Consideration for New Crypto Portfolio

It’s almost foreign to me when someone who is new to crypto asks me…

“What should I buy”

Why? Because for me, I don’t just buy coins on Coinbase and let them sit there moving up and down.

All 5 of my top assets are working for me, generating cashflow, and more importantly, more coin.

So when I’m looking for an asset, I’m looking for something that I can put to work to generate revenue from, not just a token that has the potential to have massive appreciation.

By the way, there are certain assets that do have massive appreciation potential and fit my narrative on being able to work for me.

Where as most people, who are just getting into crypto, are just looking for maximum appreciation.

If you’re new/newer in the crypto space, let me drop some knowledge for you.

Few questions.

1. What is your Goal?

2. What is your Time Frame?

Are you just looking to get rich quick and hit an over night 10x+?

Are you just looking to make some money in the bull run and then forget about it?

Are you looking to actually allocate capital and invest with at least 3–5 years+ in mind?

Different strategies for different goals/time frames.

What I would strongly consider is becoming a long term investor in the space.

From what I’ve learned, this is how a lot of wealthy people acquire real wealth, they didn’t just hit the jackpot, and then figure out how to turn it into wealth, rich and wealth are two different things.

Which is what will happen to most people in the short term group.

Sure there will be people who get lucky and hit a 10,50, even 100x+, I know a few.

Here’s the thing, most people who hit big on bets like that, over a long enough time, go right back to where they started, a lot like the story you hear about lottery winners, because when you’re just speculating, it’s hard to be consistent.

For the people that take those small calculated bets, and use it as a way to jump forward a bit, including myself, I applaud you.

Anyway, back to what I was saying.

I’d encourage you to be a long term investor, and if you are, here’s the portfolio allocation I’d consider.

90–95% BTC/ETH

5–10% of 1–2% allocations in altcoins

1. There’s no need to be over exposed in alt/coins, Bitcoin (which is averaging 200% annualized for the last decade) and Ether (Outperforming BTC) are already the best performing assets compared to any other assets class (of course that come with volatility).

2. The Risk/Reward of 1% of your portfolio turning into 0 vs. turn 1% into 10%+, is much more in your favor, you have reduced down side, and essentially unlimited upside (almost like options)

Compared to having 50%-90% percent of your portfolio in alt coins (a lot of new crypto people think they are too late for BTC and ETH), where you have maximum down side and maximum upside. It’s basically a 1:1 risk reward, where as having 1% allocation is like a 10:1 risk/reward.

I know you no-coiners (if you’re one, and made it this far, maybe you should stop denying yourself) will say, but Liam, it’s all a speculation, it’s a ponzi, it’s all going to 0.

Yes, it is all speculation, there are obviously degrees of speculation, but don’t act like any other form of investing (which by definition is putting capital at risk, to generate a yield, other wise you’d just sit in dollars called “saving” and generate nothing, with no risk, and make nothing, well actually more like lose 15% a year, I digress).

Interestingly enough, I’ve never met a tech person (someone who knows how to code/develop) say it’s a scam/going to 0/ etc, granted I don’t know a lot, and most I have met are in crypto.

So maybe get an understanding of the technology, before being so dismissive, because that’s a theme I’ve noticed, all no coiners or crypto bears don’t know shit about the actual technology.

Oh yeah, I plan to start doing crypto boot camps, probably on Zoom, will be 1–3 hours long and include Q&A, maybe $10-$25 per person, with potential with do in person events.

So if you want to keep up to date on that, and just be on my list in general, go to the form, and get yourself in line. Link is in the comments, see you there!

Until Next Time,

HODL on!