Why I Bought the Cryptocurrencies
In case you haven’t heard, Bitcoin, Ethereum, and Litecoin have gained a lot of popularity over the last few months. These cryptocurrencies are a few of the biggest ones and are heavily traded. Price appreciations on these cryptocurrencies have been nothing but stellar.
My take on cryptocurrencies? I like the technology behind them. I believe these currencies are in a price discovery mode and we could see a lot of volatility in them as they are becoming a haven for speculators. Everyone is buying them without knowing how exactly this all works.
Over the past few months, wherever I went, be it a personal or professional situation, Bitcoin and cryptocurrencies have become a topic of discussion.
So, I decided I want to partake in this fiasco. I wanted to see how it works. I don’t have any intentions to speculate.
How I Bought My First Bitcoin, Ethereum, and Litecoin
Keep in mind, I wanted to see how this process works rather than speculate. And by no means am I suggesting to go buy the cryptocurrencies.
In fact, at first, I didn’t know how to buy them. But after doing very little research online, I came across an exchange that’s one of the biggest out there for cryptocurrency purchases. I made an account. The registration process took me a few minutes to complete.
Then, I proceeded to purchase.
I purchased 0.0048 of a Bitcoin, 0.059 of an Ethereum, and 0.1040 of a Litecoin.
The buying process was very smooth. It literally took me seconds to buy these. I spent a total of $200.00 on these purchases, including all the fees. I used my credit card to do this.
Great. I had $200.00 worth of cryptocurrencies. I was part of “it.” What next?
What Do You Do with Profits on Hand?
A few days later, I saw solid gains on my $200.00 “investment” in cryptocurrencies.
What do you normally do when you are sitting on hefty gains? You sell a portion of your portfolio, lock in some gains, and let the other portion run.
So I tried to do just that.
The place where I bought my Bitcoin, Ethereum, and Litecoin also has a sell option. One would assume selling is as easy as buying.
Wrong.
When I clicked on the “Sell” button, I was told that the feature was not supported.
This was very interesting…
This prompted me to ask few questions.
5 Questions Cryptocurrency Holders Must Ask
- Are there more people like me who have bought cryptocurrencies but can’t sell? I just have $200.00 stuck but I am certain there are people who have spent much more money on Bitcoin, Ethereum, Litecoin, and others.
- Is there actually artificial demand for the cryptocurrencies? Is the only reason they are going up because sellers can’t sell, there’s limited quantity, and buyers are getting lured in because of price appreciation?
- Can people actually take their money out? By that, I mean sell their Bitcoin, Ethereum, or Litecoin and turn it into actual dollars?
- What happens when all those who hold the virtual currencies try to sell?
- How long could the parabolic moves continue in cryptocurrencies? There’s usually never a good ending when an asset sees a parabolic move to the upside without much resistance.