Today I thought I would give a real quick update on my crypto portfolio. As you may remember from a couple of my recent post I had spoken about some of the cryptocurrency investments that I had made. Last week I got some very unfortunate information on one of the currencies that I was holding.
As some of you may have heard Bitconnect had decided to shut down its lending platform. All the money that was in the platform was paid out to the investors. The unfortunate event that happened as a result was investors started selling all of their holdings. This drove the price down from the $350 range down to about $10. It felt like I was one of the last to know because it had already bottomed out before I knew it.
So my first goal was to get the coins off of the Bitconnect platform and into an exchange somewhere. Once I was able to accomplish that I decided to just let the coins sit. At this point they have lost like 90% of their value so I just decided to hold them with the expectations that they will go down to $0. If they do miraculously make some kind of rebound I will probably sell the coins and move on to some other investment.
Now, this would seem like it would be horrible news for any investor to hear and trust me it isn’t music to my ears but I was lucky enough to be working a strategy that saved my butt on this one.
When Bitcoin pulled off of its highs of 19k I had stopped reinvesting my interest and started exchanging it for Bitcoin instead. Also I didn’t want to leave the Bitcoin sitting on the Bitconnect platform so I had been moving it to a wallet that I was holding elsewhere. Fortunately for me, before this crash happened, I had already gotten my initial investment out of the platform and moved it somewhere else.
As a result, all of the money that was lost when the coin crashed was all just profit. No one likes to see their profits erased that way but it was definitely better than seeing all of the money in that investment wiped out.
I knew that this was a risky investment when I got involved in it. Luckily things didn’t work out so bad for me. I had other investments in the space that were doing great. So I felt like making a risky investment was ok. I managed to get the principal back out of it and was playing with the houses money so I got very lucky. In the future, I think I will try and take a more conservative approach. Again I didn’t have any real loses but I didn’t have any real gains either and no investor likes encountering that as an end result.
I hope that none of my readers lost any money in the Bitconnect crash. If you were involved in the platform thought I would like to hear about your experience.
As always I look forward to reading all of your comments and questions, until then….. happy investing!
-Jason from MoreDividends.com
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