Author: Duo Nine⚡YCC
Compiled by: TechFlow
This guide is designed for three types of cryptocurrency investors. Here are their investment amounts:
$1,000 - Beginner
$10,000 - Experienced
$100,000 - Expert
I'm assuming you're all here to get rich, and crypto is your best chance. Let's get started, and there's a quick summary at the end.
If you have 10k or 100k in your pocket, or are ready to invest, most people will ask themselves:
Should I start a business or buy Bitcoin?
Unless your future business can outperform Bitcoin, it’s not worth it. This brings up an important point that applies to all portfolios, no matter their size.
If you are not making more than Bitcoin, you are wasting your time!
Take a moment now to measure the return of Bitcoin since you started investing in cryptocurrencies and compare it to your portfolio returns. If you are not outperforming Bitcoin, then it is time to re-evaluate your investment strategy and assumptions.
With that said, let's start with the basics. We have three categories of portfolios: 1k, 10k, 100k. Interestingly, they reflect the distribution of Bitcoin quite well. Let's explore them one by one.
Beginner - $1,000
You are currently at the beginning of cryptocurrency investment, but this is your chance to make a lot of money. Your advantage is that you can afford high-risk investments because even if you lose the money, it will have little impact on your life.
You have a small portfolio so you can’t get rich overnight with Bitcoin. Don’t pay too much attention to the top 100 coins until you reach the next investment level. Your only purpose here is to:
Asymmetric Investment
Whatever you buy needs to have a potential return of at least 2x to 10x. This usually means investing in coins with smaller market caps but potential, including some hype coins like meme coins.
Your strategy is not to hold for the long term, but to sell for profit when the price goes up. Your main goal is to look for high yields and sell when the market goes up. Get in and out quickly and don't get emotional about any altcoin. Their only purpose is to bring you profits and increase your investment.
Since time is limited, do not hold on to a certain currency for a long time and hope for its rise. Chase market trends, hot spots and hype. Abandon the old investment logic in time and quickly turn to new market hot spots, even if you need to sell at a loss sometimes. Do not hold on to losing currencies for a long time, stop losses in time and move on.
If you are new to cryptocurrencies, the altcoin market is probably the most difficult to navigate. Most altcoins are scams, and many people will promote these coins and use you as their exit liquidity. Don't be fooled by these games, exit decisively when you make a profit, and never look back.
You need to take the time to understand Tokenomics, market dynamics, and pump cycles. If you are lucky enough to get a 10x or higher return, it is recommended to transfer the proceeds into Bitcoin. Ideally, don't bet all your funds on one altcoin, but spread the risk among 3-4 different investments. If one of them fails, you can still keep investing.
There is a high probability that you will lose the $1,000.
If you can't afford to lose that kind of money, or can't commit another $1,000 anytime soon, then you need to seriously consider whether this is the investing path you want to take. If investing $1,000 in yourself or your family could have a significant positive impact, think twice.
Advanced Level - $10,000
You’re still focused on investment growth, but high-risk investments are no longer the core of your portfolio. Now you need to start thinking about how to protect your profits. This will become more important as your investment scale increases.
If you started with $1,000 and made it to this level, well done! But now it’s time to adjust your mindset. Until now, your focus has been on finding high yielding and potentially rising coins. Now, you also need to protect your newfound wealth.
You can do this by putting a portion of your money into Bitcoin. Look at your portfolio and decide what proportion you plan to continue to risk and what proportion you need to protect. Protect your wealth with Bitcoin and take risks with altcoins.
If your portfolio is over $10,000 and you don’t own Bitcoin, you are being too greedy. Don’t fall into this trap. The correct approach is:
Decide how much of your assets you want to protect. Put that amount in Bitcoin and never sell it. Ever. Not even in the face of promising altcoins. You hold this portion of your assets for the long term and add future altcoin gains to it.
Congratulations on taking an important step on your path to financial independence. Few people reach the stage where Bitcoin is their primary investment objective. Sadly, many people remain stuck in the altcoin mindset, often with disastrous consequences.
Your Bitcoin reserve will gradually become a safe haven for your soul, providing balance and relaxation, and counteracting the stress of investing in altcoins. No matter how turbulent the altcoin market is, you can be sure that your Bitcoin is safe. This sound investment will make you a better investor over time.
As your portfolio grows, it should be your goal to own at least one Bitcoin and never sell it. This is the cornerstone of your financial independence and retirement security. If you are young and reading this, time is on your side. Let time work for you, and you don’t have to do anything else in this regard.
Expert - $100,000
You have entered a whole new level. A six-figure fortune is more than the value of a single Bitcoin at the time of this post. Congratulations, you are now in the top 1% of the world! Be sure to do your best to preserve and grow this wealth while managing risk.
You now belong to a very rare group. Only a few people have reached this level, and most people can only dream of it.
You are in the top 1% of the global cryptocurrency space!
Even more amazing is that out of 8.2 billion people in the world, you are one of the 605,022 people who own more than $100,000 in Bitcoin. That’s actually 0.007% of the world. Sounds crazy, but these numbers are true.
So at this stage, instead of thinking about getting rich by taking risks, realize that you are already rich. Not because you own $100,000, but because you own 1 or more Bitcoins. That is real wealth. $100,000 in a bank account does not represent wealth.
Being in the top 0.007% globally means that out of 100,000 people, there are only 7 people like you. This is a very exclusive group. Therefore, you now have only one task:
Protect your wealth!
It would be irresponsible not to do so.
Do this by continually increasing the number of Bitcoins you hold. Ideally, you never sell these Bitcoins, especially if you only have one. Therefore, altcoins should not be your main focus.
Ideally, altcoins should only make up 1-10% of your portfolio. They are asymmetric investments with the potential to achieve 10x returns, and once they do, you can convert them into more Bitcoin. It's that simple.
If you hold Ethereum, it should always be much smaller than Bitcoin. In the long run, you should consider selling all of your Ethereum because the macroeconomic environment is not favorable to it and it has been underperforming Bitcoin since 2022. Remember, don't hold assets that are underperforming Bitcoin.
You should always be cautious with altcoins in the long term. Here’s why you shouldn’t hold them for the long term. This short video will help explain some of what I’m talking about. Listen carefully to his views on Ethereum, Solana, and other altcoins.
As time goes on, it becomes increasingly difficult for altcoins to find a competitive edge as they gradually erode confidence in the market. This only further proves that Bitcoin is the better investment option. If you are already wealthy, investing in Bitcoin is the way to keep your wealth.
Finally, if you have $100,000 and are just getting into the cryptocurrency market, just buy one Bitcoin. Don’t make it complicated. This is a way to permanently be in the top 1% at a low cost.
Summary and Memory Tips
If your investment returns are not as good as Bitcoin, you should adjust your investment strategy.
Beginners need to make high-risk investments in asymmetric opportunities.
Once you reach a certain level of wealth, you need to learn to protect your portfolio, not just expand it.
When your wealth reaches six figures, you should focus on Bitcoin. It would be irresponsible to ignore this.
In the long term, altcoins should be viewed with caution.
Apart from gold, Bitcoin is currently the only sound currency in the world.
If you are wealthy, protect your wealth with Bitcoin to stay wealthy.
