Two first-time cryptocurrency investors shared their stories with The National on Wednesday, which illustrate that Bitcoin indeed isn’t the get-rich-quick scheme many people mistakenly believe.
‘ … What I Made, I Then Lost’
First up is a Pakistani investor named Mohammed, who first invested in the Bitcoin market in December 2017. Mohammed told The National:
I invested $10,000, made 30 percent and sold a week later. Then I put the whole $13,000 in again a few days later.
Mohammed then took out his money when the steep correction began in January. By then, however, it was too late. He’d already lost the 30 percent he initially made.
Not to be deterred, Mohammed took his chances on Bitcoin again after Chicago’s CME Group launched its Bitcoin futures contract in December. The results were not what he anticipated. Mohammed explained:
I knew that would give the currency respectability and there would be a flood of people buying for fear of missing out. It was a chance to make some money but what I made, I then lost. It was fun but I will never go near that stuff again.
Mohammed’s story illustrates an important point which is lost on many digital currency investors looking to get rich quick — Bitcoin and other well-established cryptocurrencies like Ethereum, Litecoin, and Ripple won’t make you rich overnight. Rather, they’re long-term investments whose use cases have yet to be fully explored and utilized.
We’ve all heard stories of people who’ve mortgaged their house, bet big on Bitcoin, and then made massive gains. For each of those lucky gamblers, however, there is a sea of unlucky investors who’ve found themselves left holding the bag after buying in at all-time highs or not doing their due diligence. Don’t be the latter.
‘It Was a Bit Scary… ‘
The second individual who shared their story with The National is Fred, a British communications executive residing in Dubai, who actually took the time to study up on Bitcoin. He bought into the digital currency in November when it was $9,000 per coin, explaining:
I was very skeptical about the links with purchasing on the dark web and the lack of security with a central bank. But the more I read up on Bitcoin, blockchain and other cryptocurrencies, I realized it was more likely to have an impact in the future of business and offered a genuine and secure opportunity for peer-to-peer lending without the need for expensive fees or currency transfer rates.
Fred first invested $900, which he built up to $4,000. He, like many others, lost most of that when the correction hit. Fred explained:
When it spiked to $20,000 briefly, I thought about selling. Then it started to crash so I sold some at $15,000, with the profits paying for Christmas. It was a bit scary when it went as low as $5,000. There isn’t much history of cryptos to go on, but what there is suggests January usually sees a crash/correction and then a recovery, which is what’s happening now. I bought some more when it rose back […] so I’ve got about a third of a coin.
Still, Fred’s down overall — but has the right attitude about it, telling The National:
Bitcoin is not far off returning to a price that will give me a profit again. It isn’t for the faint-hearted but I’ve got a clear figure in mind for its value when I exit. It’s a fun ride, but I’m aware it could all disappear overnight.
By doing your research, having a sound plan, and refraining from investing money you can’t afford to lose, you too can ensure your Bitcoin investments are “a fun ride.”
What do you think of these two UAE investors’ stories? Let us know in the comments below!
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