This is a late post, covering my Ethereum (ETH) and Litecoin (LTC) transactions over Labor Day weekend. I’m writing about these two sales, what I did with the money, and the current state of the cryptocurrency market.
Rewind a few weeks to Labor day weekend. Bitcoin, well really all Altcoins, were on a steep rise. Bitcoin was close to $5k and Ethereum was close to $400. Litecoin too was reaching for a milestone of $100. I chose to sell all of my Ethereum and Litecoin near this top. Cryptocurrency markets are very volatile and they never sleep. Because of this, it’s important to set limit buys and limit sells because the deal you’re looking for may happen while you’re sleeping. I set my limits, went to bed, and woke up with two sales. I’m absolutely long on both of these coins, but I view this marketplace similarly to the options marketplace. Volatility leads to the potential to make quick cash. Because of this, I like to buy low / sell high; wash, rinse, repeat. It’s buying low that’s the tricky part. 😉
My New Ethereum and Litecoin Strategy
My new strategy is to sell all of my coins when the coin market is running hot, sit on the cash, and purchase the coins back at a discount. I’m treating this as a DRIP program. By this I mean, I’m not keeping my profits. I’m doubling down on the same coin I sold, or using the extra cash to branch out into more speculative coin plays.
My Ethereum and Litecoin Transactions
I sold 16.20 ETH coins at $392.65 and 26.00 LTC coins at $94.00. The image below show the details of these two transactions. It was a good day for me. I bought these coins for $3,462 and sold all of them for $8,805. I made $5,343 on these two trades.
I could have sidelined the cash and held it for stock purchases, but I believe crypto markets are still getting started, so I’m doubling down here. In the future, I may start funneling some of this money back into stocks or options, but for now, I’m having fun trading Altcoins and I truly believe that in this space, its best days are still ahead.
I bought the Ethereum and Litecoin a few days later. I bought 21.15 ETH coins at $296.18, totaling $6,264, and I bought 60.89 Litecoins at $67.10, totaling $4,086. My joined re-investment totaled $10,350. Yes, I went over my sale amount. 😉 I also invested $1,500 of new cash. Since these buys, I’ve sold 3 ETH coins at a price of $326 per coin. This money was used to buy speculative coins.
My New Altcoins
I’ve sold a handful of coins here and there as well as the 3 ETH coins mentioned above. I used this money to buy 7 coins that have potential to rise. The total purchase price of these coins totaled $1,546.
My Current Cryptocurrency Portfolio
Since starting out a few months ago, I’ve been pretty active with Altcoins. It looks like a crime scene, but the top section of the image below is my current portfolio of 100,584 coins spread across 15 Altcoins. I made one move just before writing this post. I doubled my positions of SAI Coin and Stellar Lumens. This cost me very little to double my stakes and significantly reduced my cost basis, because coin markets are way down right now.
The bottom section of this image lists all of my coin sales. As mentioned, all of this upside is being reinvested for now. Today my numbers are as follows: Total invested $15,504 at a current market value $11,282. That’s an unrealized loss of $4,221. However, I’ve only come out-of-pocket $7,256. The rest of the invested cash has come from profits from selling coins. It would be a loss if I sold now. This market is so up and down. I wouldn’t sell now. It only takes a quick market jump to go from $4,000 down to $4,000 up.
Latest News and Next Steps
As mentioned, I’m going to continue selling Litecoin and Ethereum on highs and rebuy more coins on lows. This market is volatile enough that a lot of money can be made in a 24-hour period. I’ll use these gains to double-down on ETH, LC, and NEO; as well as further investment in more risky coins.
If you paid attention, you obviously noted that my current portfolio looks like a crime scene. It’s all red! The Chinese government has been flexing its muscles the past few days. The government is rumored to be banning ICO funding and shutting down many China-based exchanges. This news has led to a massive Altcoin selloff.
I’m not concerned though. Governments are scrambling to get their arms around this huge market. They will be fighting to stop it or get a piece of the action. China dominates the coin market right now, so obviously it led to a massive market crash. I see this as a good thing. If new laws pass, Chinese Whales may lose their ability to control Bitcoin prices. Also, it gives investors who feel left out, a good entry point into this market.
Cryptocurrencies have become so big that governments are freaking out. This will lead to massive market shifts. I predict that a few announcements like the Chinese government one will rock this market a few times a year. This creates the ability to make serious cash if you buy and sell at the right times. Playing these shifts to get rich is my plan.
It is worth calling out that Chinese based coins are suffering the most, and they will likely continue to do so for in the near-term. One of my favorite coins, NEO, fell into the $15s a few days ago. It’s slowly recovering now, but still a great buyers opportunity. It’s still down more than 50% from last week’s prices.
I’m sure some of you are reading this post, thinking I’m throwing my money away. Maybe. But, my total investment is less than 2% of my retirement portfolio. I generally set 10% behind for speculation. So for me, this small amount of my available cash is a worthwhile investment.
Today, I’m bullish on NEO, Litecoin, and Ethereum. I believe all three coins will see exponential growth over the next 12-months. I wouldn’t be surprised to see NEO at $150, LC at $500 and ETH at $1,000 by this time next year.
Start Trading Today
If you’re interested in buying Cryptocurrencies, you’ll need a broker. Coinbase is a very safe U.S. based broker, backed by big names in banking. Coinbase sells Bitcoin, Ethereum, and Litecoin. Coinbase is having a promotion. If you sign-up using this link, and invest $100 dollars, we both get $10 in Bitcoin.
Do you own any Altcoins? Do you think the future is bleak or bright for Cryptocurrencies?