The Exodus Wallet Investing Strategy
There was a mention last week by jsnip4 on YouTube that one of his viewers had an "Exodus wallet investing strategy". What is this, and how can it be used by others? This is what I will be explaining today.
Exodus is a multi-coin wallet downloadable at https://www.exodus.io/releases/. The crypto currency coins available to be stored in the wallet are: Aragon (ANT), Augur (REP), Bancor (BNT), Basic Attention Token (BAT), Bitcoin (BTC), Bitcoin Cash (BCH), Bitcoin Gold (BTG), Civic (CVC), District0x (DNT), Edgeless (EDG), EOS (EOS), Ethereum (ETH), Ethereum Classic (ETC), FirstBlood (1ST), FunFair (FUN), Gnosis (GNO), Golem (GNT), iExec RLC (RLC), Litecoin (LTC), Matchpool (GUP), Numeraire (NMR), OmiseGo (OMG), Salt (SALT), Status (SNT), WeTrust (TRST), Wings (WINGS), and 0x (ZRX). (Check the Exodus page to see all coins listed.)
The advantage of using Exodus over other, individualized desktop computer wallets is:
1.) No downloading of each individual blockchain (BTC is past 149GB in size). Exodus is "light" and only uses about 12 MB on your desktop computer.
2.) Using the built-in Shapeshift (https://shapeshift.io/#/coins) to exchange altcoin for altcoin without having to go to an exchange, which helps newbies
3.) Graphical interface that shows your crypto currency portfolio by each altcoin
4.) Sending and Receiving altcoins to other wallets, exchanges, and alt-exchanges is easy
5.) You keep your private keys on your desktop, not online in an online wallet
6.) Expected growth with even more altcoins added in the future (see their roadmap - http://support.exodus.io/article/96-exodus-wallet-roadmap).
So if a new investor to crypto currencies wanted to be extremely simple, they would only invest in the crypto currencies that are available on the Exodus wallet. This would mean not being able to join in on several Initial Coin Offerings, but Exodus has been rather speedy on adding new altcoins just after their ICOs - SALT and EOS, for example.
What is the strategy? I am not a financial planner, this is not investing advice, do your own due diligence before buying, holding, or selling any securities or properties. I did not hear jsnip4 mention what the actual strategy used by his listener and the Exodus wallet. But I can hazard a guess based upon what I have done. This is what I have done with several altcoins with the Exodus wallet. Do your own research and strategy.
A strategy using the Exodus wallet:
1.) Choose a number of altcoins you want to invest in, for whatever reason. Start with the lowest-priced one in the Exodus wallet. For example, I will choose FunFair (FUN), Bitcoin Cash (BCH), Ethereum (ETH), and Bitcoin (BTC).
2.) Use an online exchange to get Bitcoin (BTC) or Ethereum (ETH) into your Exodus wallet. You can do both from either Coinbase (https://www.coinbase.com/) or Gemini (https://gemini.com/).
3.) Use the built-in ShapeShift exchange to change BTC or ETH into the other altcoins available. Here's the meat of the strategy: start at the lowest-priced altcoin and work your way up to having as many crypto currencies as you wish in the Exodus wallet. How many coins per crypto? Well, at the time of this writing you would be a "Bitcoin millionaire" if you had 88.229 Bitcoins (BTC). Round that up to 100. Starting with the lowest-priced coin in our example, FunFair (FUN), at $0.099981, you would exchange 0.0147333 ETH ($15.67) for 100 FUN ($10.04).
One caveat: Exodus has high minimums on the built-in exchange (typically ~0.16 ETH, or ~$17.14). A more experienced crypto currency user knows how to use an exchange or alt-exchange, even Shapeshift, to Send and Receive cheaper than the built-in exchange on the wallet. Or when an altcoin is "unavailable" on the Exodus exchange. So be aware you will lose some money in the exchange transaction.
4.) Do this exchange for the other altcoins, going up in expense as you exchange them. If you can't afford 100 altcoins, go for another standard - $100.00 of altcoin, for instance (especially for the expensive BTC). Fill in each altcoin that you want to on Exodus this way, from the cheapest to the most expensive. As you get more income for investment, fill in your favorite altcoins to reach 100 coins, with the leftover going to the next expensive altcoin to get 100 coins, etc. Or change your strategy to investing another way.
This is what I believe newbies could do to use the Exodus wallet to invest in crypto currencies with minimal knowledge. As Exodus comes out with new altcoins in new versions, use the "100 or $100" minimum and fill-in strategy. The purpose of this strategy is to have "skin in the game" on a number of altcoins, going for the least-expensive ones first, where you might have the greatest return. You also don't have to worry about "missing out" on an altcoin if you initially dismissed it with your research, only to have it go 10x or more in the following months. You have a minimum investment in the altcoin (100 coins or $100.00), and can sit back and concentrate on putting new money on the best-returning altcoins in the Exodus wallet. If the price of the altcoin ever drops below your initial investment cost ($0.099981 in the above example for FunFair), add another 100 coins at the lower price.
Obviously I am not going into when to sell your altcoins. Do your own decision-making in that need.
All images owned by Exodus Movement Inc.