Why I love dogs: Getting rich from $200, my year in crypto (Week 21/52)

Shiba Inu in sunglasses

January was all about the Dogecoin for me, and yet more crazy cryptocurrency price rockets.

Having seen my initial $200 grow to almost $650 and an additional $80increase to $135 — some $505 profit in total — I decided it was time to invest some more.

I went for the classic beginner’s choice and meme favourite: the cute Shiba Inu dog of Dogecoin.

On January 12, 2021, I bought a mammoth 7,884 Dogecoin on Binance at 0.0086, costing me $66.

Then Dogecoin exploded.

As with all these flash crypto price changes, I didn’t see its 0.075 peak but did see it once it had settled down to around 0.035 a coin. My stash is now worth about $275 — almost four times what I’d paid, less than two weeks after buying.

That takes me to around $710 profit in four months without knowing what I’m doing. It’s important to note I’ve not actually withdrawn any of these funds and it could all collapse, so I’m not really counting it as money.

I could buy myself a new digital radio tuner, though.

Why Dogecoin?

Apparently, it was all down to Tesla CEO Eoin Musk tweeting a Dogecoin meme, and the WallStreetBets Chairman tweeting: “Has Dogecoin ever been to a dollar?” to more than 724,000 followers.

Something that can rise so quickly can fall just as fast, and I’m expecting it to drop. As already proven, I really don’t know how to predict these spikes, and I’m awaiting the falls.

Wise traders would probably be selling my portfolio just now, taking the money, and looking for another investment, crypto or otherwise. I’m going to HODL (Hold On For Dear Life) because the rollercoaster ride fascinates me and I’m still learning.

What is Dogecoin?

Shiba Uni Dogecoin meme
Dogecoin meme

Dogecoin can buy goods and services online, or traded for other currencies. Both other cryptocurrencies and traditional currency like US dollars. Many people use it to ‘tip’ people who share great content, similar to the way the Brave browser and its BAT works.

Dogecoin (DOGE) borrows from the “Doge” Internet meme and features a Shiba Inu on its logo. The doge meme’s light-hearted appeal aims to make it more appealing to the broader world.

Background

As you know, I want to see if a crypto novice like me can earn more money via my $200 invested in crypto trading than the 0.1% (20 cents) interest I could make from my bank in a year.

My methods are not strictly scientific; I am learning as I go along and using small amounts I can afford to lose.

Disclaimer: I am a crypto investment novice, and this blog offers no advice. Mistakes I make will be my own. Be very careful with your money — crypto is a risky investment — and never part with your cash if you are unsure or feel coerced.

Follow me on Medium.com

Rollercoaster: Getting rich from $200, my year in crypto (Week 18/52)

Making money from cryptocurrencies

Well, what a start to the new year.

I took time away from writing to help family and enjoy the holidays. There is no way to describe what has happened to the crypto world in six weeks.

Resumen: profitable chaos (for now).

Bitcoin broke through $40,000 per coin and has wobbled like the jet stream ever since. Ethereum went for the moon and came back down again. After months of steady gains, I now understand why cryptocurrency is:

  • Addictive — I am buying more
  • Profitable — I’ve made money
  • Dangerous — such rapid gains could easily be losses

And above all, crypto trading needs to come with a health warning.

In short, my $200 invested via coinpass.com in Bitcoin, Ethereum, Ripple, and Litecoin in August 2020 is now worth $637 (Jan 18, 2020). That’s more than three times return, and in another few months, it could be much more or much less.

The extra $80 ‘profit’ I invested via Binance in Cardano, Tron and BitTorrent is now worth $135, almost doubling in six weeks.

So, I have taken that $55 and bought some Dogecoin. It’s true; once you get into cryptocurrency, it hooks you.

What started as a $200 investment has broadened into a (low-cost) portfolio of $335 investment over eight cryptocurrencies.

Next time, I’ll write about some of the scams I’ve encountered, and why I chose Binance for my extra crypto investments.

Background

As you know, I want to see if a crypto novice like me can earn more money via my $200 invested in crypto trading than the 0.1% (20 cents) interest I could make from my bank in a year.

My methods are not strictly scientific; I am learning as I go along and using small amounts I can afford to lose.

Disclaimer: I am a crypto investment novice, and this blog offers no advice. Mistakes I make will be my own. Be very careful with your money — crypto is a risky investment — and never part with your cash if you are unsure or feel coerced.

Follow me on Medium.com

Podcast: Getting rich from $200, my year in crypto (Week 12/52)

An imaginary Bitcoin on a virtual microchip board

The much-publicised November 2020 rocketing of Bitcoin (and other) cryptocurrencies means my $200 is now worth $325; that’s a +62.5% profit in three months.

That’s a phenomenal return in By anyone’s book, it’s a phenomenal return. What I’ve done now is fallen into the classic trader’s trap – taking $80 of my ‘profit’ and reinvesting it in more cryptocurrency. This time I’ve gone for fledging currencies that may, or most likely may not, make it. I chose them all after reading upon them, and my money bought me:

  • 300 Cardano (ADA) – Good tech, enthusiastic crowd.
  • 500 Tron (TRX) – Personal interest in entertainment (not very investor savvy move by me though!).
  • 54,713 BitTorrent (BTT) – Insanely cheap. Those coins cost me $20. It feels like a fun gamble.

The good news is I’m already +10% up on these as they ride the Bitcoin wave.

As you can see, my methods are not exactly scientific; I am learning as I go along and using small amounts I can afford to lose. Industry expert Jeff Hancock offers more professional advice to newcomers on how to invest in cryptocurrency in my latest podcast.

Jeff Hancock from coinpass on how to get into cryptocurrencies

I’m in for the long haul, but how am I doing? Read the latest here.

Podcast: Getting rich from $200, my year in crypto (Week 9/52)

Ethereum coin

My first quarter has ended with me up 20% on my investment – without me doing anything!

I’m into the black, looking at cryptocurrency as an investment. But surely its future needs to be more nuanced if it is to survive? I speak to industry expert Jeff Hancock about how money has changed, and how the next step may be crytpo.

Jeff Hancock from coinpass on why we’re one step away from a cryptocurrency future

I’m in for the long haul, but how am I doing? Read the latest here.

Podcast: Getting rich from $200, my year in crypto (Week 6/52)

A photo of various phases of the moon

Paypal gave me a 15% upswing in fortunes after announcing it will allow people to buy and sell cryptocurrencies.

I’m finally out of the red and into the black on the back of this news. Interested in crypto? My podcast below is an introduction to the cryptocurrency exchange I am using for my experiment.

Jeff Hancock from coinpass on cryptocurrency exchanges

I’m in for the long haul, but how am I doing? Read the latest here.

Getting rich from $200; my year in crypto (Week 1/52)

An imagined Bitcoin on a table

I’m spending a year of my time and money to see what all the cryptocurrency fuss is all about.

Some crypto traders promise to make you $1,000 in a week, $5,000 or more, if only you send them your hard-earned cash right now.

Follow me as I try to make money and understand the volatile world of cryptocurrency. Here’s my introductory blog on why I’ve decided to take the plunge (link opens in new window).

Top 10 Cryptocurrency buzzwords for beginners

An imaginary Bitcoin on a virtual microchip board

Bitcoin has thrust cryptocurrencies into the mainstream conversation, alongside Blockchain, hackers and the dark web.

Cryptocurrencies like to sell themselves as the technological solution to financial and world ills, opening up the world to the unbanked. They offer people the chance to control their money, and not be in thrall to governments.

I’ve concentrated on my Top 10 Cryptocurrency buzzwords, based on how best to understand the concepts behind cryptocurrency.