1. How did you get into the entrepreneurial crypto world and make the sudden switch from a corporate job as an Institutional Analyst?
I have wanted to be an entrepreneur my entire life, so really it was just a matter of time. The main challenge was finding the right opportunity that was interesting, lucrative and had a growing market. Cryptocurrency and Blockchain have been a passion of mine for years, but until this year it wasn't considered sexy. Near the end of my time at RBC I began to work with the Blockchain team which is based in Singapore. Witnessing one of the worlds largest asset managers start to take this technology seriously was a real wake up call, giving me a gut feeling that the market was going to explode in popularity.
If there is one thing I have learned about starting a business, it's the importance of timing. Timing is everything. Finally after years of searching and endless hours of brainstorming, I found an opportunity that made sense. I was an expert with a credible background, and the market was on the brink of taking off. So I left my career to dive in head first.
2. How did you learn what to invest in and to build your own portfolio of cryptocurrencies?
This is probably one of the most common questions I get, because everyone wants to know how to get rich off of Crypto. I write about this often in my blog and strategy newsletter. The first thing I will point out is that portfolio construction is the most important thing to consider. You need to be well diversified with stocks, bonds, real estate, gold, cash AND Crypto. It sounds complicated but you can easily buy fractions of each asset class no matter how much or little you are investing.
When it comes to building your Crypto portfolio, start with the top 5 coins. Read the white papers, understand the technology, and actually try buying and selling a small amount of each to get a feel for the process. For most people, stop there. If you want to get into the lesser known, more speculative coins, you have a lot of work ahead of you. You need to understand the technology behind each coin, know how to assess a management team, and gauge the level of hype that is in the market. At this point, you are essentially a venture capitalist. I won't go into more detail here, but for those who are interested, they can get a copy of my free book that's coming out soon. Find it on www.cryptosource.ca.
3. A good/bad story that happened to you from this?
I load up my Instagram (@kevmatheson) with stories of travelling the world, making money trading Crypto from beaches and living the dream. But the reality is not always as great of a story. Last year I lived in the residences at a 5-star hotel, drove a 400hp BMW and bought new three-piece suits whenever I wanted. To become an entrepreneur, I moved out of downtown and into a room at my Dads place, bought a bus pass, and filled my cupboards with ramen noodles and Kraft Dinner.
Fortunately, after around 7 months I have hit a turning point where it will all pay off, but the ramp-up period felt like an eternity!
4. Do you have any advice to keep in mind when investing?
Yes. Rule #1, don't try too hard...you are not as smart as you think. I'm not calling anyone dumb, I apply this lesson to myself especially. If you think you have found the next best Crypto because you are an 'expert', and plan to pour all of your money into it (this is sadly common)...please don't. Diversification is so unbelievably important. Don't invest more money in Crypto than you can afford to lose because it is more akin to gambling than investing at this point.
5. What ventures are you currently working on in crypto/blockchain?
I am on the Board of Directors and executive team for a very large Cryptocurrency mining operation here in Canada. Our process for mining is unique for two reasons. First, we use advanced A.I. to dynamically change between which currencies we mine based on a host of ever-changing variables such as price momentum, profitability etc. We also have a proprietary technique for cooling our hardware so we can drastically increase machine efficiency both per machine and per square foot in our facility. The company name is Mercantile.ai and we will be going public in the coming months.
I am also a partner at a Blockchain consulting and Venture Capital firm. I help source clients and new investments while advising existing companies in our commercialization lab. If anyone reading this knows of corporations looking for advice or development work related to Blockchain, I would be highly grateful for a referral!
Specifically, on the VC side, people approach me with a lot of Blockchain deals and new ICO's, but I decline most of them. There are certainly some hidden gems in the market, but sadly a lot of people are just trying to cash in on the hype without a deep understanding of the industry. I look for companies that have a functioning product (even if it is in the beta stage), have raised capital in the past, and have a rock-solid management team. If those stars align, I would bring them into the lab for further financing, access to our team of developers, sales and marketing support and ongoing advisory services from our team and our network.