This weeks post is to give you an overview of what I’ve been doing crypto wise in 2021. Up until this year, I didn’t really take it seriously. I have been investing in crypto since 2017 but I never really done any research and my understanding was very limited. But this year, I have fallen down the Crypto rabbit hole.

Disclaimer: this is not advice. This is information only.

My intention with this week’s post is to review my Altcoin portfolio and funnel you towards a podcast I think is perfect for beginners looking to learn about crypto. My latest obsession has been listening to The Crypto Standard Podcast. It is very informative and will help you understand the fundamentals. Like looking at the use case (what it does) of a certain project and why the 2 hosts invest in certain projects.

I encourage you to learn about crypto rather than trying to jump in and make 10X or 100X in profits in your 1st week. This is an amateur approach and is the opposite of investing with skill. It is my belief that if you learn to invest with skill, you will be able to call yourself an investor. If you do become an investor, it will help you to make money and keep money.

Anyway, let’s look at what I have been investing in over the last 12 months…

Long-term buy and hold

At the start of 2021, I bought x8 alt coins (alternative to bitcoin) and one of the coins was ETH. In fact, 50 % of my crypto investment at the start of the year was in ETH. I liked the fact that it had multiple uses (e.g. smart contracts) and that many projects were being built on the Ethereum network.

I started doing more and more research. Like reading the white paper of a particular coin (e.g. ETH) and finding out exactly what it did. My research led me to looking up the CEO and the software developers behind the project. And as I was researching each coin, my understanding has improved.

From my experience, crypto and the blockchain technology isn’t easy to get your head around. But with time and some effort, it starts to sink in. And the more I understand the technology, the more bullish I am on crypto assets. Don’t take my word for it, do your own research. 

In early 2021, my strategy was long-term buy and hold with property and index investing. After a few months of researching crypto, it was now long-term buy and hold with property, index investing and crypto.

FOMO and how not to invest

I talk about how HOW NOT TO  INVEST quite a lot at duffmoney like how I used to be obsessed with single shares around 2010. I would get in without any research and check on them every 5 minutes. Don’t do this. Do your research and don’t be checking your investments every 5 minutes.

This is something I slipped back into in April 2021. I got into Safemoon (probably a shit coin as I still don’t know what it does) in March cos the lads at work were talking about it in March. I got in cos of FOMO.

Luckily this coin went up in value by a few zero’s and my initial £2k went to £68k. I didn’t cash out (anything) and I was checking on it every 5 minutes. This led to about 6 weeks of stress as all my old habits came back with a bang.

After a few weeks it had dropped to about £10k. I made the decision to just leave it and see what happened further down the line. And more importantly, I made the decision to get a grip. I forced myself to have a couple of weeks break from crypto and felt good to get some discipline back.

This is one of the dangers of investing in crypto. You can become obsessed. Especially when you hear stories of people making life changing money from 10X or even 100X investments. My opinion is that it is much more important to understand the technology and invest in projects you believe in. Invest into projects after doing your own research.

Staking rewards

My main aim financially is to be FI (Financially Independent) by the time I’m 45. This will be achieved with passive investing from my assets… fingers crossed anyway. Once I realised you can get passive investing with crypto, I was very interested. To do this you can stake your crypto assets to earn staking rewards.

I’m not here to tell you how to stake. Go and watch a few YouTube videos and do your own research.

I stake CAKE (70% Apr approx.) on pancake swap and have been making about $400 pcm. This is a high-risk token and the price is very volatile. I am comfortable investing about 10% of my crypto portfolio in risky assets.

I stake AXS (130% Apr apporx.) on the AXIE infinity website and you can also do this on Binance and make about $400 pcm. This is a high risk token and the price is very volatile. I am comfortable investing about 10% of my crypto portfolio in risky assets.

I stake various tokens on Binance and achieve in and around 10% APR.

I also stake ETH and DOT on Celsius and get up to 8% APR.

Staking isn’t something I would jump straight into. Get familiar with the different exchanges. Get comfortable buying, holding and sending your crypto from one place to another. Do loads of research and get your head into what I see as the future of money and business. This is only my opinion.

Metaverse

Love him or hate him, Mark Zuckerberg has some serious pull and FB rebranding to Meta is a big deal. Basically, Zuckerberg plans to build a virtual reality to merge virtual life with real life.

This to me is frightening and I really do feel like we are all walking into sci-fi film as we head into the digital age. That being said, I still wanted to get involved with the Metaverse as I see it as a buying opportunity at this early stage.

Without realising it, I was already involved with AXS and Star Atlas. After doing some research, I felt these gaming tokens had awesome potential. But don’t take my word for it, do your own research. Have I said this enough yet ….

If you fancy getting involved in the Metaverse, do a quick google search. Type in top metaverse coins by market cap – Metaverse. Pick a couple out and do some research. After doing some further research, I have added SAND to my Metaverse portfolio.

Before the end of the year, I am also planning on getting my head further into the Metaverse projects I have invested in. Just to improve my understanding of the projects and to fully understand what the Metaverse is and what it will be moving forward…

What to do

Do your own research – don’t let FOMO creep in and don’t get too emotional over your investments. Just getting into crypto now is a good thing as it is still very early. The adoption curve is moving rapidly but there is still only a small percentage of the world’s population investing in crypto.

Paypal have even adopted Crypto earlier this year. Imagine what will happen to the adoption curve if Apple or Amazon come out and throw their hat in the ring. The total market cap (currently at about $2.5T) will no doubt fly and millions more people will join that adoption curve (just my opinion). Just to let you know, the crypto adoption rate is the fastest of any technology.

Remember to listen to The Crypto Standard Podcast. This will help you learn about crypto and this is massively important in my opinion.

If you have found value in this week’s post, leave a comment and let me know what you have been up to crypto wise.

Leave A Comment

  1. Claire Snedker December 20, 2021 at 1:57 pm - Reply

    Really interesting post thanks, just starting out my journey into the Crypto world and am learning in bite sized chunks! Will check out the podcast you recommend. Thanks! Claire

    • Peter Duffy January 1, 2022 at 1:15 pm - Reply

      Claire that is an excellent way to start out. In my opinion, it is important to understand what it is you are investing in. Thanks, Pete

  2. Bronwen Vearncombe December 30, 2021 at 6:10 am - Reply

    Great insights Peter – thank you!

    Will listen to the podcast and enjoy doing my due diligence
    John and I will be investing in Crypto after as our latest development is completed.

    • Peter Duffy January 1, 2022 at 1:17 pm - Reply

      Exactly – due diligence is very important. I think a lot of people see these YouTube videos promising 100X or 1000X and invest in alt coins without doing any research. Thanks, Pete