My Cryptocurrency investment — unknown ROI

I have experimented investing in the top cryptocurrency and here are my findings

Is bitcoin my only option?

Definitely not, though, bitcoin is the biggest and more well known cryptocurrency there are many other alternatives. Actually, 762 and counting!

Source: https://coinmarketcap.com/

Above is a list of all the top cryptocurrencies, along with their price and market cap. Bitcoin is leading, with Ethereum not far off at the №2 spot and growing in popularity.

For my experiment, I will be working with the top these top two on the list. I will also be exploring Dash based on all the latest buzz.

How to buy cryptocurrency?

At the beginning, everything seems unclear and complicated, trust me, it’s not. These cryptocurrencies have “stock options” and apply the same principles of prices going up and down, buy low and sell high.

The first step is to find a web tool or site to purchase and invest from; my personal preferences are:

  • uphold.com
  • coinbase.com

I am using uphold and getting great results so far, but coinbase.com gets great reviews from friends of mine.

In only a few steps you can create your account and after linking your Credit Card/Bank account you are ready to buy your first position.

The Market

The market is crazy at the moment with everything related to cryptocurrency, the volatility is extremely high, and the prices (at least at the moment) are growing exponentially. Are we in a bubble? Maybe, no one really knows what is going on (at least I don’t), but surely I don’t want to miss this party.

Bitcoin

  • Current price: 2,682 USD

A lot of very small people are saying that Bitcoin will take over a big pice of the financial market and the price will grow up to 10,000 USD within the next few years.

“Bitcoin is better than currency in that you don’t have to be physically in the same place and, of course, for large transactions, currency can get pretty inconvenient.” — Bill Gates

A basic google search shows:

  • Price at 6,000
  • Price at 100,00 in 10 years

Is this realistic?

Ethereum

  • Current price: 324 USD

Since the last few months Ethereum has became mainstream, the market cap is very close to Bitcoin and several gurus are pointing that it will pass the price of Bitcoin in the near future.

My Portfolio

For the time being, I am only investing in Bitcoin and Ethereum, I have a very small position:

  • 1 Bitcoin
  • 11 Ethereum
  • Total (today): 6,526 USD
  • Return after the first month: 11% growth

My Strategy

Definitely buy and hold! This is a gamble (at least for me), and I am not doing it for a 8–10% return, for that I will use more “traditional” investment methods.

My play here is all or nothing, I am aiming for a 400% 500% return and willing to lose everything if things don’t play out.

Final notes

  • This is definitely a high risk investment, only put money that you are “OKAY” with losing
  • The market and the technology behind cryptocurrency is fascinating, and what better way to learn that when your money is at stake.
  • This definitely can be something BIG (actually already is). It’s for sure not too late to join the party.