Investigation: We invest 100 euros in cryptocurrencies – Five months later

A month ago, we were left with some hopeful signs for our cryptocurrency investment experiment, after several months of decline. Unfortunately, in the space of a few weeks the world around us has radically changed: Russia’s aggression against Ukraine has not only brought an entire people to their knees and jeopardized the already fragile international geopolitical balances, but has also triggered a deleterious ripple effect on stock exchanges around the world and consequently on the crypto market. Over the days immediately following the outbreak of the conflict, the total amount of cryptocurrencies deposited in our Crypto.com wallet dropped to € 70, a 30% drop compared to our initial investment.

As the days went by, while the world stock exchanges continued their difficult period, cryptocurrencies instead began a small but not negligible recovery, probably also driven by economic sanctions on Russia and the triggering of new emergency financial dynamics. The balance we are about to present to you is inevitably negative, but the impact on cryptocurrencies of the war conflict was not as heavy as that of other financial instruments. Hoping to soon find ourselves talking about a safer, peaceful and balanced world, we therefore continue our journey in crypto aiming for a rebound in the medium term, such as to guarantee us the small gain we hoped to obtain when we started this experiment.

Our cryptocurrency investment: where we left off

A few weeks ago, we were left with the situation that you can read in the image above, to which we applied our monthly movement that we imposed on ourselves as a rule. In the place of Decentralandwe bought 5.3 euros of Polkadot, altcoin which according to a report by the Crypto Carbon Rankings Insistitute is the one with the lowest energy consumption among all those taken into consideration. An aspect that should not be underestimated, especially in times of energy crisis and growing attention to sustainability. As we mentioned earlier, our wallet on Crypto.com in the last month has suffered a heavy loss, and for the first time since the beginning of our journey we find ourselves with a reduced capital compared to the departure. Here is the current situation.

The collapse of cryptocurrencies

As can be seen from the image, with the exception of Terra (LUNA) all of our cryptocurrencies have suffered a significant loss in the last month. The last few weeks also confirm a curiosity that we had already noticed in the previous months: the main culprits of our temporary passive are Bitcoin and Ethereum, the certainties on which we had set our wallet, with a budget of 40 euros each. On the other hand, apparently more risky bets have supported our path up to now. However, there are also negative examples: as you can see, Anyswap it has lost more than 40% of its value in just one month.

We just have to start from here, from a possible collapse that turned out to be only a sharp decline. A new demonstration of strength in the sector, which has contained losses and maintains its strategic and economic importance in the future almost unchanged.

Our moves

Even in this extremely complex month, we must respect the rule that we have imposed on ourselves, which foresees at least one movement for each update. Our choice falls on Terra (LUNA), which we purchased for a total of 5.5 euros and which we resell for a total, net of commissions, of 6.95 euros. A very small profit, but in this period it is good to be satisfied. With the amount earned, we focus on Polygon (MATIC), a crypto that has not suffered too much from the ongoing war and is increasingly the focus of investors’ attention, due to its scalability and low commissions. Will it be a new bet or a rash investment? See you next month to find out.