Here's What I Learned From Spending $1 on Crypto Every Night for 30 Days
Over the past month, I committed to buying $1 worth of cryptocurrency every night at 9pm. My goal wasn’t to get rich, but rather to explore how consistent crypto investing could teach me about the market. By the end of this experiment, I had acquired 30 different cryptocurrencies. Here’s what I discovered along the way.
---
Experience: $1 per night, 30 coins
The plan was clear: buy $1 of a different cryptocurrency every night. My idea was that spreading my investments across different currencies would reduce my risk while giving me a crash course in crypto investing. It was a way to test the waters without risking too much money.
However, the trip came with some surprises.
---
Lesson 1: Cryptocurrency prices are highly unpredictable.
One of the first things I noticed was the extreme volatility in cryptocurrency prices.
Some nights, I wake up to see a coin I bought go up over 10% in a matter of hours.
On other nights, the same currency may fall by the same percentage or more.
The massive price fluctuations meant my portfolio felt like a roller coaster ride. Even though I had bought 30 different currencies, the collective behavior of the market often made everything move together, amplifying the highs and lows.
---
Lesson 2: Diversification is not a perfect shield.
I assumed that buying 30 different currencies would spread my risk. Unfortunately, this was not always true.
When the overall market went down, almost all the coins in my portfolio followed the trend.
Even when some currencies performed well, their gains often outweighed the broader losses.
This taught me that while diversification is a good strategy, it cannot completely protect you from the wild volatility of the cryptocurrency market.
---
Lesson 3: Timing is more important than you think.
Sticking to a strict shopping schedule at 9pm every night was convenient, but it wasn't always ideal.
The cryptocurrency market moves quickly, and there have been nights where I bought at the peak, only to see prices drop shortly after.
Conversely, on nights when it has seen a decline, the currency often recovers and gains value.
This highlights the importance of timing when investing in cryptocurrencies. A more informed buying strategy could have yielded better results.
---
Lesson 4: The Value of Research
One of the amazing benefits of this experience was the opportunity to learn about the currencies I was buying.
Every night, I spent time reading about the purpose of the currency, its development team, and the problems it aims to solve.
While some coins looked promising, others seemed speculative or lacked a clear use case.
This research has deepened my understanding of the cryptocurrency landscape and helped me think critically about long-term investments.
---
Lesson 5: Managing Emotions is Essential
I didn't expect how emotionally involved I would be.
Watching the currency rise in value made me feel excited and hopeful.
On the other hand, seeing the currency drop immediately after buying it was frustrating.
This experience has reinforced the importance of staying calm and avoiding impulsive decisions based on short-term price movements. Emotional investing can be dangerous, especially in such a volatile market.
---
What's next?
After 30 days, I gained valuable insights into the world of cryptocurrencies. In Part 2, I will break down the specific cryptocurrencies I invested in and analyze the performance of my portfolio.
For now, here are the most important things I've learned:
1. Cryptocurrencies are highly unpredictable.
2. Diversification can help but it will not eliminate risk.
3. Timing plays an important role in maximizing gains.
4. Research is crucial to identifying potential long-term winners.
5. Emotional discipline is vital to dealing with market volatility.
Finally, I wish everyone all the best and friendship, and a happy new year in advance.