Saudi Press

Saudi Arabia and the world
Thursday, Mar 28, 2024

‘Crypto is by far my most profitable investment’

‘Crypto is by far my most profitable investment’

“Money and IT are my core things,” says Adrian, a financial services professional in his late 40s, who asked not to use his full name to avoid “tax complications”. 
In many ways, he is the archetypal cryptocurrency investor in the current bitcoin rally. Following his divorce, a pub conversation in 2017 led him to look into cryptocurrencies. Since then, Adrian has gone deep.

“I have property, wine, lots of different investments but crypto is by far the most profitable. I look at what I put in and there is no better return anywhere else,” he says.

He says he owns about 50 different types of cryptocurrency but has kept as much as 70 per cent of his investment in bitcoin, which he regards as the safest and most liquid option. 

He is also actively trading — hence his concerns about HM Revenue & Customs — on various exchanges and in the fledgling derivatives market, using leverage to amplify the outcome of his bets.

Venturing beyond buying and holding coins, Adrian has entered the rapidly growing area of decentralised finance, which uses the “digital ledger” technology of blockchain to replace intermediaries in trading, lending and borrowing. One crypto insider describes decentralised finance — also known as “DeFi trading” — as the world’s most adversarial market. 

“You can make anything between 100 and 1,000 per cent, but it’s probably not for beginner investors,” he says, adding that trading in this area requires a heavy commitment in time and research.

Adrian says he will “never” sell his bitcoins but aspires to borrow against his holdings in DeFi markets to buy a home in a couple of years. Having gone from bitcoin novice to evangelist in three years, he believes blockchain has the potential to replace insurance companies, retail banks and central banks.

“If you’re selling bitcoin you’re going long fiat. Why would you ever want to do that?” 

Sachdev has taken a much more moderate approach. The derivatives expert runs financial advisory firm Vedanta Hedging and takes a dim view of overly complex products. He nonetheless started “dabbling” in bitcoin in January this year. 

“I can give you 20 reasons why investing in bitcoin is a good idea and 20 reasons why it’s a crap idea,” he says, noting that he took the plunge after two people whose views he respects encouraged him to do so. “I did some research and downloaded CoinbasePro.”

His initial investment of about £20,000 has so far yielded a profit of roughly 35 per cent. Still, given bitcoin’s volatility he is taking a cautious approach and says he would never use leverage. Sachdev still owns more gold than bitcoin but says this could soon change. 

“I don’t want to invest any more into crypto than 5 per cent of my equity investments,” he says. “Returns are bigger and quicker than in other alternative markets like art or wine, but it’s a lot more frothy and prone to bubbles because it’s very new.” 

He would “ride out” any collapse in price, he says, and has had no issues when converting some of his bitcoin into fiat currency. But he also believes bitcoin’s success might be too big for central banks to ignore. 

Bitcoin’s failure thus far to fulfil its promise of becoming a mundane, ubiquitous means of payment does not worry him, however.

“I’m not too bothered about not being able to use it in Sainsbury’s. I see bitcoin as an uncorrelated asset. Just because it can’t do everything it doesn’t mean it doesn’t have a place.”
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Reports in Gaza: 5 dead from the impact of aid packages dropped by the USA
Apple warns against drying iPhones with rice
China Criticizes US for Vetoing UN Ceasefire Resolution in Gaza
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
The U.S. vetoed a U.N. Security Council resolution calling for a temporary ceasefire in Gaza, instead proposing its own six-week ceasefire plan contingent upon the release of all hostages held by Hamas
Prince William Urges End to Gaza Conflict
Saudi Arabia ranks first in UN index for e-government services in MENA
Israel has gone ‘beyond self-defence’ in Gaza, says Labour’s Streeting
EU Calls for Immediate Ceasefire in Gaza Conflict
Israel Records 20% Drop In GDP, War In Gaza Is The Reason
Saudi Arabia's FDI Inflows Grow with New International Standards
Venture Capitals Power Up Across MENA Region
Saudi Arabia Introduces Terms for 30-Year Income Tax Exemption for Multinational Companies
Saudi FM: Establishing Palestinian state is only pathway for Mideast stability
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
Elon Musk's Starlink Gets License For Israel, Parts Of Gaza
Influencers Exploit X Platform for Profit Amidst Israel-Gaza Conflict
PM Modi Announces Opening Of New CBSE Office In Dubai
International Criminal Court's Chief "Deeply Concerned" By Rafah Bombing
January Funding for MENA Startups Totals $86.5 Million
Saudi Arabia accelerates digital economy growth through Nvidia partnership
Indian female military officers commend Saudi Arabia's progress and women's empowerment
Israel unveils tunnels underneath Gaza City headquarters of UN agency for Palestinian refugees
Israel deploys new military AI in Gaza war
Egypt threatens to suspend key peace treaty if Israel pushes into Gaza border town, officials say
Israel Utilizes AI Military Technology in Gaza Conflict
Saudi Arabia Warns Of A "Humanitarian Catastrophe" If Israel Moves On Rafah
China Warns Iran to Halt Houthi Attacks or Damage Trade Ties
US University To Shut Qatar Campus Due To "Heightened Mideast Instability"
Iran-backed hackers interrupt UAE TV streaming services with deepfake news
Facebook and Instagram Ban Iran's Supreme Leader
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
U.S. Secretary of State Blinken: The Israelis underwent dehumanization on 7.10, this does not give them the right to do this to others.
Defense Technology Showcase Held in Riyadh
Saudi Arabia’s non-oil exports rise 2.5% to $6bn in November 2023: GASTAT
UK Bans Misleading "Zero Emissions" Claims for Electric Cars
Gaza's Teen Inventor Sparks Light in Displacement
Netanyahu Rejects Ceasefire Proposal, Insists On Total Victory Over Hamas
Guterres appoints independent UNRWA review panel
Private Sector Employment Hits Record High with Over 11 Million Employees in January
Rolls-Royce Executive Encourages Saudi Women to Tap into Their Inner 'Superhero' for Success in Defense Industry
Saudi Arabia launches National Academy of Vehicles and Cars
Saudi Tourism Minister Reveals Plan for 250,000 New Hotel Rooms by 2030
SAR to more than double eastern network passenger capacity with new trains deal
Saudi Arabia Enhances National Defense with New Partnerships
Saudi Aramco Maintains Arab Light Crude Pricing to Asia for March
NEOM Establishes New York Office to Support Investors
Saudi Wealth Fund Draws in Over $25 Billion Worth of Investments in Three Years, Al-Rumayyan Reveals
ZATCA Cautions Against Scammer Schemes
INTRA Defense Technologies inaugurates drone factory in Riyadh
×