Should I invest 1,000 euro in crypto?
- Thread starter Luna46
- Start date
Thanks for answering me. I have savings of 16000. I am planning on investing half in a diverse fund, long term, slow growth low risk. I want to use a thousand to invest in crypto. I am willing to lose it. I have no debt, I have an emergency fund to cover 3 months salary. Pay mortgage and bills comfortably.
You would probably be better off paying it off your mortgage. Or, if you have them, any unsecured loans that you have.
If you'd done that in BTC in Nov 2021, your €1000 would have been worth €287 exactly a year later. It really doesn't help the OP just to say in your sample of one that you lucked out.
FWIW, I have recently purchased a small amount of BTC. I did this because my thesis is that a) it's been around long enough now and up and down enough in that time that it's no longer exhibiting what I would consider bubble behaviour, and b) the fundamentals about it that people believe in is that it will be a (portable) store of value that will not erode over time due to inflation once it tops out at 21m coins. In the context of my overall portfolio, I'm no longer willing to miss out on the potential upside over a ~20-year timeframe (I've dismissed it enough over the years!) compared to the downside potential, which I no longer believe will go to zero.
In short, it's either a moonshot 10-100x or a ~50% loss for me, with probably very little chance of a more benign, non-roller-coaster scenario in between - hence the very small allocation (or bet, if you prefer!).
Thanks a mill for your responses. Yes I guess I see it in terms of a bet, so you think bitcoin is my best bet? I was thinking of dividing it 3 ways between bitcoin, solana and XRP. Or do you reckon I put the full 1000 on bitcoin and worst case scenario I lose 50%, that's what I'm interpreting from your message?
I think you misinterpreted my message then. I said I put less than 1% of my net worth into it, not 6.25% as you’re suggesting. I have other assets (home equity, pension assets, other investments), so me losing 50% on my relatively small bet of less than 1% is very different to your situation.
Plus my timeframe (20 years to my retirement) may be very different to yours - you mentioned no debt so you may be hoping to buy a house at some stage in the near future (eg 5 years).
Sorry, my post above just explains my thinking for my situation and shouldn’t be interpreted as advice.
How correlated are the three crypto assets with each other?
It's one thing to bet on 3 different horses to wina race but if all you're doing is betting on 3 legs of the same horse it's hard to call it diversification.
A few years ago, in spite of myself, I let the crypto FOMO get to me and I put a small amount (less than 0.5%) of my overall net worth into CoinBase - mistakenly thinking that I was smart in putting it into an exchange rather than an individual token. This was at what was effectively the bottom of the real world stock markets at the time. It tanked immediately and I sat for a few years on the paper losses and did nothing. Some time later, thanks to Trump's imminent return and the madness that comes with that, it recovered briefly and my limit sell triggered to give me my nominal sum back (but obviously zero return and the real value eroded by inflation in the meantime). But at least I got it out of my system without major damage. 
Last edited:
Thanks Clubman, on that note I want to keep the thousand to bet with on crypto. Out of 16000 savings, I was going to keep half for emergency fund and invest half? Do you thinks I would be better served to put half into my mortgage Instead of investing it? I'm fixed into my mortgage for next 4 years paying 2.5 percent interest, so maybe deposit account with a decent interest rate for 4 years and then dump into mortgage? Do you reckon that's a better plan then putting it into a diversified low risk fund?
Questions like this can only really be properly considered and addressed in the context of a Money Makeover.
Key Post - Basic information required for the "Money Makeover" forum
It can be difficult, but please try to use a meaningful title in your thread For example "27 year old with mortgage arrears". You will get a much better and much more coherent answer if you give as much information as possible in your first post. For example, if you give your mortgage rate, it...
www.askaboutmoney.com
Yes, I would go the 3 ways, Bitcoin, Solana and XRP. Best of luck.
Radiowriter
Registered User
- Messages
- 47
When it comes to alternative investments my main investment is in Irish art which I've written about before. However, I have a couple of smaller crypto investments but a slightly different strategy.
I've gone down the ETF route with one ETF trading in a basket of crypyo including some of those already mentioned. This helps to balance out any losses. The second ETF is more interesting to me as it invests in finance and tech companies using and developing blockchain technologies.
Both doing ok at the moment. Nothing spectacular but holding their own. Will be interesting to see where things go over the coming year.
I've gone down the ETF route with one ETF trading in a basket of crypyo including some of those already mentioned. This helps to balance out any losses. The second ETF is more interesting to me as it invests in finance and tech companies using and developing blockchain technologies.
Both doing ok at the moment. Nothing spectacular but holding their own. Will be interesting to see where things go over the coming year.
Surely crypto is old news at this stage, if I had €1,000 TO 'invest' on something that might pay off in a big way or more likely just go bang, I don't think t would be crypto.
Bitcoin might double or treble in the next year but its not going up x100 again.
Bitcoin might double or treble in the next year but its not going up x100 again.
Sister Sara
New Member
- Messages
- 5
Im in not too dissimilar situation.
I joined this site after reading the threads on bitcoin. I'm late to the game, but have invested a lump sum now. I do so comfortable that I have cash desposits, mortgage free, good pension etc.
Im not really interested in the potential of 'making a killing' or 'getting burnt', for want of better phrases.
Im just in the era of my life that I now realise the sands are shifting below my feet. Not just with crypto, but with technology in general such as AI, and quantum physics. The climate is changing. Communications are revolutionized.
Im old enough to remember my grandparents dialing the operator to make a phone call.
The changes occuring in one generation are breathtaking, God knows what's in store for the next generation? God help them.
Data Centers are all the rage, trips to Mars are back on, I even remember Elon Musk saying that in the near future there will be no need for the alphabet!
Its all a bit mad, but the computers are taking over! lol!...so im guessing bitcoin may be their way of trying to tell us something.
I joined this site after reading the threads on bitcoin. I'm late to the game, but have invested a lump sum now. I do so comfortable that I have cash desposits, mortgage free, good pension etc.
Im not really interested in the potential of 'making a killing' or 'getting burnt', for want of better phrases.
Im just in the era of my life that I now realise the sands are shifting below my feet. Not just with crypto, but with technology in general such as AI, and quantum physics. The climate is changing. Communications are revolutionized.
Im old enough to remember my grandparents dialing the operator to make a phone call.
The changes occuring in one generation are breathtaking, God knows what's in store for the next generation? God help them.
Data Centers are all the rage, trips to Mars are back on, I even remember Elon Musk saying that in the near future there will be no need for the alphabet!
Its all a bit mad, but the computers are taking over! lol!
...so im guessing bitcoin may be their way of trying to tell us something.
Last edited: