During the quarantine, I ventured down the cryptocurrency rabbit hole. 18 months ago, I thought cryptocurrency was a passing fad and a convenient way for hackers to steal my hard earned money. Now I see some potential value. Want to learn about this monetary medium? Channel your inner tortoise and proceed slowly…
I started by watching a couple documentaries and later found a few helpful YouTubers. Lark Davis offers useful information, a blend of diversification, long haul approach to investing, with a presentation similar to that favorite, goofy middle school teacher who gave such memorable lectures.
The Bitcoin Standard by S. Ammous was another insightful resource. The real value in this book is the eye opening history of currency and how time and time again, governments devalue our hard earned money, often lining leaders’ pockets. While I found some of his historical conclusions too simplified, Ammous explains the recurring problem of government currency manipulation and a potential hedge through Bitcoin.
When I was ready to purchase crypto, I researched two popular exchanges (Binance US and Coinbase). BlockFI is pretty interesting, too, a crypto bank, offering short term loans and paying interest (at the time of publication as high as 8%). I started small, allowing time to learn the process, observe the market fluctuations, and make informed decisions.
Throughout this experience, I’ve had to remind myself to slow down, do my homework, and use common sense! Just like the stock market, cryptocurrency investors can lose everything! The internet is also packed with “get rich quick” crypto schemes. I learned who to avoid, and who to “trust but verify.” (In fact, don’t purchase crypto just because I did! Do your own research and see if it’s a proper fit with your financial goals.)
I’m reminded of a similar event back in the mid 90s. I was recently hired at a local college and our president told the faculty and staff that computers and the internet were here to stay. Employees who wished to continue in their profession needed to learn this new technology or risk being left behind.
My journey into cryptocurrency has been a slow, steady, and fun learning experience. Chad and I enjoy debating the many new coins with the kids, arguing which ones have the most potential. Cryptocurrency offers a modern investment club-we’re all learning together! Am I willing to risk part of my nest egg? Someday I’d consider a 1-2% diversification in a reputable, hands-on crypto Roth IRA-still researching that avenue. For now, am I willing to give up a few nice dinners and a weekend away and take a gamble on crypto? You betcha!
What do you think? Is crypto here to stay or heading the way of the dodo?
Thanks for reading!