Why I Sold My Initial Investment From Bitcoin and Ethereum

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THIS POST MAY CONTAIN AFFILIATE LINKS. PLEASE READ MY DISCLOSURE FOR MORE INFO.

 

I went into defensive investing mode yesterday and sold my initial investment out of Crypto Currencies.

Back in July 2017, I had bought $2500 worth of Bitcoin and $2500 worth of Ethereum.  So I got my $5K investment back last night. Why? Because of how crazy the cryptocurrency prices have been lately.  I planned on holding all of my Cryptos for many decades, but I really believed it could all go down to zero.

I did not want to risk losing my shirt so that is the main reason why I sold.  Now that I have all of my initial money back, I could care less if Crypto goes to zero.  I no longer have to keep watching it every hour.  But I still kind of am.

 

As I write this, I just checked my Coinbase account and I am still up $12.5K. Who knows where the price will be when I publish this article?  Who knows where it will be 5 minutes from now?  I do hope the price goes through the roof though because that will be like free money.  Or as they say, ‘house money’

But if the Crypto prices hover near zero, there will be no skin off my back. Literally.

I am not sure yet how I will be taxed on the $5K that I sold.  But since I held the investment for under a year, I am assuming 30% of it will go to Uncle Sam. I’ll keep you all posted.   I always plan for the worst and hope for the best.

Some of my friends and co-workers bought into Bitcoin when it was at its peak, at around $18K a coin. Now they are all hoping it will go back up so they can recoup their investment. But that’s the nature of the beast.

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I am not a big seller. In fact, I am known to just Buy and Hold all of my investments. But we’ve never seen anything like Crypto trading before so I thought I should take a new investing approach. And that approach was to be defensive about my short-term position.

Did I mention I had to pay hefty trading fees when I sold?  Coinbase charged me $37.25 per trade. So they made $74.50, just like that. They are the ones really making money on this whole Crypto trading phenomenon.  Coinbase also charged me about the same fees when I bought last year.  A cash cow is all I have to say about them.

Luckily, there is now a way to get around Coinbase’s fees.  Robinhood just launched their own Crypto Currency trading platform and its commission free!

Their trading platform will be ready this month (February 2018). But if you go to their website and sign up, you will be placed on an early access line. And you will be notified once their platform is ready for prime time. Over 1 million people have already signed up.

I don’t plan on selling any more of my Crypto holdings.  Like I said before, anything I make off of my Crypto account is free money. Minus taxes of course.

So what do I plan on doing with the $5K I got out of Crypto? I am not sure yet. I was actually interested in investing in Real Estate Crowdfunding. I’ve always liked the idea of collecting passive income from rental properties. But I did not want to deal with tenants or having to shell out more money for closing costs, repairs, etc.  And I definitely do not want to take out a new mortgage.

If anyone has any prior experience with Real Estate Crowd Funding investing, please let me know your thoughts on it.  I am still doing some research and looking into different companies to invest in.  If I do decide to go ahead with it, you can bet I will write all about it here.

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I was also thinking of putting the $5K towards my mortgage.  Which means it would be sitting in my High Yield Online Savings Account which is also known as my Emergency Fund.  CIT Bank offers the highest savings interest rates around. If you haven’t opened an account yet, click here to start earning the highest interest rate on your hard earned cash. All risk-free and FDIC insured.

Another option would be to place that money towards my retirement or my other investments.

What would you do?

 

Related articles:

Bitcoins, Ethereum, Litecoins. How to Trade Them & What You Need to Know About Crypto Currencies

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One Comment
  1. CJ

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