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Would throwing all your savings into crypto be a bad idea

  • 17-07-2021 2:15pm
    #1
    Registered Users Posts: 344 ✭✭ KurtBarlow


    What I mean is my monthly savings from now on as I currently have 0 savings , I'm in my early 40s. I've been very bad with my money all my life despite holding down a decent job. I have no kids no mortgage or no real debt what to speak of . With a little effort I think I could save 1500 a month , would throwing all into crypto be a bad idea ? Should I just put it into the Credit Union



Comments

  • Registered Users Posts: 3,547 ✭✭✭ DeanAustin
    Registered User


    Not sure the credit union is the best idea if you're looking to make money but throwing it all into a high volatile and dubious asset like Crypto would be crazy. You could make a mint but there's a good chance you could lose it all.


    By all means, put some into Crypto if you believe in it but don't put all or even most of your savings into it.



  • Registered Users Posts: 2,369 ✭✭✭ olestoepoke
    Registered User


    Throwing all your savings into it would be reckless IMO. Dip your toes, educate yourself, make it a hobby. Crypto is the Wild West of investing, crazy volatile which is the attraction. Do your research and slowly dollar cost average into the ones you think may do well and if possible try to recoup your initial investment.



  • Registered Users Posts: 344 ✭✭ KurtBarlow


    I would appreciate some clarification on what you mean by saying I need professional help?



  • Registered Users Posts: 56 ✭✭ Michael_Res1
    Registered User


    You need to develop the habit of saving, what's wrong with seeking professional help? I mentioned a financial advisor. Paul Merriman might help you https://www.askpaul.ie/how-we-can-help/ . Book a consult for 250, could be money well spent if it gets you on the right track. Asking an online public forum if i should invest all i own in crypto is crazy.



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  • Registered Users Posts: 10 itchyfinger


    Fortune favours the brave, all the doubters of BTC have said it was going nowhere when it was 5c, said it was a fad at $1 , said it was just a joke at $5, said its bound to crash to zero at $10 and here we are at $30k, the fact is the central banks are printing like crazy and inflation is real, saving in the bank aint going to do you and good, be stuck waging till the day you die, dare to dream big of a better life with crypto gains, i'm already balls deep in it and have money waiting for one last dip before i go all in, it will either be early retirement or i just carry on working till the day i die, all or nothing!



  • Registered Users Posts: 344 ✭✭ KurtBarlow


    just wondering if Etherium is a better bet now than bitcoin? Eitherium and Bitcoin are the only 2 ill be investing in. what split would you recommend



  • Moderators, Business & Finance Moderators Posts: 8,097 Mod ✭✭✭✭ Jim2007
    Moderator


    A good demonstration of why you shouldn’t. In finance fortune favors the patient and the smart. The brave don’t survive to tell the tale. Going all in in any asset class is a very risky strategy, especially when an asset has no intrinsic value. If you start with a plan and you execute it diligently it’s possible to retire early and comfortable regardless of how a crypto currency performs or not. Bet on retirement or plan for it the choice is yours.



  • Registered Users Posts: 2,235 ✭✭✭ massdebater
    Registered User


    Ethereum is riskier but has a higher ceiling, I think. I've gone roughly 50% btc, 45% eth, 5% random ones (ada, link, algo, dot).

    I see now as a time to accumulate both. If they drop another 50+% again, so be it, but I'd be kicking myself more if they went on another run and I missed out. I love both long term but they're obviously riskier than other asset classes so do your own dd. Best of luck!



  • Registered Users Posts: 12,414 ✭✭✭✭ fits
    Registered User


    I know you are trying to make up for lost time but slow and steady is the way to go. If you really want to do some high risk stuff allocate say 100 euro and be prepared to lose it. Put the rest in a safer option.



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  • Registered Users Posts: 330 ✭✭ HGVRHKYY
    Registered User


    Right now, yes. During the lows of a bear market? No. But definitely not your entire net worth, but a large portion of it if you're comfortable with the possibility of losing it all or having to wait 3-5 years or even longer before seeing the high risk pay off. Do lots of research, choose the best options you think will actually have utility by the time the next bull run starts and wait until we're in another crypto winter to invest most of the sum you're prepared to invest. I'm sure many on this sub forum done exactly this in 2018/2019 and are over the moon with that decision now



  • Registered Users Posts: 6,813 ✭✭✭ Grumpypants
    Registered User


    Terrible idea. 😀

    You mention no mortgage, does that mean you never bought a house or the mortgage is paid off? If you are renting then you have no equity. If you own a house outright then it changes everything.

    Have you maxed out your pension? If you plan to rent through your retirement you will need a massive pension.

    I'd spread it. I'd save some as cash in the credit union. If nothing else, if you do need a loan you can borrow against your savings at 2%. Handy if you are bad with money and blowing your nest egg is likely.

    You want to have about 6 months living expenses in cash saved.

    You want to have your pension maxed out.

    After that, whatever you have left can be invested. But don't put all your eggs in one basket. Put it in property, stocks and crypto.



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