About 2-months ago, I began investing in cryptocurrencies, and building a cryptocurrency portfolio. I outlined my purchases in my first cryptocurrency post. When I first decided to invest, I picked 11 coins that interested me, then I started with a lot of online research. I finally narrowed down my portfolio to 8 coins, but I could only buy 7 of 8 coins because of broker delays.
Crypto markets are like the wild west, no real rules or governance. As a beginner, it was really hard to understand how to buy and store coins. Each broker has different approval rules and timelines. They also sell different coins. I setup my first account with Coinbase and bought Ethereum and Litecoin. Next I created an account with Kraken and bought Ripple, Lumen, and Iconomi coins. Then I setup an account with Poloniex and bought Saicoin and Golem. That’s how I bought the 7 of the 8 coins I want in my cryptocurrency portfolio.
I setup a 4th account a few weeks ago with Bittrex. This exchange sells most coins, and it sells the one I really want to own, NEO.
Cryptocurrency Portfolio Addition – NEO
I sold 5 Ethereum coins, and bought 31.96 NEO coins. I sold the ETH coins $298.97, totaling $1,494.98. NEO as purchased at $45.68. The coin has jumped up from $7 to $45 over the past few weeks. Awesome for the coin, but it sucks for me. I’ve tried to buy it for a few weeks, but some crypto brokers take a while to approve accounts. This happened to me with Bittrex.
If I’d been approved when I applied, I would’ve owned 135 NEO coins at the cost of $7.36 per coin totaling $993.60. Those coins would be worth $6,217. But I wasn’t able to buy until yesterday, so I’m paid a bunch more money for fewer coins.
Even though NEO’s price has shot way up, I’m still excited that this coin will rival Ethereum, and challenge Bitcoin someday. NEO has been given the nickname of “Chinese Ethereum.” The coin has major backing from Chinese investors. Cryptocurrencies are hot commodities in China. A few Chinese whales could help this coin rise to the top. I think they’ll do just that.
My Cryptocurrency Portfolio?
The chart below is a screenshot of my cryptocurrency portfolio. Coin prices are no longer correct. This screenshot was taken on 8-15 at 2:45PM PST. My portfolio is positive $823.23. The entire gain is shared among Litecoin and Ethereum. The other coins are more speculative, so it doesn’t surprise me that they are in the red now. It’s a waiting game to see if one of these takes off.
Get your accounts setup now. If you are considering trading in this space, I suggest opening a few accounts now. It takes a while to get approved with some brokers. There are also various approval layers, that take even more time to get approved. If, I’d done more homework, I would’ve opened a Bittrex account only. This broker carries most popular coins and has a really high satisfactory rating. I now have coins spread across 4 brokers.
There’s possibly some safety in this, but it is very inconvenient to move money between brokers and each broker takes a transaction fee for doing so. An example of the complexity of moving coins between brokers. The trade I’m writing about today took a bunch of steps to be executed. I transferred ETH from Coinbase to Bittrex. Next, I sold my ETH on Bittrex and bought Bitcoin. Then I used the Bitcoin to buy NEO. There are fees associated with each transaction. Plus, it takes about 30 minutes for a transaction like this to complete.
If I could start over again, I’d only buy on Bittrex and if a coin is not covered by this broker, I’d find another one to buy. It’s just easier in my opinion. Coinbase is probably the best and safest broker for new investors who only want to own the big three coins; Bitcoin, Litecoin, and Ethereum. If this is you, try Coinbase. Coinbase is a U.S. based broker, backed by big names in banking. Coinbase is having a promotion. If you sign-up using this link, and invest $100 dollars, we both get $10 in Bitcoin.
Are you totally lost? The article that I think best describes how it all works and why it’s going to be big in the future was written by Cameron McLain, titled “A Brief History of Blockchain: An Investors Perspective.”
What do you think of my NEO coin buy? Are you invested in cryptocurrencies? Which coins are in your cryptocurrency portfolio?