Story time: Living off of Crypto currency’s (College Students Edition)
I believe your time and your human capital is our strongest asset. This leads me down a path to crypto investing. Most of us are willing to work a job before betting on own self first.
I had about a few month’s worths of expenses saved up and this allowed me to invest shares of bitcoin. I did this for about three months. Here was my list of expenses at the time:
Housing expense: $1350
Grocery: $150
Travel: $250
Misc: $100
*Housing Expenses divided by 2.
Total: $1175
I had a job with my college as an intern (building human capital) which would pay enough to cover grocery, travel & miscellaneous. This means I would need to make about $700 from crypto to have enough money to cover rent and have profits to reinvent. I would need to see a monthly return of about 20% for this to be possible.
Month 1: What is the worst that can happen?
At this point, I had a good idea of how much my expenses were and how much I was generating from work & investing. With this said, I ramped up on my hours of work. This way I have a safety net if things were to go bad. Big risk, big reward, right?
About 16 days into the process, I made enough to cover my housing expenses so I took out about 70% of the cost by this time. And the money I was making from interning I was paying myself first and cover whatever expenses are left.
Month 2: Treat this like a business
This was great! I always have to find a way to cut costs and increase profit to reinvest (or EBITDA- for you Financial folks). I cut back on travel expenses by 50% and the remainder was put into my safety net.
Month 3: knowing when to pull out
Though I was risking almost all my funds, by this time I knew the price of bitcoin would hit $10,000 on the high end and $4,500 on the low end. With that knowledge after days of technical analysis and outside opinion, I decided I would take my funds out at $7,300.
Tip: The good thing about living on crypto was that the price always went up. The bad thing is you never know when the price goes down. Do your diligence before going off of what people say.
Halving Week 2
In this week of investing is the same as last week. I took another loss of 7%. Also, I started leveraging stronger coins against weaker coins to profit while the makers are struggling and I only say about a 3% return there.
Personal thoughts brief: I’m assuming that more bitcoins opened to the markets due to the halving. The only thing is economies are opening up back but jobs aren’t back yet. This means people are spending conservatively (due to the stimulus) because they’re sure about the future of their employment.
