Looking back over my Ethereum/DeFi journey

Discussion in 'Crypto Assets' started by krugman25, Mar 24, 2021.

  1. krugman25

    krugman25 Guest

    Hey all, it's been a while since I've posted. I figured I'd drop by and give an brief update on my crypto/Ethereum/DeFi journey since my start in late 2019. https://www.elitetrader.com/et/thre...-part-time-trader.335454/page-15#post-4944714

    To recap, back in 2019 I dove headfirst into Ethereum by taking money left over from a software development contract I had recently finished up and putting it all in ETH. I stuck with ETH until mid 2020 where I started swapping some of it into various DeFi tokens. I had some well timed buys and sells along the way. By February (2021) I was up about 3,000% from when I started.

    I decided to cash out a large portion of my portfolio and ended up paying off my house and all of my debt. I still have about 1/3 of my original crypto portfolio in the markets. I do think a more sizable and prolonged pullback is overdue and if it does happen I wouldn't mind starting to accumulate again, and should have more cash to do so now that I'm debt free.

    There are definitely some risks out there right now with Ethereum and DeFi, particularly with regulations, but also on the technical side in regards to scaling and fragmentation with layer 2 solutions. There are also some long term bullish catalysts as well with EIP-1559 which will burn gas fees and ETH 2.0's Proof of Stake.

    The risk reward isn't as attractive in the short term for people just getting involved, but over the long term I like the risk reward of this space.
     
    narafa, They, Apologetik and 2 others like this.
  2. Baron

    Baron Administrator

    That's awesome. Congrats!! I'll bet that was a great feeling to get all that debt off your shoulders.
     
    krugman25 and johnarb like this.
  3. krugman25

    krugman25 Guest

    Much appreciated! It was tough cashing out how much I did because there is always that "what if crypto goes way higher from here" feeling, but ultimately it was the right decision and feels amazing to be debt free.
     
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  4. On the dark side, there goes your credit rating.

    I've been told my credit rating would be higher if there was some evidence I was making on-time mortgage payments. :)
     
  5. krugman25

    krugman25 Guest

    I've heard the same thing. I'm not sure if it's true or how much it affects it. Something my wife and I have done for years is put all of our bills and expenses on a credit card and then pay off the credit card every week or two. It's been good for our credit scores and we generally rack up a couple grand in cash back each year.
     
    Last edited by a moderator: Mar 25, 2021
  6. In addition to my other "hats", I'm a CFP... used to run a financial planning practice for fee. Number one objective was to get out of debt and stay out. Sounds like you've got that going. (I like the idea of putting your routine bills on credit card and collecting cash back.)

    A little anecdote... when I was in financial planning school one of the instructors used to say, "I save 25% of my income... I can not make it on 75% of my income as well as not making it on 90%"... the old adage, "save 10% of whatever you make". As he lectured, he held a couple of Krugerrands in his hand and would clink the coins together sometimes. :)
     
    Last edited: Mar 25, 2021
    krugman25 likes this.