The most efficient way of joining the BitCoin ride for making profit

I've been sitting on this one for a while now because I wanted to verify my theory. Well, it seems like I am on to something here and its time to share.

Here is how I joined the BitCoin ride with low costs, somewhat lower risks, and if I'm right - with much bigger potential for a great profit. You are welcome to do the same, but needless to say I'm taking no responsibility. All I ask is that you buy me a beer if the advice below made you a millionaire :)

Just in case you haven't been around the last couple of months, here is a quick recap: BitCoin is a financial product, striving to be a currency, where one BitCoin is basically one large number that satisfies some mathematical conditions. BitCoin is both the definition of the mathematical algorithms used to define one "coin" and the protocol for verifying coins and transactions. I'm being very inaccurate here, but the basic gist of BitCoin is having virtual money that is transparent and verifiable through network consensus. Note how I'm only saying its a financial product and not a currency - this is because it doesn't yet satisfy the conditions of a proper currency; it does however being traded and respected, and it does have real-world value.

There is quite lot that can be said on BitCoin, and honestly it can drive very interesting discussions on economy, forming a trust and consensus, modern society and the Internet. Is it a bubble? can it still be influenced by big players like governments? does it have the potential of putting our entire economy at risk in the future? These questions are all important but not what I'm going to discuss here. Instead, I want to ignore all of that and consider BitCoin to be just a financial product that you can invest it (or bet on, as some would say). But when one BitCoin is worth over $1,000, it is a bit hard to invest in it in large numbers, needless to say the risk is also quite big.

Turns out there are more cryptocurrencies in play. They work in a way almost identical to BitCoin yet differ in various ways, usually in the algorithms used under the hood. If you haven't heard of NameCoin, PeerCoin and LiteCoin you should definitely check them out. LiteCoin for example is going to have 4 times more coins generated when mining is complete, and transactions with it take 4 times less time to process due to different algorithms that make up its core. This means it has all the benefits of BitCoin, and a few extra very important unique benefits of its own. All of that without any real disadvantage.

LiteCoin is the second most traded cryptocurrency. Looking at charts of previous months, it can also be seen how LiteCoin is gaining momentum much faster than BitCoin. It is clearly riding on the waves of BitCoin's success, but it seems people are realizing LiteCoin has great potential on its own as another cryptocurrency, maybe even a better one that BitCoin itself. Think silver and gold, where people realize silver has some important benefits over gold. I'm far from being an expert of a prophet, but to me it seems there is room for more than one such currency, and even though BitCoin is the one most noticeable - there may be better options as well. I have been tracking this for some time now, and LiteCoin seems like a very smart investment - pretty much like buying BitCoins over a year ago when it was just $30 a piece.

So, if you want to take a smart bet, I'd go with buying large amount of LiteCoins when they are still cheap instead of investing in pricey BitCoins. I think BitCoin's rate is still going to go up. But LiteCoin, to my opinion, is going to go up very rapidly and reach hundreds or even thousands of dollars a coin in the next few months, which gives it much better ROI ratio. What will happen next I don't know, but at least you were able to catch a good wave early on. And if it crashes - you may be able to get away with smaller cuts. Other cryptocurrencies could work as well, but I feel strongly towards LiteCoins.

I bought quite a few of them when it was just $10 each, and now its around $40 already. I'm planning to sell some of them at a certain high price to return the initial investment, and then go with the flow.

And don't forget buying me a beer when you cash it.