I have a long term portfolio of stocks, much like a crypto person would have, but only in stocks I know about and understand.
But I constantly shuffle the portfolio, it doesn't make sense to keep badly performing stocks which cancel out any gains made by the stronger ones !
It's a bit like investing when you're in debt, paying interest on a loan or something. Those loan payments are 'negative interest', a guaranteed loss every month. So it's better to pay off the loan before using your money to invest. Just basic money management, I think a lot of crypto people don't 'get it'.
It makes me wonder, if 90% of stock traders fail, and 90% of gamblers fail, I wonder how many crypto traders will fail ?
@tradegurl this is a debate that I use to have with myself everyday lol.
I ultimately found that having too much diversity becomes tooproblematic for a few reasons.
When you put those factors together you will notice that you are more likely to lose betting on a bunch so so coins and are better of picking a few vetted quality coins that will grow steadily and allow you to pull your investment in a staggered form until all you are dealing with is house money.
Thanks for stepping into this discussion!
Thanks, it's rare that someone agrees with me :-)
I think half the time people trade crypto just to boast about how many different coins they have, because they sure as shit aren't making any money from it lol.
Nice to see some 'sensible' people for a change ;-)
We live in a funky stage of crypto where boasting and immaturity is the norm. Am I perfect no, but there are core principles that can be applied to all aspects of life one of them being humble.
With that you will never find yourself overextending and out of position.
I think it's because a lot of crypto traders are young and lazy, and think it's an easy way to 'get rich quick' :-)
Agreed. Most have never eve attempted to open a Econ book. Not saying you 100% need to, but some kind of background would help
I know, even just some sort of basic knowledge of maths or economics would be useful.
One thing I ask a lot, especially when people are claiming "Bitcoin to $100K by the end of the month !" and crap like that, where exactly is the money coming from ?
I think I calculated before that for BTC to reach $100K would require another 2 trillion dollars to be injected into the market. People think the price will just go up to that level because they wish it to and nothing else, lol.
As I said before, I fear just like Forex, and all the other asset classes that people trade, over 90% are going to blow up their accounts and go bust. I don't see why crypto should be an exception, especially when most people trading it have never traded anything before.
Sorry, I'll stop ranting now :-)
Keep on ranting.
My vision for cryptowas to see the largest transfer of wealth the world had ever seen, and it happened. It’s just that the transfer was from paper to crypto 😅. We literally had the head start and gave it back to the elites due to our lack of awareness.
If you spend even 20min in some of these telegram groups you will see that the masses are totally outmatched.