Investing In Cryptocurrency!

You guess it... the fact that I am writing this blog entry goes to show that investing is not a bed of roses and if you are reading this, I hope that by penning down my experiences and thoughts, you will not walk the same journey as me and suffer monetary losses. But even if I am writing this, I want to say that there are always two sides to a coin, the yin and the yang, the heaven and the hell... While this experience did not turn out for me, there are many others who have had fairy tales ending and became very successful in crypto investment. Just not my cup of soup, at least for now... who knows, this might turn out to be my biggest regrets.

When I first took a serious look at investing and trading, I was "sold" the fairy tales of why didn't I do this earlier??? If money is out in the streets, everyone would be doing the same thing and we no longer have to work eventually! This is only half true... I still stand by my earlier post that everyone should learn about investing and start as soon as they can, perhaps not so much of trading but in my opinion, investing is a definite yes. Through investing, every investor hopes to achieve capital gains and if money can work for you and you get more money then more money can get you more money, money makes money.

The truth is... it is not that easy. Like everything that we do, investing takes time and time is the only thing in investment that is worth waiting. I dipped my hands into cryptocurrency during the "crypto hype" and got burnt a hole in the pocket. Though a small allocation, a loss is still a loss.

If you asked me if I have regretted investing in crypto, my answer is a yes and no. In crypto investing, one has to be extremely savvy and if you are new to investing, it is better to hands off this volatile instrument. Unlike stocks, you are not buying into a business but basically buying into the hype of the future money. I am pretty certain that blockchain (like the internet during the 80s) will formulate many things of the future but perhaps it is through these irregularities that makes crypto a hype. A hype that is hard to resist for the average Joe. 

"My friends made a lot of money in crypto investing!" Yes, there is no doubt, a sword can be used for attacking and defending, it is a double edge sword. If you know how to swing a sword and not injured yourself, you can be formidable, likewise, if you are new in sword swing, a simple slash can injure your wrist easily. A car can only be useful if you know how to drive and maneuver. To me, cryptocurrency is something that is of the near future with a lot of hype driven by greed and fear. Greed and fear is certainly not good for any form of investment. 

Am I still holding onto crypto in my investment portfolio? YES! only a small portion and not enough to cause me sleepless nights. I did it so as not to miss the "crypto run", IF there is ever going to be a run. It is say that a crypto winter lasts for 4 years and IF the winter ends, we know all know that spring is just around the corner.

A few mistakes/regrets which I have made along with this crypto journey:

1) Trying to get friends and relatives to invest in crypto while on a FOMO hype. As I am typing this, some of them are losing money as well, the difference being, most of them didn't fully understand what they were signing up for and went along with me because I "sold" them the crypto dream.

2) Bought a few shit coins that are completely worthless, I could have better spent the money on BTC or ETH but I went for shit.

3) Trading should be a better choice as opposed to investing. There is nothing to invest on as there are no assets. The only investment is hoping for more greenhorns to jump onboard and selling them them the hype so as to raise the supply and demand.

4) Don't read into shitty crypto news. They are written to sell you shit which you will eventually buy if you read too much into it.

5) Have an exit plan. If you have profited, run. Don't let greed consume you.

I am in a dilemma as I am writing this because like I have said, in 10 - 20 years time when blockchain takes off and when it becomes a tool that is commonly use, I might slap myself in the face for writing this but only time will tell.

For the record, I invested about SGD10K into crypto and as of this posting, I lost about 50%.

About The Contributor

Ben is not financially trained. He is not a certified financial planner and he does not sell any insurance or investment plans. He is not financially motivated by any entities to produce this blog. He just want his friends to know more about money management and not have anyone fall between the social cracks. Nope, he is not a millionaire though he aims to be financially free before 50 years old.