For those that follow my posts you will recall I helped out a friend get into crypto by staking his investment into the COTI Treasury. He invested a smidgen under R10K so when he eventually returns his investment it will not trigger any red flags from the tax man which is any value of R10K or more.
The timing was perfect in September and we managed to purchase 6K COTI for his R10K which was roughly $480 back then. That $480 is now worth more than double being $980 so this only goes to show buying at the right price and the right time is a major factor in how well you are going to do.
We Are Geniuses LOL
When I spoke with him today he was a little shocked at how quickly his investment has turned a decent profit. He mentioned this is the kind of returns you would expect from a Ponzi scheme yet this is not one of those. His next bit made me laugh as he said can I invest more or is it too late? Like I have mentioned previously I have given him no indication of where I think the COTI price is heading.
He Wants More
I will be seeing him for farming day when we need to claim his rewards and stake those which will be Wednesday/Thursday this week. I need to see how much he is going to invest first to work out a good entry point even though now is still fine even with the price having already doubled since September.
During the last Bull Cycle we know Bitcoin had something like 3 major corrections of nearly 50% and this is something we have to watch out for as nothing ever goes up in a straight line. One could happen next week and we have no idea except a correction or two is still going to happen.
All I can advise my friend is to dollar cost average now and get is funds loaded and ready to slowly buy over the coming month or two. He is in such a good place he needs to make this decision on his own without any outside influences. Maybe he can catch COTI at 12c or 13c, but the 8c days are already over. Saying that 2c or 3c savings is not going to change that much even though I do not expect a huge investment and it will most likely be a repeat of last time.
The Rand has weakened against the Dollar since September by around 5% so he will be looking at having far less dollar value plus the COTI price has doubled so this time around possibly only receiving 3K COTI.
I do find how the landscape has changed in such a short period of time ad you only realise this when you look back. Still if he has 9K COTI staked in the treasury earning daily rewards he should be in a really good position later next year.
Posted Using InLeo Alpha