Disclaimer: I included my referral links to Cointiply and FireFaucet so that I can reach my goal faster but please stay away if you are allergic to referral links :)
I came across the concept of mental accounting while reading "The Decision Book: 50 Models for Strategic Thinking". For the uninitiated, mental accounting refers to how one attaches different values to money, depending on the source it comes from. Thus, he or she may be prone to impulsive spending. To illustrate this in daily life, usually people are more cautious about spending their monthly salary because they slog for one month and invest blood, sweat and tears into acquiring this lump sum of money. However, when it comes to annual bonuses or unexpected windfalls, they are usually more relaxed about spending it because they regard it as a blessing that has been bestowed upon them. So, it's a case of easy money comes easy money goes.
It's a concept that immediately struck a chord with me because I subscribe to the rule of attaching a purpose to every dollar, so there are different aims to achieve with different pools of funds. This extends to how I regard my cryptocurrency portfolio too. Since diversification is the key so that we are not caught off-guard by huge market swings, I have a multitude of cryptocurrencies with multiple platforms - all designed to create a holistic (and thriving!) ecosystem and fulfill myriad purposes in my life.
For instance, my attitude towards Bitcoin inclines towards a dream-based vision. This is especially so when the first US futures-based bitcoin ETF began trading just earlier in October 2021. It surpassed investors' expectations by closing up 2.59% at $41.94 even during its first day of trading, with around $1 billion worth of shares trading hands. This undoubtedly pushed up the price of Bitcoin. Hence, with more BTC-centered ETFs that are slated to be approved sooner than later, I have high hopes that Bitcoin's price will shoot up the root. I have similar high hopes for Ethereum because it recently attained all All Time High (ATH) of USD$4356. It is currently undergoing a transition to the Proof-of-Stake protocol, so hopefully this will resolve the scalability problem it currently possesses. In any case, for Bitcoin and Ethereum, I am mainly employing the HODL strategy. As much as possible, I will resist my urge to cash them out.
On the other hand, my involvement with faucets like Cointiply and FireFaucet enables me to acquire Dogecoin and Litecoin at a fairly fast rate. As I am taking a more active approach in acquiring them compared to BTC and ETH, I am more about using these cryptocurrencies to pay off my housing rate. I guess since Dogecoin and Litecoin don't come with as stellar a reputation as the top two crypto, I have less qualms about using Dogecoin and Litecoin to resolve my immediate needs. I also think that since I work so hard at rolling the faucet and answering surveys every day, I want to derive a sense of satisfaction by using them to pay off something. The feeling of fruition cannot be underestimated because it fuels me to do what I do. Definitely a reality-based attitude.
Finally, I get some USDC as a form of commission interest from Hodlnaut every Monday. I would have been tempted to convert it to BTC or ETH but part of me wants to use this digital asset to foray into decentralised finance, specifically setting up an account with Cake Defi. I regard my attitude towards USDC as another kind of dream-based vision. Gamification, if you will because I want to gain the thrill of venturing out of my comfort zone by making crypto out of free crypto. It seems that I will need to invest $50 into Cake Defi before I am rewarded with at least $20 worth of Defi. Well, I only have about $28 worth of USDC but it's okay. Given the rather substantial interest rates from Hodlnaut, I should be able to gamify sooner rather than later!
So that's my mental accounting towards my crypto portfolio. What about you?
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