In this post, I reveal my entire crypto portfolio… all $41,443.90 of it!
To begin, let’s talk about portfolios. My crypto portfolio is less than 1% of my entire net worth. I consider buying into crypto as speculative investing, meaning it is high risk. When I put money into these portfolios, I get into the mindset that I may never ever get my money back — not even the principal amount that I put in. This is the mindset I have adopted and one you should too.
Crypto is speculative because it can switch from crazy high to crazy low overnight. If we would have all bought Bitcoin in 2009, we would be millionaires! But if you bought Doge at the top thinking it would take off, you probably lost all your money. Crypto is volatile by nature.
Since the inception of Bitcoin, cryptos have been doing pretty well. As they become more mainstream some will grow, some will crash, and most will probably disappear. The trick is figuring out which to invest in.
Bottom line, do I think you should invest in cryptocurrency? If you have the funds, are not in debt, and only invest the same amount you can afford to lose, then yes! Give it a shot. Make sure it does not exceed 10% of your net worth.
Out of my $41,443.90, how much is my principal, and how much is my gain? Looking at the history of my Coinbase account, the platform where I invest in crypto, my first ever purchase was on December 7th for $500 in Bitcoin. Then, it surged and I sold it all.
Since crypto is so speculative, I see it as gambling. I know some of you are cashing out your 401ks and going all-in with Ethereum and I think that’s crazy risky! It may pay off; you risk big you earn big, as the saying goes. You could also lose everything! Don’t do that!
This is my account over the past month. It was at $35k 30 days ago and is now at $41k. The fluctuations are crazy! This is exactly why I keep crypto…