I, for example, can try to control myself because, since 2017, I have put measures in place to make it practically impossible for me to take part in any hype-driven investment, including cryptocurrency. I still have massive FOMO as a result of my actions, but I don’t see myself regretting my decisions in the future.
Currently, my investments are in Bitcoin, Ether, Bitcoin Cash, Stellar, Wrapped-DGLD, Algorand, USD Digital, Tether, Aave, Polkadot, and Yearn Finance and all together make up less than 5% of my overall investment portfolio. Every couple of months, I just rebalance the portfolio so that I have an equal amount invested in all the assets.
Cryptocurrencies always must end up less than 5% of the overall investment portfolio for me. This is one way I have learned to stay away from so many investments that weren’t good for me. Every so often, however, I will add one more cryptocurrency to my portfolio.
The answer is simple. I don’t.
I have been aware of cryptocurrency for more than a decade now. I have been invested in them for about half of a decade. I am in no way an expert in any of these technologies, and even if I wanted to be, there are so many of them to keep up with.
Another challenge I find is that many of these cryptocurrencies coming up don’t yet have an underlying value, or it’s very hard to determine what the value is without the hype. I am not talking about the cost that goes into mining or making them because that is a whole different issue. I’m talking about the value they offer in the market. Bitcoin, for example, is built on what I would consider basic technology compared to Ethereum. So I’d expect that in the future, Ethereum would be worth more than bitcoin but I may be wrong.
With all these complexities and uncertainties, I consider cryptocurrencies very risky investments, and so I do not even try to speculate on what any of them will be worth in the future. To control my FOMO, I decided to just invest in the assets that are in my blockchain wallet.
I know that investing in assets that are in my blockchain wallet is probably not the best step to invest, but then again, I am not approaching crypto as a major investment, and that is why I have a very little percentage invested in my portfolio.
I, however, don’t just invest as soon as a new asset is added. When an asset is added to my wallet, I take about a week to learn about it and hopefully its value in the market. This helps me stay informed on the advances in the crypto world, and through blockchain, I have learned a lot.
My wallet also offers me a chance to trade these currencies, earn interest on my crypto assets or get loans on some of them besides sending and receiving, although I haven’t found any need to use any of these features apart from earning interest. But am sure that I can use the others whenever I need to.
The cryptocurrency world still has a lot to offer. We haven’t even begun taking it seriously at all in my opinion. Even though it would be not wise to invest your entire life savings in it, you can still invest a very small percentage, one that you are comfortable losing so as to keep your feet into it if you haven’t. This will help you earn a little bit more while learning and staying up to date with the advancements in the world of cryptocurrency.