it out of the market, then it does not really profit until you exit the trade or investment.
So remember that’s the reason why in our investment program, whenever you hear me or anybody in my team talks about investing in Cryptocurrencies, we always stress very hard on the exit. Because the exit is what protects your investment, and it also gives you the profit. Exiting at the right time is not when you get in, it’s when you exit that protects your money and makes you profit.
So let just say that you had 1 Bitcoin and 2000 Ethers, and let just say that at some points, you cash out at 10 mils a bit. Let just say you cash 10 Bitcoins out, and you made a 10X return or 1000% profit already, and you still have 1000 Ethers left in your portfolio. And let just say that you plan on using those 1000 Ethers that you have left to put into the DAO tokens sale.
If you use half of that, let just say 500 of those Ethers that you have and you put it in the DAO tokens, and it’s gonna give you 100 tokens for every Ether that you sent to them. The advantage of using that is that you bought those Ethers for 30 cents. If you go out to the open market right now, and you try to buy 5000 Ethers, it will cost you $10 each.
So 500 times $10 will be $5000, so you have to put up about $5000 to purchase 500 Ethers. Meanwhile, you have 1000 Ethers in your portfolio already that you pay 30 cents each for, so the way that I would look at it, and I’m not gonna tell you which method to use, so that’s up to you. I only share the data, the information I have, the ultimate decision still has to be up to you.
So don’t expect me or the doctor or Eric G or Leonfu.com or JW, anybody on my team to tell you what to do. We only share the information with you, the facts that we have, and then you have to make the ultimate decision on what action you wanna take. So the advantage of using your own Ethers is that you bought it for 30 cents, and now you can put into that.
The other advance is that when you hold on to the Ethers, you’re not doing anything right now, they’re just sitting there, you’re waiting for the price to go up, but you’re just sitting there. The other advantage is that when you use the others you have in your current portfolio and your current inventory, let say in the future when the DAO tokens do not go up and down as you have anticipated, then you can always send it back and convert it back into the Ethers that you previously had.
So you can convert it into DAO tokens or Ethers, back and forth without any problems. So those are some advantages you have. So if you don’t have a lot of money and you’ve already had Ethers in your portfolio, that’s a good strategy to use.
It just simply uses the Ethers that you have in your inventory. Now the disadvantage of using the Ethers that you have in your current inventory is that when you go to the DAO, let just say all the token holders, they vote to give half of that money to, let say for the Slock.its team to build their software, hardware, the building, so now you only have half of your tokens because the other half has been given to the Slock.it team to work on the project.
At that point, if you say hey, I wanna convert those back into Ethers, you only have half of the Ethers you’ve already put in. So that’s the disadvantage. The other disadvantage is that if the price of the Ethers goes up, right now it’s about $10, and let just say that they go all the way up to $15 and you wanna cash out your Ethers for some reasons.
It’s gonna be hard to do cause it’s stuck in the DAO tokens. Let just say that if Slock.it does really well, then your money is stuck in Slock.it and you don’t wanna take it out cause you’re earning a residual payout from the Slock.it team and you may not want to give that up. So those are the 2 disadvantages of using the Ethers that you have in your portfolio.
Let take a look at the second method now. Let say you have 1 Bitcoin and you want to dedicate it toward investing into the DAO token sale, the advantage of using the Bitcoin to invest into the DAO tokens is that you take 1 Bitcoin that you have to go to the Poloniex or Shapeshift.io and convert that Bitcoin into 1 Bitcoin worth of Ethers.
And then you take those Ethers, go and buy the DAO tokens with that. The advantage of that is that you keep your current supply or inventory that you have, the Ethers in your portfolio. So the advantage when you use your own Bitcoin, you got to keep your Ethereum in your portfolio, and as the price increases, you gotta cash it out or do whatever you want with the Ethers.
The second thing is that if you compare the stability and the volatility of the price of Ethers versus the price of Bitcoin, Bitcoin has pretty much leveled out at around the low to mid $400. And even if it starts to go back up, it’s gonna go up at a very steady pace whereas the price of the Ethers is still volatile at the moment. The advantage is that if you use the Bitcoins, the price is more stable.
So if you calculate your portfolio that hey, I’m gonna invest with $450, then it’s very stable. If you do it with the Ethers, right now it’s worth $10 and as soon as you put it in the DAO tokens, next week or next month after the token sale is over, and people started trading the value, the Ethers might jump to $20 or $50 and you gonna kick yourself in the butt, you’re gonna regret using up the Ethers inventory in your portfolio.
It’s an emotional thing. The other thing is that whenever the price of the DAO tokens goes up, the advantage you have is that when they go up and you wanna cash out, you can and not affect your current Ether inventory. For example, you go in there and you see what the DAO tokens are doing and what performance that they have, and it’s not producing the profit that you want, you can cash it out without any problem.
Or if it’s growing, you can let it go up and let it sit there, and you can still use your Ethers in your portfolio for something else. So those are some of the things that you might wanna consider. Now the third method where you use both portions of Ethers and a portion of Bitcoin in your inventory or portfolio to invest into the DAO tokens is that it allows you more flexibility and you can be a little bit more balanced.
Because sometimes, you might be holding on to the quantity or the number of Ethers that you hold on, you might not want to give it up. But at the same time, you might wanna take advantage of the fact that you only pay 30 cents for each ether and you might wanna use a portion of that to put into the DAO token sale, and then use some of the Bitcoins that you have to buy some more Ethers.
So those are some of the advantages and disadvantages that I wanna share with you guys so that you guys can make a more informed decision on whether to use all the Ethers in your inventory or Bitcoin in your inventory or a combination of Bitcoin and Ethers. If you’re one of the people that got in with like 5, 10, 20 Bitcoins during the Ethereum crowd sale, especially if you have like 20,000, 50,000 Ethers or something like that, I would just use a portion of that and put it into the DAO Hub because if it turns another 10X, or 20X or 50X, it won’t matter.
Here’s another option guys that I want you guys to consider, if you have some Ethers, you have a good size amount of Ethers in your portfolio, and you also have a good sign amount of Bitcoins in your portfolio, but you really don’t want to use the Ethers temporarily, you might wanna use it for the DAO tokens later on, here are something that you can do also.
You can go ahead and use the Ethers that you currently have and then put it into the DAO tokens, and then later on, when the price of Bitcoin is on the way up, right now it’s on an uptrend, as the price of Bitcoin goes up, you can take your Bitcoins, and then be able to buy more Ethers with it, and wait for the price of Bitcoins to goes up and drop in price in the Ethereum, and when it drops back down, you can come back and buy at the lower cost.
Just a few weeks ago before they had the DAO token sale, the Ethers you can buy them like 16 mils a bit or 17 mils a bit. That’s 0.016 (16 mils a bit), and 0.017 (17 mils a bit). Again, I use the nomination of mil a few Bitcoins simply because all the Cryptocurrencies I invest in, I have to buy it with Bitcoin.
So I keep it easy so I can track it in my head, so I only use the term mil a bit, or I nominate it in the term of ‘Bitcoin’ just so you guys understand. So you can use some of the Bitcoins that you get and hold it, use the current inventory Ethers that you have and wait until the price of Bitcoins goes up and the price of Ethers goes down, and then jump back in and refill, let say you use 1000 of Ethers, just wait until it goes back down to 16, 17, 18 mil a bit, and then jump back in and buy 1000 of those Ethers back, and then put it back into your portfolio.
Cause right now as I’m speaking, they’ve already raised over $20 million worth of Ethers for the DAO token. That means there’ve been a lot of people that are buying up the Ethers to put in the DAO tokens. So they’re gonna be demands for when the price is going up for the Ethers.
So that’s something to keep in mind guys. I hope you guys like this video. If you guys like it, give me a thumbs up so I’ll know to make more videos like this.
If you guys don’t like it, give me a thumbs down. It’s not gonna hurt my feeling, I got a thick skin. And that way lets me know not to make more videos.
If you have any questions or comments on future videos, let me know. And if you have any friends or family that are looking to invest into Cryptocurrencies, and want a simple explanation of what they are and how to invest in them, make sure that you share this channel with them. We’re getting a bunch of subscribers every day so that’s really cool.
I’m glad that the information I’m sharing with you guys and the information that Leon Fu, my good friend, Leonfu.com. That’s what we call him. Don’t waste your time going to the website or anything.
He’s like the Warren Buffet of Cryptocurrency investing. We call him the Oracle of Cryptocurrencies. We’re really happy guys that we’re able to share this information with you guys so that you guys make a life-changing amount of profits from this Cryptocurrency boom.
It always tickles us to death whenever we hear one of our listeners make some good profits out of what we share with the guys. So make sure you leave in a comment, what percentage profit that you guys are making. That way you know it’ll tickle us to death and encourage us to continue making these videos with you guys.
So see you guys in the next video. How’s a long trip, we got about another 7 hours of drive time to Pensacola, Florida guys. So there will be more videos coming, see you guys in the next one.