Updated: Oct 20, 2021
I started out in investing in 2017 because I heard about cryptocurrencies and started to research it on Reddit and the internet. It really interested me as digital money and how you can make transfers without a bank and all the other things you can do with it in the future such as smart contracts, gaming rewards, and mainly the potential for big gains on your investment. I did have a 401k with work but I was not actively managing any investments in that, just maxed it out and left it alone. I got in to cryptocurrencies only in the beginning and it is still my main interest, I have a few stocks but not much. When I started out I bought some Bitcoin, Ethereum, Litecoin, and XRP to start. I think those were the only ones available on Kraken and Coinbase at the time. It was Sept 2017 when I started, so the big bull run was just beginning, and I was so happy I was making lots of unrealized gains! Every coin had its big bull run and I changed all of my crypto to XRP at some point and it shot up to over $3 for a short while. Everyone was saying XRP will be $10 by next year, so I was HODLing! After it peaked over $3 it quickly dropped the next few weeks, and I had taken ZERO profits. I kept on HODLing like everyone said to do on Reddit, and bought more at $2, $1.5, $1, thinking it will bounce back. But it never did and I ended up being down about 90-95% on my total investment for 3 years. Only upside to this was writing off the losses on taxes for a few years and learning to be patient. It really was tough to keep believing in crypto at some point but I kept buying more when it was low. I was angry with myself for not taking profits those few weeks XRP reached all time highs.
In 2020 XRP and the rest of the crypto market finally started to bounce back, then SEC sued Ripple and XRP crashed again, I basically made no money on XRP at all, I finally stopped HODLing and sold it all at $0.25 cents and bought all Cardano at about $0.15. This turned out to be a good move and this one move made up most of my gains to date. After Cardano sort of peaked I sold most of it and got into Cosmo's tokens, after finding out about AKASH network. AKT is my biggest holding now and I also do a lot of liquidity pooling on Osmosis and Sifchain. I like the simplicity of just staking, LPing, and earning interest. It doesn‘t matter if its a bull market or bear market, you will still earn tokens at the same APR. All you have to do is keep compounding your interest (reinvesting your tokens) and wait for the prices to go up. For me when the prices are high I will take some profits, and when they are low I keep reinvesting. The staking rewards are pretty high on AKT and DVPN but will decrease every six months on most cosmos tokens. I do believe prices will go up a lot when the max supply in circulation is reached. I also believe Cosmos is a great network that is very undervalued. It has super fast transactions and super cheap fees, usually a few cents USD. I can’t stand the fees on Ethereum right now. The developers on Cosmos projects are also top notch.
Now most of my net worth is in crypto, any financial adviser would advise against this I am sure. I do not own any Bitcoin or Eth now though I think they are great I just don’t see as much upside to them in terms of gains. I am mostly going for small to mid size market cap cryptos. I like the high risk and high rewards because I want to change life for me and my family. Many regular people like me have been able to make life changing money from investing so I know I can too. I can play it safe and not invest and I will do just fine and still have a decent life, but I want to make sure my kids and my kid‘s kids will have nothing to worry about financially. Inflation is going crazy right now and I think crypto is a good shield from that with finite supplies of most tokens. There are so many new ways to make money in crypto now and all we have to do is participate, such as staking, LP, collecting airdrops, and mining.
Things I would recommend new investors in crypto or anything else is, only invest what you can afford to lose of course (like the money you don’t need to pay bills or to buy food), learn to be very patient (I have made the mistake hundreds of times of selling too soon or FOMO buying at the top), and do your research well. If you don’t have time to research, follow good crypto investors on Twitter or read compiled Wikipedias on Reddit, usually someone has done the research already. Also nowadays a lot of successful investments have come by following what‘s hot on social media and what is trending on google. I don’t own any Meme coins or stocks, but a lot of people have done really well with those. I don’t ever trade crypto but I do take profits now when my portfolio is reaching new highs and buy when there is a big dip. Usually when it reaches new highs it does drop back down quite a bit. I think anyone can invest if they follow these rules. I don’t know anything about TA or reading charts, but I don’t think you have to know that to succeed. I think the main thing is to research an investment well and believe in it even when it’s down so you don’t panic sell and allow others to buy it for cheap. When you truly believe in a project and know it will succeed, then you will see the lows as opportunities to buy more. In my case with XRP I just got burned too many times to keep holding it, but I think eventually it will do well. That is all, this is not financial advice, just things I have learned from my time in investing.