Up until recently I had never bothered with Cryptos as I thought they were a “Fad”.
But in February 2021, I finally took the plunge with my first investment in crypto currencies.
Two to be exact. I use the word “investment” lightly as I don’t feel like my crypto portfolio is an investment in the sense of the word. To me, Cryptos are still the unknown, the wild west of investing if you will. But there is obviously something going on with almost a $1 trillion market cap with Bitcoin.
I’ve stayed out of Cryptos in the past, mainly because I consider myself a conservative investor rather than a trader or gambler. However I made a decision for my first investment in Crypto, to invest a (relatively) small amount of capital into two Crypto Currencies, namely Polkadot (DOT) and Cardano (ADA).
I bought these two Cryptos as a long-shot gamble. Yes, that’s right, just like Vegas 🙂
Why Not Bitcoin for My First Investment in Crypto?
“Why not Bitcoin” you may ask? Well, call me crazy, but I think I missed the boat with Bitcoin. The opportunity to buy it at $20 or $30 with the hope it will go to $1m has long since passed.
Yes I could still buy it at $50k, with the hope it will go to $1m, but even if it did, it’s still only a 20x increase, and that in itself is a very long shot.
I know you may laugh, but Crypto is still a very untested, volatile market (in my opinion) which is still too risky for a “serious investment”.
Remember back in 2017 when Bitcoin was at $15k? Then a few months later in 2018 it was down at $3k? That right there is too volatile for my taste.
So, I decided to go with DOT & ADA for a few reasons;
Technically they are both superior to Bitcoin. Rather than try to explain it here, take a look at this link which gives a good overview of DOT, & this gives the same on ADA. But as far as investment in crypto goes, I think these have more potential.
Bitcoin, although the obvious mammoth of Cryptos, is limited in numbers (obviously a good thing for the price) but very slow to trade generally. It has a lot of flaws that may or may not matter in the long run.
Both DOT & ADA Cryptos have shot from nothing to number 4 & 5 on the Crypto list by trade volume and market capitalization in just the last couple of years.
My “Vegas bet” albeit probably 1,000,000,000:1 odds, is this; What if, just what if, in a billion to one shot, current bitcoin investors saw how “clunky” Bitcoin was, and decided to pull money out of Bitcoin and put it in to DOT and/or ADA instead? What would that do to the price if just “some” of the $900+ billion currently invested in Bitcoin, moved to an investment in Crypto in these currencies?
Something like this is where it might start perhaps? Dubai crypto fund says to dump $750m worth of ‘pretty useless’ Bitcoin & Buy Cardano & Polkadot Instead.
Huge “if” and most unlikely, but picking 400 DOT and 1000 ADA up at £25 & £00.961p respectively is worth a punt in my estimation.
That’s my whole “Investment in Crypto Strategy” right now in a nutshell. I’m sure there are some of you out there that could school me in this sector, but for now, I’ll just leave this here and enjoy watching what happens.
I recently started using Kraken for trading Crypto, and I LOVE IT!
Deposits from my bank in the UK show up there in seconds, and no hassle whatsoever. VERY low commissions, & placing orders from my phone or the web is dead easy, so I definitely suggest taking a look at them if you didn’t already. Before I had used Coinbase a bit, just to test, but their interface just felt kind of old & clunky, plus their commissions are quite high now it seems.
Visit Kraken here and take a look if you ever decide to trade Cryptos. It’s easier than you might think.
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2 thoughts on “My First Investment in Crypto Currencies”
Greetings, I have also recently placed a part of my portfolio on cryptocurrencies (BTC and ADA), but I share your misgivings. I decided to bet on these because I see a trend towards these currencies and due to inflation concerns. But I like your point about internal pressures between cryptocurrencies.
Anyhow, why did you strikethrough the Kraken links? Are you not using it anylonger?
It’ll be interesting to see what happens with DOT & ADA. Not complaining at the moment though.
I actually didn’t strikethrough the Kraken links, still loving them! Very easy to use and no problems. Looks like some kind of font issue, should be fixed now.