Updated: Sep 1, 2018
In this blog post, I am going to talk about the riskier investments I have made since becoming involved with cryptocurrencies. Investing in cryptocurrencies, in general, is pretty speculative as they are still in their infancy. Perhaps one day when they become more mainstream the risk will subside somewhat. As I have said before all investments carry some risk, but right now cryptocurrencies are at the riskier end of the scale and within the cryptocurrency space itself there are varying degrees of risk. However, with the risk comes the possibility of huge rewards so it is up to each investor to determine how much risk they can handle.
So when I first started buying cryptocurrencies my very first purchases were Bitcoin, Ethereum, and Litecoin. I am pretty sure that is how a lot of other people start also, sticking with the more well-known names. Almost immediately after making my first purchases though I became hooked and wanted to learn all I could about cryptocurrencies. I was amazed at how many different cryptocurrencies existed, and how many new cryptocurrencies were being added almost daily.
To be totally honest I kind of went a bit crazy and just started buying all kinds of different cryptocurrencies without taking the time to look into each one to determine if they served any type of legitimate purpose. After about two months I had amassed a portfolio of over 50 different cryptocurrencies and based off of my lack of any type of due diligence I'm sure you would not be surprised to learn that most of them have not really performed all that well. So after about two to three months, my crazy buying phase burned itself out and I started to once again concentrate on the top market cap cryptocurrencies. This has lasted for a couple of more months but just recently I once again started to stray from the top market cap coins & tokens and became interested in ICO's (Initial Coin Offerings) as well as passive income investments.
The first three passive income opportunities that I invested in were Control-Finance, USI-Tech, and bitconnect. Both Control-Finance and USI-Tech had a very short track record so I limited my investment to $200 into each platform. Bitconnect had been operational since about the beginning of 2016 so I felt a little more comfortable making a bigger investment. I am very well aware of and have accepted the risks you take when investing in even the major cryptocurrencies so when I became interested in investing in ICO's and passive income platforms I had to reevaluate my risk tolerance. Investing in ICO's and the passive income platforms take the risk to a whole different level. Because there is very little if any regulation there are people who will take advantage of this and create scams to cheat people out of their money. So going in you have to be ready to lose a portion of your investments.
Since investing in the first three passive income platforms I have invested in five other passive income ICO's (Regalcoin, Electroneum, Hextracoin, GoldReward, and Falcon coin), Regalcoin was the first new investment that I added. I am being very conservative and only investing a relatively small amount into each one. So far all of them have had issues, Regalcoin's website was a mess and just trying to buy the coins during the ICO was an ordeal but I was able to get some. Since the ICO Regalcoin has revamped their website which caused them to close it for about a month but so far it does seem better. The other four have had website issues also, as of the date I am writing this only Hextracoin has their platform operational, the other three platforms are in varying degrees of repair.
So how have I fared with my passive income and passive income ICO investments? I will take them one by one and let you know how they are doing.
First up is Control-Finance, as I said earlier I invested $200 in their lending platform and did start receiving regular payments of which I was able to withdraw about $50 but after about a month the site went down and has not returned. I'm sure they are on a beach somewhere spending our money. Verdict: So with Control-Finance, I have lost about $150 and it goes into the loss column.
Next is USI-Tech, I invested $200 in their platform and have been receiving regular payments, to date I have withdrawn about $100 and have decided to reinvest the daily interest I receive. Their website left a lot to be desired but just recently they also revamped their website. They have also started selling their own coin. It's still too early to tell how this investment will turn out but the most I could lose is $100 so not too bad. Verdict: I am going to call this one pretty much a draw and who knows if USI-Tech is still operating this time next year it could turn out to be a very good investment.
Regalcoin is next, I was able to purchase 160 Regalcoins during the ICO for $192 or $1.20 each. I could have bought a lot more but as I said I am being pretty conservative. Not too long after the ICO ended their lending platform became operational and I decided to jump in and lend 150 of the coins, that was a big mistake. When you lend coins they are locked up for 99 days and when they are unlocked you receive the USD value of your loan, not the number of coins you lent. The reason I say it was a big mistake is that not too long after I lent the coins Regalcoin was listed on an exchange (CoinExchange.io). The price immediately began to take off and at its peak exceeded $90 per coin! If I had not lent the coins I could have sold them for over $14,000. I was able to transfer the remaining 10 coins onto CoinExhange.io and I bought another 20 at about $13 per coin. So as it turned out I was able to sell what I had as the price was climbing, selling the last few at just under $90. So, all in all, I did pretty well, I got about $800 for the coins that I sold and I still have the money on the lending platform which is growing and earning interest every day so not too bad for a $192 investment. Verdict: I would label Regalcoin as a good investment.
Next on the list is Electroneum, I bought my Electroneum during the first round of the ICO for about $0.007 each for a total of 1 Ethereum token. After the ICO closed and just before the platform was scheduled to open there were issues which caused them to delay the launch of the platform. It has been about two weeks now and although they keep giving updates on their progress there is no scheduled date for the platform to open. At this time Electroneum is listed on CoinMarketCap with a price of $0.029 so if I was able to sell right now my 1 Ethereum that it took to buy would have turned into about 3.5 Ethereum tokens. Not too bad but there is no telling what the price will do if or when the platform opens and Electroneum gets listed on an exchange. Verdict: This one is still up in the air.
Okay, on to the next one, Hextracoin was a real challenge. I deposited my BTC on their site right before the ICO started but was unable to buy any coins. I tried more times than I can remember but they were selling out so fast I was never able to get any during the ICO, which if I could have the price would have been around $1.00 each. I did finally buy almost 25 Hextracoin after the platform opened but for almost $12 each. At the time of me writing this Hextracoin is trading for over $35 each and I could sell right now for a nice profit but I am going to wait a little longer to see what the price does. Plus I still have not decided if I am going to just sell them all and take my profit or loan my coins and collect the daily interest. Verdict: I am going to call Hextracoin a good investment, at this point unless something catastrophic happens I will come out of this one with a good profit.
So GoldReward has been really uneventful, I was able to buy over 370 GoldReward tokens during the first round of the ICO. The ICO has closed and we are now just waiting for the platform to open. The GoldReward tokens are listed on EtherDelta right now for $5.25 each which would give me a huge profit if I decided to sell them. For now, I am going to wait for the platform to open to see what effect that has on the price then I will decide if I am just going to sell them all or split them, selling half and lending the other half. Verdict: So I am going to also call this one a good investment as with Hextracoin unless something catastrophic happens I will come out of this one with a good profit.
Falcon coin has also been uneventful so far. I was able to buy 400 Falcon coins but it wasn't until one of the later ICO rounds so I paid about $1.00 each. The ICO has now ended and we are just waiting for the platform to become operational. Verdict: For now, this one is in limbo until the platform opens or the coins is listed on an exchange.
So last is my investment in Bitconnect. I started my first investment in Bitconnect around the beginning of August, being conservative I only invested $220. At first, I just let the investment grow organically by reinvesting the daily interest I would receive, but since I have added to my investment a couple of more times. To date, after about four months the value of my investment is now more than ten times the size of my original investment. Verdict: Although my investment has grown substantially so far I have not taken any profits, but this is by choice. My plan, for now, is to just keep reinvesting the interest allowing the account to grow. At some point, I will begin withdrawing the interest as profit.
Toward the end of August, I opened a second Bitconnect account again making a small investment to start with, although it was more than twice what I started the first account with. The reason for opening a second account and not just adding to the first account was that I wanted to join Team JoeyRocket with Joey as my sponsor and Bitconnect does not allow you to change sponsors. The reason I wanted to become part of Team JoeyRocket is that they have a great Discord channel filled with awesome members, there are many very experienced investors there so it is a great place to pick up new investment opportunities and share your ideas. Joey also has a great YouTube channel filled with valuable information, he is constantly giving back to the community and the support you get from all of the members is unbelievable.
As with the first account, I have since added three additional investments and the value of this account is now also more than ten times my original investment.
Verdict: Although my investment has grown substantially I have only just started withdrawing some of the interest as profit, this also was by design, I wanted the account to grow to a certain size before taking any profit. So unless Bitconnect was to shut down in the next couple of months both accounts should prove to be very good investments.
I am well aware of the risks of investing in many if not all of these platforms but I have done it willingly and with an amount of capital that will not be catastrophic to me if I lost it all. Now I am not saying it wouldn't hurt because it would, anytime you lose on an investment it does hurt. All of the cryptocurrencies I invest in I would categorize as high-risk high reward investments but I believe that everyone should have a portion of their investment portfolio that is on the riskier side. The amount of your portfolio that is high risk should be age-dependent, someone younger can afford to have a larger portion of their investment portfolio made up of high-risk investments. They have time on their side to recover from any losses that they may incur, but someone older does not have that luxury so they should limit the amount of risk they take.
I am finishing this blog on Thanksgiving morning so I hope that everyone that celebrates Thanksgiving has a great one, and everyone else has a great day also!
Until the next post,