I don't get it. I am bullish on crypto currency but why put all your eggs in one basket, especially when you are a high paid individual?
At some point your goal should switch from looking for moon shots to wealth preservation. Stocks, bonds , real estate, side hustles and crypto.
I think people just forgot what crypto bear market looks like. It is brutal. Makes the dot com bubble look like a minor correction.
Best Posts in Thread: Crypto currency
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Follow Max Wright for great Crypto analysis. I put $10K over the last 4 months in Bitcoin (BTC), Etherium (ETH) and 5 other alt coins that is now worth $29K. Max has been saying that it will hit $100K by end of May. He says April will be a great month with 5 Fridays but will dip on the last one.
Two crypto coins on fire that are completely private (not supported by external wallets yet) are Monero (XMR) and Pirate Chain (ARRR).
I started in late Jan with $ 3K Monero at $150, it's now $340. Pirate Chain is even harder to obtain as not supported by Coinbase. I had to open a Tradeogre account. It was $0.13 in January, now at $2.05. Unfortunatley I just got in with $1K on April 7 at $1.07, but still see this going 10X.
Other alt coins on the rise are Uniswap (UNI) and Decentraland (MANA)
Although my career was in the markets, this is one area I will not delve into as an investment, tho I admit to shorting bitcoin as a trade a few times. I don;t truly understand exactly how these things work, but as an investment I will not put one penny into it for this reason. Having read where people's currencies disappear or get stolen, who do you call to try and retrieve? Or if some hacker takes your currency, who do you call, ghostbusters? As an owner of CD's, etc. in financial institutions that went away, I did not have to bat an eye b/c the money showed up with interest thanx to the FDIC. Trade? Yes. invest? No
My only advice to anyone considering to enter this market is that Bitcoin is not everything in crypto. Branch out a little and understand the technology. It really is revolutionary when you delve into it. Makes holding these assets a little easier when they drop 50% in value. Lots of $hit coins out there, but the top projects have amazing things going for them.
I have no idea where it will go, but I started buying small daily amounts again since it dropped below 40k. I will 2x my daily buys below 30k and 3-4x my daily buys below 20k.
Fun experiment. Its money I am totally willing to lose so not stressed out about it. I gotta say it is good training wheels for major stock market crashes. 20% drops feel like a tuesday afternoon in crypto. Wall street hedge funds would be jumping from empire state building windows if that happened to the dow.
Thats not necessarily how layer 2 solutions work in crypto, but that is an example of a layer 2.
As far as staking, the only thing I have staked is Cardano ADA. I can do it straight from my ledger and it earns about 5.5%APY of ADA. The best part about that is it never leaves my hardware wallet. That is basically like stuffing your mattress with cash, and it still earns interest.
Cardano Staking – DAN Teaches Crypto
I hear good things about them. That being said do your own research. I plan to move my roth IRA there eventually, but I have not tried them yet.
Bitcoin does something much better than being "put in a mattress". More importantly, the fact that you can't touch it makes it the most unique store of value. One mind blowing idea is that you can technically store Bitcoin in your own brain, and no entity on the planet will ever be able to touch it. What I mean is that if you memorize all 24 smart phrase keys, and then wipe out any hardware wallets or paper records of those smart keys, no one on the planet can access that value stored on your bitcoin wallet except you, and you can do that with billions of dollars worth of bitcoin. I am not aware of any single asset out there that can do that.
Of course, it probably is not advisable for you to tie so much value to your memory, because if you forget the order of the smart phrases, that bitcoin is gone forever.
Again I look at it as another hedge/ asset that you can diversify anywhere between 1-10% of your portfolio depending on your appetite for risk. I am bullish on its future, but it is easy to go down that rabbit hole and hold the bags for years in a bear market.
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