Cryptocurrencies – highly unstable and unpredictable stocks that don’t pay dividends based on blockchain technology. Did I dabble in crypto before? You’re God damn right I did. Am I still dabbling in it? Absolutely. Did I make a profit? Kinda
Let me explain
My journey with cryptocurrencies has been a never ending struggle of coming in at the wrong time and leaving just before a huge spike. Christ, the amount of heartache I endured. Do I think about the fact that had I invested the $2000 I had after graduating from CSUSB in 2012 into bitcoin that I’d be a millionaire right now? I try not to. Do I think about the fact that if I put in $500 into Ripple back in 2015 that I’d be a millionaire right now? Nope. I refuse.
Do I kick myself? No I don’t and here’s why – because there’s no skill involved. Only luck. I mean technically there are tell-tale signs that there might be increases and dips but unless you spend a ton of time on a myriad of crypto blogs and sites, it’s all luck and hearsay. There are hundreds of different cryptocurrencies and each one has backers telling you that this will be the next big one! They all say the same thing.
How to invest wisely
First off, the cardinal rule – don’t invest more than you’re prepared to lose. Just like gambling. Second off, read read read your sources. Study up on them and talk to other people. Spend some time on reddit and read up what people are saying about whatever coin you’re interested in.
Bigger coins, like Bitcoin, have more traction and therefore have a higher value. More people are using it. Whereas Dogecoin doesn’t have much traction at all and has been hovering around .003 US dollars for quite some time.
You probably heard of the huge crypto or bitcoin spike that happened around December of 2017. All cryptocurrencies were at their highest they had ever been. Bitcoin was almost at $20,000 while it was just under $950 earlier that year. Litecoin and Etherium also saw tremendous spikes of over 400%. Notice the tense though – they all came down. Granted, they’re still higher than they were a year ago so if you had invested some money at the beginning of last year, you would still be in the green. It’s the people who bought Bitcoin when it was at $17,000 and climbing – those are the ones that are hurting now.
There have indeed been people who have become millionaires by buying crypto currencies and selling them at the right time. This is a VERY real thing and it requires VERY little effort. All it requires is timing and an understanding of when these things will occur.
Things to Keep in Mind
If you make a ton of money in profit after selling your Bitcoin at a great price, this counts as income and you will have to pay taxes on it. If you made $10 in profit, you don’t really have to worry about it. The IRS isn’t going to ream you over $10. However, if you make upwards of $2000 or so in profit, you better declare that on your taxes because that will be detectable and you could get audited.
In short, dabbling in Cryptocurrencies is fun! If you don’t put your life savings into it, you can enjoy the feeling of seeing the spikes and take part in timing your sales right to make a bit of profit.
How Do I Buy Bitcoin?
If you’re interested, Coinbase is a great place to start. You can currently buy Bitcoin, Litecoin, Etherium and Bitcoin Cash really easily. Use the link below to get started with Coinbase. It’s my Coinbase affiliate link so if you sign up with that link and buy and/or sell at least $100 of currency, we BOTH get $10 for free. That’s money in your pocket!