Why Enjin Coin is up 500% (and what I’m doing about it)
Investing Psychology 101
Remember: This is just for intellectual curiosity. Not investment advice.
If you’ve checked out any of my previous videos about building a test portfolio based on blockchain game tokens, you’ll know Enjin Coin (ENJ) has always been one of its largest allocations.
Given the value of ENJ has risen over 500% compared to USD during the past month — thanks to the news that the Enjin mobile wallet will be integrated within the new Samsung S10 phones — this means I have a decision to make.
As with any asset class, but particularly with cryptocurrencies, it’s easy to fall into the trap of assuming this sort of speculative rise will continue. Obviously, it won’t.
For that reason, it’s important to revisit Investing Psychology 101 and start derisking the portfolio.
In this case, I sold around 30% of my original position when ENJ rose to $0.10 and have since sold another 40% when it spiked over $0.20.
Have I left ‘money on the table’? Yes.
But more importantly, I’ve made a very decent return on my initial (small) investment and my ongoing ENJ holding is still worth more than I invested in the first place.
Of course, that sort of decision-making isn’t en vogue in the crypto space, which is still heavily influenced by HODLing culture. But we all know how that panned out in 2018.
TL;DR When it comes to money, be safe, not sorry, but always leave a bit of skin in the game.
