60% of the Bitcoin bought is below their purchase price. Therefore, they are at a loss. The amazing thing is not this data but that 90% of crypto investors lose money. This is due to several factors, but they are mainly investors who do not have the skills needed to take their portfolio to the next level.
This means that those who know how to follow a set of pre-established guidelines can make extraordinary returns from the world of cryptocurrencies.
Do you know what this implies? That we are in a time of transition. On the one hand, the population is beginning to lose faith in central banks. They are leading us to ruin since the gold standard was cut and playing with our savings. On the other hand, the central banks are realizing the great advantages that some of the cryptocurrency projects have, and that is why they are trying to regulate them.
A couple of weeks ago, consumer prices in the Netherlands were reported to have risen by 18% YoY. This is an increase in prices not seen in the last 50 years. What is surprising is that this is happening in such a developed country. Less-developed countries have been experiencing this situation for a long time, which has made the adoption of cryptocurrencies in these countries faster. They know the benefits they have over governments and central banks with abusive economic policies.
In fact, of the 20 countries with the highest adoption of cryptocurrencies globally, we can highlight the following:
- Ten are lower-middle income: Vietnam, Philippines, Ukraine, India, Pakistan, Nigeria, Morocco, Morocco, Nepal, Kenya, and Indonesia.
- Eight are upper-middle income: Brazil, Thailand, Russia, China, Turkey, Argentina, Colombia, and Ecuador.
- Two are high-income: the United States and the United Kingdom
We are still at an early stage, where those who know how to build a robust enough portfolio will make a lot of money. A few weeks ago, we told you how 6.15 BTC is generational wealth for you and your family. Today we’re going to show you how to make a crypto portfolio from scratch. A portfolio that lets you sleep easy, and all in 5 steps:
1. Decide your risk aversion.
You have already decided to have a 100% crypto portfolio. First, you should know that this portfolio does not have to have volatility. You can keep your entire portfolio in dollars and still keep earning more than 10% per year. Many of you will ask me how that can be, but the answer is easy. In a decentralized world, we are the bank. It is no longer necessary to leave your savings at Bank of America or wherever.
We can get their commissions with our money.
To do this, we first must determine which part of our portfolio we want to be in stablecoins or dollars and which part we want to invest in more volatile tokens.
This is the most important decision to make.
Personally, we have a 60/40. 60% in more volatile projects and tokens and 40% in stablecoins.
If you are a person who is just starting out in this crypto world, we recommend that your ratio is 10/90. You will quickly realize the enormous advantages this world has and how worthwhile it is to invest in some projects ahead.
In fact, having a 10/90 portfolio is practically impossible to lose money because even if 10% goes to 0 (practically impossible event), we can get up to 10% with the remaining 90%.
2. Start by buying leaders.
You have already decided on your risk aversion. Now you have to start by buying leaders. Why? Very simple. we told you at the beginning that most people lose money for one simple reason. They try to get rich overnight by buying unknown tokens.
Currently, there are more than 10k tokens on the market. 95% of these tokens are made to make their founders rich, but not the people who buy them. All of them will sooner or later go to zero.
It is important to stay with the leaders. In case there is another one that enters the top5–10 by market cap, start investing in it.
Making a brief summary.
The most volatile part of tokens I invest in:
- Bitcoin
- Ethereum
- Other projects, in negligible percentages.
The part of stablecoins I invest in:
- USDT
- USDC
- DAI
- BUSD
- OUSD
All of the above have protocols that allow us to take advantage of the famous Buy and Hold.
3. Choose good protocols for staking.
Once you have chosen the leaders, it is important to put them to work. To do this, they should be left in protocols that allow us to get performance while we sleep.
On this point, we will go into more detail in other articles. However, we leave you some protocols to give you an idea:
- Ethereum: Lido, RocketPool, Binance, Kraken….
- Stablecoins: Yearn, Aave, Compound, GMX…
4. Read the market (optional)
This point is optional. You cannot do it and earn a lot of money if you have done the previous three correctly. In fact, there are times that if you do well in the previous three, but you don’t do this one right, you can even lose money. Therefore, if you are new, it is almost better to skip it.
Cryptocurrency markets are extremely cyclical. Much more so than the stock market. When there is euphoria and FOMO, everyone buys. However, when there is panic, everyone sells.
If you are able to do it the other way around, you have a lot to gain.
There are several metrics that tell you the timing of the cycle. The best known is the Bitcoin stock to flow. If we are below the line, we should buy. If, on the other hand, we are above it, the best thing to do is to sell.
we know it is a rather absurd reduction, but it works.
There are other methods with the Bitcoin rainbow, but ultimately, they are very similar.
As of today, I would tell you to buy with your eyes closed.
5. Hold
Hold, hold and hold. For Bitcoin to reach $1M, it first has to go through $100k, $500k, and $700k.
Be patient and hold. The Federal Reserve will soon start printing more money again, and we will see our patience pay off.
As you know, the community is closed, and from now on, we will only send emails via newsletter. So, if you want to learn:
- The technique Michael Saylor uses to buy Bitcoin and make a lot of money.
- How to make your first million in crypto from zero.
- The true potential of “hard assets”.
- How to achieve financial independence early (and rich).
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