– Can I say it? Can I really say it? What in the Doge is going on? It's been a crazy time
here with cryptocurrency, Dogecoin and actually
almost like, not everything in the cryptocurrency space, but there has just been
a lot of development. Hey, what's going on, y'all? This is Jeff Rose. Welcome to "Wealth Hacker Labs." Do some a little bit different here. It's been a minute since I've given any sort of update on what I have been doing investment wise, especially in the cryptocurrency space and just really quick, for those that are either new to the channel or missed out on some of the other videos. I mean, there was a stretch. I mean there was a stretch where I did not own any cryptocurrency for a very long time, and oh, how things have changed. So I think it was maybe
a couple of years ago whenever Bitcoin initially
dropped down to 3,000, I got in a little bit.
So 7,000, I got in. I've got in a few other times, now I currently own Ethereum
and also some other coins and looking to make
some other investments. So I wanted, a few things,
just to kind of show you what, where I'm currently invested
in with cryptocurrency. So you can see what I
have, where I have it, also showing like how much I currently have invested, what my
gains are right now, my unrealized gains, because
I've not sold off anything. So right now, it's just
all my gains on paper. And then also just talk about what I feel the next direction is. So that is what we're
going to do right now. Now we can talk about Doge,
actually, let's start there. Let's talk about Dogecoin. So the, I shared this tweet the other day, and this was a screenshot
from my Robinhood account, and this was, I think, a few days ago. And I don't know if you
can read that right now, but you know, it's basically just showing what I bought, showing, hey,
I bought Dogecoin for fun.
And so for fun, meaning
that I put $20,000 in, and at that time, I think this was gosh, what the other night? I forgot what time I actually
took the, oh, it says. That was 11:58PM. So 11:58PM, see the time there at the top, I took a screenshot and
that was my account. And I actually, I was
down from where I was the night before. No, that was 11:58 AM. I'm sorry. I'm all over the place right now. But I was actually up like
75,000, something like that, and it's been back and forth. Those that are, just so you wanna like, time of this recording, this is what Dogecoin
currently is right now.
So just above 60 cents, but we had hit a high around 66, 67 is where we at, like just not too long ago. And so the funny thing about
my Dogecoin purchase was I didn't own any Dogecoin, and I wanted to buy some,
like I wanted to get in, but I kept telling myself like, you know, I had my Robinhood account, but with Robinhood, if
you buy cryptocurrency, you technically don't hold it. They hold it for you, which basically all that
really matters is that if you ever wanna transfer
your account out of Robinhood, you can't transfer your crypto with you. So you'd have to basically sell and then repurchase it, which
could be a huge tax gain that you don't want to do, so it's just kind of this
whole pain in the butt thing. So I kept telling myself this, I kept telling myself
I don't want to buy it at Robinhood because I wanna hold it.
But at the time, you know, BlockFi, which I have one account with, Coinbase, also have an
account with them as well. They don't, you can't buy Dogecoin. And at the time, like I just, wasn't interested in opening up another crypto account somewhere else. So I'm like, I just didn't do it, and then here I am, I'm
talking to my neighbor. We were just outside, and he mentions Dogecoin, and I think he bought
his through Robinhood. And I'm like, you know what? At the time I had like a, I believe, around $100,000, maybe a little bit less, but around $100,000 in cash
inside my Robinhood account because I had been building this up to, I was building a dividend
portfolio, and I was, the goal was, hey, I want to build this up to where I've got a
thousand dollars a month of dividends coming in. So that was the plan, that I
was executing on that plan. But I just got to a
point where I didn't like some of the dividend
stocks I was looking at.
So I was like kind of
waiting a little bit. So anyway, I had all this
money sitting in cash, and then I decided to
finally pull the trigger and buy some BlockFi, and that's what I did. That's what I did. But anyway, I'll come back to that. I first wanted to just share, okay, what I currently have. So obviously I mentioned Dogecoin. I'm gonna start with with
my first crypto account, and this is with Coinbase. So there was a big bump here, oh, we can't see my screen.
I'm gonna share my screen. Here's with Coinbase, let me make this a little bit bigger so you can see, you know,
exactly what is going on. All right, and so if you see this, that big bump there, that was because I had just deposited some more, you know, transferring out to BlockFi, which I'll explain here in one sec. So but right now, so this
is my Coinbase account, and here are my holdings: Bitcoin, Ethereum, some smaller positions in Cardano, Litecoin, Bitcoin
Cash, et cetera, et cetera.
So here's the crazy thing. So the Coinbase, I'm not gonna tell you how much I down into each one, but with Bitcoin, my current principal, like what I put in is $41,000. So $41,000 is how much I have put in, and if I could actually show
you what the current value of that is, my wallet, buh buh buh, well that shows, oh my goodness. You would think that I would
know how to use this platform. Oh my gosh, there we go, Bitcoin. So once again, a hundred, I'm sorry $41,000 is what I put in, and that is the current
value, so $183,000. So right now I've got 3.28 Bitcoins. With Ethereum, I put $20,000
in and it is worth 45. And just recently, I bought some Cardano. And that was again,
that was a buddy of mine who told me about Cardano.
I put $10,000 in and it is
currently worth $14,000. So right now my principal, that I have put in is just over $71,000. So $71,000 has more,
almost four X, more than three X on how much that, how much that the gain is. I mean, this is like, I
just had to almost like, pinch myself, like, is this for real? And this is like me getting
Bitcoin when it was $7,000. And then I bought more when
it was, I think, $50,000 you know, I think not a huge block there, but at this point in time,
like I haven't lost anything. Granted, I haven't gained,
haven't sold, I get it, I get it. But that is where I'm at. So right now in this
portfolio, Coinbase account, I've got $250,000. So that is my first account. Now the second account,
so this is BlockFi. So with BlockFi, when I first
opened my BlockFi account, the idea here was I'm using this purely as a cryptocurrency savings account.
At that time, this was all new to me. Like I didn't fully understand how they were paying interest. I didn't understand like stablecoins. I just kinda bought Bitcoin on a whim. So with BlockFi, like I was
very cautious in the beginning. Still am a little bit cautious, like I'm trying to like not
get too cray-cray with like, what all I got going on. So with BlockFi, as you can see, I've got a balance of $201,000, and this account was opened on September the 20th, put $10,000 in. November, I put in another
$15,000, so $25,000, another $50,000 this past February, and then just recently as in like, gosh, maybe just a few
days ago added the $100,000 but it is not all in stablecoin. I have purchased some
cryptocurrency, actually, I don't know, let me just
be 100% straight up here. I like BlockFi, I mean,
I love the interest. I mean, I know you can go to
Gemini and there's a few others you could do this, their
platform, just like their website and their app are just, eh eh.
They're just, you know
like they're not definitely getting any applause
(crowd applauds) from me as far as like the design wise, I mean, you can go back and forth with Coinbase versus BlockFi, and it is like a night and day difference. It is like, I don't know, like having Gmail versus AOL or whatever. I mean, that's probably
a poor, poor analogy. But anyway, that, so right now, let me just get that out of the way. So that's out of the way. So with BlockFi, I have,
as you can see right here, I've got $26,000 in Bitcoin and then $24,000 in Ethereum, and the rest currently is in a stablecoin.
Now with, so there really,
there's a few things here. So with the Bitcoin, that dropped down, I believe it was around $50,000, and then I exchanged some of
my stablecoin for Bitcoin. With Ethereum, same thing. I think you can actually see where, so there's an interest payment. So here, back in April, Oh, I know why. Here's what happened here. So the thought process here was, this was right before Coinbase was getting ready to go IPO and everything I was
reading like, man, when's this goes IPO, like Bitcoin's
getting more attention, Ethereum is gonna get more attention, Everything should start going up. Good theory. Bitcoin, it kind of went
up, it's kind of leveled out a little bit. Ethereum continues just to go up. So at that time I already
had, I felt a good amount of Bitcoin, of whenever the
CoinDesk IPO was coming out. Did I call it CoinDesk? Coinbase, excuse me, Coinbase. But I didn't have a lot of Ethereum.
So that's why I decided to load up with Ethereum back on that date. So that is what is going on there. And then the other big change, if you can, you saw this interest payment. Not a huge change, but basically
how I have it set up now, all the interest that I earn
either from Bitcoin, Ethereum or my stablecoin is
all paying in Ethereum.
And that was, I felt, a way
just to kind of like, all right I'm gonna reinvest my interest back into Ethereum into an investment. I hope that's going to
continue to grow and compound. So I'm earning interest and also growth. You know, this is kind of like buying a dividend paying stock that's paying a really,
really sexy dividend. And that is the idea there. So once again, let's do a quick little (laughs) quick little recap of where we're at now. I've got Coinbase account
$250,000, depending on the day. I've got $200,000 in my BlockFi account, so that's about 400, about
$450,000 in those two accounts. And I'm just saying this
because it wasn't that long ago, I didn't have any exposure
to cryptocurrency at all. Didn't own anything. And now you can kind of see where I'm at and why, not maybe.
I haven't given my reason why yet, but you can see obviously I am
bullish on what is going on. Before I show you the last one, I did want to point this
out to you with BlockFi. Is that, a couple things. One, you know, a question we, I had, and a lot of people have with BlockFi was how do they continue to pay out all these high interest rates? You know, how are they paying 8.4, 8.6% on their stablecoin and 6% on Bitcoin and all this stuff? And, you know, basically if
for those that don't know, they are lending the cryptocurrency out, no different than what a bank would do. You know, they're taking
your cryptocurrency, loaning it out, charging the spread, and making what they make. But just recently, they did
drop their interest rates on not, I don't know if
it's all their coins, but most of their Bitcoin. So for example, with Bitcoin, if you hold your Bitcoin there, before you're making 6%
and now you're making 5%.
With Ethereum, and depending
on what tier you're at, you can see this tier one dropped from five and a quarter
down to four and a half. You're still making something. And I'm still trying to figure out, am I 100% comfortable depositing all of my cryptocurrency
with them to make that 5% on the Bitcoin or the
four and a half or so, whatever on the Ethereum? I obviously, I still haven't done it yet because I have a majority,
not almost a majority, I used to say that. I have more with Coinbase
than I do with BlockFi, but everything at Coinbase,
you know, right now, there is no interest
being paid on any of that. So something that I still have to process and figure out like what
I want to do moving on.
That being said, one of the main reasons why you saw this big influx of capital, of cash, this $100,000
that went into stablecoin is because right now, they are having this stablecoin promotion between April, which has already passed, and then July, at the end of July where basically anything that you deposit, instead of making 8.6%,
I can increase that so you can read it, they are going to be paying 10%. And this goes until the end of July. You do have to keep all
that money in there until, I believe you don't actually
get paid until August. Yeah, August 13th 2021. And for those that don't know, real quick. So typically with BlockFi, you get this accrued interest here, and then you could actually see this interest payment,
how that was actually done at the end of the month, you can see that. So on April the 30th,
that's typically when, at the end of the month is when
they calculate your interest and then they pay you, they deposit, whether you choose Ethereum, Bitcoin, whatever you wanna choose.
But in this case here with this promotion, that is not going to be paid out till almost the middle of the month. So just be aware that
that is how it works, and if you do have an interest in this there will be a link in the
description where you could sign up for a free BlockFi account, take advantage of the stablecoin promotion to make that extra interest rate. So for me, like right now, this was just, I won't say a temporary thing,
but for the longest time, longer than I really want to admit, I've had all this money sitting in cash, over a half million dollars,
just in our emergency fund.
And this does not include cash I have in my self-directed 401k, cash in my different PayPal accounts, cash in some different
investment accounts, cash in our tax account
and our vacation account and our kids' savings
and blah, blah, blah. Just in our emergency fund, we had over a half a million dollars that was making next to nothing. And when I finally looked
at how much cash we had, I'm like, okay, I need to
take some of this cash out. And before the whole
Robinhood and all the accounts you just saw, like all that was sitting in cash for longer than I want to admit, and that's for a whole other
reason and a whole other video, which the only way you're gonna find that out is if you subscribe,
so you should do that now. So I had all this money sitting in cash, and I got to the point
where I'm like, okay we need to start making some interest. And that's why I moved out, taking advantage of this promotion.
It's not gonna be a
huge bump, but I figure, hey, it's more than like the $23 a month I was making on the interest
from our emergency fund, which is with a big bank that we all know pay next to nothing. So that is what is going on with BlockFi, and now let's look at
our last account here, where now we're talking
a little bit of Doge, a little bit of Doge. So this is my Robinhood account. And you can, let me
move me out of the way. I can't see the value. So this, I think the
high than it has been, just a few days ago, where was it? Somewhere in there. I think I hit like 320,
somewhere in there. Right now at the time of this recording it is all over the place. So $309,000, and if I
scroll through all these, you'll see a lot of the
dividend stocks I talked about earlier that I was picking up. So I got all those, but
then here is the crypto, which I just have three
different positions here.
So with, in my Robinhood account I put $15,000 worth of Bitcoin, so I
bought a third of a coin. And at the time of this
recording, I'm up around $1,700, so total equity there. So yeah, but putting in
$15,000, it's worth $16,800, as of right now with Bitcoin currently trading around $56,000, so there's that. And then we have buh buh buh, oh my gosh. Sometimes I love Robinhood,
sometimes I don't. All right, and then the other one, you probably already saw it, there you go. Ethereum was the other
one that I purchased, and with Ethereum I put in $25,000 and it is up to 36, so up $11,000. Not a bad return there. And then the last one,
which still gives me a bit of a chuckle is Doge, Dogecoin.
And even though like we're
down a little bit today, it's a little bit down from the screenshot that I showed, actually
no it's about the same, but this was higher. So I put $20,000 in, $20,000 in. Currently worth $85,000
or a plus $65,000 gain. (laughs) Oh, it just makes me laugh. I don't know why, just makes me laugh. Huh, so yeah, so there it is. I put in a 20, 45, $60,000 there with a nice gain. So it's about $140,000,
probably give or take. So right now, adding all these up, I went from having no cryptocurrency, zero, zilch, nada. No cryptocurrency at
all to now having almost $600,000 spread out across
three different accounts. Now, if you've not seen this, I have a link in the description. So I have another video where I talk about the barbell investing strategy, which basically is, the whole concept there is that you have one side of your portfolio is all super safe.
And so you think of one
side of the barbell, all super safe, basically cash,
savings, CD, a money market. And then on the other
side is more high risk, where in the middle,
you know, you're taking out all of like the bonds and all of like the middle of the road type
conservative investments. So you have super safe, super guaranteed, not gonna lose principle
on one side of the barbell, and the other side is Dogecoin. Or you can watch another video that I guess I'll have another video to talk more about this, but you know I'm currently an angel investor
into a FinTech startup. Like that is definitely more high risk. You could throw in call options.
You can even throw in individual stocks, although, you know, that
would be for me more like a high growth
stocks, I got tech stock, like buying like Coinbase
right now would be, for example, that's more
high risk, you know, not buying like your
blue chips and dividends. Still risk involved, but I would say, I think we would all agree that buying a blue chip
dividend paying stock is not as risky as buying Dogecoin or investing into a FinTech startup. So that's currently where I am at, and the one thing that I'm just, I'm being very cautious of
is at the end of the day, cause like, I think we
saw this with GameStop, where people were willing to
literally like sell their house or borrow against their house to make some crazy amount of return, thinking that they were
gonna be able to retire, thinking that they were
going to be able to, I don't know what.
And I know there are people
that definitely made money, but there are also a lot
of people that didn't, and yes this is a once in
a lifetime opportunity, kinda I guess. I mean, Bitcoin, that was a
once in a lifetime opportunity. Ethereum still is a once
in a lifetime opportunity. Bitcoin technically still is. If it's gonna go where
people think it's gonna go, same thing with Ethereum and how the NFT space is blowing up. And that's why for me, like,
I'm very bullish on this, but still wanting to be careful that I am not, I could easily
take all of our cash right now and put it into BlockFi
or Ethereum or Bitcoin. I mean, I could, but you know, having the financial planning background and seeing too many people get burned with taking a huge amount of risk, and then essentially,
maybe not losing it all, but losing a good chunk
that hurts them financially. Like I just trying to be
cautious because for me, I have to ask this question to myself and then also
answer the question, so obviously I'm talking to myself.
But this is a question that
you need to ask yourself, if this is something
that you are considering or if you're already in
it and you feel yourself, man do I need to put in more? Do I need to put in more? Do I need to put it more? How much do you really need? And I know it's a simple question, but it's a hard question for
a lot of people to answer. And I guess maybe another way to asking that is what would happen if you were to lose
everything that you put in into such investment? So if you invested $10,000 into Dogecoin, and that's all the money that you have, what would that mean for you and your family and your
financial situation? Would it wreck you or would it just be a really big inconvenience? You know, for me with
Dogecoin, losing 20 grand, that would be an inconvenience. And I'm grateful that I can say that. A lot of people can't say that.
So for me, I was okay with that, but you know, losing $100,000, it also would be an inconvenience, but it definitely would hurt a lot more, especially when I don't need it because with my business and
my income and our lifestyle, like we have everything
that we need and then some. So this is for me, man, I wanna take advantage of the opportunity, but I want to make sure that I'm not being just
stupid with my money because stupid will usually,
usually get you broke. And that's currently what
I'm dealing with right now. And that's why I'm bullish on this. That's why I'm bullish on Dogecoin and crypto and BlockFi and Coinbase. And for those that are interested
in investing in a crypto and you haven't yet, just
keep in mind, it doesn't take, you don't need $1,000. You don't need $20,000
to make this happen. Like you can open up a Robinhood account or a BlockFi account or a Coinbase account and deposit a small amount and
then buy a fractional coin.
That's something that you can do, something that's easy to do. And that is for me, like
that's, that's how I learned. I learned by testing the waters. So that's why with Bitcoin, I think I purchased
$1,000 worth of Bitcoin, so I think at that time it was like one third of a coin because I wanted to see how it worked. I wanted to open the account. I wanted to see it, not so
much taste it or feel it, since it's all digital, but
I at least started to feel and get a sense of how this all works, and that gave me more confidence to then buy a little bit more
and buy a little bit more and then do some more research and then talk to other people and see what they're doing and start understanding how it all works, so that I would feel more
comfortable putting more in.
So that is where I'm at right
now with cryptocurrency, and I don't know how much
more I'm gonna put in. That's something that
I need to think about and need to look at my financials and my net worth and
have a talk with my wife and just making sure that
we are doing this smart because also I also wanna buy sports cars. If you've not seen any of
those videos here recently. So you know, I got stuff I wanna do, and so I gotta, you know,
I can only invest so much and that's what I'm looking at right now.
All right y'all, so I
need to know right now, do you own any crypto? If you do, what do you
own and which crypto or which coin are you
most bullish on right now? Let me know in the comments, and also if you wanna check
out this BlockFi promotion, getting this 10% interest
here on the stablecoin, I'll have, once again have
the link in the description.
You can check that out, please do. And that is how we do it here
at the Wealth Hacker Channel. All right, y'all this is Jeff Rose reminding you that it's
your money, it's your life, and only you can make it awesome. Until next time, peace..