Well, I couldn’t resist the temptation anymore. I bought my first digital currencies yesterday. Specifically, I bought Bitcoin, Ethereum and Litecoin.
here are the numbers. At the time of this writing, I am the proud owner of:
1. 0.0063 BTC ($22.81)
2. 0.1795 ETH ($46.46)
3. 0.0414 LTC ($1.89)
Now, I admit, that’s not a lot of money. I wish had more money to invest in digital currencies, but I don’t. My primary goals are still to get out of student loan debt and to continue to build my dividend portfolio. In fact, the nearly $80 that I spend investing in my digital currencies came out of the money I was going to use to pay down my student loans. There’s only so much money coming in.
I haven’t decided yet if I’m going to track my currencies on this site. I might have a separate page dedicated to these currencies, like I do with my dividend portfolio, dividend tracker, and debt tracker. However, I just wanted to report my expansion in this arena.
I am well aware of the speculative and highly volatile nature of digital currencies. Right now, I plan on dollar cost averaging (so to speak) my way into digital currencies, investing a small amount of money every month. I also realize that the fees are very expensive. I use Coinbase and purchase my digital currencies with my debit card. It was a relatively straight forward process to sign up, and Coinbase is highly recommended based on my research. But, they are also expensive. However, I think in the end, they are worth it.
CONCLUSION
Digital currencies such as Bitcoin, Ethereum and Litecoin are not for everyone. I chose to invest in this now, since I’m temporarily in the U.S. It would have been difficult to sign up for Coinbase while I was overseas. But, in any case, I understand and accept the risk. Although I don’t want to lose all of my $80, if I do, I can still pay my mortgage. So, I only invest with funds I can afford to lose. To the extent you’re interested in digital currencies, I suggest you do the same after your own careful research.
Finally, learning for me is not over. I’m still learning about how to safely store my currencies, and which other currencies I might want to invest in. I’m fairly certain though that given the small amount of money I am devoting to this, that I will likely stick with these three for the foreseeable future. Too bad the currencies don’t pay dividends.
Anyway, I wanted this to be a short post. Let me know what you think? Should I not have invested in digital currencies at all? Should I track my investments on this blog? Let me know by commenting below.
Way to go! I think cryptocurrencies will be mainstream in the future – the problem is figuring out which 🙂 Right now, I believe the most in Ethereum, because of smart contracts.
Thanks Miguel. That’s actually why I chose to invest in 3. Don’t know which one is going to be the diamond in the rough so to speak. Truthfully, none of them might be but it’s like trying to win the lottery. You’ll never have a chance if you don’t play.
Nice port. I think its a smart move starting 3 positions. What wallet do you use or does coinbase hold them? I was skeptical of bitcoin when it first came out. Dam missed that boat. Like you said you can still pay yur mortgage if things dont work out. Best of luck.
Passivecanadianincome recently posted…Fish On! Hooked on Highliner
Right now coin base stores my bitcoin. I know having cold storage is best but I don’t have that much money invested. I will definitely migrate to storing my bitcoins outside of coinbase.
Congrats on the buy. Like you, I also dipped my toe into the crypto world. It was something I wanted to be a part of and just ride it out over the coming years for better or worse. If you want to save on fees you should buy your coins on gdax.com It is owned by coinbase. If you have a CB account you automatically have a gdax account too. Look up youtube videos how to trade w/o fees on gdax. Basically you set a limit price, it get fulfilled, no fees at all. You already have an account there so take a look. I’ll be posting my crypo foray soon.
DivHut recently posted…Interesting MBA Concentrations For The Future
Awesome Div Hut. I actually saw those some of those videos and will be looking into that possibility. My main strategy right now is to buy and hold using the DCA strategy. However, I might dabble into trading just for fun.
Wow, another person dipping into the crypto market! I really have to do my own research before it’s too late 😀
I am still skeptical and think that a bubble is forming but it could be that I’m wrong and cryptocurrency will be as usual as internet is today 🙂
It will be interesting to follow how your positions perform and maybe I will dip into this market myself one day.
Good luck,
-BI
BrokeInvestor recently posted…My First Marathon
BI, there’s no doubt that it’s a highly speculative and volatile market. But, I think it’s the wave of the future. No guarantees of course, and you may be right about the bubble. Or you may be totally wrong and wishing you had gotten in now instead of when bitcoin reaches $10,000. Haha, that’s just the fun of it.
Seems like a lot of people have been dabbling with crypto currency lately. I have seen a few others in the community as well. I look forward to the updates. Thanks for sharing!
Dividend Daze recently posted…New Additions/ Updates Made To The Site
Sure Div Daze. I’m going to take my time with this one. I wanted to get started, but there’s no rush. I’ll definitely be posting updates on the site, so stay tuned.
Hi DP, welcome to the crypto club 🙂 Wise of you to take baby steps, it’s such a highly volatile and speculative market. I’m still looking to diversify into LTC, NEO and maybe Lumen.
Mr. Robot recently posted…Additional Birthday-buy in September
Thanks. I’m definitely taking very small steps. I plan on doing monthly contributions, but again, in very small amounts. Who knows, maybe it will pay off for me one day.
I applaud the move. Don’t fear change, embrace it.
Investment Hunting recently posted…My Cryptocurrency Portfolio Update – Etherium and Litecoin Sells
Thanks IH. I intend to do so, but at a very slow pace, while I learn this very new way of investing.
At least you have some crypto currency … i regret selling my 10BTC 4 years back… might have i held them i would be rich AF
I have very little crypto currencies at the moment. Less than 1 BTC for sure. And yea, your 10 BTCs would have been nice for you to have right now.
Excellent explanation of cryptocurrency, one more reason to keep in mind to invest in this currency, I think it is the future of online markets.
It certainly a volatile area, but somewhat exciting nonetheless. My only suggestion is that if someone is going to invest in cryptocurrency, to go consider the pros and the cons, and to understand the risks before jumping in. Only invest with money you can afford to lose is something worth remembering, in my opinion.
Digital currencies gradually moving ahead. globally it get recognized and valued in the pandemic time. i hope you have maintain that all currencies with you because now it get 10X valued from the time you bought.
There are lot platforms provide the bitcoin and litecoin trading facility but everyone should check the reliability of that platforms.
I have, but I didn’t invest that much though…as I dollar cost average my way into bitcoin. I’m going to explore getting into other cryptocurrencies to diversify.
Thanks for the great list of blogs. I know how much work is involved in maintaining a post like this, as they change frequently. I’ve already posted to three of them and found some good information on them!
Awesome. Thanks.