crypto currency

[QuarterMillionMan]

I'm getting cold sweat thinking about a lump sum of $52,000 in bitcoin. Today's price of one bitcoin is $101,000 so I can buy 1/2 of a bitcoin. Bitcoin trades 24/7 but I think I'll wait until Monday during business hours.

[kork13]

This question might seem quirky to some since it involves buying bitcoin but let's say you would be buying stocks with this money would you buy it all at once or dollar cost average overtime let's say $5000 per week.

It's really not much different that any other "Lump Sum vs. DCA" question that we see here all the time. So the same "normal" advice applies, though with higher risk (related to the higher volatility risk that BTC presents) --- In general terms, "Time in the market beats timing the market" ... so when you've got the money available to invest, invest it. Of course, if the volatility risk makes you nervous, spreading out your investment over a short period of time (say, weekly across 4-6 weeks) is also totally fine. Really, the "best" answer is just to do whatever helps you sleep at night.

I'm not really sure if this entirely applies to commodities/currencies, since they don't actually grow/create income ... but it's likely still best/simplest to follow the standard advice.

[disneysteve]

This question might seem quirky to some since it involves buying bitcoin but let's say you would be buying stocks with this money would you buy it all at once or dollar cost average overtime let's say $5000 per week.

Dollar cost averaging is a method to invest money that you don’t have yet. When you have a lump sum available, invest a lump sum.

[QuarterMillionMan]

On 12/8/24 I requested a direct transfer in cash $52,000 from custodian A (traditional brokerage) to custodian B (crypto brokerage) in my Roth IRA accounts. On 1/31/25, the funds finally settled in custodian B which is a crypto Roth IRA account. It took almost 2 whole months. Will be using these funds to buy BTC exclusively. This question might seem quirky to some since it involves buying bitcoin but let's say you would be buying stocks with this money would you buy it all at once or dollar cost average overtime let's say $5000 per week.

[LivingAlmostLarge]

I still don't get crypto. I don't understand how to invest it it still other than it's something you say it's worth $X like buying tulips. It's what someone else will buy it from you for.

[QuarterMillionMan]

I bought $2200 worth of XRP beginning in November. Today the unrealized gain is $2100, not bad.

[QuarterMillionMan]

Let's say you're not an American and either a Nigerian or Venezuelan and given a choice of being paid in USA dollars, Chinese Yuan, or bitcoin. Which would you choose? I would take bitcoin over USA dollars or Chinese Yuan any day.

[QuarterMillionMan]

This might be a simplistic view that I have between people who own cryptos and people who don't. Let's start with people who don't own cryptos in my view trust their government. People like me who own cryptos do not trust the government. Just a generalization of mine.

[QuarterMillionMan]

My seed phrase is written on paper. Should a fire occur my Ledger which has $62,000 will be lost. For $20, I'll be buying a metal seed phrase plate where I'd etch my seed phrase onto the metal plate.

[james.hendrickson]

Has anyone ever held a bitcoin in their hand? I'll leave it at that.

Anyone invest in the hawk tuah crypto? That worked out well for everyone.

No doubt, most crypto tokens are basically worthless. BUT - the incoming administration is pro-crypto and pro-tech, which means a favorable regulatory environment for those currencies that are legit, such as bitcoin or Ethereum.

[EasyMoney00]

Has anyone ever held a bitcoin in their hand? I'll leave it at that.

Anyone invest in the hawk tuah crypto? That worked out well for everyone.

[QuarterMillionMan]

Bonds seems to be over-run by inflation these days. But if bonds works for you more power to you.

[james.hendrickson]

60/40 was your grand-father's investment strategy. Today I feel it's 60/20/20 w/cryptos being that last 20% (including precious metals). I'm moving towards 60/40 (in cryptos & precious metals, no bonds) but it is risky.

Why no bonds? They're an investment vehicle that's at least 2,000 years old.

[QuarterMillionMan]

60/40 was your grand-father's investment strategy. Today I feel it's 60/20/20 w/cryptos being that last 20% (including precious metals). I'm moving towards 60/40 (in cryptos & precious metals, no bonds) but it is risky.

[QuarterMillionMan]

I've been buying bitcoin at a spot price of $9000 (ie, $1000 worth + or - at a time). I have 5 different accounts (ie, Ledger, Coinbase, Robinhood, Coinbase wallet, Bit Stamp). I had Trade Station roth IRA but they abruptly discontinued cryptos and only deal with equities now. In the 5 accounts above I own about 1 BTC pooled all together. My capital investment is about $45,000, so I'm currently sitting on about $50,000 in profit (unrealized gain).