Investing in Bitcoin or trading currencies online seems like an awesome opportunity. I’m sure you have probably seen some kind of commercial or ad before like, “Hey, you just put some money in, have your coffee in the morning, and you make a bunch of money out.”
It’s that simple, right? You buy some of this, sell some of that, and look, I make a thousand a day doing that or something crazy.
How I started investing in Bitcoin
I have made some money with investing and trading online. I have also lost some money investing and trading online. Now what’s the worst thing you can do with your time? Pay to work. That means you are spending money to work.
That’s exactly what I did with my Bitcoin when I started out investing in Bitcoin, you could say by bad luck or bad skill, however you come about it. I started buying Bitcoin in 2013, just a little bit of it, it was about $600 when I opened an account.
Then, as the Bitcoin price continued to drop from there, I figured, “Well, it’ll go back up to $600 someday,” which I was right about, it just took 2 years longer than I thought. Then over the next year in 2014, it steadily tumbled all the way down to about $170 for a Bitcoin at the lowest. I then continued buying all the way down. The long story short, I lost about $5,000 and spent at least 100 hours. I spent $50 an hour to trade Bitcoin.
That doesn’t sound like one of the ads you read, does it?
“Here, spend $50 an hour to trade Bitcoin. Then you’ll feel really bad when you know other people are making money and you’re giving it to them. Good job!”
Investing and trading is not easy. The worst thing about investing and trading is that you can buy in and by just being lucky make some money. I read a book called “What I Learned Losing a Million Dollars in the Stock Market” or something like that.
That’s what happened with the guy. He basically got lucky repeatedly and a bunch, and then he finally got a trip down back to earth to the tune of million plus dollars lost in a very short period of time.
One of the best things that can happen for doing investing and trading is for you to lose right away like I did. I’m lucky. That was my first experience with investing in Bitcoin and trading online, buying and selling Bitcoin, and trying to make a profit.
I saw right away that I’m not smart, I don’t have an edge, I don’t know things, and I saw how impatient I was. I didn’t have enough cash on hand. I had a really good idea that Bitcoin was going to be worth more in the future.
I think these online currencies are going to be how most of the world does business online in the future. It is going to take a lot longer for them to go up.
I think someday a Bitcoin will be worth something like $10,000 and lots of other people have said this, too. The thing is it may take 10 or 20 years before that happens. It takes a lot of people steadily using something before it grows.
That’s the same thing with a lot of the great stocks that you might want to buy. When Facebook came right out I didn’t have any money to buy it, or I would have bought some when it was down low because Facebook has got a lot of long-term potential.
That’s the same thing with Google, if you had bought Google stock right when it came out, you would be in a pretty good position now. As is, I just bought a little bit of Facebook and Google anyway in my TD Ameritrade account.
The point is with investing, it is not easy and it looks easy. In fact the easiest thing to do in investing is either to lose your money or to invest and either have it just be boring or get lucky. It either goes bad or neutral, or you get lucky.
My failure investing in Bitcoin
Getting lucky can include just having to pick something at the right time. Investing in Bitcoin is very much just like everything else. The big difference, the key thing if you are going to do investing is that it needs to be done rationally, without emotion and ego in it, according to what I read in the book “What I Learned Losing a Million Dollars.”
If you are investing in Bitcoin or something with emotion and ego in it, often hearing that will make you mad: “I’m not doing it with emotion and ego, I’m doing it to make money.”
I remember listening to the book “What I Learned Losing a Million Dollars” while I was in the middle of my Bitcoin speculating and it was difficult to listen to.
Thankfully I was grown up enough to realize that it bothered me because it was right. It talked about how the guy’s ego got so big trading all these futures and he thought he was the man, and he thought he had it, he thought he knew it all until he just absolutely got wiped out.
He got wiped out because of the ego, of the “I’m going to be right.” That’s what happened to me with Bitcoin. I started in on it as something that I wanted to be right about, something I hoped would make me a bunch of money in the short term.
Those two things together are extremely potent in producing a bad situation. The luckiest, most merciful thing that can happen to you is if it goes bad right away, which it did for me. It still took months, but it went bad straight away. I had lost so much, by the time it was down to $170, I was not in a position to even capitalize on it. If I had had a more patient and rational approach, when it got down to $170, I could have bought in with all my money instead of having lost it and then made some really good money.
What happened, I went in with ego and emotion. Jerry is a big deal, I’m going to show everyone how great I am by trading Bitcoin. My wife absolutely hated it. Here is how you know if it is unhealthy: I was checking the Bitcoin price almost all day, all the time on my phone, obsessing over every little up and down with it. That’s a good sign it is not healthy. I went in without a specific plan. I went in with the intention to get something for me without a regard to what anyone else needed.
I didn’t think about what my buying Bitcoin would do good for anyone else. All I wanted was to use it as a means to an end, an end of making me look good, building up the idea of Jerry, making money, and being able to brag and taunt, “Look what I did with Bitcoin, look how smart I was.” These dynamics make investing in Bitcoin very hard to get started with and use successfully as a method to make money.
If you are able to see those things in yourself, then you may be able to do some investing with a healthy, rational point of view absent of those ego needs, absent of the desire to be right, absent of the desire to make money and prove how great you are. I took about a year off once I sold all my Bitcoins finally after I bought with all the cash I had left. I bought at $170 and I quickly got impatient and scared, and sold in the two hundred dollars.
Because I had bought with all the cash I had, meaning I had nothing left for my business, I had nothing left anywhere, I realized that if the price plummeted again that was going to ruin me. If you over invest, if you go too far in right away, you will miss out on a lot of the big opportunities. I took about a year off of Bitcoin after that.
Learning and Investing in Bitcoin
Bitcoin to me seems like buying some of those stocks that today are worth so much that you wish you had bought before. I wish I bought Facebook right after it came out. I wish I bought Google right after it came out. I wish I bought Walmart or McDonald’s. There are so many of these stocks that you look at and say, “Man, I wish I could’ve held on to that or bought some of that 30 years ago.” A lot of these things you look at and reminisce, like “Oh, man, imagine if I’d bought that right way.”
Bitcoin is one of those things to me and so are these digital currencies. There are things now that have massive potential and they are going to continue to take more and more time to realize that potential. They are the really lucrative stocks that are still relatively cheap compared to what they are probably going to be in the future. The opportunity in the thing itself must then be separated from how you are interacting with it.
Space is often the best way to accomplish changing a new way of looking at it. I took a year off of buying, trading or doing anything fooling around with Bitcoin. Then I ended up collaborating with an instructor who teaches Bitcoin on Udemy, and that got me back involved with making sane, rational plans, with making healthy and safe boundaries. Now I do have much more cash on hand than I did when I started trying to trade with Bitcoin a couple years ago.
In 2014 I was literally using borrowed money from personal loans to keep my business from going under, and then trading Bitcoin with it. That was stupid.
Investing in Bitcoin today
There are lots of opportunities to make good money doing investing. I now have a system where I use Bitcoin. I have got about 10 Bitcoins right now, which is about $6,000, now that Bitcoin is back to over $600 a Bitcoin. I have got a system I use to invest and trade Bitcoin now.
I now have my own cash on hand. The 10 Bitcoins I have are essentially just money taken out on my savings account now. That is an amount of money I can afford to lose completely if all is stolen. Now I have some of it in an insured wallet and I have 7 Bitcoins on an exchange, that could easily just get taken and I would never get it back.
Then I have the rest of it in an insured wallet, which I also use to pay freelancers and accept orders on my website. They say it is insured just like it is in the bank. Theoretically if that got stolen I would get that back. The point is that I have gone back into trading and investing in Bitcoin with a rational plan, absence of those ego needs to be right, realizing I’m not smart, I’m not special, I don’t get it, that I am going to do good for other people involved.
Here is what I have done with my new investing in Bitcoin plan. I compared it with my initial investing plan and my initial goals. My initial goals were to make a lot of money with trading Bitcoin. My initial goals were to be right and to look smart and to get my business out of trouble by buying and selling Bitcoin. My goals now are to be able to educate and show people how to trade Bitcoin with other similar currencies. Bitcoin is what’s called a cryptocurrency.
It is questionable as to whether it is real money or not. There are lots of other things like Ethereum, FoldingCoin, Dogecoin, all kinds of other things similar to Bitcoin that are worth much less generally than Bitcoin. Then you can trade all of these together. What I did initially, I started buying Bitcoin again when it was in the three hundred dollars, just buying a little bit every day. At the time on Udemy I was making over $1,000 a day, and I decided a healthy amount of Bitcoin I could buy about $20 a day.
I could afford to essentially put that into a retirement savings account. My outlook then, and still now, is that buying Bitcoin is a long-term investment. It is essentially like putting money into my TD Ameritrade account. It is not there to trade and make a whole bunch of money, and get excited about and cash out. It is to be left in there for a long period of time, to just start buying and buying it now and to have it maybe 10, 20 or 30 years, to just hold on to it.
Why? What good does it do?
The more US dollars I put into Bitcoin, and especially the more US dollars I put into these newer currencies, the more I am believing in them. I am having faith in them and I am giving them something of established value in exchange for essentially faith that they will continue to work on building their currency up and make it more valuable in time.
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