This entry is part 1 of 9 in the series Life of a Small Time Investor

Introduction

So, I am not someone who has vast wealth at their disposal. I am just some dude who has been following the cryptospace for several years and never took the plunge into this world. As of 2016 this all changed when I took the risk and managed to accumulate some funds that I could afford to lose, as with any investment there is always an inherent risk!

I would consider myself an EOS advocate and the majority of my portfolio is with EOS and the EOS token market that has appeared and grown since. This blog is intended to share my experience with the crypto world and help those learn from my mistakes and triumphs. Though as always this blog is not investment advice just how the chips have fallen for me so far and the biggest piece of advice I have is do your own research!

A Little History

I bought into EOS during the ICO phase as I believe this blockchain has the potential to expand and evolve into one of the key players in this market, I wanted to be one of those guys who can claim I was there at ground zero in 10 years time when the disruption of crypto has taken over the world. I chose EOS due to the Proof of Stake functionality and the reputation that Dan Larimer and the success of his previous projects.(Steemit, Bitshares) There are many great projects out there and ultimately we want them all to do well to allow the cryptospace to grow as a whole.

I sat on my investment until the official launch of the chain and was able to vote in the original launch, maybe only small but I wanted to be part of the action. By being in the genesis block it ensured that I could capitalize on the airdrops that have been granted to us Day 1 believers.

Tools of the Trade

Following launch it is important to keep on top of this market and there are many websites and videos that have helped me in keeping track of my investment and allowing it too grow. The key sites and apps that I check every morning are;

Coin Market Cap – This site is the front page of the cryptospace, clearly identifiable rise and falls of the markets, how coins are doing. If you are not using this site in this space, what are you doing? I mean who doesn’t love a good graph!

EOS Toolkit – This site is created by GenerEOS, a block producer that allows amazing functionality in the EOS space. Allowing for airgrabs, management of stake, RAM and everything the EOS holder needs to manage his funds.

Scatter  – This app is the gateway to the Dapps and ease of access to the EOS world, it allows for simple clean and uncluttered access to moving your EOS around.

Telegram – Many ICO’s, new projects and communities are created on Telegram. A fantastic messenger app that allows amazing communication with those seeking to improve and grow their projects.

These sites and apps are the key tools of my day to day investment.

Initial Investment

So what have I done with my small pot? Firstly 80% of all my EOS are staked. This is for two main reasons.

  1.  So I do not hemorrhage my investment!

It is very easy to have dreams of lambos on the moon, being one of those who gets interviewed on local TV in 5 years saying “I made millions” but I personally have found that the more I have to play with the more I am potentially going to lose. By having a large chunk staked up this value is for the long term, as (one hopes!) EOS grows its value will rise. It also takes 72 hours to turn back into liquidity so it prevents snap or poor decisions. I can evaluate my position and decide is this truly what I want to do?

2. BP Voting

As a proof of stake network and 21 BP’s voting is key to keeping this system afloat. Voting means that the token holders can influence those who are producing blocks, without an engaged Voting populace any proof of stake network is at risk of collusion. Being able to vote out bad apples and promote those who are working to improve the infrastructure makes you the token holder feel truly involved in this world.

At launch the remaining 20% was available for me to play around with, however the number of Dapps was non existent. Though as the space grew this rapidly changed and allowed me to play and engage with the emerging EOS space.

RAM Trading

In the first few weeks, RAM was the key to making any profit, RAM prices were skyrocketing and those who originally were using CLEOS commands to get in early made a real killing. I was lucky enough to get a sizable chunk of RAM at 0.1 and sell at 0.7. However the RAM market collapsed as the ecosystem balanced itself and RAM has remained at fairly stable values. Profit can still be made but there wild fluctuations of those initial days are long gone.

EOS Dapps

I was most excited for the development of the games, we saw KingofEOS appear early, essential a buy in for bragging rights of a ‘kingdom’ the first of which went for ridiculous values. The game is still going but the latest kingdoms are nowhere near the initial thousands of EOS people were paying.

EOS Wizards came next and promised to be the next cryptokitties, which crippled the Ethereum network at the time. This was very high in potential, magical beings that you could fight against each other. There were colorful characters and items to equip making this game a potential goldmine. They airdropped wizards to all accounts and the initial hype was great. Unfortunately in my opinion they missed the boat and did not ride the wave they created. It took much too long for features to be added, battles and the marketplace took several months to appear, and tournaments have only just appeared. While the game still functions, I bailed on my initial hype as the wizards themselves were taking up a lot of my RAM.

EOS Knights boasts the first mobile game that runs on EOS, lead of a band of rag tag heroes against monsters, get treasure and make profit from trading and selling them. I played a little on the jungle net but after launch I did not play as I felt Wizards was the one to bet on at the time, I am going to claim that I was wrong here and backed the wrong horse. Though of those who I know who play it say that they enjoy and make a decent return for the time that they play.

Now mentioning betting, here comes the largest growth so far, the gambling Dapps.

Gambling Apps

Caution! Gambling is much more volatile and I will admit that I about even on my investment in the gambling apps, some days I make decent profit, other days my stack gets wiped out. Expect to lose and boom any profit is a victory!

EOSbet was the first to bring out a dice game and its own currency for each EOS wagered. It caused transactions on the blockchain to really kick in as everyone was bitten with gambling fever. The premise is simple, move the slider and roll the dice, get under your value and boom you win. Simple right? The ability to get dividends from the BET tokens is also amazing, making passive income on the side is a great way for this infrastructure to grow.

This was followed by many clones and competitors, the most successful in my opinion is BetDice. They too have there own token but unlike there competition these can now be staked and dividends awarded. BetDice has also diversified the types of tokens you can play with, adding more and more as time goes on. This is both good and bad. The positives that it gives some use for the EOS alt tokens that at present are not really usable but it can cause you to burn them off as you chase the dragon trying to recover your losses, which I will admit I have done one or two times!

There is also the daily,hourly giveaways for those betting large amounts which is a good incentive to keep its player base. With the addition of baccarat to the system and I imagine more card games coming soon, I think BetDice has shown itself to be the forerunner of the gambling dapps. This world is always changing though and who knows if someone else will pull out ahead.

I feel that of the liquidity I have I have used most of it to play these with gambling, it generates a lot of TPS and the thrill of a return is exhilarating. But this is gambling and I would not advocate sinking all you have into a gambling app. While an important part of the ecosystem, EOS needs more successful dApps that are not just gambling. I am still going to do it though as who doesn’t wish for a big win fall, but the stacks i take each time are very small and I am fully aware that I could end up with nothing at the end of each session.

Moving Forward

So as a small time investor what else can I do to improve my lot? Well with the current crash in the overall market cap I have three options, bail out, hodl or pick up some more coins at this cheap price. As a long term goal I anticipate and hope for a turnaround and rise. I will probably take the third option as I believe in the crytospace being a disruptor to the global financial world, but we are still in early days and the kinks need to be worked out still.

Thank you for your time!

Dukefish

 

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Responses

  1. Jungle Onion

    We tend to not consider shorting for obvious reasons but I think that has been the key way to make profits this year. Unfortunately for us that don’t like to put market pressure, we can balance out our portfolio with the next market cycle winners because this drop in the market valuation will serve as a purge to useless coins and tokens, which is a pretty big amount currently.

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  2. Nicky Havey

    Thank you for sharing your experiences with us. I must admit, I don’t know ANYTHING about the EOS blockchain and only found out about it joining Trybe. Hopefully it will start making sense but I think Trybe will be my only gateway to EOS tokens 🙂 Look forward to learning more from you

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  3. EOSmastering

    Always cool to read personal stories 🙂 My biggest advice is to have fun as a small time investor and really apprecaite it. Mo money IS mo problems. It’s just how it is. Things grow out of control and and it’s usually tastes less than it cost. Be careful and have fun!

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  4. Nicholas

    In long term, i dont need the hope, i think, noone need the hope.
    We know, the blockchain-technology, and smartcontracts will change the whole world. It has started. Its a fact. We are the part of history.

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  5. Infosion

    Very nice, lots of good stuff to know about and written in an interesting way! Actually could fill some knowledge gaps here too 🙂
    Thanks for sharing our knowledge and experience. Looking forward reading the next parts of your series.

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