I Got Burned by Crypto: 6 Reasons I’ll Try Again — Even If It’s Begrudgingly

If you’ve ever invested in cryptocurrency, chances are you’ve gotten burned at some point. The volatility can wipe out a large chunk of your portfolio in days, leaving you wondering if it’s even worth holding onto. But for many investors, walking away entirely isn’t the answer.

Read More: 13 Cheap Cryptocurrencies With the Highest Potential Upside for You

Find Out: 9 Low-Effort Ways To Make Passive Income (You Can Start This Week)

GOBankingRates spoke to Ankush Chowdhury, founder of Humanizer AI, who lost nearly 40% of his portfolio during the 2022 market crash. Even after being burned, Chowdhury has six reasons he believes in crypto’s potential.

Technology Keeps Getting Better

In its early days, crypto was poorly regulated and limited in use. Today, regulations have become clearer, exchanges are more secure, and the technology itself is maturing.

“Today’s cryptocurrency market is very different from what it was. Our regulations are now clearer, infrastructure is better, and our applications are practical,” said Chowdhury. “Cryptocurrency payments are already accepted by businesses like Tesla and Microsoft. But 5 years ago, that wasn’t the case.”

Check Out: Self-Made Millionaires Suggest 5 Stocks You Should Never Sell

I Learned From My Mistakes

One of the biggest pitfalls for new investors is treating crypto like a get-rich-quick scheme. Chasing fast returns often leads to big losses.

“I used to make quick and dumb decisions, and because of this mindset, I always invested money I couldn’t afford to lose just to make quick gains,” said Chowdhury. “But now, my strategy is to dollar-cost average well-known coins like ethereum and bitcoin. I only invest in things that I’m sure I can ignore for years.”

This mindset shift can help you avoid repeating mistakes that can cost you down the road.

Discover Next: Warren Buffett’s Berkshire Hathaway Bought Over $73 Million in Shares of This Tech Company — Here’s Why

Conventional Markets Are Also Unsafe

It’s easy to call crypto risky, but history shows that no market is immune to downturns. The stock market slumped in 2022, and the housing market collapsed in 2008.

“In 2022, my stock portfolio suffered. In 2008, the real estate market crashed. Meaning there are risks associated with every investment. At least cryptocurrency doesn’t rely on the decisions of any one government and runs around the clock,” Chowdhury said.

Adoption Is Growing

Crypto adoption is growing faster. “Every year, more people use cryptocurrency. Bitcoin became legal tender in El Salvador. Crypto services are now provided by major banks. This will not go away.” This growing acceptance is hard to ignore.

Story Continues

I’m Playing the Long Game

One of the biggest mistakes in crypto is expecting overnight wealth. The reality is that crypto is better suited for a long-term horizon, much like stocks.

“I no longer aim to become wealthy in six months. Crypto, in my opinion, is a 10-20 year investment,” said Chowdhury. “Early on, there was skepticism about every significant technology. Those who owned Google and Amazon fared well when the internet bubble burst in 2000.”

It Adds Diversification

Crypto doesn’t have to be all or nothing. Many experts recommend limiting crypto to between 5% and 10% of your overall portfolio. This way, you can still reap the benefits of the crypto market without risking it all.

“10% of my total investments are in cryptocurrency. I’ll be okay if it drops to zero. However, I want to be exposed to the potential benefits if it turns out to be the financial future,” said Chowdhury.

More From GOBankingRates

5 Items With Greater Value at Dollar Tree Than Costco Mark Cuban Tells Americans To Stock Up on Consumables as Trump's Tariffs Hit -- Here's What To Buy How Middle-Class Earners Are Quietly Becoming Millionaires -- and How You Can, Too 5 Things You Must Do When Your Savings Reach $50,000

This article originally appeared on GOBankingRates.com: I Got Burned by Crypto: 6 Reasons I’ll Try Again — Even If It’s Begrudgingly

View Comments