Happy Friday everyone. On October 1st, I read an article by Sabeel over at Roadmap 2 Retire. He bought shares of a Cryptocurrency Mining Company. As an investor in altcoins, this company sounded interesting to me. I decided to take a chance and on October 2nd I bought 1,000 shares of Hive Blockchain Technologies, ticker (PRELF). I paid $1.58 per share for a total cash allocation of $1,585.
Here’s a link to Sabeels original Hive Blockchain Technology post. I just visited Sabeel’s site today and noticed that he sold his shares for a very impressive 213% ROI. Not a bad return at all. Sabeel held the stock for only 30 days. He didn’t sell all of his stock. Sabeel sold 500 shares and kept 500 shares. His cost basis on the remaining shares is $0 dollars. With his remaining shares, he now has unlimited upside with no real downside risk. Sure he could lose the remaining investment, but he’s already covered his original cash outlay. It’s a risk worth taking in my opinion.
I love this idea. In fact, I just did the same thing. I sold 400 shares of Hive Blockchain Technology today for $5.04 per share, totaling $2,010. I pocketed $425 in profit and I still own 600 shares PRELF stock. I’m going to let the remaining 600 shares ride. I believe this stock is on fire because of all the hype building up to the Bitcoin Segwit2x hard fork, which is expected sometime around November 17th. HIVE Blockchain Technologies stock has gone from $1.58 to $5.04 in 31 days.
Hive Blockchain Technologies is an interesting company to invest in for those who don;t want to own coins, but do want to be a part of this new market. Where this stock will be in 60 days in unknown, but it’s been on fire lately. Here’s the portal I logged into this morning. Gotta love increases like this one.
Last month, I wrote a post about the Segwit2x hard fork. I plan on buying Bitcoin sometime between now and November 17th. I’m doing this to earn free coins. At the time of the hard fork. every Bitcoin owned with translate into an equal amount of the new B2X Bitcoin Segwit2x coin. Since my post on October 26th, Bitcoin has gone nuts. As of this writing, Bitcoin is valued at $7,305. Bitcoin’s price was $5.754 on October 26th. This is a $1,551 increase in less than 8-days! And, it’s not stopping. Many are predicting $10,000 by December. I believe we will see $10,000 this year. But, I also believe we’ll see a sizable correction back to the $5,000s by Q2 2018.
Bx2 coin futures are also going nuts. On October 26th, BX2 coin futures traded at $1,010. B2x value shot all the way up to $2,247 this morning. This is a $1,237 increase in less than 8-days. The value of the coin has settled a bit. As of this writing, B2X value is $1,596.
The rise of both of these coins will help support the continued stock price rise of HIVE Blockchain Technologies. I believe this stock will go up past $10 before November 17th. However, there will be some dips along the way. There could be some nice dips and buying opportunities over the next 2-weeks. If it does, I’ll sell 50% of my remaining shares and hold on the rest. If Bitcoin ever becomes the new currency king, these mining shares will reward me exponentially. If Bitcoin fizzles and dies, no worries. I’ve already secured my gains in a non-taxable Roth account.
With regards to my Bitcoin purchase strategy for this hard fork, I’m in a holding pattern. I have open by orders in with a limit of $6,500. In retrospect, I should’ve bought the coins on October 26th. I was confident that Bitcoin would tank prior to the next hard fork. But it seems that enthusiasm about this fork is really high. I might not be able to buy as cheaply as I’d hoped. I should end up with 3 Bitcoin by the time of the fork. I’ll invest $11k of new money and I’ll sell my Ethereum and Litecoin, to make up the remaining money needed for the transaction? I may also sell my NEO coins.
It’s not too late to take advantage of the Bitcoin Segwit2x Hard Fork. You need to have a funded brokerage account to buy Bitcoin. Funding can take up to a week. If you want to enter this market, I suggest setting all of you accounts up now and moving funds into the account. I highly recommend Coinbase for beginners. It’s easy to navigate and it’s the most trusted altcoin broker out there. If you sign-up now Coinbase is offering free Bitcoin. The best part is that we both get it. Sign-up and fund an account with more than $100 and you and I will both get $10 in free Bitcoin! Just use this link to join.