Crypto Gist: Navigating Wonders and Woes - Nick's Life-changing Crypto Journey

Crypto Gist is a series that highlights the stories of real people around Africa around cryptocurrencies. Our guests share their crypto experiences - intro to crypto, wins, scams, losses and lessons. Would you like to tell your story? Don’t hesitate. Fill out this form to share your story.

Hello, can we meet you?

I’m Nick from South Africa.

Welcome, Nick; it's great to have you here. When did you first hear about crypto?

I first heard about crypto from my friends, and that was between 2019- 2020. I didn’t really understand what they were talking about. It seemed all too complex, and felt like you would need technical expertise to understand it. 

True, a lot of people have that experience. If you were to describe your crypto experience, how would you summarise it in one word? 

Reflecting on the lessons and losses I've encountered, I'd describe my journey as "life-changing."

That’s great to hear. Could you elaborate on the pivotal moment that spurred your interest in crypto?

Absolutely. My experience working for a cryptocurrency company played a role, and a defining moment occurred during a trip to Ghana with colleagues. A person needed local Ghanaian cedis, and the other party received crypto in an address. I was intrigued! Yes, I was part of a crypto company but was still locked in fiat. I believed in the real physical currency backed by a central bank.  

She was sending money digitally, and the person would give her Ghanaian cedis. I was a bit perplexed. For me, when I thought of crypto, bitcoin was the only crypto that came to mind, and it was interesting to learn about stablecoins. When travelling, you are limited by using your local cards, which hold local currency. You lose money on the bank charges when you swipe it every time. This changes with crypto as you can agree on a better rate to buy things you want and save costs. 

That’s a transformative moment indeed. How was your transition into trading crypto actively?

I was curious and was introduced to FTX, the platform my colleagues used then. I was told about how great it was and that it had APY - APY means earning 11-12% of the crypto you hold.

When I flew into Nigeria, I had a seat down with our payroll person in our company, and he explained how people were paid in crypto as that was an option in our company. He explained I could create any wallet of my choice and receive USDT and then exchange it for my local currency at any time of my choosing. The taxes were already paid upfront by the company, and that was the moment I transitioned to receiving my funds in crypto, and I have never looked back. 

That’s fantastic! How has your experience been; you’ve experienced the ATHs and the bear markets.

I forgot to add that the fact that I started trading in USDT made it easy for me to buy into other cryptos. So, I opened an FTX account, and every time I got paid because the rand was doing so badly against the dollar, I would be left with money in my account. I used that money to buy crypto, so I invested in BTC, SOL, ETH and several cryptos. Then,  I bought a lot of coins monthly. First, I was hedging against the local currency, which was making me more money, and hence I was able to save and invest in other things. That was quite the experience for me, and I was making money from the APY as well.
However, the first cryptocurrency I bought was bitcoin, and at that time, it was trading at $60,000, and I bought a small percentage of bitcoin- my small piece of bitcoin. I bought it for $60,000, and then it went progressively down. It was tough to see, but one thing I learned is that this is disposable income. This was money that you should be “willing to lose”. I also learned that investing in Bitcoin isn’t about putting all your money at once, it's about putting whatever you can afford in slowly. This way, you can gain from the increases if it goes up and minimises your losses if it goes down. So that was one of my lows, but the biggest low was when FTX shut down, and I lost all my investments. It was thousands of dollars, I will not say how much exactly. 

So sorry; that must have been a major setback.

Hahaha… I had FTX for more than a year and a half, and I bought crypto every month, and the loss made me lose my entire crypto portfolio spread across varying cryptocurrencies. I think when you sleep and wake up and realise you can’t withdraw anymore, it's a shocking thing. And even though we say it's money you can lose, there’s always that thought of, what if I could just get a percentage of all that money back? However, you can’t get anything back. You’ve lost it completely, and for me, that was the lowest of the lows - to lose that kind of money instantly through an exchange. That was my low, and I think I have learned my lesson.  

Such setbacks can be tough. How have these experiences shaped your outlook on the world of crypto?

Since that loss, I haven’t bought any more crypto because I need to learn the process of opening a Cold wallet- as I still have concerns about putting money on an exchange. I haven’t fully restored my trust in the system. I haven’t stopped using crypto for my salary, and I don’t think I will ever stop. 

The key to understanding is that I’m Ghanaian, and I am based in South Africa, and I have no family here; my family is back in Ghana. Crypto has allowed me to be able to move money across borders easily, which is something I am very grateful for. Previously, you had to go to a bank, and you’d lose so much of your funds just because you were trying to move money. Crypto saves me money and allows me to transfer money home easily. 

At the same time, my journey with crypto has been a profound lesson in trust. When you exchange money with individuals outside of the traditional exchange platforms, a new level of trust emerges. If you choose not to transact within the exchange, you're left with the option of conducting transactions outside its confines. Collaborating with these individuals has enabled me to cultivate trust in others. I've established a relationship with a person I work with regularly. Every month, I send a specific amount of money, and they assist in trading it. Through this ongoing partnership, trust has blossomed, allowing us to confidently manage larger transactions. This aspect of crypto has brought back a sense of barter trade, where I possess USDT and someone else has the local currency. We negotiate and agree upon an exchange rate, facilitating the transfer of funds. It's a process built on mutual trust and understanding.

That’s an interesting perspective. 

Additionally, in regard to Web 3, I'm deeply intrigued by the potential of the Web 3 space and the ways blockchain can drive positive initiatives.  I am a marketer by profession, and a lot of people you find in Web3 are engineers, so I also want to understand it more so I can help sell what they are building. As that is my role, the more I understand, the more I can sell even better.
That’s a great perspective, and it is awesome to see your role in the crypto space. If you were going to go back in time, what do you think you would have done differently in your crypto journey? 

I'd tell myself to start sooner, adopt a gradual, diversified investment approach, and, of course, remove my funds from FTX and put it in a cold wallet instead. If I started earlier, I’d have lost more money if I had held it in FTX, hahaha.

Your insights are incredibly valuable, Nick.

I often find myself saying that when my parents truly grasp my involvement in cryptocurrency, it marks a significant step toward my own comprehension of the field. Initially, explaining my work and the concept of cryptocurrency to them was a challenge, as it seemed perplexing. However, over time, they've gained a clearer understanding. I believe that as I deepen my own understanding, I can simplify these complex concepts not only for my parents but for others as well. My goal is to enable people to grasp the concept easily and potentially achieve financial freedom.

Amazing! You’re taking up a role as a crypto evangelist spreading the crypto gospel. What would be your recommendation to someone just starting out in the crypto space?

I'd advise you to start by surrounding yourself with individuals already engaged in the crypto world. Learning from those who are actively involved is one of the most effective ways to gain insights. My own understanding of crypto was enhanced through observing others in action. Connecting with experienced individuals allows you to tap into their valuable knowledge. While reading is beneficial, my personal learning journey has been more enriched by hands-on experiences. Start small; consider starting with a stablecoin and observe its growth. As your confidence and resources grow, you can transition funds to a cold wallet for added security.

Though reading is important, I'd caution against overwhelming yourself as it can lead to confusion and scepticism. Instead, take small strides. Set up an account, and try out apps like Yellow Card or any other platform of your choice. Utilise the Academy to gain a basic understanding and begin with a small sum, perhaps just $5 or $10, to your account.

It's important to understand that crypto isn't a shortcut to becoming an overnight millionaire – that's a misconception. It's an investment avenue, subject to fluctuations just like any other. Beware of anyone promising instant riches. Patience is an essential virtue, as in any facet of life. Crypto can be a valuable addition to your investment portfolio but shouldn't be your sole focus.

Your story is both enlightening and inspiring; We greatly appreciate you sharing your remarkable journey. 

Same here; it was awesome to share my story. 

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