^^Obligatory reference to the moon^^
“An unexamined life is not worth living,” spake Socrates via Plato.
How much more is an unexamined trade not worth making! I mean, that’s not just our life, it’s our money! 😉
Bottom line, I “decided” to HODL Litecoin, and then Charlie, the creator of Litecoin, “sold and donated” all of his, claiming a conflict of interest because people were accusing him of making statements on social media to pump the price of Litecoin.
Although I admire the statement Charlie is or was making, and that he has donated his proceeds from his holdings, I… just… don’t want to hold a coin that the founder / creator sold out of and isn’t holding, as ad hominem of a reason that is, to me insider holding is one of the most basic key indicators of a positive long-term asset. The crypto-verse is weird, though, and I fully expect that I could be proven wrong as Litecoin is adopted far and wide.
About a week ago I converted my Litecoin into Stellar Lumens (XLM), at about 80 cents per Lumen, and then Lumens crashed or were corrected.
As of the time of this writing, January 12, 2018, XLM are about 50 cents each.
Almost 40% tumble.
At this point, if I cashed out, I would lose money.
And it’s really bothering me.
Not so much to lose money, though that is one of my fundamental principles I have learned: Never Lose Money.
But that I bought after Stellar had shot up from .20 to .80… and then didn’t see a correction coming, because I was so eager to get rid of my Litecoin after hearing of Lee’s selling out.
Although I see long term upside for XLM, at this point I’m cringing at my not-so-smart motivations, in so many ways.
Here are a few of the points that provide evidence I’m gambling (investing without enough knowledge to be confident in my choice)
- That I chose Litecoin in the first place, based on it being listed on Coinbase. My logic: Because it’s on Coinbase, it’s good. Then Coinbase adds Bitcoin Cash. :/
- My following of the “news” on Twitter and Reddit so closely and so emotionally. I’m not a day trader and I never will be, and besides, good day traders react to charts, not news, so either way I have no business getting hung up on news as a HODLer. Maybe if I were to be more productive reporting about those topics then it would be more relevant, but watching news feeds for external validation is extremely weak and not acceptable behavior for a long-term investor.
- The fact that I don’t know all that much about the Stellar Network. I read the beginning of the white paper and skimmed the rest of it. If what they are saying is true, that they can achieve low-latency transactions at scale in a secure and cheap way, then I do see it XLM as a big improvement over bitcoin which I’ve found from first-hand experience to be difficult to use for transactions.
- And more! But I don’t want to beat myself up. I want to learn from my mistakes (even if my investment makes money) and make increasingly healthy financial and life decisions.
However, I do see some good possibilities here, in that I could have some fun with Stellar Lumens.
There is a network called Mobius, built on the Stellar Network, which I could potentially have fun with by creating apps (DApps, that is… yes, “decentralized apps”) and integrating the Mobius API, and who knows, maybe even get featured on their DApp Store.
I just missed out on the Mobius pre-sale, but they say they will give developers tokens to seed their projects, so, there is potential to do useful things which I might want to explore.
It’s possible to create your own token on the Stellar Network. A partner and I have been thinking about doing that with a certain coin idea we have. More on that in another post.
Conclusion: Am I “Investing” or “Gambling” in Cryptocurrencies? Yes!
Bottom line, I think I’m doing some of both. It is risky in a few ways, to hold cryptocurrencies, especially altcoins on unregulated markets.
One could get hacked, make bad trades, lose one’s private keys if using cold storage, and there are probably many other ways to lose money by accident.
Bottom line, I don’t think the drop in XLM to 50¢ is a big deal. I am in this long-term.
I admit, news of business partnerships i.e. Stellar’s deal with IBM, are still influential to me, which indicate residual improper motivation on my part, so there’s that to work on.
Ideally, I would like to use the Stellar Lumens I have, to make the world a better place. That would be ideal. If I do such a thing, I will blog about it here!
That way, regardless of what happens with the price, I’ll still have a good time.
And isn’t that what matters, in the end?