Weekly Explosions Vol 5: How should I invest in Crypto
Weekly Explosions Vol 5: How should I invest in Crypto
Last week I was doing a deep dive into the health benefits of having a sauna regularly and came to the conclusion that the reported reduction in overall mortality made an investment in a home sauna worth a bet.
I ended up ordering the Bridgeport Sauna by Almost Heaven. With the cost of transport being driven higher by gas prices and raw materials escalating in price quickly - I figured better to buy now before they increase their prices.
I also saw articles on the health benefits of different colored lights - though the research is not as strong as that for saunas - so I bought some lights for the Sauna as well.
Delivery time is 3 to 4 weeks - so I will let you know how it goes once I have it up and running.
Now onto this week's business
How should I invest in Crypto?
I am sure you have heard about the crash in crypto prices recently. With a drop like that I figured it was probably a good as time as any for me to see if I could learn how to invest in Crypto profitably.
Up till now, I have viewed Crypto investing much the same way I view gambling. With no balance sheets or profit and loss statements to analyse it leaves old school value investors like me at a total loss when it comes to investing in crypto.
But people are making money out of Crypto - some are making a lot and others are losing a lot.
To help me I have enlisted a young bull who sees upside and potential where I see high tech smoke and mirrors.
To make it interesting (I focus where my money is) I am purchasing USD$5,000 worth of Ether (ETH) that we can use to construct a portfolio based on the trading ideas we come up with. So over time I will have a tangible measure of how good this young bull is at teaching an old dog like me new tricks.
I have set up a new community called Crypto Traders Journal. This community is not investment advice. Rather it will be a record of some of the trades we make or consider and our thought process behind our decision to invest or not invest. For me personally I find this sort of record useful to look back on and see what worked and what didn’t. I believe it helps make me a better investor (in the value investing world) then I otherwise would be.
I would love you to share your insights on the trades we discuss - I am keen to learn. Even better, feel free to post some of your crypto trading ideas and the reasoning behind them.
Remember this is not investment advice - personally I consider investing in Crypto to be extremely high risk. Rather I hope it serves an educational purpose that may help old dogs like me learn new tricks.
I am also setting up communities for different cryptocurrencies, NFTs, etc as a reference of interesting articles I come across as I start poking around the crypto world. Please feel free to add to them. Some examples of these are:
Please seek a duly licensed professional for investment advice before you invest any money. Do not rely on what you read here - it could be a case of the blind leading the blind.