Warning: I am documenting my adventures with risky investments and do not condone anyone doing the same. Please do your due diligence and learn from my wins and losses so you can have more detailed discussions with your financial planner. Crypto Currency and every Crypto Mining Investment Company is still in its infancy and can pose a risk that ordinary investors cannot tolerate.
As I mentioned earlier, I felt a crypto bear market was upon us. There was going to be a cyclical downturn in crypto, and I could profit from it by selling puts. Out of the commonly known crypto mining investment companies, the one I picked was RIOT.
I was selling RIOT puts for a high premium, so I was making some good returns on my investments. However, something went wrong, RIOT, like crypto and any crypto mining investment company, plummeted.
Not How To Invest In Crypto Mining.
Now we are heading into a crypto bear market, and there will be times to buy cheap crypto.
Better yet, the bear crypto market is only temporary but long enough to slowly dollar cost average into it.
I’ve seen this in the past, Bitcoin going up and going down, to go up again.
Now I plan on picking up some cryptocurrency, and since I couldn’t figure out an easy way to short it, I decided to sell out of the money put in a good crypto mining company. As I mentioned, Riot Blockchain, Inc. (RIOT) was my choice.
This is not how how to invest in a Crypto Mining Investment Company, being assigned shares on a sold Put.
I was assigned shares of RIOT. To me a lot of shares and too many at once. No dollar cost averaging; in hindsight, I didn’t truly appreciate how fast the crypto market could drop.
I factored in risks associated with the anticipated crypto bear market, but then this happened a crash.
So didn’t dollar cost average into this decline? I only have a little money to pick additional crypto as the market declines.
Therefore, I now have a large chunk in a declining asset, but I don’t know when the bottom is, but I am confident there will be an opportunity for an upside in cryptocurrency’s value in the future.
When that is, I don’t know.
When is the bottom? I don’t know.
Did I ‘buy’ in too early? Again, I am still determining.
So let’s talk about what I do know.
IMHO: What Is The Best Crypto Mining Company To Invest In?
I was looking at companies that mine cryptocurrency instead of waiting for crypto to drop and finding its bottom before I would buy in.
I was bouncing around the idea of what if I sell puts during the crypto decline; I could make some sweet premium during the descent and accumulate more money for when crypto bottoms out.
I weigh the risk of being assigned shares. This share assignment can happen and often is a process if you want to get stock cheaper and collect a premium while waiting for the price to drop.
So interested in crypto, not directly in the currency, but in options trading, I decided to focus on Crypto Mining Companies.
Right off the bat, the two that come to mind are Marathon Digital Holdings, Inc. (MARA) and Riot Blockchain, Inc. (RIOT).
Some honorable mentions, which I was also considering:
Well, I found MARA and RIOT almost neck and neck, but for some reason, I picked RIOT and focused on it.
I knew there was a possibility of being assigned shares, so RIOT was one of the crypto miners I was comfortable holding, weathering the storm.
I Own RIOT Stock Now What, Do I Have A Plan?
Let’s be honest; I plan to make money from anything I do with money. But did I mess up with my risk management and ‘buy’ into too soon?
I believe so. I wanted to continue to collect premiums selling put options out of the money while the whole market declined. I wasn’t ready for a ‘crypto crash.’
So, Can You Get Rich From Crypto Mining Stocks?
That is my original plan, but now I’m trying to mitigate losses with this bear market; selling out of the money calls collecting pennies on the dollars compared to selling puts.
Everyone is anticipating this downturn, and options puts are traded much higher than option calls.
My immediate plan is to tolerate the loss, survive this downturn, and be prepared for Crypto’s turnaround.
For Crypto to exist, there needs to be crypto mining; these commercial crypto farms generate the cryptocurrency we all are trading. Through mining, my choice in crypto isn’t airdropped but has a work component that immediately gives that crypto some value, which is why I like Bitcoin instead of the other cryptocurrencies.
Conclusion……???
There isn’t; I wanted to post an update with some of my Crypto-Adventures. Selling and buying puts was one way I was creating side money for my passive income generation empire, and in the meantime, this small portion of my investments is tied up.
Waiting for the crypto-bottom to be reached and then see a turnaround, so selling out-of-the-money calls start paying higher premiums with the possibility of selling my RIOT stock later at a gain.
My goals aren’t always agreed on with the market, and with this RIOT stock assignment, it is clear that I and the market have strongly opposing plans.
Note: I am bullish on crypto, mostly because of the security designed into the blockchain and concerns about inflation and the devaluation of the US Dollar.
In the past, people wanted to hold on to tangible assets, like gold and real estate, but some of us needed safe storage space for gold or the funding or interest to buy real estate.
From these concerns is where crypto comes in and my interest in it. I used to do crypto mining at home, a small experiment, but now owning stocks in crypto mining giants.
Follow Along and Good luck To Us!
 Myself with an interesting Bull Sculpture. Notice: No Lambo’s. :/ | Hi I’m Tom, A Blogger And A PIG Farmer. PIG Farmer as in I grow Passive Income Generators(PIG’s). I’ve been playing with stocks, mutual funds, and options for decades, as well as always working on my side hustle stacks. Unlike what you read online, I’ve yet to find a way to get rich quickly. Get Rich Quick isn’t happening for me. My journey has been long and continues. I hope to have so many PIGs I can stop working at my current job and volunteer as a medical worker overseas. Still waiting, but getting there. I still am a family man, and while on this Journey of Growing PIGs. I wanted to share my adventures(ups and downs), hoping you will contribute with your feedback and comments. Fun Fact: In my spare time, I am a Band-Dad! |