My crypto journey

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ochotona
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My crypto journey

Post by ochotona » Sat Jun 11, 2022 8:08 am

My crypto journey:

1. In 2020, put 1% of portfolio into Bitcoin ($10,000 per coin) and Ethereum ($250 per coin)
2. Both zoomed. BTC went up like 5x in a matter of months
3. I pulled my original capital OUT, so my at-risk money was now $0 (I did it in a tax-free manner too… buy donating to a charity instead of giving cash to that charity. Money is fungible, eh?)
4. I gave away Ethereum as gifts during Xmas 2020, kept some
5. My kids sold their Ethereum for like $4000 per coin, I ultimately sold mine at $2500 per coin. So mine was 10x profit, theirs was, well, infinite because it was a gift with $0 cost, but 16x from what I paid. Best Xmas gift ever from Dad!
6. So now crypto has crashed… I’m still up 3x from what I paid, a 3x gain over 2.5 years which is a 55% annual return. It’s still the best SPECULATION I’ve ever made! (it’s not an investment). But I’ll take it!
7. So now we are in a crypto winter. Crypto is proven to not be a robust store of value, it clearly tracks tech stocks like the NASDAQ index. If it goes to $0 I’m OK because my at-risk amount is $0 see 3. above. That said, if it gets back to all time high of $67k I’ll sell all. I’m not expecting it to go more than $100k within the next five years, based on new “S-curve” thinking by Jurien Timmer at Fidelity Investments. $67 - $100k in five years and I’m SUPER SUPER happy.
8. Bitcoin is now 2% of my portfolio. If it goes to $0 I have a 2% loss. Not happy, not good, but not a disaster.

Advice:
a. only put in money you can afford to lose
b. buy it only when the fear and pessimism is so thick you can taste it in the roof of your mouth
c. buy low, sell high (mostly people do the opposite)
d. if it goes insanely high, don’t get greedy… SELL, or at least sell some
e. Yes, you will have to pay Federal capital gains taxes. If you’re don’t you’re a cheating skel
f. It’s not an investment. It’s 100% speculation. It’s not buy-and-hold. The instant you buy, you have to have an exit plan. If you don’t, you’re a sucker

Bitcoin is not “currency”. No major world currency is as volatile as Bitcoin. That’s just wrong thinking and language. It’s a speculative object.
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ochotona
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Re: My crypto journey

Post by ochotona » Sat Jun 11, 2022 10:21 am

Thank you. I maybe have to sell by 12/31/2023 anyway because of that beyatch IRMAA
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