There are times when one shouldn’t make major investment decisions. When you have a sick kid and a needy baby and you’re still fried from your busy weekend might be one of those times. When you are interrupted by children every time you sit down at the computer might be another time.
Whenever I earn cryptocoins from either the Devtome or my writing clients, I allocate the earnings according to a simple formula. One quarter gets sent to my Cryptsy account for hoarding. One quarter gets allocated for investment. Devcoins usually get sent to Vircurex and Bitcoins get sent to wherever I wish to use them to purchase an asset. Then half gets traded out for fiat and then on to pay some majorly overdue bills. I don’t touch the cryptos designated for hoarding. Those ones are tucked away in my Cryptsy account which I really don’t use for trading (though I hear Cryptsy is a fine trading platform), and which I don’t log into unless I need to. Cryptsy may well be the first website I activate 2-factor authentication on, just to make it a little harder for me to access it. In other words, I’m trying to save those cryptos from myself.
The investment cryptos are the ones I really allow myself to play with. Sure, I hope to invest them into all sorts of wonderful assets which will make me rich beyond my wildest dreams, but the truth is it’s play money. It goes into vehicles which often enough turn out OK, but which also get hacked into or generally lose money. It used to be that all my crypto earnings were play money. When I lost a substantial amount of it in the Inputs hack, I began to consider the ramifications of losing that much all at once. The soaring price of Bitcoin at the time made the experience hit home all the more–at one time my losses could have traded for over $4000. These thoughts eventually evolved into the situation I have now, where I immediately take out fiat profits from half of my earnings and allow myself to play with only one quarter of them.
So what brilliant things did I do with my investment cryptos in between changing diapers, fixing dinner and dealing with a sick child?
mcxNOW is back up I decided to log into my mcxNOW account just to see if the new version was up and running. It appears to be mostly online. The coins that RealSolid discontinued trading on are now trading again. Well, most of them. I noticed that the price of Devcoin on mcxNOW was still stuck at 20 sat. And there were sell orders clear down to 25 sat on the sell wall. Devcoins currently trade on Vircurex for 70 sat, and my mind immediately saw arbitrage.
I don’t know whether it was the completely flat line on the mcxNOW chart or the fact that Devcoin was still “trading” at the exact same price it was at when mcxNOW put a stop to Devcoin trading, or the brief mention in the troll box of working on the Devcoin code that failed to clue me in to the fact that all was not quite ready for my brilliant exploitation of the price difference.
Oh no, I and I alone had noticed the fifty point difference and all the sell orders that were well below 70 sat. I and I alone was going to sell off my investment Devcoins and then buy them up at these bargain basement prices on mcxNOW. Why, I would double my holdings. Who knows? Maybe I could sell them off again on Vircurex and then buy up even more on mcxNOW.
I quickly sold almost 400,000 DVC at 70 sat and sent them over to mcxNOW. The transaction confirmed in record time and I rolled up my sleeves and got ready for some fun. I placed the first buy order, just a tiny amount for 25 sat, and nothing happened. The order just never went through. I tried again. Same thing. Now that I think of it, the same thing happened which had happened when RealSolid took Devcoin trading offline. You could go through the motions of placing an order, but it didn’t do any good.
Major fail. I felt a little silly. I can imagine what people in the troll box might be saying right about now. Um. Never mind. I would have to pay an additional transaction fee to get my Bitcoin moved out of my mcxNOW account to a place where they could do some good. I’m not going to just let them sit them tempting me to get back into Fee shares. There’s 80 cents I’ll never get back!
Getting out of DOGE Recently the tanking price of Dogecoin took a turn towards the moon and I saw the price shoot up to over 200 sat apiece. I thought to myself that I really ought to sell my meager holdings while the price was high, but then I got a bit greedy thinking the price would climb even higher.
After my misadventure on mcxNOW I decided to just pull the plug and sell at a bit lower than the highest price I saw, around 174 sat. I believe I bought a bit more than 0.1 BTC worth and I got over 0.2 BTC out of selling off, so I certainly did not lose any money on this deal, not even a transaction fee.
Why was I suddenly in a hurry to get out of DOGE? The main reason is that I honestly do not know if DOGE is a keeper or a crap coin. Not only that, I have zero interest in finding out. I simply do not want to spend any time reading about yet another coin which might or might not make it. I bought it to hold it, not day trade it, but I don’t know if it’s a good coin to hold or not, and I don’t care. I certainly do not want to lose everything if it did turn out to be a crap coin.
When you realize you couldn’t care less about your investment, that’s a good time to sell. And if the price is better than what you originally paid, then so much the better. So I sold my DOGE because I don’t care about it.
It seems there’s a new cryptocoin every week. Some recent ones which came on the scene are UFO coin and earth coin–covering the universe, I guess. There’s also Datacoin and Dogecoin isn’t very old either. If you buy into an alt coin right as it’s being released, before it shows up on any of the major trade exchanges, and before its marketing campaign kicks in, you can probably make a nice bundle early on if you sell while its price is rapidly climbing, or even better as it’s plateauing at the top. Everyone is always looking for the next alt coin that goes “to the moon,” and if you find it, you can do quite nicely. But just like the overnight success which took ten years, for every successful alt coin you might invest in, there could easily be ten or more that never really go anywhere, or whose big peak you missed (didn’t sell) and may not see again for several months if ever. Before you invest in a given alt coin you should research it and determine if it is a good investment. This takes time. It’s time I would rather spend doing other things. If DOGE really does go to the moon I suppose I might have passing regrets about my decision to sell. But I won’t regret the time I won’t spend thinking about it now that I’ve sold it.
The crypto world is truly wide open for profiting quite nicely, and you can even profit in a way that fits your style. If DOGE doesn’t interest you, then by all means, get out of DOGE and into the coin which does.
Devcoin found me, I gave it a whirl, and the more adventures I have with other cryptos the more I realize how much of a good fit Devcoin is for me. I earn more of them by writing fun articles like this one. There’s a lot to like about Devcoin, much of which I’ve covered in other articles. In this case, the best thing of all is that Devcoin isn’t the hot new crypto which might or might not make it. Devcoin has actually existed for over two years, and it’s still going strong. In fact, more people are interested in earning it and buying it than ever before. There are just a lot of really good reasons for me to stick with that. If I never noticed another crypto and just stuck with Devcoin and Bitcoin, I could still do quite well. They are good solid coins to use as the backbone for all over crypto investments.
The Next installment I decided to check in with joefox and see where things are at with Next coin. This is one that I actually bought an entire Bitcoin’s worth, and whose value has climbed nicely since I bought it. The only problem is I’ve had the toughest time getting the wallet to work. Joefox helped me install it and it worked for about three days and then got hung up. Joefox told me what to do to get unstuck but I never got around to it. So I emailed him today to find out where things were at.
There’s yet another update to the client, he told me, and everyone needs to update before a certain block number or they’ll get “left on a sad little fork.” But that update has some issues with performance, so the newest update should get posted sometime today. He advised me to wait for that one, which I decided to do. Still waiting.
It was the news that Vircurex will provide support for trading Next in the next day or two which prompted me to contact joefox. When a crypto gets added to Vircurex that’s a good sign that it could be going places. That’s how I first learned about Dogecoin. In the case of Next, it’s just great that I already own it. Getting added to a popular trading platform will only help its value.
Once I do update my NXT client I will have to decide if I want to keep using it, and even try my computer’s hand at forging (Next’s version of mining), or if I will just send it all to Vircurex and store it there until I’m ready to sell some off. Neither scenario strikes me as ideal at the moment. I actually would like to hang onto my Next, unlike DOGE, and I’m willing to spend a bit more time with it. But obviously I’m not exactly looking forward to installing the client yet again. I will need to in order to send my NXT to another address, though. This is one decision that will get the benefit of a good night’s sleep. No impulsiveness about my NXT here.
There’s always mining Once I realized that I was not going to double my Devcoin holdings within five minutes on mcxNOW, I decided I’d just send the Bitcoin off to my cloud mining account. Difficulty levels are continuing to rise, making mining somewhat frustrating–the frustrating part is that the amount of yield in a given time period always seems to be going down. However, there is still no better return for your Bitcoin than mining. I also sent off the proceeds from the sale of Dogecoins to the Commodity Exchange. Between those two deposits I was able to buy around fifteen additional GHS. It will be fun to log into my account again in a couple days and see how much Bitcoin I can pull out in profits. The great thing about mining is that it happens without much help from me, and it continues to take place even while I’m sleeping or doing other things. Although I didn’t think I’d go that route, it’s turned out to be a pretty good fit for me, especially now that I can be involved in cloud mining which totally removes me from the hardware maintenance loop.