I’m down about $90K from all-time highs of Bitcoin and Ethereum. As such I think it’s an appropriate time to talk about the risks of investing in cryptocurrency, but also why I still think it’s worth it.
Cryptocurrency is easily the best way to grow your wealth quickly, but it also comes with a lot of risk and volatility. While my crypto portfolio is up hundreds if not thousands of percent, my stock portfolio is only about 13%. On top of that, my crypto is more liquid and can be spent, held in a decentralized, transferred instantly, and operational 24/7/7.
But because it’s a growing market and still in its infancy, the volatility can rock a lot of people right out of the market when they start seeing massive losses. I think it’s important to remember and recall previous bull runs like in 2017 when we saw at least 5 or 6 massive drops of about 30% or more in Bitcoin and subsequently Ethereum and the rest of the market. I still believe it’s a good sign that Bitcoin still leads the market and that it’s not really lost its dominance, but obviously losing massive amounts of unrealized gains is unfortunate.
I still have all the faith in the halving and how the stock to flow model outline where we are headed and even if we don’t see new all-time highs this year, I believe with the Ethereum 2.0 upgrade, the whole market will go up dramatically.
I just wanted this to serve as a warning that I never said this was low risk and we will see crazy volatility, but more importantly that beyond Bitcoin, Ethereum and handful of coins, you’re multiplying your risk so much more than is healthy for any investing portfolio. Minimizing risk should always be the goal when investing, not maximizing it. Invest, don’t speculate. Build wealth, don’t trade.
Have you ever invested in something that was a scam or a rug pull? What is your take on crypto investing? What percent of your portfolio is in crypto vs stocks or precious metals? Let me know what you think about this in the comments below and don’t forget to subscribe!
Disclaimer: This is not financial advice and is purely for entertainment purposes. What you see, hear, or read is my personal opinion, and any statements made are based on my views and should not be misconstrued as fact. My crypto portfolio may or may not be simulated
👥 Support Me & Follow Me Elsewhere 👥
👉 http://www.scottcbusiness.com
Ask questions in my Telegram: https://t.me/cryptoandthings
You can find all my cryptocurrency addresses on https://cointr.ee/scottcbusiness
You can find all of my referral links here: https://linktr.ee/scottcbusiness
yep, altho looking at one's portfolio as a % of its ATH is always going to be a depressing experience - unless you do it at an ATH! lol.
Honestly, I look back 2 years and the returns still make me smile :-)
... and anybody who takes a step back from when they started and isn't smiling is doing something very wrong.
Yeah… I’m down about $80,000 from last week but it’s all free money from Blogging here on Blurt, Steemit, ProofofBrain, Dtube etc…. I’d be down a lot more but Blurt has held up like a stable coin.