A FORMER college student is now a self-made millionaire at 25 after four years of investing in high risk cryptocurrency.
Cooper Turley, who lives in Los Angeles, began investing his pay checks in Ethereum and now has a growing seven figure net worth, treating his parent’s to regular six figure gifts.
Cooper was studying music business at university when learned that the Ethereum blockchain had the potential to change the music industry and he began investing.
He has recently become a self-made millionaire, treating his mum to a six figure Mother’s Day present and paying off his student loans.
Though the 25 year old would not disclose how much he invested initially, he told CNBC that he was investing hundreds of dollars every chance he could.
Cooper said: “From there, I fell down this rabbit hole of being fascinated by how the technology works and how I could make a name for myself and become an expert on the industry as a whole.”
He graduated in 2018, and said he began to take his cryptocurrency portfolio more seriously, despite the blockchain’s value decreasing by 20 percent that year.
He said: “In 2017, I saw my net worth basically come crashing down.
“It was during the midst of two to three years, when everyone kind of wrote it off, that I was really heavily investing, putting basically all of my income just into ether [when it cost] around like $100.”
Cooper felt that he had done enough research and his investments began to creep up in value as Ethereum capabilities increased.
He said: “I’m entirely self-taught.
“I became fascinated with learning who the key players were and staying up on the latest trends.”
One of those trends was DeFi, which aims to recreate traditional financial systems that allowed people to loan their cryptocurrency and gain interest, similar to a traditional lender.
While Cooper was successful with this method, experts warn users of the dangers of investing without user protections.
CoinDesk, a leading crypto news outlet said: “The old crypto saying ‘don’t put in more than you can afford to lose’ goes double for DeFi.
“This stuff is uber-complex and a lot can go wrong.”
‘VOLATILE AND SPECULATIVE’
Crypto can be riskier than other investments because they are volatile and speculative – their price often rising and falls very quickly, sometimes seemingly for not reason.
Many cryptocurrencies have a short track record, making them difficult to understand and predict.
This type of investment is also not protected by the regulator which means you have no protection if things go wrong.
The FCA has also gotten tougher on crypto recently, banning the sale of crypto derivatives to retail investors.
The FCA said “As with all high-risk, speculative investments, consumers should make sure they understand what they’re investing in, the risks associated with investing, and any regulatory protections that apply.”
The risks of buying with cryptocurrencies
Investing and making a purchase in cryptocurrencies such as Bitcoin is risky.
Their value is highly volatile and City watchdog the Financial Conduct Authority has warned investors should be prepared to lose all their money.
Investing in cryptocurrencies is not a guaranteed way to make money.
You should also think carefully about making purchases with a cryptocurrency.
For example, Bitcoin has had wild price fluctuations in recent months and the price can change on an almost hourly basis.
The price of a Bitcoin was at $40,258 on January 9, according to Coindesk, but fell to $34,214 just three days later.
That’s a 15% drop.
These price swings are risky for a business as you could sell an item for a Bitcoin at one price and the value may drop soon after, leaving you with less money from a sale.
Similarly, the price of Bitcoin has soared by more than 21% since the start of this week so it can be hard for a shopper to get an accurate idea of the price of an item if its value changes on a daily basis.
They added: “For cryptoasset-related investments, consumers are unlikely to have access to the Financial Ombudsman Service (FOS) or the Financial Services Compensation Scheme (FSCS) if something goes wrong,
“Consumers should be wary if they’re contacted out of the blue, pressured to invest quickly or promised returns that sound too good to be true.”
But Cooper says he has been “experimenting with that sector for a long time, so I felt very confident about making sure that I was checking in on how healthy my loan was,”
Cooper now lives in Los Angeles and works as an Angel investor and a cryptocurrency advisor.
He has also said that his success has convinced his parent’s to start investing, allowing them to pay off their mortgage with their gains.
Cooper said: “Financial freedom is not the end state, it’s just the beginning of being able to do really cool stuff in the world.
“I definitely don’t feel like I’ve ‘made it’ by any stretch — there are far more people who are far better off than me in crypto.
“But I do feel really thankful.”
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