Millionaire Interview #3 - Cryptocurrency Millionaire`

How old are you?

I am 25 years old.

What’s your marital status and/or kids?

I have a girlfriend, but I'm not married and don’t have kids (and not thinking about it in the future).

What’s your biggest source of income? How much per year?

My biggest source of income is trading with altcoins and interest/earning from the stock market. Due to privacy reasons, I don't want to go into deeper details, but my income per year is somewhere around 700K per year.

What’s your current net worth?

4.9 Million

How is your net worth divided?

  • 600K is invested into Cryptocurrencies such as Bitcoin (for long term) and Vertcoin (for short-term trading).
  • 600K in my IRA – invested in the stock market
  • 1M is invested in the stock markets. These are all long-term investments – no day trading.
  • I spent 1.8 Million for my 3 Penthouse Suites in Germany, Japan and the US. Since I don’t have much time to travel around the world due to my current schooling, the Suites in Japan and the US have been rented to another people.
  • 350K for my 2 cars (Bentley Continental GT and Nissan Skyline GTR-35).
  • 550K in reserves and cash used for spending.

How and why did you begin saving and investing? Is there something that initially triggered your interest/motivation? How have you continued to learn? 

It might sound ironic, but having rich parents doesn't always mean you know something about money. They always taught me to keep an eye on it and be smart. However, I didn't really care about investing my money until recently. While everyone was going crazy for Bitcoins, I decided to buy 100 Bitcoins just for fun. A friend of mine got me interested, and of course I’m thankful he did.

When I got older, I spent more time learning about the stock market. I didn't really know anything initially, but I was always fascinated in the markets and trading, probably because those "jobs" are connected with risking money and having a good feeling in your gut to make trading decisions.

Have you used a financial advisor? If so, why? If not, why not?

I used my parents as a financial advisor. Mainly because I'm still young and make some bad investing decisions. Instead of "wasting" my money, I invested and saved the money so I won’t have financial problems in the future.

How has your portfolio allocation and investment strategy changed through the years?

I used to invest just for fun, and now I’m more serious about it. For years I spent my money on virtual items and bitcoins. I’m now looking to make more money with good investment decisions.

Do you plan to change your portfolio allocation in the future? If so, how and when?

I will definitely sell my 2 apartments in Japan and the United States; I don't have time to visit those locations and don't want to be responsible for something that is thousand kilometers away. My plan is to buy estate properties in Germany, since the current economic situation is bad and I don't think properties will get much cheaper. I am choosing to keep my money in Bitcoin and the stock markets.

What mistakes have you made along the way?

Telling people about the stuff I do in my spare time and trusting the wrong people. Coming from rich parents has caused problems with several relationships - some people were my friends just because my family and I had money. Today, I only have my girlfriend, my family, and 4-5 close friends. I don't need more in my life and I know I can trust them with everything I do. I’ve lost several friendships over money.

What advice would you give a 30 year-old? What do you wish you would’ve done differently/better?

It doesn't matter if you're 30 or 60 years old, if you enjoy your life and don't need to drive expensive cars or pay lots of bills then just keep doing what you did in the past. I see so many people investing in things they shouldn’t because of their lack of knowledge and wanting to get rich quick. Take the time to learn about investment opportunities.

What I would've done better/differently?

I guess nothing. I'm quite happy about my life.

What are your current plans to grow and maintain your net worth?

I’m planning to continue investing in cryptocurrencies – namely Bitcoin and Vertcoin. I’m also looking into real estate investing in Germany.

Any specific books/products you recommend?

  • “Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future” is probably one the few books that actually inspired me the most.
  • “Zero to One” from Peter Thiel is good if you’re thinking of starting a new company.
  • “Financial Intelligence, Revised Edition: A Manager's Guide to Knowing What the Numbers Really Mean” gives you a good basic knowledge about the "numbers" world out there