Here’s a chart on how Bitcoin has fared over the past 5 years.

In January 2022, two things happened that triggered my interest in Bitcoin—the world’s highest-valued cryptocurrency token by market cap.

First, I found myself in a position that exposed me to a whole lot more on Bitcoins. There was lots of deep reading material on the cryptocurrency circulating around. And I got to meet people who understood Bitcoin really deeply. Now I don’t claim any of this rubbed off on me, but at the time, it all sounded pretty convincing.

Second, at the time, I was still grappling with Bitcoin was valued. There were no cash flows or any other metrics one usually considers to value an asset. But what happened next gave me permission to deploy some play money in Cryptos. What was the event? A sharp sell-off (see chart above).

If you find this approach criminal, well, it was. There was no so-called fundamental reason to go down this route. But then, remember, this was “play money”.

So over January and February 2022, as prices fell, I ended up investing all the play money I wanted to in Bitcoin. (Full disclosure: This was a tiny amount by all standards).

I would call this the high point of my Bitcoin journey. Only because every step was laced with an element of learning. Right down to ensuring that my Bitcoin was secure in a “wallet”.

And that was that. What followed was a roller-coaster ride. Probably worse.

The first low I hit was soon after I became a crypto investor. It turned out that the entire system, from the government to the regulator and right down to banks, had decided to gang up to kill the crypto ecosystem in India.

This was new. I had never experienced this before. Usually, all these players are doing whatever they can to encourage “activity” in the markets. Remember, we take pride in having become the No.1 casino (in derivatives) in the world. But now they had switched sides.

Losing your asset does not feel nice. No matter the amount. No matter that it was play money. It appeared I was clearly close to that eventuality.

The other low was that although I had bought Bitcoin after a sharp selloff, it went on to sell off even more sharply (see chart). Never before have these words rung more loudly in my ears—never buy something thinking it cannot go any lower. It usually does. I am not sure who said this. But whoever did, nailed it.

Well, if you thought these two lows were all that there were, well, there was a lot more.

Here’s the worst of them.

Recently, the price of Bitcoin shot up to all-time high levels. My tiny investment has nearly doubled. So far so good. Now comes the question. Where’s my Bitcoin stored? In which wallet?

Talk about a low-low. It took me a lot of time figuring this out. Most of the time was spent on Gmail search to check where the Bitcoin was transferred.

Luckily, I figured this out. And then emerged the most important question of them all. Do I have the 12-word crypto wallet password to access and transfer my Bitcoin (yes, that’s 12 words that you got to remember, in the same sequence).

At that moment I felt like the person who had found he had $250 million worth of cryptos locked up in a wallet but had lost his password for good. I was in it for just a little more than $250, but the emotions were real!

To cut a long story short, I did find the crazily long password string (phew, close call!). And have secured it for now (I think).

At the end of this two-year journey being a crypto investor, or punter if you wish, all I can say is that the ride has been thrilling. Like riding a roller-coaster. If you really hate sitting in one.

But in it are some lessons that I take away, which I share here.

First, cryptos are not for the faint-hearted for all the reasons I’ve shared.

Second, sometimes, to get a feel of an instrument you need skin in the game. There’s nothing wrong with that as long as it is “play money”. You should not go overboard. I am sure new SME investors will be nodding in agreement.

Third, narratives can sway the most seasoned of investors as well. So be sure to have some rules in place that prevent you from getting in your own way in building long-term wealth. In this case, it holds true both in terms of learning about a new instrument, and about not going overboard with something you don’t deeply understand.

Fourth, never underestimate regulatory risk. Be sure to factor this in when deciding where your money is invested. In cryptos, the risk is obvious. So is it in poorly managed companies.

Finally, and on a lighter note, the concept of play money is good. But no matter how seasoned you are, or not, it takes up far too much time than that punt deserves. So, before you rush to start allocating your play money pool, give it a second thought.

That was my story. Perhaps you have a better play money story to share. If you do, drop me a line at contramoneyindia@gmail.com.

Rahul Goel is the former CEO of Equitymaster. You can tweet him @rahulgoel477.

You should always consult your personal investment advisor/wealth manager before making any decisions.