Am I a Crypto Addict?
It's been a wild emotional ride for us crypto investors the first three months of 2018, and I'm worried that I might be repeating an old behaviour.
Way back in 2006/2007 I was busy investing in the stock market (remember that?!). Even back then my plan was 'HODL'. I talked about this in one of my early posts, but basically the plan was to build up a diversified portfolio of large, safe, dividend-paying corporations and then HODL. Eventually the dividend stream (which was being continually re-invested into the portfolio) would grow so large that I'd not have to work anymore.
So what happened? Well life (I had a baby & got divorced in quick succession), then got made redundant a few years later from satellite engineering as I embarked on the precarious career of homeopathy, then the banking crisis happened. All these things conspired to blow-up my HODLing idea. But the real problem was the investing choices I made.
Mistake 1: Going 'all in' on equities. I invested most of my spare cash in the stock market and thought cash was for wimps. 'Go big or go home' etc! This meant I didn't have much of a cash cushion for life's unexpected 'bumps', which caused me to have to sell out of equity positions at a market low just to pay the bills.
Mistake 2: Ignoring my own strategy and being very overweight in one sector (banks!)
Mistake 3: Believing 'experts' and those in 'authority'
So, why bring this up today Freestone? Because...I find myself in the same emotional fear/greed space as I was back in 2007 when I kept investing more and more into RBS bank as it went lower and lower. The thousands I sunk into RBS eventually became worthless. I find myself doing the same with EOS in 2018... when I see it going lower I want to buy some more... and so it was today when I added another little chunk to my holdings.
Am I repeating the mistakes of the past? Would I be better just buying Coinbase's new crypto index fund when it launches? Or am I buying assets at $5-a-pop that will be worth a hundred times this in 5 years time?
I'm extremely bullish on EOS, apparently there are already 6 airdrops announced. It's going to get exciting when it launches in June!
Answers on a postcard please!
what, what, and EOS must be taken :)
Assume that would you listen to an answer to these questions you ask, you would be repeating mistake 3: believing 'experts'.
PS: I'm bullish on EOS too, but I'm still married and therefore bound to strict investment limits.
Sometimes they save us from ourselves ;-)
Special delivery for @alanfreestone:
https://www.youtube.com/watch?time_continue=0&v=g6iDZspbRMg
If I didn't still have a $250 limit to my coinbase account I would be putting a lot more into EOS with where it is right now. There will be a bunch of projects on Ethereum that will make the switch once EOS is up and running.
I think it all just went up way too fast. Eos, like the rest, are all settling back down because it was too fast. Remember in November when it passed $1 for the first time since it launched? It's still up over 400% since then. It may have been by design because back in Nov there seemed to be a lot of FOMO articles from the mainstream. Now, there are a ton of FUD articles about regulations coming. I'm sticking to HODLing for the time being, but it's always good to diversify.
Coinbase's new crypto index would be the safe route to go in the long run... But saying that I am going to get involved with EOS at these prices as the room for grow could be crazy, although I think they will add EOS to their index and all as time goes by...
I want to buy some
Well, I don't think that cryptos will become wortheless and it's only a matter of time until everything goes way up. Of course, we can't really predict anything. There's always a possibilty that cryptocurrencies will become wortheless because something big will happen, but how many chances are there for this to happen? I'd say the risk is quite low.
As an investor in the stock market since just about a year ago, Im finding myself more and more turned to the crypto market as a preference, its just more exciting than the reliable yet, dare I say it FTSE.
Your story is quite depressing, the fact the RBS was your major and that was the worst possible choice in hindsight.
I like you are quite bullish about the coins but am putting most of my reserves in the big 2 (BTC and ETH, well and some Steem!), but not too much.
The index fund you mention is interesting too, I badly need to get into some kind of SIPP.
Didnt know about the EOS aridrops, Im kind of an airdrop freak. Ill look thanks!