2017 - The year I started involving in crytocurrency

2017 is a crazy year. At least it is up to the point when I am writing this post.

Late last year, I told my senior that I had the intention to stay in KL project for a period of time. The reason that I provided was because I will several family events in 2017. Well, that's partially true. However my family events will all be in the second half of 2017, not the first half. My true intention is to look for more investment or business opportunity. I realized that I wasn't growing up in term of mentality despite I was earning double of what I usually capable of. I realized working abroad is not a definite way to achieve financial freedom. I worried that the longer I stay abroad, my passion towards business will idle away.

So, I joined a local RAN project at the end of 2016 and since then stayed in the same project until present time. Throughout this 5 months, I need to find way to expand my passive income and thus I have done something with my friends. We started mining crytocurrencies. I started venturing into fintech sector and keep thinking what else can be done to earn more passive income.

Here I would like to summarize some of my experience of my current involvement in cryptocurrency. What I have encountered and what have I learned.

1. Earlier this year, before CNY, my friends who had started mining ETH earlier, brought up this matter during one of our yam cha sessions. It had caught my attention and hence I looked it up to know more. After reading up some information about ETH, I thought this cryptocurency has the potential to grow hence I requested to join them as partner. I invested one mining rig and in total we had 2 rigs running. We planned to let them run for sometime while looking for more fund to buy more rigs.

Here's a catch. When we started mining, the average price of an unit of ETH was USD10. By the time we had gathered enough fund to buy 10 rigs, which was sometime around early April, the price of one unit of ETH had soared up to USD40. Only if we had invested our cash in ETH directly, we would have 400% return in less than 2 months.

From this experience, we had lost a good chance to grab hold of 400% investment return. We were fresh to this activity and despite we believed ETH is a potential currency, we chose a safer way to invest our money.

2. When ETH was USD40 and when BTC was MYR4500, I did not have the courage to invest in them. I thought they were too pricy to invest in and hard to get an awesome return. Eventually, my reluctance had cost me dearly. In late May 2017, ETH price achieved new high and its peak was USD200 whereas BTC used to achieved MYR12000. These two coins shocked the world and made me cried without tear in less than 2 months.

This experience thought me that I should learn to do forecast. Once I have set a target price, I should be bold and go for it.

3. I started looking up XRP on early May 2017. My partner and I were discussing what to invest and they brought up XRP topic. After looking up some information about XRP, the business model of XRP interests me and I think it will be a big hit in future. Hence, I poured my hard-earned money into it. I had made several mistake throughout the May 2017 and investing without much preparation is one of them. I was being impatience. I invested XRP without doing much planning. Don't get me wrong, despite making loss currently, I still believe XRP will be a hit in near future. The part that I regret doing is entering XRP in wrong time.

Each unit of XRP was as low as USD0.05 sometime around March 2017. When I started entering the market, it was in its bullish phase and the price escalated like nobody business. I bought in when it was USD0.17 and several times more when the price was increasing. At late May 2017, the price dropped from its peak USD0.4 to USD0.2. This dropped has caused me severed loss as well.

From this experience, I have to learn to predict the trend as what goes up will eventually go down. The price of XRP has escalated too fast and price adjustment will soon to happen. I should remember this theory and be more careful when entering the market in future. Nevertheless, I still feel confident in XRP and hope it will achieve new high soon.