I invested in cryptocurrency once. It was a while ago. I put $2000 into Litecoin. Within a couple of days it turned into $2500 and I immediately sold it.
That’s my whole story.
Now, what does it mean?
It means I made a speculative bet and I was completely lucky that it worked out. I was under no delusions that I knew anything about Litecoin.
My feelings on cryptocurrency are just that. That right now it’s completely speculative.
That doesn’t mean money shouldn’t be put into cryptocurrency.
It doesn’t mean you can’t be excited about it or think it will do well.
But like Warren Buffett, I try not to invest in things I don’t understand. Because if you don’t understand them, then they’re not really investments, they’re bets.
And if you’re betting then you need to seriously consider your risk tolerance.
To me it’s simple.
If I had $100,000 to invest I’d put no more than $10,000 into cryptocurrency.
I’ll likely never become a crypto millionaire let alone billionaire and I’m completely fine with that.
What I’m more fine with is sleeping at night, and to me, that’s the most important marker of an investment.
Can you sleep at night having money in a certain vehicle?
If you can, then I think it’s all good to have your money there.
I firmly believe that most people don’t know nearly as much about cryptocurrency as they either think they do or advertise they do.
And given that belief, it means cryptocurrency isn’t quite an investment yet, it’s a bet.
Again, that’s completely OK but that also means I know if I’m putting my money in there, it’s not going to be a lot relative to my whole pie.
That is all.