- A London-based millennial sold $30,000 of his crypto investment to buy an apartment in 2021.
- He shared the main investment strategies he has used since he started investing in 2017.
- The price of cryptocurrencies such as Bitcoin has soared in recent months.
Bill said that when he first heard about cryptocurrencies in 2012, he tried unsuccessfully to participate in Bitcoin mining.
He told Business Insider via email that the London-based millennial only started investing in crypto tokens in 2017.
“I am very interested in Ripple and decided to invest,” Bill said. Mr Bill's identity is known to BI but is not being made public for fear of professional repercussions. “Then I bought Stellar, Bitcoin and Ethereum.”
Bill said most of his investment profits come from Ripple and Stellar. He started cashing out between December 2020 and April 2021, when the prices of both tokens were near their recent peaks of around $1.60 and $0.54, respectively. According to documents seen by BI, Bill sold around $30,000 (or €28,000) worth of Ripple and Stellar.He invested his $6,000 to his $7,000 in these tokens and the average return was The percentage of total sales exceeded 300%.
Last year, just after he turned 30, he said he used the proceeds to buy a $350,000 shopping mall. (or £280,000) Apartment in London.
Bill is one of the millions of people around the world who have invested in cryptocurrencies. While some of these investors lost money, especially when token values plummeted in 2022, others benefited from the sharp rise in crypto prices in recent months.
In February, the total cryptocurrency market reached $2 trillion for the first time since April 2022. In March, the price of Bitcoin hit $66,000 for the first time in nearly three years, reaching an all-time high of over $73,000. Bitcoin is currently trading around $70,000, which is still well above its November 2022 plunge of around $16,000. The prices of several other tokens, such as Ethereum and Solana, have also increased significantly over the past year.
Experts point to lower interest rates, increased demand for Bitcoin ETFs, and the prospect of increased demand for Bitcoin ETFs in the future. Bitcoin Halving Event — When the number of Bitcoin tokens given to miners as rewards is halved. — As an explanation for the strong performance of the cryptocurrency market in recent months.
While some crypto investors are likely to bet on prices rising further, there are others like Bill. They might start selling some of their profits. This could be one of the reasons why Bitcoin prices have fallen from their March peak.
Targeting specific tokens and investing over time turns out to be a good strategy
Bill, who works as an M&A expert, said the first step in any crypto investment strategy is to buy a token that you believe in. These tend to be utility tokens, he said. Like Ripple and Ethereum, they are created rather than mined and typically provide access to services and products within the blockchain ecosystem. This is different from security tokens, which effectively act as investment assets such as stocks.
He said he introduced a dollar-cost averaging approach, which involves making investments when prices are falling and then making a series of investments over time in hopes of lowering the average cost. of his investment.
Once Bill rose to what he considered a short-term peak in price, he started selling tokens in bulk over a period of time because he had made enough profit on his investment.
“I tend to make an initial sale to cover my investment and then make a few more trades until I completely exit the position,” he said. “I mainly look at market sentiment and charts to see where we are in the cycle.”
Although Bill has had some success as a cryptocurrency investor, he doesn't consider himself an expert.
“I am just following this strategy based on the belief that the market will rise in the long term and the tokens will not lose value,” he said.
Indeed, positive returns are never guaranteed whether investors invest in cryptocurrencies or other assets such as stocks. Cryptocurrency markets have been particularly volatile in recent years and can involve significant risks for investors.
Going forward, Bill said he is in no hurry to make additional investments in the cryptocurrency market. He said he sold about 95% of his investments from 2022 to February of this year, but reinvested about $15,000 of the proceeds.
For now, Bill said he is waiting for crypto prices to fall or for attractive investment opportunities to emerge. In the meantime, he said, he's eyeing a side hustle that he hopes will provide an additional source of income.
“I sold almost everything,” he said of his crypto investments. “But I won't be buying any more, so I'll wait.”
Have you sold some of your crypto investments and used the proceeds? Want to share your story? If so, contact this reporter. jzikula@insider.com.
