1k to 10k (Part 3) Two lessons learned for crypto project investments + bear markets
While I would love to dazzle you with the enormous amounts of profits made from my 1k investment, the bear market has slowed down the pace of my investment. In my first post I started with an initial investment of about $660 in ETH (roughly 0.225 ETH plus some exchange and gas fees along the way) into the EMP Money platform. Be sure to follow me to stay up to date on my progress as I attempt to turn $1000 into $10k.
*Disclaimer: Everything I share is for your informational and entertainment purposes. I am not a financial advisor, and nothing I share should be considered financial advice.
Update: We are making progress
Here is a breakdown of where the investment is:
Total Investment Value: $499.15
Minus the amount locked in the detonator: -$230.13
Amount I could Cash Out: 269.02
Amount Cashed out to Stablecoin (not UST): 0
Net: -$401.48 (~$13 less than last week)
Overall, the my amount of tokens are going up. This is good. However, the value of coins in the market are bobbing up and down. This has been the largest factor in the net value of my investment.
What I learned in the first two weeks
I learned a few things that may be helpful for new investors following in my footsteps.
Lesson 1: Initial investment amounts matter
The rate of return would be different if I initially deposited all $1,000 into the detonator and start compounding. I’m learning that it is sometimes better to invest a larger amount into one area rather than spread money out across several projects in smaller amounts. For my investment range, the sweet spot seems to be between $500–5,000 (leaning more toward the 5k side.)
I’ll illustrate an example.
I have about 3.65 LP tokens deposited into the detonator. Each day I generate about 0.02 rewards. This amount is a little bit too low when you consider the gas fees involved (about 0.0075 BNB per compound). I would like to quickly get this amount up to 13–15 LP tokens. This would accomplish 2 things.
- The more rewards = more money returned faster.
- Higher compound amounts mean I can get tickets to enter the lottery drawing.
Amounts matter.
Side note: If you decide to give the detonator a try, consider adding my referral link. This will help me earn more rewards to reach my goal of turning 1k to 10k.
https://emp.money/detonator?ref=0xF7b3535368ff513B021E3D6DDF3db885066fF62A (referral link)
Lesson 2: It will be a good idea to diversify
I was tempted to put my extra $300 into the detonator, but then I thought about it further. Knowing that the market has the potential to continue trending downward, I want to wait a little bit before I throw my extra $300 into the system and have it lose value. Instead I will diversify my investment a bit and some money into another investment.
Enter Midas Investment
I was looking for a place to deposit my money as a stablecoin for growth. I checked out Nexo, Celsius, Blockfi and several others. They don’t accept US citizen deposits anymore. As I kept searching, I came across Midas.Investments and decided to deposit with them.
I am currently earning ~17% APR on my BUSD. If you’re looking for a place to grow your stable coins, check them out (referral link).
I chose to invest with Midas for a four reasons:
- They didn’t have UST in their portfolio. Their native token held up really well while other coins were dropping last well.
- They’ve been in business for over four years.
- Like EMP Money, they offer a training course on investing. Being an educator, I like this.
- They have a real customer service person on the live chat. #dontlikerobotcustomerservice.
My plan for the next several weeks
I plan to let my money and coins keep growing. I will continue to compound in the detonator on 5–2 cycle.
I will also place 50% of my eshare generated into the board room.
I will probably deposit the other 50% of eshare into the the detonator in order to increase the reward amounts.
Any suggestions?
What are some lessons and strategies you learned from investing in crypto projects?