Over the past 30 days, I committed to buying $1 worth of cryptocurrency every evening at 9 PM. My goal wasn’t to strike it rich but to explore what would happen if I consistently followed a simple routine of purchasing one different cryptocurrency each night. By the end of the month, I had invested in 30 distinct coins. Here’s what this experiment taught me.
The Plan: $1 a Night, 30 Cryptocurrencies
The concept was straightforward: invest $1 each night in a different cryptocurrency. My hope was that spreading my investment across various coins would reduce risk and safeguard against significant losses. This strategy also allowed me to dive deeper into crypto investing without making a hefty financial commitment.
However, the experience didn’t unfold exactly as I had anticipated.
Crypto Prices Are Highly Volatile
One of the first lessons was how quickly crypto prices fluctuate. Some nights, the coin I purchased would surge by over 10% within hours, while on other nights, it might plummet by the same amount. The swings were massive, and I found myself checking my portfolio far more often than expected.
Despite investing in a variety of coins, my portfolio remained highly volatile. The market seemed to move in waves, with coins often dropping or rising together. This highlighted just how unpredictable the crypto world can be.
Diversification Has Its Limits
I assumed that investing in 30 different cryptocurrencies would minimize risk and provide protection against major losses. This wasn’t entirely true.
When the overall market dropped, nearly all the coins in my portfolio followed suit. While each cryptocurrency had its unique narrative, they often reacted similarly during market downturns.
Occasionally, a few coins performed well, but their gains weren’t enough to offset broader losses. While diversification offered some benefits, it didn’t shield me from the wild ups and downs of the crypto market.
Timing Is Crucial
Buying $1 worth of crypto at the same time each night was simple, but not always ideal. The rapid price changes in the crypto market meant that my timing often impacted my returns.
If I had paid more attention to market trends or adopted a smarter purchasing strategy, I might have made better investment decisions. Timing proved to be a critical factor. On some nights, I got lucky and bought at a favorable price, while on others, my coins lost value almost immediately.
Gaining Knowledge About Cryptocurrencies
A surprising upside to this experiment was the opportunity to learn about various cryptocurrencies. Each night, I spent time researching the coins I was buying—exploring their goals, the teams behind them, and the problems they aimed to address.
While some coins appeared promising, others felt more like speculative bets. This research deepened my understanding of the crypto space and helped me identify potential long-term investments.
The Emotional Rollercoaster of Crypto Investing
What caught me off guard was how emotionally taxing it was to monitor my portfolio daily. Some nights brought excitement when a coin’s value rose, while others were frustrating as values dropped.
This experience taught me the importance of staying calm and avoiding knee-jerk reactions to short-term price movements. Crypto prices are notoriously volatile, and it’s easy to feel overwhelmed if you’re not prepared for the emotional highs and lows.
What’s Next?
After 30 days, I’ve gained valuable insights into the crypto market’s behavior. In Part 2 of this series, I’ll share details about the specific coins I bought, how my portfolio performed, and my thoughts on future crypto investments.
For now, it’s clear that the crypto market is far more unpredictable than I initially imagined. Diversification has its limitations, and timing plays a significant role in investment outcomes.
Stay tuned for Part 2, where I’ll dive deeper into the results and outline my next steps in this fascinating world of crypto investing.