Recently, I did what any long-term focused index investment financial enthusiast will tell you NOT to do – I entered the highly volatile world of Bitcoin and cryptocurrencies as investment. Let’s talk about why I did it, what strategy I’m using (if you call it strategy) and how it’s going so far.
Buyer beware!
One thing I want to emphasize, is that investing in Bitcoin and other cryptocurrencies is highly volatile, risky, and unpredictable! Before I started, I understood that any cash I put into crypto, could have the possibility of going to $0 value in an instant.
I only invested money I could afford to lose, and look at it as more of a hobby, than an investment strategy. If I end up making money, great! And if I end up losing it all, it was a fun experiment!
MAKE SURE YOU HAVE SUBSTANTIAL SAVINGS OUTSIDE OF YOUR CRYPTOCURRENCY INVESTMENTS!!!
What got me into it
Over the last few years, I’ve seen documentaries and read articles on the phenomenon that is Bitcoin and blockchain technology. In 2015, I thought about purchasing some Bitcoin, but thought the process was too difficult to understand at the time. Near the end of 2017, like many others, I was kicking myself for not investing in Bitcoin when the price was $500 – $700, when it was now reaching $20,000 CDN.
During October 2017, my brother was talking about how he had invested a bit of money into cryptocurrencies, and I was immediately swept up in the concept again. The blockchain technology itself (which Bitcoin and all other cryptocurrencies are based on) is something that I believe is a game changer, and something I want to be a part of.
I wanted in!
How I started
In October 2017, I decided to invest $1,750 of spare money into Bitcoin and other cryptocurrencies! Following some instructions from my brother, I figured out how to do the following:
- Move Canadian funds from my Tangerine bank account to an exchange that would allow my to buy Bitcoin with my Canadian funds.
- Buy Bitcoin, and send it to an exchange that would allow me to purchase additional cryptocurrencies.
- Download a software wallet onto my computer, and send my newly acquired cryptocurrencies to my software wallet for storage.
My starting strategy
My plan at the beginning was to, like any investment, diversify my portfolio between a few key assets, and sit back and hold. I decided I would start initially invested into what were, at the time, the 3 most well known cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC).
I started with a portfolio worth $1,750, split between the 3:
But after a while, I became enamored with the whole world of cryptocurrency and the hundreds of different coins I could invest in, each with their own utility, and expanded my portfolio.
What happened from there
As I got more interested, read more about crypto, and saw my investments increase. I added a little bit more Canadian money into my portfolio ($300 CDN), and diversified into many more currencies. I bought a hardware wallet (a Ledger Nano S) to better secure my investment, and I watched my portfolio triple!
Where does that leave me today?
There has been a lot of ups and downs in my crypto portfolio over the last few months, and the value will probably look drastically different by the time I post this article. But at the moment, I’m on my way to quadrupling my $2,050 investment:
As you can see, I’ve moved from 3 different cryptocurrencies into 10 different currencies. And there have been others along the way. My portfolio overall has seen a 232% increase!
What’s next?
Look for a monthly update on my cryptocurrency portfolio. It’s been a roller coaster so far, and I think it will continue to be so. I’ve had a lot of fun along the way, even at the times when my portfolio loses hundreds of dollars overnight (…well maybe not those times actually). At the moment though, I’m planning to stay in, and see where it takes me. I’m ready to HODL!
Interested in some guides on how to get started in bitcoin and cryptocurrency? Let me know by email (info@letstalkaboutmoney.ca) or in the comments below, and if there is interest I’ll put some together.