Don't be fooled by your cryptocurrency gains... you're not a great investor!
I don't mean to offend anyone by the title of this post. The one thing that you've done right is buy cryptocurrency at the right time. Yes, we all wish we'd bought more sooner. And you may wish you'd bought others before they skyrocketed. Regardless, you're probably bragging about how much you've made whether in coin, fiat or percent.
You may have made millions. If you have, you should sell some and store it in (GASP) fiat currency. Why? Because you aren't a great investor. You recognized a new technology before it took off, before it hit the mainstream. That doesn't mean you have a clue about what you're doing or how to invest.
OK, you bought some altcoins with your Bitcoin profits and they really took off. So you must think you were a great investor and picked a winner. Um, just about every cryptocurrency went up in that time. Being there was enough. Yes, I'm guilty of this but to avoid thinking of it as an investment, I use Coin Stats as a game. I benchmark my portfolio against Bitcoin. I'm kicking its ass right now. Is it because I'm great at picking cryptocurrency investments. Maybe but I won't let that go to my head. It's more likely I decided to diversify more Bitcoin into altcoins at the right time and found some that have done well.
For some historical perspective, people who start investing during booms often lose it all when the inevitable bust comes. (More on this later.) This happened during the Dotcom Bubble. It happened in the Roaring 20's. It's happened many times in real estate, most recently ending in 2007/2008. By the way, if you started investing in the stock market in 2008 and have big gains, you are likewise not a great investor. Everything has gone up. It was hard to pick a loser.
Now that we have that out of the way, I have an ask of you (and I'll be writing more about this later). Don't buy hype. Don't merely speculate. Research the people and companies behind the coins you buy. Buy Bitcoin or altcoins because of the technology behind them. Buy them because of the business model behind them. Buy them because of the team behind them. Educate yourself before you buy. Read the whitepaper. Read the research/opinions about the team, tech and busienss model... not the research that's purely price speculation.
Oh, and don't play the game that people like so much of tearing each other and the industry down. Promote cryptocurrencies and blockchains in a positive way.
Hi @cryptochain Great writeup share, Love how genuine you are. Thumbs Up Will continue to follow your post :)
Thanks, @joyfulmind! I read a lot about cryptocurrency and politics and find the online back-and-forth often lacks substance and any desire for knowledge. This is my attempt to change that :-)
Looking forward to hearing more about your coffee journey!
Hi @cryptochain, Thank you I would love to read more of your findings in your perspective :)
And here catch my vote :) See ya
Sounds to me like STALE thinking. Why sell crypto for FIAT?? I thought that the Revolution is REPLACING fiat with crypto. Why use BANKSTERS' fiat that comes with tax liability attached?
Why not use PEOPLE's money such as Crypto and gold? FOR EVERYTHING. Especially since the crypto marketcap is likely to SKYROCKET over the next year, and with it the price of all cryptocurrencies.
Right now, they may be able to buy a Lambo but they can't buy real estate in the US. And probably not buy food or most other essentials. Cashing out some of their cryptocurrency gains for fiat would ensure financial security.
I remember the stock prices people were assuming would come to fruition in 2000. Most of them were wrong. A lot of people lost their best shot at being set for life... or getting a house... or whatever else they would have done trading their stock options for fiat. Even worse, some of them were left with nothing but a big tax liability.
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