Understandably, I have asked myself a couple of times, “Are you sure you can make this crypto thing work for you?” Without a doubt, I was hoping for more wins before the market took a downward turn. With Ethereum tanking, my present pools continue to have deeper losses the farther it goes down.
While I wait, I am trying to do a couple of productive things:
- I have made ANOTHER transfer to Coinbase. With Ethereum dipping below $3000 briefly, I thought I would “dollar cost average in.” I am still behind on Ethereum, but a little less so. Now that I am comfortable using the “Advanced” option on Coinbase, I am paying less in fees to convert my dollars. As I stated, “Trying to make lemonade.”
- While this year’s losses are not permanent until December, I need to account for last year’s losses/gains. (Not much happened, but in transaction fees alone, there were losses.) The guru recommends using a crypto tax guy to make sure gains/losses are calculated correctly. I have lined that up. Even though the cost/transaction is a little steep (I started with crypto in November), I don’t want to cause any red flags with the IRS.
- I have continued to look at alternative pairs within the existing networks my crypto investments are in. Once Ethereum goes up and/or the guru gives his blessing, I will move my present positions to new ones. Yes, it will create real losses, but the present returns are below the desired APR. It stinks, but it is part of the learning process.
If I quit my bots after my mid-summer losses, I wouldn’t have had returns in the mid-teens for the last 5 months of the year. While I am in a little stubborn, I don’t think I am incapable of learning from bad experiences. If a bot “blows-up”, you stop using that bot. You only consider the bot again if it has a record of consistency and conservative returns. With crypto, you learn what variables affect the value of your investment. Over time, you will make decisions that build a cushion against negative variables. I hate hard lessons. More than that, I hate making the same mistake over and over. I commit to only making NEW mistakes in the future. 😉
