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Should I invest in Bitcoin as a food-delivery rider?

Before reading further, there are some facts you should know:

  • You don’t have to buy a whole Bitcoin. That’s too much if you merely earn. You can buy 0.1 BTC, or even 0.01 BTC as a start.
  • If you invested $100 ten years ago, as of 17 December 2020, you would get: $1,270 for Apple stock, or $600 for Google stock, or $160 for Gold, or $28.8mil for Bitcoin.
  • AloRide accepts Bitcoin as a payment method.

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Bitcoin has done it again — the cryptocurrency topped $20,000 Wednesday to reach its second record in three weeks and its highest level since 2017. The digital currency has been on a tear this year and is now up more than 180%, driven in part by new institutional support and low interest rates stemming from Covid-19.

The world is in a very special place now

20% of all dollars in existence were printed this year alone. The Wall Street stampede is coming to Bitcoin precisely because they can see the turbulence that’s coming.

Bitcoin believers see it surging even further. Galaxy Digital CEO Michael Novogratz, a longtime cryptocurrency bull, sees bitcoin skyrocketing to as much as $55,000 or $60,000 by the end of next year in a continuation of its epic rally.

Tyler and Cameron Winklevoss, also early bitcoin investors and co-founders of Gemini, a crypto-exchange, think the currency could someday hit $500,000 as more people use it as a hedge for inflation instead of gold.

But for a majority of investors, financial planners are hesitant to advise putting a large chunk of a portfolio into bitcoin.

“It’s critically important to understand the risks associated with it,” said certified financial planner Douglas Boneparth, founder and president of Bone Fide Wealth in New York, adding that bitcoin is a highly speculative asset despite encouraging headlines.

“You don’t need to look too far back in time to see how volatile it can be,” said Boneparth, who is also a member of the CNBC Advisor Council.

Use play money

At AloRide, we understand the financial situation with our dear renters – some are food-delivery riders. To avoid being too exposed to Bitcoin’s wild volatility, while still being able to grasp its huge potential, we suggest the following:

  1. Investment amount:
    • If you are really tight on money, have to count on day-to-day pay cheque, maybe just buy $100 in Bitcoin, forget about it for 1-5 years. Think about it as buying a lottery ticket.
    • If you have some savings, try to put 5% to 15% of your net worth in Bitcoin to hedge inflation risk. Buy the same amount monthly for 6 months until you hit the goal (aka. Dollar-cost-averaging).
    • Do not invest more than you can emotionally take. It’s normal for Bitcoin to drop 50% from its peak. Even if Bitcoin hits zero, the loss should not bring you into serious trouble.
  2. Just buy the real Bitcoin:
    • Do not leverage. Just buy Bitcoin as it is, hold it for a few years.
    • Do not buy altcoins. Just stick to the real Bitcoin, not paper Bitcoin, not Bitcoin Cash/Gold/Vault. Many altcoins are scams and without real expertise, it’s might be hard for you to recognise those scams.
  3. Security: If you have more than $10,000 in Bitcoin, store your precious bitcoins in hardware wallets. Example: Ledger Nano S, Trezor. Do not let others know how much BTC you have.
  4. Only buy Bitcoin from regulated exchanges. Example: Coinbase, CoinHako, Paypal (in 2021), the upcoming DBS Digital Exchange, Gemini.

Rent a motorbike with AloRide today. Check out our catalog at https://aloride.com/catalog.

Also, you may want to check out our another post: Motorcycle COE predictions – why we think it will keep rising

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