investing “Expert’s Take: Lessons Learned from a Failed Foray into Cryptocurrency Investment”


The rise of Bitcoin and other cryptocurrencies has sparked excitement and optimism among investors. However, for some, including myself, it’s also a cause for concern. As a millennial with limited funds, I’ve found that the recent valuation rebounds in the crypto market are a reason to take an exit strategy rather than hold or buy more.

Instead, I’ve turned to more stable and robust investments such as blue-chip stocks and dividend-paying ETFs. In May 2020, during the height of COVID-19 lockdowns and market volatility, I started a self-managed investment account. While it may not have grown into a massive nest egg, it has still proven to be a smart move.

I’m not alone in this shift towards more traditional investments. In fact, in 2020, Canadians opened over 2.3 million new do-it-yourself investment accounts, nearly three times the number opened in 2019. Similarly, Bitcoin ownership has been on the rise, with 13% of Canadians owning it in 2021, up from 5% in previous years.

But for me, the recent market volatility and steep learning curve in the world of crypto have led me to reconsider my risk appetite. In hindsight, I can see that investing in more carefully chosen equities or ETFs would have helped me reach my financial goals without the risk of crypto.

This realization hit home when I heard a Goldman Sachs Wealth Management executive advise against allocating to cryptocurrencies or crypto ETFs as part of an investment portfolio. It made me question whether my crypto investments were truly “investments” in the traditional sense.

As a result, I’ve divested from my crypto holdings and reallocated my funds towards more carefully chosen investments. This has not only given me a sense of security but also reduced my reliance on constantly monitoring the market and headlines.

While there may be stories of people striking it rich with cryptocurrencies, there are also enough tales of everyday people losing their savings or selling off their holdings at a loss. As tempting as it may be to hold onto crypto in hopes of future gains, it’s important to make a smart and considered decision, especially for those of us with limited funds. So, when given the chance to break even or turn a small profit, it’s wise to take it and invest in more stable options.

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