What Percentage Of Your Wealth Is Invested In Cryptocurrencies?
What percentage of your wealth is invested in cryptocurrencies?
This question originally appeared on Quora, the knowledge sharing network where compelling questions are answered by people with unique insights.
Answers are by Matthew Groza, Divyanth Jayaraj, Anonymous, Anonymous, Steven Buchko, Jeff Axup, Karel Zapfe, Mary Lee, Felix Gibson, Ahsan Lakhany, Vamshi Vangapally, and Peter George.
Matthew Groza, Bitcoin User (2017-present)
Answered Jan. 26
I had a rough year in 2016. I was broke but had mined about 80 Litecoins years ago that I discovered halfway through 2017. I sent them to an exchange and diversified. When I had income from work, I put it into crypto. I added thousands more over a few months. In January I took out the original investment I had made and the rest is just growing from my profits. Crypto has given me more financial stability than I’ve ever felt in my 30 years alive. At one point I had diversified into about 30 different coins, watched to see which performed the best, and consolidated to about 15 that I saw had the most potential for growth. Am I gambling? Yes, but I would rather see my money moving up and down with the possibility to make me more, rather than be stagnant in a bank account while the bank gambles with it. There’s too much money invested in these technologies now that although some coins will not survive, there are a few that will come out on top. The key is choosing wisely what to invest in, and looking at how much room they have to grow. You won’t get rich off of 1 BTC, but if you take that $10k and invest in three altcoins, you can easily triple your investment.
Divyanth Jayaraj, Software Engineer
As of Feb 2017, I had 10% of my portfolio invested in cryptocurrency, of which 50% was in Bitcoin and 50% in Ethereum.
Then, the boom happened.
Then, Litecoin happened to Coinbase.
Then, more boom happened.
During this time, I kept buying.
Today, about 90% of my portfolio is in crypto and 10% in cash.
Yes, my wealth grew by that much.
Update on end of April 2018. Cryptos have boomed so much, that 99% of my wealth is in cryptos. I just hold cash for emergencies. The rest is in cryptos.
While holding cryptocurrencies, my net worth rose all the way up to $300,000 in January and then fell all the way down to $78,000 by the end of March.
Today, it’s worth around $150,000.
The real challenge in holding cryptocurrency is to resist the temptation to sell to cut losses.
Answered Dec. 7
I came to know about bitcoin in 2013–14 as I recall. I wanted to invest on that time (bitcoin was damn cheap like $200 that time and wanted to invest around $4000) but unfortunately due to some issues I did not. Again got chance in Nov 2016 backed down again (that time it was around $700). Though I am a longtime cryptocurrency enthusiast, being from India takes a toll. There were not very well known and reputable exchanges to buy from. Anyway I started investing in July 2017 invested around 20% of my wealth and now its almost 45–50% of my whole wealth. I got really low return cause I am an investor rather than trader and I believe in good projects than good return. I found out some really cool projects which would easily give 1000–10000 returns in long-term and holding onto that though missing a lot in terms of return right now. Hope future would bring better results.
Answered Oct. 16, 2017
1–2% at this point. I made a decent return with ETH, having missed most of the gains from BTC.
I just don’t know what to make of this market or how to value BTC at this point – and really no one does, anyone who tells you otherwise is a huckster.
There is a clear difference between the price of BTC, ETH, etc. and the value of blockchain technology to the world. The fact that the latter is likely to be ‘the new internet’ doesn’t necessarily mean that BTC will be worth the outrageous amount that some people are claiming it could be.
Then again, it might end up that way.
It is just hard for me to buy in at $5k+ per coin…
Steven Buchko, Managing Editor at Coin Central (2017-present)
Answered April 5
About 25% of my wealth is currently invested in cryptocurrencies. This percentage fluctuates wildly, though, with the major ebbs and flows of the market.
If you’re looking for a recommendation on what percentage you should personally invest, my answer is don’t invest more than you can stand to lose. Depending on your situation, you may be comfortable investing 5% or you may be fine investing 50%.
The important thing to remember is that cryptocurrency is a new, volatile asset class. There may be times when the market drops 60% and stays there for a while (like it’s done recently). I recommend dollar cost averaging your way into different positions by setting aside a little income each week or month to invest.
Coinbase has an option in which you can automate those weekly and monthly investments.
Jeff Axup, UX Design/Research – Enterprise, Security, Travel, Humanism
Answered March 23
About 10% – and I really wouldn’t advise anyone to do more than that.
This area is extremely high risk.
Books on angel investing have similar guidance for investors I believe.
You should really have multiple investments that are fairly diversified, which give you the chance to benefit a great deal if one sub-set really takes off, but give you some padding if an entire section fails.
That’s why people that have a lot in stocks also have a piece of real estate somewhere.
Karel Zapfe, Researcher at CINVESTAV (2015-present)
Answered Oct. 9, 2017
Practically all of it. I live in a country (Mexico) that is dismantling its welfare systems, the state is failing and its peso is falling against the dollar and euro rapidly. That means that my savings in fiduciary currency are every minute worth less. I had no significant savings and there is no money for retirement now in this country (The pension system is a bad joke). So at the start of the year, I put my very little pesos into buying bitcoin and ether. And I know I did the right thing. I am a true believer in both cryptocurrencies. A week ago I discovered that Andreas Antonopolous’ mother also did this when the Greek economy imploded…
Mary Lee, Crypto Trader (2018-present)
Answered March 27
Around 95% as I really do earn a lot through cryptourrency. Especially NagriCoin as it is really profitable 🙂
Felix Gibson, IP Seminars and Author of Articles, 6 languages
Answered Feb. 4
Tha’s an impertinent question. My private finances are confidential and none of the enquirer’s business.
In spite of that, since I have nothing to hide, I disclose the fact that I am 76, semi-retired, neither very rich nor poor by European international standards and have approximately 5% of my total wealth invested in Bitcoins and Bitcoin Cash as a reserve so as to diversify my risks for all eventualities.
Ahsan Lakhany, former Manager at Electronics
Answered Jan. 30
I can’t be EXACT, but I say it got to be something like 10-15%, but I have it divided across. I have invested in many upcoming options and out of all that, it’s Duecoin that is the leading player with having AWESOME with soon to be added on the exchange, so that makes them really awesome choice.
Vamshi Vangapally, Investor
Answered June 26, 2017
5% – It’s the amount of your wealth that you can afford to lose.
Answered Feb. 1
100%, highly leveraged into alt coins.
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