As noted in a post last year, we dipped our toes into the world of cryptocurrencies. Why on earth did we do that? Perhaps a slight case of fear of missing out (FOMO), but also the belief that the technology (and perhaps some of the coins) will survive (and thrive?). It was also a lot of fun with the massive volatility. Where are we today?

Combicoin Update

The way we got into cryptocurrencies is via de Combicoin. I can hear you think, what was that Combicoin again? It’s a token that is developed by a few of our fellow countrymen that derives it’s value from the top 30 cryptocurrencies. It’s kind of a crypto ETF. We liked that idea of a diversified token so we bought a few back in late November of 2017 (at about $15.3 after fees).

Combicoin Update - February 19 Overview

Combicoin Update – February 19 Overview

The problem with this token is that the company that issued it is new and is still developing the software to trade the token. On top of that, the company wants to stay out the of crosshairs of the government (and financial regulatory bodies). So they temporarily stopped the sale of the coin.

However, they did stick to their promise that you would be able to sell the coin (if you’d already bought some). Ok, it was a bit later than late January, but at least for existing token holders you now have the opportunity to cash in. So this is what we have done. Or at least are still trying to do. Let me explain.

Selling Process

When we bought the Combicoin, we could do so without the need to register for an exchange account (i.e. Coinbase, Kraken, Binance, etc.). Which was nice & easy, because most exchanges had issues with the large volume of traffic and transactions. But when we got the news we could sell, it appeared to be a rather cumbersome and complicated process (that being said, Triaconta have done a good job in describing the process). We are still trying to complete the transaction, now already a week in progress!

Because we only had tokens in our wallet, we could not send them to Combicoin to sell. You have to pay network transaction fees for this. So we first needed to open an exchange account, this took a couple of days to organize and get approved for trades. Next we bought ETH (Ethereum) for about €20 and transferred to our online wallet that contains the combicoins (it’s a myetherwallet).

CombiCoin Update - Ethereum

CombiCoin Update – Ethereum

Once we received the ETH in the online wallet, we could finally send the Combicoins to Triaconta for them to sell. This was completed last Friday (including the sale of the Combicoin themselves). However, we won’t get money back! No, we will get more ETH……. We should get his deposited into the online wallet today, next it has to be transferred to our account at Kraken. From here we have to sell the ETH for Euros. These would then need to be transferred to our bank account in the Netherlands. Damn! That’s a lot of effort to sell a few tokens!

Crypto Profits

If everything goes well, and the value of ETH stays stable, we should end up with a net profit of around €900-ish €1.032 (UPDATE 20-02-2018: all ETH is sold and € are in the account!). Not bad on a initial €1.000 investment in just 2,5 months. That being said, the costs for trading and investing in Combicoins are not cheap. The fee to purchase the Combicoins was 5%, the associated sale was another 3.5%. That’s quite substantial.

Then there are the fees for the network transfers from myetherwallet to TriaConta, those are not too bad. But the relative fees for small transactions from Kraken to our myetherwallet was huge (about 0.005 ETH or €3.75 at time of writing). In the grant scheme of things, to total transaction fees will be around €100 from start to finish, or 10% of our invested amount.

I’m still debating what to do with the ETH, perhaps I will sell about €1.100 worth (so we make 10% return on our initial investment). With the remainder I could play around a bit and see if I can use the volatility to my advantage (yes, that’s timing the market and I suck at that!). Or I can just cash in on everything and take a 10 week holiday, well fund a small portion of it anyways. Perhaps I should to do the sensible thing….

Crypto Thoughts

I still like the concept of the crypto ETF that is called the Combicoin. We might get back into it once they get all their ducks in a row and the crypto market matures.

However, the crypto market seems to be moving as a whole. Yes, there are varying degrees of profits/losses per coin, but they generally move in the same direction at the same time. This makes paying for a crypto ETF a bit of a waste. You might as well just buy some of the underlying cryptocurrencies yourself, would probably be cheaper! It would also be much faster to buy and sell, at least at this time.

 

How are your crypto investments doing? What’s your plan?

Please follow and like us:

As all of you are aware (if you are not, you have been living under a rock!), cryptocurrencies have gone bananas lately (and plummeted next). We have also decided to dip our toes into the new world of cryptocurrencies: the Combicoin! It’s not really investing, so much as gambling, but you have to have some fun money, right?

Disclaimer: we have no interests in Triaconta or Combicoin, nor do we get any compensation for writing this post!

However, if you are interested after reading this post and have done your own homework and risk assessment (!), you may use this link to buy your Combicoins: https://triaconta.com/?ref=COMBI-214484

If you do, we both will get 0.5% extra combicoins.

Update 09-01-2018: the sale of the Combicoin has been temporarily suspended due to a voluntary process to get regulatory approval. For those who already have Combicoins, you are able to sell them back to Triaconta in February, or can wait to sell them on the trading platform once it’s operational. See news here: https://triaconta.com/triaconta-is-voluntarily-acquiring-regulatory-approval/

Cryptocurrencies: the Combicoin

Because we (currently) lack the general understanding of which cryptocurrencies have more long-term potential than others, it’s difficult to know what to buy. Bitcoin certainly is not the answer as it’s too slow to be used as an actual currency. It also needs amazing amounts of energy to be mined (and traded), not really sustainable!

But which one is? Ripple? Dash? Beats me (you are strongly encouraged to leave some comments)! However, the same applies as with ETF’s and index funds. If you don’t know which one “candy” (read: company/coin) to buy, just buy the candy store! That is how we found the Combicoin. Albeit technically, the Combicoin is not a cryptocurrency but a token.

Cryptocurrencies - Combicoin

Cryptocurrencies – Combicoin

Combicoin

The Combicoin was developed by a bunch of our smart countrymen at a company called Triaconta. They thought that making a candy store was a good idea. So they came up with the Combicoin, which is supposed to be fully backed by the top 30 cryptocurrencies. The idea is that the value of this token is based on the underlying value of the top 30 cryptocurrencies and fluctuates accordingly.

When the asset distribution (which starts at 1/30th for each) gets skewed, the portfolio is rebalanced by buying and selling the underlying cryptocurrencies. This is done periodically or if certain trigger levels are hit. The asset distribution as per 19 December 2017 is as follows (check out their webpage for more up to date information).

Cryptocurrencies - Distribution

Cryptocurrencies – Distribution

Status

Ok, so late November we purchased about 77 Combicoins, which cost us around $15.30 each after exchange rates and fees. The initial investment was thus €1.000. This is what happened next (Extra Note 22-12-2017 – value dropped like a brick to around $28 and recovered a bit):

Cryptocurrencies - Status 19 December 2017

Cryptocurrencies – Status 19 December 2017

But here is the kicker, we cannot sell yet!!! We will have to wait until the company (Triaconta) has developed the trading software. Next it needs to find an exchange that accepts this Combicoin and will allow trading it. Until that time we will have to wait, watch and see what’s going to happen. It does make this rollercoaster ride a lot easier to handle 🙂

We have done our research into the company, the white paper and online reviews and comments. However, I can’t vouch for the company or the token. It seems legit, I have received the tokes and everything seems to go according to what they write on their website. But I now have to trust the company and their abilities to actually make a profit on this investment (or was it a gamble?). Only time will tell.

That being said, it has been a rather hilarious exercise so far! Every time I look, the value goes up or done massively. Bet you that by the time we can sell, the market has imploded and the value of the Combicoin is less then we paid for it. At least we would have had some fun. That being said, we do view this as a buy and hold “investment”.

How about you?

Have you bought cryptocurrencies already? If so, which ones and did you already make some money (i.e. did you actually cash in on the increase in value)? What are you going to do with the proceeds? Reinvest in cryptocurrencies or other? Any recommendations for which individual cryptocurrencies to buy and hold?

Please follow and like us: