I enjoyed this post on Reddit yesterday:
There’s plenty to worry about when investing in cryptocurrency. Is it even an investment? Or is it simply hyped-up gambling?
About a month ago I opened accounts with Coinbase and Kraken. Kia and I each put in $1000. In that time our money has doubled, and Dogecoin went up tenfold (I sold half at the pre-SNL peak).
It’s an absolutely insane market. A major crash is all but guaranteed. There’s a significant chance one of the four coins we’re invested in (Bitcoin, Ethereum, Doge, and Cardano) will fall out of favor and plummet in value to zero or close to it.
On the other hand, I wouldn’t be surprised if holding those coins for five years (and possibly buying the dips) yields an average gain of 50% or more annually. That sure beats a 3% bond yield or a .05% “high-interest” savings account.
Here’s my current approach and thinking: