Need advice: Up 100k on crypto.. Now what?

4th year undergrad here starting FT at a Canadian bank next year. In freshman year I went balls deep into a relatively obscure (at the time) shitcoin/crypto named Zilliqa (ZIL) because I liked the fact that it was built to scale in a way that increases its speed exponentially as more people use it, unlike the bigger players, and that it's more or less designated as "Asia's coin". I bought most of it at all time lows of half a cent and in the last bull cycle it went to $0.25 or approx. CAD$220K in total value. Currently it's down to $0.11 and has been stable there for a couple of months. I've only taken profit from interest earned through its staking mechanism which has already more than doubled my initial investment as APR was paid in ZIL which benefited from the price action. I've been told I have diamond balls and also been called an idiot at the same time.

While my long-term target exit for this was $1 in freshman year and development of the project is going strong IMO, I recognize that 100 grand is a very decent head start and supplement to IB comp. I also have a bank account in a jurisdiction with no capital gains on crypto and exiting is relatively straightforward there.

This may sound silly but given that there's so much noise around global events, economies, inflation, doom and gloom etc., I'd greatly appreciate any advice or things I could do that a college kid might not have thought about should my risk-tolerance suddenly drop and the initial exit strategy is abandoned. Cheers.

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Comments (21)

Oct 21, 2021 - 7:33pm

Obviously sell and take your winnings.  Don't be a part of the "to the moon" cult, unless you really think it's going to blow up again.  There's always the next shitcoin to hit big on, if you stay ahead of the market you'll find it.

Oct 21, 2021 - 7:36pm

Take your profit. People thought Litecoin and Bitcoin Cash were gonna be biggest coins 4-5 years ago. The world changes. Id only suggest being eternally long on Bitcoin and Ethereum rn. Take at least 95k off the table and let the rest ride but for the sake of you starting your career in the best place possible, 95k would be nice to have to invest into the market, retirement or a down payment on real estate. 

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Oct 21, 2021 - 8:03pm

Yeah I like this approach. 

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee

Oct 21, 2021 - 8:02pm

$100K could be $1M later or zero. How confident are you?

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee

Oct 21, 2021 - 8:39pm

Don't look at this on a current market value basis.  Sure 100K is nice, but look at it from the standpoint of are you okay risking your basis and do you believe there is true value here.  Answer those questions then make a decision.

Oct 21, 2021 - 11:09pm

So you have around 900k coins initially invested at half a cent each (~$4.5k cost basis) and have already doubled your cost basis. Think it makes sense to sell enough to reward yourself for the risk you took and size that as 10x. So sell ~$36k worth of coin and you'll be able to say you made 10x your investment. It's hard for you to beat yourself up over taking 10x. Let the rest ride and see if it'll roll into something much more substantial. $65k of remaining investment can be almost $600k at your target price and you can keep staking it and taking profits on those. Feel like with this approach, if the coin drops to 0, you have the comfort of knowing you got 10x your money on an ultimately worthless coin and if it ends up meeting your targets, you still get a substantial windfall

  • Prospect in IB-M&A
Oct 21, 2021 - 11:17pm

Congrats on the gains. I'm in same boat, also a college student who went from nothing to six figures of crypto in past year. Went from $5k November 2020 to $35k in December 2020 with some pretty degenerate margin trading, pulled some out for taxes on that on December 31st, put the rest in ETH. Now holding ~$140k of ETH (unrealized gains so no taxes) and turned $5k into $25k trading NFTs (have to pay short term capital gains taxes). Taxes are your biggest worry. I kind of think zilliqa is a shit long term hold, but can you hold it 366 days to get the long term capital gains tax rate? If so, I would do that and try to cash out in a few weeks. I personally think we're going to have a blowoff top scenario and alts including ziliqa are going to insane in December / January so I would probably hold until then. I would pay your taxes but also wouldn't necessarily have it in cash. Personally, I would stack your cash and have it set aside for the bear market and just put it all into ETH. Think about where you want to be in 2030. 32 ETH will be worth $1M+ by then. 

  • Prospect in IB-M&A
Oct 21, 2021 - 11:19pm

Wait you have access to bank account with no capital gains? I would just sell once alts rip, put it into ETH, pull out when we top out. Low six figs ain't much nowadays honestly, I would stay in crypto for the long haul but maybe derisk to ETH from ziliqa 

Oct 21, 2021 - 11:51pm

Hey dude mind if i PM you/mind pming me ? In a similar position with alts so wanted to clarify some things

Array
Oct 21, 2021 - 11:46pm

I'm pretty big on crypto, way more than $100K, and got wiped out pretty bad back in 2017 because I was invested in small projects. If I would have put my earnings into Bitcoin or Ethereum, I would be x3. Instead, I lost almost 90%. If I were you, I would put $90K into Bitcoin or Ethereum, and maybe some Solana. Then keep day trading shitcoins with the $10K. Don't worry about the short versus long capital gains tax. You could flip that $10K into a whole lot more if you play your cards right trading. 

  • Consultant in Consulting
Oct 22, 2021 - 10:11am

Perhaps best to approach with a money neutral mindset: if you had 100k cash today, would you invest it all into Zil? Assign portfolio allocation appropriately.

Maybe start with  considering risk tolerance and go from there. Also please take comments here with a grain of salt. 

  • Prospect in IB-M&A
Oct 22, 2021 - 1:54pm

^^^ this 100%. Would I put $100k in ETH rn? Hell yeah I would. Maybe even in MATIC or SOLANA or AVAX. But ZIL? Idk man seems like it's not the best idea 

Oct 22, 2021 - 2:57pm

Sell. Lets be honest you got extremely lucky once (lucky scratch ticket) and are now trying to rationalize staying in.  Do the sensible move and collect the one in the hand as opposed to going for the two in the bush. 

Oct 22, 2021 - 3:04pm

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Oct 24, 2021 - 11:16pm

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