Being interested in Cryptocurrencies from 2017 July and thinking about investing in different ICOs or Coins finally I made 1,5% of my networth investment in cryptocurrencies.
I exit my investment in 5 years or if any of coins will get 10X.
- I opened account at Kraken (ETH, BTC, LTC) and Bitfinex (IOTA, NEO, EOS)
- Did verification of corporate account in Kraken. (didn’t do the verification in bitfinex, because i did not deposit/withdraw fiat currencies there). Verification in Kraken was quite easy. Some general questions and documents, 2 days of waiting and verified. (though i do not recommend Kraken for the constantly crashing website, as well i do not recommend Bitfinex after reading this article)
- Deposited 1.5% of my networth. (amount not significant to fully lose, and a good lottery ticket)
- decided on portfolio structure:
- BTC 30% store of value. (gold)
- ETH 40% smart contracts, base currency for all other new services/currencies.
- LTC 15% strong leadership, common form of payment.
- MIOTA 5% coin for Internet of Things transactions.
- NEO 5% better version of Chinese Etherium
- EOS 5% just got a recommendation from friend who runs Currexy.com
The real portfolio ended up like this: (made some mistakes with currency pairs and/or exchanges. Be careful – write everything on paper before executing)
5. For tracking portfolio i setuped CryptoCompare (they do not have official App)
6. I created paper wallets (except EOS) and moved half of investment from exchange to paper wallet
7. My initial strategy was to hold it for 5 years or 10x, but after the bull rally after 7-9 from my investment, i decided that the volatility is too high here, and changed strategy to cash out half of coins (take back investment) and other half leave for 5 years.
Values of cryptos at the day of investing were 250M
For the BTC, it reached the highest price ever. I was waiting for BTC to go down for a long time. First i wanted to buy it at 3k (as i calculated that that 1% of Gold in the planet is equal to 1 BTC) then it was trading at 5.5k usd so i waited it to drop to 5k)
The side effects of investing in cryptos:
- there is some kind of paranoia while making paper wallets and writing them down. Article on other paranoias related to crypto
- even though I invested only 1.5% of my NW, I noticed that i spend 50% of my time at the computer, reading about Crypto and checking life portfolio.
December 10th. I started exiting my positions, because the market started flooding with fools money. And in my opinion the last fool will pay that. Not only i have read about people mortgaging their houses or selling cars to invest in bitcoin, but even from my circle I knew people who borrow money with huge interest to buy bitcoin or 14 year old kids investing in cryptos (it is not bad to invest in cryptos, but the portfolio should be in other asset classes as well).
So in 20 days, I have made 70% on my initial investment and added 1% of my networth. It may seem quite little, but stick to Warren Buffett’s rule ‘never lose the money’
I learned a lot doing real trading.
After closing IOTA positions, i do not understand why it is #4 currency. To transfer mIotas from paper wallet to Bitfinex took me 3 days and some hours of reading.
EOS #11 currency does not have paper wallet.
I know i might return to crypto assets when the market cools down. I would invest in platforms EOS, NEO, Cardano or something similar.
I do not recommend my friends to invest in crypto now. But if you do that, make a portfolio of 5 or more and do not use Kraken as I did and invest amount you can freely spend during night out. Do the account opening now – because it takes time or just use Revolut to purchase 3 main cryptos
I will return to cryptos after 80% crash which i believe will happen soon.
My prediction is that we will have a snowball effect when some of the currencies crashes. For example Bitconnect, which is a absolute scam (who can pay 1% interest a day?).
Bitconnect crashed. There was basically no effect on the market. Something scammy and not transparent is happening with Tether (crypto linked to USD, which was created by Bitfinex – biggest exchange in the world)