Unless you’re going to do something, I mean, really do something about it, like tell me how to take part in it! Sure, everybody knows by now that Tesla stock is exploding or that Bitcoin had just reached its highest at over 40k, but why, and most importantly, how do people like you and me get into it? And, are there any alternatives to these two stocks?
To understand why these stocks are taking off, you need to first understand the word disruptive technology. Investopedia defines disruptive technology as: an innovation that significantly alters the way that consumers, industries, or businesses operate.
Tesla brings to us some of the most advanced EVs ( electric vehicles ) right now, it is the de-facto leader at the moment for developing smart autonomous cars that are powered completely by electricity. Again, the technology of self-driving cars running completely out of battery powers – without gasoline! Raise your hand if you want a self-driving car that doesn’t eat gas! So, you see – an innovation that significantly alters the way that consumers, industries, or businesses operate.
Imagine a world, where you can transfer money instantly, to family and friends anywhere. Imagine now, that it costs you a fraction of what it costs you now, even pennies compare to the fees of MoneyGram, Western Union, or other forms of transfers. Imagine also that you can go anywhere in the world, make a purchase, and pay in a new type of currency that doesn’t require any exchange fees. No expensive trusted institutions such as banks in between, and yet you’re still able exchange values with anyone, throughout the world! That’s the power of cryptocurrency and blockchain technology, and since Bitcoin was the first to come out and with only limited number that can be made, its value continues to surge!
With Bitcoin at 40k and Tesla over $800 a share, how can ordinary people like you and me afford to get in on it? Well, you can, there are alternative coins that you can buy within the cryptocurrency market such as Ethereum, but you can also ride the BTC wave through purchase of diversified stock funds called ETF (exchanged traded funds). I will give you three ETF that I follow in this article, that you should put on your radar. Then, I will tell you about something that is better and more affordable than Tesla – NIO. I mean, that’s not my word, those were the word of Li Bing, the CEO of NIO, recorded live on NIO day on January 9th, 2021.
Riding The Bitcoin Wave Through ETFs
While you may not have $40k to spare, you certainly can afford BLOK, BLCN, and KOIN, which are only $41.60, $43.43, and $38.85 respectively. These ETFs provide you exposure to many companies that are either directly involved in the mining of Bitcoins and cryptocurrencies, or investing in or using Blockchain technology. Take BLOK for example, amongst its top ten holdings is Square, PayPal Holdings, Galaxy Digital Holdings, and Intercontinental Exchange. Square the Point of Sales company known for its product that provides many small businesses ability to seamlessly handle payment through mobile devices, has its own Crypto Currency team. Starting this year in 2021, PayPal will allow its PayPal cash users to buy and sell 4 different Cryptocurrency through its Venmo app. Galaxy Digital holding is a digital asset management company, while Intercontinental Exchange is the company that actually owns the New York Stock Exchange! If you drill down into finer details, you’ll also find fast growing mining companies like Marathon Patent, Riot Blockchain, Canaan Inc, and even more established stable companies such as NVIDIA among its allocation.
Aside from their yearly return rate (a whopping 88% for BLOK, 58% for BLCN, and 31% for KOIN) what differentiates these 3 ETF? Well, there is their expense ratios – but of course, at 0.70% or 0.007 that’s hardly anything to complain about, for the return that’s 5x that of the S&P 500 ETF (SPY).
These three ETF have different exposure and risk level, and in the stock market, high return is equated to higher risks. The risk of an ETF however, is significantly much less than that of any single company or asset holding!
The advantage of an ETF is that someone else who is a professional will be balancing and managing the portfolio for you. So breath easy! You don’t have to sit at the computer screen and worry about any single stock or coin, going up and down!
To better illustrate the idea of risk and exposure, let’s take a look a the asset allocation of BLOK vs BLCN as reported by Fidelity.
BLOK ETF | 88% Annual Return
BLCN ETF | 57% Annual Return
What really sets these ETF apart is the allocation according to Market Capitalization, BLOK is exposed to more micro and small cap companies – small companies grow faster, have higher risks which are potentially rewarded with higher returns. Whichever ETF you choose, you are guaranteed to have exposure to blockchain technology and Bitcoin, without of course, the scary risks that comes with directly investing in BTC and altcoins.
Ok, “now, what about my Tesla alternative?” You asked.., watch this video below first, then skip down to the rest of the article!
While everyone was hyped about Tesla, poor me was getting in on NIO. In May of 2020, it was only $3.00, now while everyone is still hyped about Tesla, NIO has rocketed to $59.00, and will soon reach $100! My bet is that it’ll probably reach there sometime by March! Well, at least if that’s not the case, I’ll lose a bet over and a wager of lobster dinner with a friend who bets that Tesla would reach $1,000 first by then, both stocks are looking really great and to be honest, neither of us will lose because we have shares in both. At the moment, while NIO is affordable, no one should let the opportunity slip – in my opinion, it is the Tesla of China! Not only that, soon it will rival Tesla. Did I not mention that Li Bing, its CEO already claims the latest NIO sedan ET7, which was just unveiled, is far superior to anything Tesla has out right now? Mileage over 621 on a single charge! The onboard supercomputer called ADAM is “seven times faster than Tesla’s FSD computers.” NAD (NIO Autonomous Driving) system is equipped with advanced lidar technologies, eleven 8MP cameras, 4 NVIDIA SoC system with 48 CPU cores capable of executing 1016 TOPS – that’s 1,016 trillion operations per second! By the way, NVIDIA stock is also going to go up on Monday morning because of this partnership, which if you buy BLOK ETF, you’ll also get exposure to – it all ties together!
Now I got you excited about NIO and Blockchain ETFs you want to know how you can buy these stocks, right? Ok, you can use my Webull referall link to open your own account – https://act.webull.com/vi/Q6dHsj4SpMkd/aty/inviteUs/ and start investing today!
Don’t forget to subscribe to my stock alert if you haven’t already to get more news. You can also follow me on Facebook at https://www.facebook.com/groups/webullandchill.
Most importantly, remember, this is not a trading advice. Just information to supplement your own research. And, as always, invest only with money you are comfortable risking!
Good luck!
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