My best (and lucky) crypto decisions 2022

Other than the few bad crypto regrets and worst decisions I had, I also have had a few lucky crypto streaks

Early to Cardano (ADA) & Stellar Lumen (XLM)

I chanced upon both Cardano and Stellar Lumen, and entered some mild amounts into them. In about a week, my small investment increased like mad, it went 65X!

I sold them both off and took out some good profits (which I lost some to damn trash qash), but I would never forget how that surge of price value made me feel so damn good.

Forgot about crypto for 2 years

We had gone through some hard times for about 18 months, and of which, I had totally forgotten about my crypto holdings for close to two whole years as we did our best to lick our wounds and to survive.

After that, I remembered crypto again and went back to my portfolios, and because I had forgotten them, it was such a nice thing “finding/rediscovering” portfolios here-and-there which had increased in value since.

Note to self: best way to invest is to buy and then forget it, come back a couple of years later

Introduced to crypto by my best friend

My best friend introduced me to this world of crypto first entering into NAV coin. I also bought the raspberry pi to become a validator and struggled with coding it (eventually worked); but eventually we sold off our NAV coins.

I went deeper into the crypto rabbit hole since, thanks man. I appreciate it.

Bonus: Taking crypto profits

At the end of 2021, as BTC bitcoin hit a high of $69,000, I felt that it was time to cash out some of my profits.

It was a sort of hard decision, the FOMO was real. I felt that if I took out some amounts from investment, I’d lose out on more profits. But…this time, it was a nice sort of peace that came over me.

I did it anyway – took out 60% of my principle amount, with a good amount still invested (?speculated) for the next bull run. It’s a nice feeling now that a good chunk is out, there is a clear decrease in stress and fear about losing the entire portfolio.

And I used that amount as downpayment to buy a home our family needs to live in anyway, so that’s good too.

My worst crypto decisions that I regret =(

Crypto…has been a bittersweet journey for me, ever since I started speculating in it in 2017. Other than wishing I had bought BTC back in 2009…here’s a few regrets that stand out.

Qash failure

This is one of my biggest painpoints, and I poured a large amount of my limited funding into this token issued by Quoinex. It has a large team, went very big into regulation and wanted to created a “world book” that will connect traditional finance (TradFi) to crypto world.

Ah, being smoked sucks.

Qash the trash, died a slow death, and finally got acquired by FTX.

Missed BNB entire

I bought a few different exchange tokens during that time, including Qash, another in Singapore. I decided to skip binance platform (and its token) because it’s much harder to use than Bittrex. It was about $2-5 per coin, and I decided it was also too expensive.

Oh, was a stupid, expensive lesson, especially when you see BNB going up to the high of $600. Ugh, the pain.

Rugpulls aplenty

There were lots of rugpulls and scams then, much more than now, and it was truly a wild wild west. This is so common, it’s like happening left right center. ICOs ran aplenty with literally zero regulations, so there was a lot of money lost then.

Even then, it wasn’t as painful as the two examples I gave above. Those were very personal and hurt me bad.

I hope you never get hurted like me in crypto.

Now’s the time to get rich investing in appreciating assets (I share two examples)

Why now?

We’re in an interesting season.

Just recovering from the dang COVID19; and the aggressive Russian dude decides to invade Ukraine; both of these is causing more world, economic, power and food issues.

People are more uncomfortable and fearful; interest rates are going up and some items are going on discount. But it’s funny.

When an item you like goes on same, be it steak or phone or flights, do you get scared to buy it?

Of course not.

  • iPhone on sale? (lol never) — buy more
  • favorite steak on sale — buy more
  • flights on discount? Let’s freaking gooooooooo
  • so many more examples

Right?

So when it comes to dividend-paying stocks or appreciating assets, why do we get jelly feet when their prices drop?

I get it, we get scared thinking or feeling that “maybe the price will drop further, so we’ll wait a bit”.

We then wait a bit, and the price

  • goes down, we get more scared, thinking the price may go down further, and we dont do jack shit
  • goes up, we think it’d go down again, so we dont do anything

Regardless of price action, net-net is we didn’t take the opportunity to buy some appreciating or dividend-paying assets on discount.

How to work around this psychological and emotional fear?

#1: Dollar cost average into good projects.

Find the good projects that you like (yes, you got to do some research) and then carve out a monthly budget so you can buy it monthly, be it price up or price down. At the end of the year, you’d get a median price. Research shows that this approach is the safest approach and most effective to bypass our natural innate (and irrational) fears.

#2: Use some metrics to support such as NAV and PTB

Sounds a bit geeky and technical, but what this means is that

  • NAV = net asset value
  • PTB = price to book ratio

These are quite interlinked; and to me more importantly, is PTB or price-to-book ratio. Most of the time, PTB means that if a company you wish to buy into, have $10000 in assets, so the shares should reflect $10000 value at least right (other than operational / sales activities). Sometimes the assets reflect $10000 buuuuuuuut the shares may reflect as $5000 instead of $10000, so that means the PTB is 50%.

To me, that’s a beautiful and delicious 50% discount (assuming this is a fair to good company of course).

That’s it, and DCA from hereon, month-in-month-out, into assets that push cash into your pocket or grow in value year-on-year.

Is cryptocurrency winter 2022 over?

We’re in that time of crypto period again.

Where there’s lots of blood on the streets and fear in the hearts of many. Many lost a lot of money, such as in

  • Terra Luna’s catastrophic meltdown
  • 3AC liquidation
  • Celsius bankruptcy

and there are scores more of such exchanges, tokens, coins and projects being killed or rugging people.

The last time I went through this, was when bitcoin (BTC) went into high of $19,000+ before crashing as low as $3,000+ (about 80%+ crash). Yep, that was AFTER I pumped more to buy more BTC at USD 18,000+.

Crydieme.

But it is what it is, I can see similarities today. Bitcoin as high as $69K, and been hovering around $19K (about 75% drop) for a long time now. It’s been wave after wave of negative events and news.

Should we be afraid?

It’s rationale and smart to be cautious and even afraid – it’s not a bad word.

Be cautious, but at the same time, I do not shun or look badly upon blockchain projects. If anything, I still hold onto my conviction that blockchain as well as cryptocurrency will change the world for the better. But there’s an important caveat:

Only the good ones will do that.

At least 90-97% of the blockchain projects and crypto are scams and rugpulls; and the okay-to-good ones, may be poorly managed due to insufficient regulatory measures in place. It is kinda like a wild wild west world of venture capitalism (or downright gambling, anyone?), but if you choose the right project and at the right time, you may be able to sit on a rocket to earn some delicious gains.

What to do now?

In crypto winter, it’s literally the best time to DCA, or dollar-cost-average into good projects.

Lot’s of fear to hold back that FOMO, and market moving sideways to give you time to research, speak to the team and participate in the project and community. Invest month-on-month amounts that you’re okay to lose (I dont like to lose money, but crypto can be really volatile and unpredictable) for the middle to long term basis.

Go with deep research and conversations, so that you will develop convictions beyond market swings.

I’ve been in crypto space since 2017-ish, and I’m more convinced that blockchain will change the world for the better, and I’ll be patient to continue to participate and invest for the long term.

Lost all my crypto?

What happens if I lost all my crypto holdings and portfolio?

I had a nasty nasty nightmare, that woke me up in shock and it took a couple minutes before I realized it was a dream (it’s a scary realistic nightmare man).

It’s probably a combination of trauma and reminder of my deep-seated unspoken fear about investing and speculating in cryptocurrencies (so easy to lose all your holdings by losing your security keys!)

…especially triggered with the recent UST – Luna – Anchor Protocol crypto collapse as well.

Deep and very serious reminders to:

Do not invest more you can afford to lose

Dont invest more than you can afford to lose and definitely, definitely do NOT borrow to invest (speculate or gamble) in high risk investments.

Crypto is definitely highly volatile and you can lose everything you put in there.

Take profits

My 2X rule now is that whenever an investment 2X (or ideally 3X), I need to take out 1-1.5X out.

Let the remaining amount go as far as possible.

Diversify beyond crypto

Don’t go all in or balls-deep into crypto (or any ONE investment).

Look, I believe in crypto, but it’s highly volatile AND doesn’t provide me cashflow like rental or dividends, so me and missus are now researching into income-generating assets to diversify into.

Start a side hustle to

  1. diversify your income (multiple sources of boss-less income)
  2. grow your network
  3. profits can be used to invest in other income-producing assets or reinvested
  4. potential to grow and scale