For the past month, I committed to buying $1 worth of cryptocurrency every night at 9 p.m. My goal wasn’t to get rich, but to explore how consistent investing in crypto could teach me about the markets. By the end of this experiment, I had acquired 30 different cryptocurrencies. Here’s what I discovered along the way.
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Experiment: $1 a Night, 30 Coins
The plan was simple: buy $1 of a different cryptocurrency each night. My thinking was that spreading my investments across different coins would reduce risk while giving me a practical lesson in crypto investing. It was a way to test the waters without risking a large amount.
However, this trip came with some surprises.
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Lesson 1: Crypto Prices Are Very Unpredictable
One of the first things I noticed was the extreme volatility in crypto prices.
Some nights, I wake up to see the coins I bought have jumped more than 10% in a few hours.
Another night, the same coin might go down by the same percentage or more.
Big price movements make my portfolio feel like a rollercoaster. Even though I buy 30 different coins, the collective behavior of the market often makes them all move together, amplifying the ups and downs.
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Lesson 2: Diversification Is Not a Perfect Shield
I assumed that buying 30 different coins would spread my risk. Unfortunately, this is not always true.
When the overall market goes down, almost all the coins in my portfolio follow the trend.
Even when some coins perform well, their gains are often offset by broader losses.
This taught me that while diversification is a good strategy, it cannot completely protect you from wild fluctuations in the crypto market.
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Lesson 3: Time Is More Important Than You Think
Sticking to a strict schedule of buying at 9pm every night is convenient, but not always ideal.
The crypto market moves fast, and there were nights when I bought at the peak, only to see the price crash soon after.
Conversely, on nights when I catch a dip, the coin often recovers and gains value.
This highlights the importance of timing in investing in crypto. A more informed buying strategy can yield better results.
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Lesson 4: The Value of Research
A surprising benefit of this experiment was the opportunity to learn about the coins I purchased.
Every night, I spend time reading about the coin's goals, its development team, and the problems it aims to solve.
While some coins feel promising, others seem speculative or don't have a clear use case.
This research deepened my understanding of the crypto landscape and helped me think critically about long-term investing.
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Lesson 5: Managing Emotions is Key
I didn't anticipate how emotionally involved I would become.
Seeing the coin value increase makes me feel excited and hopeful.
On the other hand, seeing coins go down immediately after buying them is very annoying.
This experience reinforces the importance of staying calm and avoiding impulsive decisions based on short-term price movements. Emotional investing can be dangerous, especially in highly volatile markets.
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What is next?
After 30 days, I have gained valuable insights into the crypto world. In Part 2, I will break down the specific coins I invested in and analyze how my portfolio performed.
For now, here are my key points:
1. Crypto is very unpredictable.
2. Diversification can help but will not eliminate risk.
3. Time plays an important role in maximizing profits.
4. Research is very important to identify
potential long term winner.
5. Emotional discipline is very important to deal with market movements.
Stay tuned for Part 2, where I'll dive deeper into the numbers and share my strategy going forward.
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