Have you been following my investment journey so far? I have been doing some semi-regular posts about how my investments are doing and what I am currently investing in. Most of the stuff I write about is informational, but I love the transparency of documenting my investments online too. Hopefully it also provides some insight into the world of cryptocurrency without having to dive in headfirst!
Ethereum Back On Top
While I have been diversifying my portfolio a lot recently, most of that was from profits I made from my initial Bitcoin purchase back in early 2014. In July we saw some crazy crypto action and with so much volatility I knew it was a great time to purchase again. At the time, Ethereum had dropped below $200 for the first time since it shot up to $400 from just $10 in a short time (Don't know what Ethereum is? Check out my Intro to Ethereum). Does it sound crazy to buy something dropping like a rock??
The 'Stache Is Nuts!
You may think "The 'Stache has gone nuts! Why would you buy something that is LOSING value?" The simple answer is, that is the BEST time to buy. Cryptocurrencies go up and down a lot, this should never stop you from investing. When the coin is in a dip then buy that dip and wait for it to go back up. My thought here was that Ethereum is the #2 cryptocurrency by far at this point and it will for sure go back above 200 so no matter what I will increase my investment.
So back to July... I purchased roughly 2 ETH through Coinbase (my preferred way to convert fiat at the moment) and paid just over $400 (this included the fees). As you can see from the screen shot I purchased on July 20th and just let it sit there for a month. Now about a month later we have seen an increase of about 77%! My 2 tiny ETH that I could barely rub together have now increased to $340 each for a total of $695.93, which means I have gained almost $300 in profit in 1 month from my initial $400 investment!
I could now withdraw this profit and sit around with my boring old USD, ORRRRRRR I can just leave it in crypto and watch my investment continue to rise leaving me the ability to buy more altcoins and support more projects and people I truly believe in. I think I will go with door number 2 Bob! Knowing when to make a purchase can be more then half the battle, but if things are looking like a blood bath then you know its time to BUY BUY BUY!
If you notice in the screenshot above, I have also sent $200 USD to my USD wallet on Coinbase so I can be ready to strike the next time something is down. It is part of a larger strategy of buying crypto every month, no matter the price. Investing as little as $50 doing this each month I think will pay off, but that is a story for another post!