What I Learned from Seven Years Crypto Investing

I was watching my personal net worth increase day after day after day. I’d bought in to crypto around 24 months earlier after reading an online article on how easy it was to invest. I’d taken the plunge and was raking it in (on paper at least).

But then the crash came.

And what a crash.

All the way to below $5000 in 2019. Other digital currencies such as Litecoin, Dash and Ripple (XRP) followed suit. There has been something of a recovery in 2019 and peaks in 2020 and then again in 2021 before the FTX scandal and the now notorious Sam Bankman-Fried.

So why invest in crypto. And are there lessons to be learned from all of this?

Buying into crypto seven years ago, I was hardly an early adopter. Bitcoin was on the go from 2009 onwards. But the digital currency market was starting to get hot and the entry points (the cost of ‘buying in’) was low so for me it was a good investment.

I have an ‘abundance mindset’ when it comes to investing. There is a lot of money to be made out there and a small gamble on something can pay off big.

Something which is quite risky (like crypto) shouldn’t take all your savings and cash. But there is hidden — but definable — risk in keeping your money in safe but low yield savings accounts or bonds. Depending on your appetite for risk, it makes sense to have a broad spread of investments — some risky and some not.

That’s why I go for a balance of risk and safety (more on this later).

Here are four lessons I learned from crypto investing:

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