Cryptocurrencies

Never Do What Don Conway Did

Warren Buffet’s rules for investing are: Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1.  But that’s not reality.  So if you aren’t Warren Buffet, the #1 rule when investing is to never invest money that you can’t afford to lose.  Quite simply all investments involve some degree of risk.  And that’s why you shouldn’t bet the house on it.  However, this is opposite of what Don Conway did.

Don was a 45-year-old middle manager at a major multi-media company in San Francisco, who earned $150k per year, what hated Corporate America.  In mid-2015 Don stumbled upon an article about Bitcoin where it read Bitcoin fell from 2013 at a price of $1200 to $300.  Don’s mind started racing and the more he read, the more he wanted in, but it wasn’t Bitcoin, it was Ethereum.

Despite having a wife, three kids and house, a year later, he put their life savings of about $100k in Ethereum and bought 6,993 Eth for $14/each.  By December, the $100k investment was worth less than $40k.  That’s when Don went in again.  He took out a home equity loan for $200k and bought more Ethereum. Don now owned 26,750 Ethereum at an average buy-in of $11.21/each.

Undeterred, Conway doubled down by tapping into his home equity line. He borrowed another $200,000 and ended up with a total of 26,750 ETH at an average cost of $11.21 each. This had all the makings of serious disaster, but, no, the investing gods had other plans.

“Something miraculous happened: It kept going up… and up… and up. Between February and March of 2017, ETH shot from $15 to $50 per coin. By April, it was at $70; by May, $230,” Conway wrote in The Huslte. “In a span of four months, my $300,000 investment ballooned to $6 million.”

It didn’t stop there. In January 2018, Ethereum topped $1,000.  He got the urge to sell, and sell he did. It was a market timer’s dream, as he sold most of his Ethereum position for a cool $10 million. Soon after he cashed out with his fortune, digital currencies were absolutely clobbered and still haven’t recovered. Ethereum is currently trading at under $200.  Meanwhile, Conway paid off his mortgage, took a dream trip to Africa and bought a second home in Ireland. He still has seven-figures sitting in his bank.

Source

Now if Don was to do this same thing 100 times, he would end up in the poor house 99 out of 100 times because the odds were against him in every way possible. But lucky for him, he got that 1 time out of 100 right.

Oh and what about Ethereum, the chart suggests a fall below the major resistance/support band at $170 and price could retest the weekly demand at $82 or a rise above the band and price could test the daily supply at $274.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

Related posts

BITCOIN – 6 Apr

onepercentbetter

BITCOIN – 21 Jun

onepercentbetter

Are You A Believer In The Bitcoin Rally???

rollandthomas

Get involved!

Comments

No comments yet
Skip to toolbar