- A London-based millennial sold $30,000 of his cryptocurrency investments in 2021 to buy an apartment.
- He shared the top investment strategies he has used since he started investing in 2017.
- The prices of cryptocurrencies such as Bitcoin have risen in recent months.
When Bell first heard about cryptocurrencies in 2012, he said he made an unsuccessful attempt to get into Bitcoin mining.
The London-based millennial only started investing in cryptocurrencies in 2017, he told Business Insider via email.
“I was really interested in Ripple and decided to invest,” said Bell, whose identity is known to BI but has been withheld due to his fear of professional repercussions. “Then I bought Stellar, Bitcoin and Ethereum.”
Bell said most of his investment gains came from Ripple and Stellar. Between December 2020 and April 2021, when the prices of both tokens approached their recent peaks at around $1.60 and $0.54 respectively, he started cashing out. Bell sold nearly $30,000 (or €28,000) worth of Ripple and Stellar, according to documents seen by BI. He estimated that he invested between $6,000 and $7,000 in these currencies and that his average return Cross sales were more than 300%.
Last year, shortly after he turned 30, he said he invested those proceeds into buying a $350,000 home. (or pound280,000) Apartment in London.
Bill is among millions of people around the world who have invested in cryptocurrencies. While some of these investors lost money — especially when cryptocurrency values declined in 2022 — others have benefited from rising cryptocurrency prices in recent months.
In February, the total value of the cryptocurrency market reached $2 trillion for the first time since April 2022. In March, the price of Bitcoin reached $66,000 for the first time in nearly three years and reached a record high of over $73,000. While Bitcoin is now trading at around $70,000, it is still well above the roughly $16,000 level it fell to in November 2022. The prices of some other cryptocurrencies, including Ethereum and Solana, have also risen significantly over the past year.
Experts pointed to the possibility of lower interest rates, increased demand for Bitcoin ETFs, and what is to come Bitcoin halving event – when the number of Bitcoin tokens rewarded to miners is halved — As an explanation for the strong performance of the cryptocurrency market in recent months.
While some cryptocurrency investors are likely betting on prices rising further, others, like Bell, It may start selling some of its proceeds. This may be one of the reasons why Bitcoin's price has fallen from its peak in March.
Targeting a few tokens and investing over time has proven to be a good strategy
Bell, who works as a mergers and acquisitions professional, said the first step in his cryptocurrency investment strategy was to buy cryptocurrencies he believed in. These symbols tend to be useful symbols, he said Such as Ripple and Ethereum, which are created – rather than mined – and typically provide access to services or products within the blockchain ecosystem. They differ from security tokens, which effectively function as investment assets like stocks.
He said he tried to make his investments when prices were falling and then used the dollar-cost averaging approach, which involved making a series of investments over time in hopes of lowering the average cost. From his investment.
When prices rose to what Bill thought was their near-term peak – and he had made a good return on his investment – he began selling his tokens in batches over a certain period of time.
“I tend to make a first sale to cover my investment and then do a few more transactions until I exit the position completely,” he said. “I mostly look at market sentiment and charts to ascertain where we are in the cycle.”
Although he has had some success as a cryptocurrency investor, Bill does not consider himself an expert.
“I simply follow this strategy that relies heavily on the belief that markets will rise in the long term, and that the cryptocurrencies I believe in will not lose value,” he said.
To be sure, an investor is never guaranteed positive returns, whether he invests in cryptocurrencies or other assets such as stocks. The cryptocurrency market has been particularly volatile in recent years, which can entail significant risks for investors.
Going forward, Bell said he is in no rush to invest more in the cryptocurrency market. He said that between 2022 and last February, he sold nearly 95% of his investments, although he reinvested about $15,000 of the proceeds.
For now, Bell said he is waiting for crypto prices to decline or for an attractive investment opportunity to emerge. In the meantime, he said he is turning his attention to a side hustle that he hopes will provide an additional source of income.
“I sold almost everything,” he said of his cryptocurrency investments. “I'm not buying anymore, so I'm just waiting.”
Have you sold some of your cryptocurrency investments and spent the proceeds? Are you ready to share your story? If so, contact this reporter at jzinkula@insider.com.
