Debt is dumb, cash is king!

I figured this would be a good time to talk about the the basics of investing good old fashioned money considering the crypto market seems to be taking a break. I for one like the idea of a taking a crypto pause! I know since I started investing in crypto a couple of months ago it's been a wild ride. My portfolio went from quadrupling to now just being 20% up. I plan to use the next couple of months to slowly build my coin positions where I want them and be prepared for when the market starts going up again. I'm a HODLer at heart but plan to take some profit if it's a big run up. I think we're still in for another couple of months of red. The g20 is in April 2018 and crypto promises to be front and center. All the old powers are finding ways to regulate and get their rake.

I think the first mistake a lot of people make in crypto is not being out of debt in the first place. The first thing you should do before you dip your toe in the crypto lake is to first get completely out of debt. Maybe only a mortgage payment, but no other debt. Investing with debt is like driving a car with one foot on the accelerator and the other foot on the brake. I buy crypto with cash only, no borrowing money . I only invest what I can afford to lose.

I used the baby steps to get out of debt as popularized by Dave Ramsey, btw I'm a huge Dave Ramsey fan. I've been working on paying off my debt for the past decade. I recently paid off a 30 year mortgage in 9.5 years. I think that helped prepare me for this latest opportunity in the crypto market.

I initially bought 1/3 of Bitcoin for 200 $ a while ago and forgot about it. Years later, Coinbase sent me an email asking if I was still there. When I logged in I was surprised to see the jump BTC had made. I started buying some Litecoin and Ethereum in October 2017 right before the big run up. I was hooked! This latest dip in Jan has given me pause and caused me to reflect on my investing habits and patterns. My timeline is 5 years and longer, I'm a long term investor and see the tremendous potential for crypto to completely disrupt the current financial system.