This journey started in Jan 2018. I’ll be honest. I did not understand much about the underlying fundamentals of cryptocurrencies. But I wanted to get some skin in the game and force myself to figure things out along the way. Hence, as a proportion of my portfolio, I was cautious not to put in too much to begin with. I just happily set aside pockets of $200 each time, all in ETH up till $3k. A friend who was very much into crypto advised me that if there’s one crypto that I should look out for, it had to be ETH.
It wasn’t the best time to invest in crypto – that’s for sure. At that time, both BTC and ETH just dropped from their all-time highs and it was uncertain whether they would recover. Over the next two to three years, they never did, and I saw my portfolio dropped to as low as 30% of my capital.
But all this while, I was just focusing my efforts and attention on stocks investing and this was my version of risky alternative investment (amongst others) that I was happy to keep in there and see where it goes. It was only until the rally that started late last year, where I started seeing my portfolio grow beyond my capital that it really got my attention all over again.
I was getting giddy seeing my portfolio hitting 2x at the end of 2020 and 6x in Feb 2021. There was that short tumble to 5x in Mar, where I thought to recoup some of my capital first. I eventually held on and my portfolio hovered there for a bit. And then it suddenly shot its way up to about 14x in early May. I can see why “investing” in cryptos can make people go giddy. The volatility and potential returns, especially for early investors (of which I do not consider myself as one) can be very alluring. Compared to all the efforts I have put in to learn more about companies and make tough decisions on which stocks to invest it, cryptos really make themselves so appealing for those who are looking to get rich quickly.
I also started doing some of those quizzes up on Coinbase, and was handsomely rewarded with various altcoins just for completing them. All in, it came up to about $30 worth, and they too shot up together with the rally. Very small positions in XLM, MKR, COMP, EOS, CGLD, GRT, NU, and FORTH, all of which was mostly trading my time for it while I was running errands.
All in, my portfolio has since dropped to about 10x for me in recent weeks, and I let go about 50% of my portfolio, putting it in USDC meanwhile as I look for opportunities to go back into the dip. What’s this means is that I have about $12k worth of play money to start putting in pockets of $200 again, without even touching my capital.
With this amount of money invested now, it has grown to be quite a sizeable chunk of my portfolio. And this means that I should start taking it seriously, even if I had not done so earlier. I am more motivated to learn more the fundamentals and recently have chatted with like-minded individuals more frequently about it.
Then I realise that the larger public, and those who were crazy about it 4-5 years ago (including me) had nary a clue what it was all about. There’s an entire vocabulary and system structure to learn, from proof-of-work to proof-of-stake, and I don’t think I have even scratched the surface yet. From what little I know, it’s quite early days and we ought to learn more about this technology while putting some money in. Otherwise, we will just be taken for a ride without knowing where we are heading towards.
For those of you thinking of getting started, these are good resource places to start:
As a final note, I just want to put this on record that I’m not writing this to boast my crypto returns. Admittedly, it has been a lot more better than what I’m seeing in investing in stocks, but that’s still no excuse to bite more than one can chew. If anything, across all the other riskier investments (like overseas property crowdfunding and investing in businesses) that are under my belt, this one paid off, but honestly, it just about broke even for me. Take a calculated approach aligned to one’s risk profile and one can sleep peacefully every night without have to worry to much about where the market will be going. How has your crypto journey been?