
Cryptocurrency investing is a touchy subject in any finance community. It seems like cryptocurrency investing is a 50/50 war when talked about. Half of the people seem to be ok with it the other half hate it. The unicorn is one’s like me that have invested money into it but believes that 99% of people probably should stay away from it.
The unicorn is one’s like me that have invested money into it but believes that 99% of people probably should stay away from it.
Crucified At The Cross
Yet every time I see cryptocurrency investing discussed in the FI/FIRE community it takes less than five seconds for that person to be crucified at the cross for even mentioning, asking, or saying they invest in it. I actually think the FI/FIRE community should be more open to talking about this currency. I think we could educate many of the younger folks who get caught into the “Next Hot Pick Investment”. Cryptocurrencyncy investing is just that to most folks I see that invest in it. I think more open discussions in these communities would help these folks understand why it’s not a great idea for them to invest in it at this time and instead how they would be much better off just keeping it simple and invest in VTSAX and call it a day until they reach a certain wealth level.
I think we could educate many of the younger folks who get caught into the “Next Hot Pick Investment”.

What Is a Cryptocurrency?
According to Investopedia…
“A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers. A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.”
Now let’s dive a little bit more into cryptocurrency investing.

Should You Invest In Cryptocurrency?
Again I honestly think 99% of people should not invest in cryptocurrency or even think about cryptocurrency. My reason why is very simple. 99% of people that I see invest in it or want to invest in it know literally nothing about investing in general. They have very little saved in life, they typically have debt, and they can’t even tell me the difference between a Roth IRA and Traditional IRA. These people are one paycheck away from not being able to pay the rent or mortgage.
We are talking about people who for better or worse have No Fucking Clue About Finances.
Most of these people when I talk to them they want to make money fast. So they assume high risk equals high reward. Meaning by investing in something high risk like crypto I will in return make a great return on my money. Because my friend’s cousin does it and he seems wealthy. It’s honestly a fool’s errand and you are in my opinion more likely to find the fountain of youth than you are to get wealthy off of investing in cryptocurrency. Instead, check out my Investing 101 Blueprint for a step by step guide on basic investing! Some of these people even have made a small amount of money. Heard a guy this week mention he made about $20,000 this year. To some that might be seen as a “look I told you so” but to be honest $20,000 is not much money when we are looking at investing for the long term. My accounts grew by over $100,000 this year!
These people are one paycheck away from not being able to pay the rent or mortgage.
Then Why The Hell Do You Invest In It?
Well, the irony in it is I started to invest in it partially for this blog, and also I was naive in chasing the golden goose so to speak as I mentioned above. I thought investing in it would be a fun topic to discuss on my blog and track it over the days, months, and even years I owned it. Yet I have yet to really post about it until this very post. I would call that an epic punch to my face or learning point for me. Ether I need to hurry up when I do a fun experiment like this and post about it right away or not do it at all I guess. We call that procrastination as I started investing in crypto in 2017. So three years later I’m finally getting to posting about it.
My Crypto
I invested in cryptocurrency back in 2017. So it has been three years that I have held onto it and it’s been a rather unproductive ride, to say the least. I invested a total of $1,182. I invested through Coinbase as I love the user-friendly platform. Let me break it down a bit more for everyone…
- BTC – $97
- LTC – $1,085
Now these coins are worth a total of $287!
- BTC – $65
- LTC – $222
As you can see both coins have lost value over the last 3 years. Now some might say well you simply bought high and held so of course you saw a loss. Yeah I can agree with that in a sense. Yet I also remember that these coins still have yet to come close to their 2017 prices. If we look at a graph of these coins you will see it’s a crazy roller coaster of ups and down.

Above is a fairly current snap shot of the portfolio of my coins and value of them. It’s current as I type this post from my beautiful spot that overlooks downtown San Diego! Now I do track the value of these coins on my Monthly Networth Update so I guess I kind of did do an ok job with tracking this for my blog. I’d also like to mention that my initial $1,182 investment is less than 1% of my total liquid assets.
Will I Ever Invest More Into Cryptocurrency?
I actually have thought about adding more to BTC and adding in Ethereum to the mix. My thoughts are I am ok with investing around 5% may be up to 10% once I reach a certain wealth point in risky investments like cryptocurrency and individual stocks. As of now though I have not added any new coins or dollars to my portfolio.
December Update
Well, this post was written a few months back as I draft out my posts in advance to make it easier to keep punching out great content. So I think a little update is in order for this post. My crypto has gone up and BTC has hit new highs. I have invested more in this fun gamble. The wife has a sizable portion in crypto as well. But for this post, I will only include what I originally invested in 2017 to stay fair. While we do combine finances I try to keep the blog straightforward. So I don’t share our combined numbers. I only share my liquid numbers for now.
Going Forward
I have made it a goal to bring my risk allocation up to 5%-10% of my portfolio. Right now it’s less than 1%. This way it’s a small enough amount if I lose it all it won’t affect my goals. But it’s enough that if the investment pays off I will see a reward that is worth it. But again that is only because I have a solid foundation of over $300,000 of liquid low-risk investments.
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