Should I re-invest my profits in Ether and Litecoin in other cryptocurrencies?

Last year I sold all my Bitcoin, heck it was only eight Bitcoin in total but given that currently it would have been $151,800 today it still stings a bit that I sold it for a measly 2x profit. In an attempt to make up for my previous mistake…and feeling like Bitcoin was too high to buy in the thousands of dollar range (doh!) I decided to do a bit more research on cryptocurrency this summer.

The two cryptocurrencies that stood out to me were Ether and Litecoin. I read a few articles, starting checking out Reddit more regularly, heck I even tried my hand and mining. By no means did I become an expert, but I did walk away from my research feeling like if I missed the boat on Bitcoin, either of these two had a decent chance of making a run for it.

I particularly liked Ether because I believe in the mission behind Ethereum, which I think might get lost in the shuffle amidst all the cryptocurrency hype. Ethereum is actually a distributed computing platform, built on blockchain and allowing for something called a smart contract. I won’t get too into the weeds in this article but if you really want to do a deeper dive into Ethereum and Ether (its corresponding cryptocurrency token) then I recommend this awesome guide from Blockgeeks.

So, after trying to absorb as much as I could this summer, I took the plunge and bought both Ether and Litecoin. At the time Ether was a bit shy of $300 and Litecoin was around $50. Today, just a few months later I’ve seen my Ether investment more than double and Litecoin go up by 5x.

While I’d love to say I was able to so carefully research and time the market that I hit it big on these two cryptocurrencies…the reality is that like most people who made the same move, I was just lucky. What bugs me lately is that people who randomly bought Bitcoin, Ether, Litecoin, etc. and made good money now claim to be experts. While there are of course some real crypto experts out there, I think it’s safe to say that 2017 is minting far too many new so-called “crypto experts.”

A lot of these people did make a lot of money thanks to crypto this year…but they’re confusing good luck with expertise. While I do hope to be able to be more of a technical trader in the future, and yes, like most people out there I’m studying the crypto market more than ever, still it’s important to discern between luck and expertise.

One thing that scares me a bit about writing more and more about crypto on my blog is that people will think, “hey if this guy is writing about cryptocurrency he must be some kind of expert.” So I want to dispel this myth before it starts. That being said, I can honestly say that cryptocurrency is one of the best investments I’ve ever made, period. Of course if it all crashes tomorrow it could be one of the worst, but right now I am absolutely blown away to see how much my investments have grown over the last couple of months.

As a result I’m going to be investing some of my profits into other, riskier cryptocurrencies like Ripple that have a lot more risk and volatility. Still I’m a big believer in taking some percentage of my profits from any high-return investment, and putting it into something that could grow that money even faster. Not all of it, but some of it. I’ve done the same thing with domain names over the last ten years and I’m looking forward to seeing where this adventure takes me.

Of course, as always, I’ll take all of you along for the ride. Yes, I’ll still be writing about domain names here more than anything else but you can definitely expect to see more articles about crypto going forward since I’m getting more active in this space than ever before. Just remember, I’m not an expert, instead I’m someone that got very lucky this year. That being said, I think in many ways you make your own luck, so when you have a windfall or some investment that works out better than expected, it’s what you do with the profits that can really take your investment to the next level.

What do you think? Is re-investing a percentage of my profits a good idea or I am silly for increasing my risk profile and should I instead stay focused on Ether and Litecoin? I want to hear from you – comment and let your voice be heard!

{ 16 comments… add one }

  • Anthony December 18, 2017, 9:03 pm

    Hey Morgan, I am just getting into the crypto market and feel a bit frustrated that it wasn’t on my radar sooner. I am rooting for Litecoin to follow in the footsteps of bitcoin. I doubt it will hit the levels that BTC has, but I’ll be feeling super stoked if it hits $10k πŸ™‚ Ok, if it hits $3k, I will be happy, but I also haven’t put much into it. It’s just not a good time for me to diversify.

    I do appreciate your thoughts on “overnight experts.” I think the same happened in the real estate market when people got lucky because the market shifted upwards. All of a sudden, everyone felt qualified to charge money to teach people how to invest in real estate.

    Best, Anthony

    Reply
  • Anunt December 18, 2017, 9:46 pm

    First of all, i am no expert either…just got very lucky…and still getting lucky.
    i took out my initial investment and 50% off the profit and now only playing with the other 50% of profit.
    And now i can never lose.
    I wish I kept it all in but still happy since i am stress free now cause i don’t care if i lose the rest of it…but it keeps growing.
    My plan now is too move some of it into bch once coinbase starts trading bch next year.
    Anyways, my advice is take out your initial investment plus 50% of profit and just play around and trade with the other 50% off profit so you can never lose and have already won.
    Anyways, good luck.

    Reply
    • Arpit December 19, 2017, 12:00 pm

      I think reinvesting is worth it!!
      However, being in the right mindset is important. Like the time frame for which investment is made, the partial profit booking points, the averaging points, the stop losses etc. plays a very important role.

      Being a professional intraday trader and investment advisor, I do this myself and plan investments for my clients as well in the same fashion like knowing the risk appetite, time frame, diversification, profit expectation etc.

      Good decision to reinvest Morgan. Just keep booking partial profits and taking a small portion out or maybe diversify it! That ways things would work very well.

      I agree with Anunt’s comment. His technique looks good. The percentage can differ. However, the place where he says he has nothing to lose is something I strictly disagree. In this line of business, losing out on opportunity or not being present in a great market move is a loss too!!

      that’s just my personal opinion.

      Reply
    • Morgan December 21, 2017, 2:02 pm

      Great feedback – thanks for sharing everyone, I’ll definitely keep you in the loop and let you know what I decide to do and in the future we’ll all see if it was a good move or not and adjust accordingly. Live and learn!

      Reply
  • John M December 18, 2017, 11:54 pm

    Morgan you’re a bright guy do you really think LTC or XRP will continue to go up 10x from here without a major pullback? If so why did Charlie Lee ( LTC founder) warn of a possible pullback on LTC to $20 on a severe crash just a few days ago. Take your profits right here right now – be the casino not the gambler and wait for that severe pullback Mr lee has talked about. Good luck and Happy Holidays.

    Reply
  • Gene December 19, 2017, 3:53 am

    “While I do hope to be able to be more of a technical trader in the future….”

    My only advice to you, Morgan, is do not trade: Simply make periodic buys of Ether, and don’t even think of selling till 2020.

    Yesterday the ETHEREUM platform processed, for the first time, 1m transactions. The rise in the price of Ether is correlated to activity on the platform: And when you read the headline in the next 12-24 months that Ethereum now processes 100m…or even 1bn transactions, the Ether holders will be smiling.

    Reply
  • Fatih OZTURK December 19, 2017, 4:15 am

    Some people will make money for sure but it will not be from the usage of currencies but people buying for just profits. And when this will end only God knows.

    The thing that worries me is when hundreds of companies copy this technology and create a new currency what will be the price of bitcoin then? Who and how will manage this hundreds of currencies? What will be their exchange rate to one another? πŸ™‚

    Till people stop from buying and start using this as a currency it will just look like a ponzi scheme to me. Some people will be rich and some will become poorer.

    Reply
  • leonard britt December 19, 2017, 4:59 am

    No position in any crypto at the moment as I am still studying the space. Regardless blockchain technology does seem to be like the Internet of twenty years ago.

    Reply
  • Steve December 19, 2017, 7:00 am

    Btc long
    Ltc long
    Lisk ”
    Ada ”
    Nem ”
    Pillar ”

    Cheers!

    Reply
  • Steve December 19, 2017, 7:02 am

    We are at the bottom of the “s” curve. Hold on. ☺

    Reply
  • Andrea Paladini December 19, 2017, 10:58 am

    Crypto-currencies (the term “currency” is not proper though) are gambling, not investing, there is nothing underneath.
    And yes, under money there is something, unless what many ignorant crypto-fans say, at least is guaranteed by tax collection.
    Bitcoin & C. are just a huge energy-wasting Ponzi scheme, with a horrible impact on the environment.
    Reinvest your money in something more reliable and with sound basis. πŸ™‚

    Reply
    • Steve December 21, 2017, 2:20 pm

      Limited amount 21 Million btc ever. 84 million ltc ever.
      Peer to peer, permission less value transfer system.
      Not useful?
      Time will tell.

      Reply
  • Tom S December 19, 2017, 12:51 pm

    News about bitcoin has become mainstream knowledge now. Everyone has heard the term “bitcoin”. As a result, more people are investing and the supply and demand rule is in favor of bitcoin right now. Bitcoin is only going up because of demand. People are willing to pay market price just to be involved. I see this continuing for as long as people are jumping in on quick money. However, it WILL crash. When is the question.

    Reply
  • Nick December 19, 2017, 4:59 pm

    Can anyone provide a good safe place to buy/sell this stuff?????

    Reply
  • raymond December 21, 2017, 5:57 am

    Do not just buy and hold bitcoin, trade your bitcoin and altcoin to maximise return.
    CryptoBank.Ltd

    Reply
  • Steve December 21, 2017, 2:16 pm

    Ltc = Facebook?
    Boom!

    Reply

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