I Was Immediately Excited About the Potential of Cryptocurrencies – Investor and Trader Florian Grummes Shares His Way of Success
“The only principle that works if you want to make money in any market is ‘buy low and sell high,’” says Florian (Florzinho) Grummes, CEO at Midas Touch Consulting.
Florian Grummes is precious metals and cryptocurrencies expert, analyst and investor. The specialist will speak at Blockchain & Bitcoin Conference Malta and discuss cryptocurrency trading. In the interview, Florian (Florzinho) Grummes shared his success story. The expert told how he had first decided to invest in crypto and discussed his way of finding investment possibilities.
Interviewer: Blockchain & Bitcoin Conference Malta (BCM)
Respondent: Florian Grummes (FG)
BCM: Why did you personally decide to invest in crypto resources? How did you manage to attract the first investor?
FG: Being a student of the “Austrian school of economics,” I was immediately excited about the potential that cryptocurrencies and especially Bitcoin envisioned in early 2013. Now, we have more than 1,600 different coins and tokens all competing for the best free-market money. I think the outcome will be “simply awesome” for human mankind. If the free market can figure out what is the best form of money, we will all have a better life down the road.
BCM: How do you find successful businesses, lucrative ideas, and investment possibilities?
FG: Mainly by being a contrarian. The only principle that works if you want to make money in any market is “buy low and sell high.” I avoid any hype in the mainstream and search for investments that are totally out of fashion or are so progressive (as cryptos are) that most people don’t even want to understand them.
BCM: Tell us please about your Midas Touch Gold Model analysis for project assessment. Can it be used to investigate the crypto market?
FG: The Midas Touch Gold Model is a systematic model to analyze the gold market. It was developed based on the 17 years experience in the gold market, and it collects data points from technical, sentimental and fundamental perspectives that can all be quantified and measured with back tested formulas. Although the model is based on a great variety of underlying data, it is suitable for drawing up a comprehensive, compact and lucid analysis in a relatively short matter of time.
Right now it cannot be used to investigate the crypto market. The main reason is that there are still not enough data points for the young crypto markets to develop something similar. For example, Bitcoin futures are trading for just about seven months and the data available is not enough to draw results with a statistical evidence.
BCM: Your company is focused on investments in precious metals and cryptocurrencies. What’s the reason for this choice? In your opinion, how will these segments develop?
FG: Precious metals and cryptocurrencies are the only two alternative asset classes that represent freedom. Gold is the most conservative asset class having survived the last 5,000 years+. Cryptos are the most progressive one – cutting edge technology and with the power to disrupt our financial system and society.
They both represent the antidote to the centralistic socialistic fiat money systems that unfortunately still rule our planet. I believe fiat money is the main reason for all problems on our planet – it’s the wrong money system which enables a few to become utterly rich while the masses have to work hard to get some of those out if thin air produced paper bills. I don’t know the future, but I think with these two asset classes you will do much better than with bonds or a saving account. Generally, one should have 10-25% in physical precious metals and 1-10% in cryptos.
BCM: How do you think, which cryptocurrency is currently the best choice to invest in? Why?
FG: I don’t think there is “the best.” We like quite a few and I am always amazed by all these different ideas. It´s very hard or basically impossible to say which ones will be there in 5-10 years and which ones will fail. I use a holistic approach based on technical analysis together with a thorough and in depth research of the projects, the founders and the potential in the future.
BCM: Please describe main ICO trends, which projects do you find successful and why?
FG: There are many fast-changing trends in this super dynamic sector. First, quite a lot of ICO projects are in the starting blocks and are just waiting for the next bull market to go public.
Second, institutional investors are also preparing to enter the blockchain market. The question is whether they are waiting for the first wave of security tokens, or they are willing to invest into the less regulated and therefore much more risky utility tokens.
Third, early ICO investors from 2016/2017 now want to see progress on their initial investment and the projects. Therefore, they might keep their checkbooks closed for new projects. At the same time, there are quite a lot of people who made good money on ICOs. They often stick together in groups and use a so called mastermind group approach and research to figure out new promising ICOs.
BCM: In brief: what will your presentation at Blockchain & Bitcoin Malta be dedicated to?
FG: I will give my best to talk about how to successfully invest and trade in these volatile cryptocurrency markets. We will do some technical analysis together and figure out which are the best strategies for swing trader and longer-term investors. We will cover some basic psychological rules as well, as this is the most difficult part to master.
Meet the expert at the conference and learn more about cryptocurrency trading!