Today we are taking another voyage through my journey in cryptocurrency: good things, and the bad. If you are new, my crypto tales articles are an ongoing series that chronicles my best and worst times in crypto. They are meant to be a guide that lets you know it's okay to make mistakes in this market. The longer you are in this market, the more mistakes you will make. While none of us want to make these mistakes, the important thing is how we recover from them. By listening to my experiences I hope you will either avoid these same misfires or bounce back quickly.
The crypto tale we will be discussing today is one of my crypto venture backfires. Something that set me back thousands of dollars.
In the past, one of my greatest passions was building passive income streams. Not only did these boost my income each month, but I felt they would be the tool to allow me to retire young. This led me to constantly search out new ways to earn passively. In the crypto market, I had been lending out Bitcoin and staking for quite some time. Both of them were very profitable ventures for me. However, I was always on the lookout to add a third pillar to my earnings.
That is when I decided I wanted to begin mining Ethereum.
At this time, the Ethereum merge was still years away. Ethereum was much younger and less established than it is today. Its price was only a small percentage of what it is today. There was no guarantee that it would be around for the long term. Investing in the initial hardware costs and monthly electric bill to mine Ethereum was a real risk. There wasn’t a guarantee of making a profit. However, we all know today that anyone who began mining early would become very successful.
I had put in the research and decided that mining ETH could be my next big opportunity. With that in mind, I began heavily investing in the hardware and parts to build my own decent-sized ETH farm. It was a gamble and at first, it paid off in spades. Shortly after beginning mining, ETH’s price began to soar, transforming mining into a very profitable venture. The ETH I was earning via mining was then sent to services like BlockFi, where it would earn even more interest. For a while, I had a really good thing going, and that is how I accumulated a large portion of my ETH holdings.
However, a handful of months passed and then my GPUs began failing. One this week, another a few weeks later, and then the trend continued for a few months. All of a sudden the mining farm that I was counting on being the source that would completely transform my portfolio, was now only a former shadow of itself. Thousands of dollars worth of hardware went down the drain.
I had two remaining options. I could either reinvest and buy replacement hardware to continue mining. Or I could sell off the remaining hardware to avoid losses. Eventually, I decided to get out of the mining market and sell my machines. This decision was something that I would later regret, especially as I watched the price of Ethereum soar to $4,800. If I had only stuck out the difficult times just a little longer, a real fortune could have been made. With that said, this story still has a happy ending. Even though I missed out on mining large amounts of ETH. Through staking and continuing to buy for years I was still able to build a position in Ethereum that I’m proud of.
We live and we learn. The cryptocurrency market is all about keeping an open mind and always looking for your next great opportunity. When you finally find it, you need to take advantage of it as quickly as possible. Mistakes that we can learn from will be made. But, once in a while, you might just hit the lottery.
How about you? What crypto ventures have you lost out on?
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As always, thank you for reading!
