What's been your biggest investing win and your biggest investing loss?
I'd say my biggest win is probably that one I mentioned where I bought Ethereum at around $700. Mainly it's because I believe in the technology. It's a smart contract platform that allows you essentially to build decentralized applications. It's the next evolution of the internet, you know, the buzzword Web 3.0. I kind of saw it as part of the future. So I decided to invest at $700, and it went up about 5 times. And I decided to sell it, even if it continues to go up, I'm happy with 5X, and I can at least re-buy later. So I think that was one of the best investments.
One of the worst ones was probably when I bought into the hype and bought Bitcoin close to its all-time high. You know, a lot of times you buy into the hype. People will say, oh yeah, it's gonna go to $100k by the end of the year. But of course, that's always risky because you can't really apply what you know from stocks or from other assets to a new asset like [crypto]. And there was a stock-to-flow model that was applied, and it held for Bitcoin for quite a while. So because of the stock-to-flow model, a lot of people thought that it would go up to $100K by the end of last year, or even early this year. But it didn't actually hold.
That's one thing you gotta watch out for, when you look at signals that you look at in the equities market. You've gotta understand that it's not really proven with this newer asset. So, you know, take it with a grain of salt. But yeah, I bought into the hype. People always invest on the way up, they make that mistake. Cuz that's when people are talking about it, like, "wow, I made all these gains." Okay. I wanna get in too. But really you should invest when no one's talking about it, when it at its low, right? So I made that mistake. And I bought two Bitcoins and I ended up losing on those. Not the end of the world. But I was willing to lose that amount, so I allowed myself to do it.
That's what I tell our clients not to do. Don't buy into the hype. It's really hard to time the market. I like just investing when you think it's at a low and keeping it for a long time.