Bitcoin and other Cryptocurrencies

This Blog Post was originally published on adagia.org.

I think not many people didn't hear about Bitcoin in recent years. I've been on and off with crypto for at least more than five years. But I actually never had a bunch of anything.

Although even that is completely correct, I mind about 200 to 300 ETH back in the day but lost long access to the wallet long ago. However.

Part of my investment strategy is having a little bit in cryptocurrencies. Currently, my largest asset is in the ecosystem token of crypto.com (CRO). Through the last 2 years, I bought around 4000€ worth (currently valued at around 8k€).

But that isn't all I've got. I'm buying 25€ of ETH and BTC each month via a savings plan on Bitpanda (an Austrian Fintech Startup). My current plan is to sell every so often and only leave the price gains inside the wallet.

Instead of every three years (as I'm planning with the ETFs), I'm planning on doing it every few months (maybe three to four). Of course, that will be a hassle for my tax advisor, but it also leaves me a few bucks every month to spend on other things.

The time to get rich instantly on cryptocurrencies is over in my opinion. Although many new projects show up every day, how do you know it isn't a scam like BitConnect (https://www.youtube.com/watch?v=e5nyQmaq4k4) back in the day?

Many people see the whole cryptocurrency market as a big scam. Many of those are traditional banks and people who don't trust shares and ETFs.

As a "technical" I can see a technology change in the crypto world. But there is a really large BUT: it is a widely unregulated market (well, it was intended to be unregulated) and thus the scam and fraud are widespread. You can't just buy a shitcoin and hope it will rise up. Researching projects and the people/companies behind them is a major task that should not be skipped before investing.

And also the most research you did doesn't prevent you from losing everything.

Another thing to consider is the large jumps that have appeared in recent years. My financial advisor told me if I can sustain the jumps of bitcoin, I won't have a problem with the Euribor.

So if you've got nerves of steel, be sure to upgrade them to titanium before investing in cryptocurrencies and always, always think long term (5 years upwards)!