I started buying into cryptocurrencies earlier this year — just a fairly nominal amount each month to toy around with. And while I’m not under any delusions that crypto is going to take over the world, I do think it’s an interesting technology with a future.
I’m still just scratching the surface of the whole topic, though. I know crypto can be used for developing applications, storing files, and more, but it seems like that isn’t really happening as often as it should be. But it’s still relatively early days, of course.
It reminds me a bit of podcasting, which was dominated by technology shows for the first handful of years. Much like podcasting moved away from being predominantly tech-focused to a medium with a broader audience, at some point I expect crypto will move away from being predominantly finance-related to something else.
Filecoin is a good example of this, it’s a decentralized file storage project. And it can be used to store files today with an application and service called Slate.
And of course there’s Ethereum, which is one of the most exciting projects in the space. It’s a decentralized, open source platform that allows for the development of applications, the creation of NFTs, and it’s cryptocurrency — Ether — is the second largest by market cap (behind Bitcoin). Although I’m very skeptical about NFTs, I like just about everything else that Ethereum has going on.
But what do I actually own? I won’t go into detail about the exact dollar amounts, but I will share roughly what percentage of my holdings are in each currency as of this writing:
Bitcoin 49%
Ethereum 26%
Stellar Lumens 6%
Filecoin 4%
Cardano 3%
Litecoin 2%
Bitcoin Cash 2%
Kyber Network 2%
Origin Protocol 1%
Aave 1%
Polygon 1%
Synthetix Network 1%
I currently keep all of my crypto in Coinbase. From the research I did leading up to my first purchase, it appeared to have the largest user base with a pretty solid user experience. And it’s supported by Mint and Simplifi, if you’re into the financial dashboard thing.
But I will likely explore other exchanges over time. Coinbase doesn’t support every token or coin on the market and I’ve found myself in situations where I’ve wanted to buy something that I just can’t get unless I go elsewhere.
I’m also curious about moving some of my coins off of an exchange onto a hardware or software wallet. From the little bit I’ve explored in this space, Ledger seems like a popular and reliable option.
Cryptocurrency sure appears to have exploded in popularity over the past several months. A quick search of some related terms in Google Trends indicates a pretty big jump starting around December of last year.
I have no idea if the current uptick in popularity will continue or for how long. But I’m certainly excited to see where it goes.
