A 23-year-old from Australia has been able to invest in real estate and now owns a $314,000 property thanks to his carefully planned cryptocurrency investments. Among the cryptocurrencies he invested in are Bitcoin and Ethereum.
The investor is said to have followed an investment strategy known as dollar-cost averaging when it comes to his crypto portfolio. Other factors have contributed to his success, including the COVID-19 pandemic.
23-Year-Old Acquires $314,000 Worth of Property Thanks to Crypto
A 23-year-old from Australia named Loi Nguyen "played the long game of accumulating Bitcoin (BTC) and Ether (ETH) over several years to eventually overcome the soaring real estate prices during the 2020 bull run and own his dream home," according to an article by Cointelegraph.
Per the publication, Nguyen began investing in cryptocurrency back in 2017. Using a few hundred dollars, he invested in the two aforementioned cryptos along with traditional stocks. Unsurprisingly, his interest in crypto eventually grew even more.
Nguyen cashed out his cryptocurrency investments in order to purchase real estate last year. According to Cointelegraph, he decided to do this at a time when Bitcoin reached the high of $69,000.
"In total, the young Aussie sold less than half of his crypto portfolio, leaving him around $31,400 (43,000 Australian dollars) to show the bank as a part of the down payment," says Cointelegraph.
With that money, Nguyen purchased an apartment that is worth $314,000. The apartment is located in city of Brisbane.
How Did He Do It?
So how did Nguyen manage to do all of that with his crypto? According to Cointelegraph, he actually followed a dollar-cost averaging (DCA) investment strategy.
Investopedia defines DCA as "an investment strategy in which an investor divides up the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the overall purchase."
Nguyen said he also took a lot of risks with his effort to diversify his portfolio. The COVID-19 pandemic likewise worked in his favor as the collapse of tradition markets caused him to focus more on crypto.
Crypto Investing Tips
Considering investing on cryptocurrency yourself? Forbes has some useful and practical tips for you.
According to Forbes, one of the most basic and yet one of the most important things you have to do is to do your research first. It is a good idea to read the whitepaper of the coin you are planning to invest in.
It is also recommended that investors should diversify their portfolio.
Forbes also suggests that cryptocurrency investors should use an alternative personal email instead of the one regularly being used by the investor for work and other personal reasons.
The publication likewise suggests being careful when it comes to mobile wallets. Forbes says, "Trading or storing large sums of any cryptocurrency via mobile phone is simply too great a risk."
