Mark Dukas is a cryptocurrency trader and a portfolio investments consultant. He started investing in crypto assets in 2014 and now holds a portfolio of Bitcoin, NEO, and a few alt coins. Before his trading career, Mark Dukas was a certified personal trainer. He worked with countless people and helped them meet their fitness goals. However, he moved to the field of sales in 2004 and later obtained his MBA in 2009.
Although he does not work in this industry any longer, he retained Pinnacle Award status as one of the top national reps at his company. His past successes are one of the main reasons why a lot of new investors in Charlotte work alongside Mark Dukas.
What attracted you to digital currency and when?
One day, I was browsing the internet reading about precious metals, I stumbled upon an article about Bitcoin. The article discussed how the founder remains anonymous and how Bitcoin could be one of the next revolutionary payment systems. It also mentioned how it was comparable to gold 2.0. I traded metals after the financial crisis of 2008, so I became interested. After a few more months of research, I realized this was something I could not put away, so I dedicated my career to Crypto assets.
Most people remember how Netflix replaced Blockbuster. Similarly, a lot of retailers continue to be replaced by Amazon. All those trends go to show that online outlets are the future of almost all industries. So, when I saw something that could move our assets to an online platform, I was very excited. I still believe that Bitcoin, or something similar, will be the primary international unit of exchange one day.
What’s your digital currency investment strategy?
Digital currencies have something called an ICO. It functions a lot like the initial public offering for corporations that offer stocks. In this case, however, it is known as the “Initial Coin Offering.” During the ICO, new coins will be presented alongside any benefits that they hold over the competition. Most of the time, sadly, new coins never make it past the launch. After all, Bitcoin holds most of the market power. Nonetheless, there are instances where new digital currencies will spark interest.
My strategy is based on looking for those few coins that are investment-worthy. A lot of research and time is spent in this process. I make sure to keep my risk-to-reward ratio in line. Once the coins are in my portfolio, it is a waiting game. I look for market changes and see how the market reacts to them. If the value grows, I hold on to the asset. If the value starts dropping, I sell it. The trades, however, take place over a more extended period. Meaning, I will never sell an asset because it had a bad month.
My rule of thumb is not to get emotional and let the charts and fundamentals dictate my positions. That way, I can be sure that either the loss is imminent or get preferred tax treatment for my gains!
What do you see in the future for Bitcoin?
Bitcoin started in 2017 with a value of almost $1,000 per coin. Towards the end of that year, however, it went up to nearly $20,000 per coin. Now [at time of publication], it is back to $8,800. With such radical changes happening so fast, it is almost impossible to make an accurate forecast. I see people claiming that Bitcoin will go up again and reach as much as $250,000 per coin. Then again, I see others saying that it will become obsolete.
Based on Lindy’s Law I do not see Bitcoin or Crypto asserts going away. Bitcoins has the most substantial network effect, and I see it reaching a higher price point versus failing.
How do you see your business growing?
I think referrals will continue to be my primary source of new clients. Most people that I work with are beginners. After a while, they become confident enough to invest and trade without me. Regardless, a lot of them send their friends and family to me. That cycle keeps my business open.
What’s one piece of advice you can share with others?
Diversification is as important as the amount of capital that you have. Many people that I work with are unfamiliar with the concept for crypto. In basic terms, diversification stands for buying multiple assets instead of one.
Consider the following scenario. Amazon is a company whose stock has been performing very well during the last year. If someone were to spend all their capital on Amazon, however, they are not diversifying their portfolios and are too involved in one asset class.
Once someone’s entire financial power lies behind a single asset, they are incredibly vulnerable. If Amazon’s CEO were to be involved in a scandal, the stock value would plummet. Consequently, the person who invested all their capital in Amazon would lose a big chunk of it. Therefore, one must always look for various opportunities.
Every portfolio should have a decent share of governmental or municipal bonds, small company stocks, and large company holdings. These markets are a subject to various trends, and the risk must be spread over multiple industries. Thus, a drop-in value in one sector will not affect the entire portfolio!