Warren Buffett is regarded as the greatest investor ever
His strategy is ๐ฃ๐ผ๐ฟ๐๐ณ๐ผ๐น๐ถ๐ผ ๐ฑ๐ถ๐๐ฒ๐ฟ๐๐ถ๐ณ๐ถ๐ฐ๐ฎ๐๐ถ๐ผ๐ป
Hereโs how to build one in DeFi ( + my bear & bull market strategy )
His strategy is ๐ฃ๐ผ๐ฟ๐๐ณ๐ผ๐น๐ถ๐ผ ๐ฑ๐ถ๐๐ฒ๐ฟ๐๐ถ๐ณ๐ถ๐ฐ๐ฎ๐๐ถ๐ผ๐ป
Hereโs how to build one in DeFi ( + my bear & bull market strategy )
Imagine this scenario:
Mr X buys a token
( risked more than usual )
โข He took a loss
Mr X decides to buy another
( risking more to make up for the loss )
โข He took another loss
( PTSD sets in )
He sees another token
( He is afraid of placing a trade )
guess what ?
Mr X buys a token
( risked more than usual )
โข He took a loss
Mr X decides to buy another
( risking more to make up for the loss )
โข He took another loss
( PTSD sets in )
He sees another token
( He is afraid of placing a trade )
guess what ?
That token eventually pulled an x10
Holy Fvck right ?
His portfolio is down bad
His psychology is crippled
Mr X isnโt a person now
Mr X is a phase
A lot of us have been a/in โMr Xโ
This is a phase even the best traders have had to pass through
So โฆ
Holy Fvck right ?
His portfolio is down bad
His psychology is crippled
Mr X isnโt a person now
Mr X is a phase
A lot of us have been a/in โMr Xโ
This is a phase even the best traders have had to pass through
So โฆ
when it comes to market psychology
it is best to set an already prepared guideline
Rather than thinking everything would be โunder controlโ when itโs time
How do you do this ?
๐ฃ๐ผ๐ฟ๐๐ณ๐ผ๐น๐ถ๐ผ ๐ฑ๐ถ๐๐ฒ๐ฟ๐๐ถ๐ณ๐ถ๐ฐ๐ฎ๐๐ถ๐ผ๐ป
Thatโs the hack !
Thatโs the strategy !
Letโs โฆ
it is best to set an already prepared guideline
Rather than thinking everything would be โunder controlโ when itโs time
How do you do this ?
๐ฃ๐ผ๐ฟ๐๐ณ๐ผ๐น๐ถ๐ผ ๐ฑ๐ถ๐๐ฒ๐ฟ๐๐ถ๐ณ๐ถ๐ฐ๐ฎ๐๐ถ๐ผ๐ป
Thatโs the hack !
Thatโs the strategy !
Letโs โฆ
dive in
Portfolio diversification in simple terms means -
โDo not go all inโ
According to Warren Buffet :
It is a protection against ignorance
A proper investment framework focuses on :
1. Concentrate to GROW your portfolio.
2. Diversify to PRESERVE your portfolio.
But โฆ
Portfolio diversification in simple terms means -
โDo not go all inโ
According to Warren Buffet :
It is a protection against ignorance
A proper investment framework focuses on :
1. Concentrate to GROW your portfolio.
2. Diversify to PRESERVE your portfolio.
But โฆ
How do you preserve your portfolio ?
By Keeping it simple!
Picture your portfolio as a football team:
Goalkeeper โ Stablecoins
Defender โ Bluechips
Midlfielder โ Low risk plays
Strikers โ High risk plays
Failure to strike a balance in the team could lead to chaos
Letโs โฆ
By Keeping it simple!
Picture your portfolio as a football team:
Goalkeeper โ Stablecoins
Defender โ Bluechips
Midlfielder โ Low risk plays
Strikers โ High risk plays
Failure to strike a balance in the team could lead to chaos
Letโs โฆ
see how each fulfill their roles
Stablecoin โ play a big role in reducing the volatility in your portfolio and preserve capital e.g USDT,Busdโฆ
Bluechips โ They are long term investments with low volatility,the best recommendations are BTC & ETH
Low risk plays โ
Stablecoin โ play a big role in reducing the volatility in your portfolio and preserve capital e.g USDT,Busdโฆ
Bluechips โ They are long term investments with low volatility,the best recommendations are BTC & ETH
Low risk plays โ
I will regard them as middle term investments, used to build your portfolio and have a medium risk
High risks plays โ Allows you boost your portfolio playing around with low caps but ofcourse not gambling for fun but with high conviction
Letโs say โฆ
High risks plays โ Allows you boost your portfolio playing around with low caps but ofcourse not gambling for fun but with high conviction
Letโs say โฆ
For example :
You have a $10,000 portfolio
but still want to maintain a balance between growing your portfolio & preserving your portfolio
Use this guide :
Stablecoins : 15%
Bluechips : 30%
Low risk plays : 15%
High risk plays : 25%
But โฆ
You have a $10,000 portfolio
but still want to maintain a balance between growing your portfolio & preserving your portfolio
Use this guide :
Stablecoins : 15%
Bluechips : 30%
Low risk plays : 15%
High risk plays : 25%
But โฆ
This allocations too can depend on what season we are in
In alt seasonsโฆwe get to bet more on high risk plays to capitalize on the current market condition
But for a bear market, where you want to be a little bit more defensive
The Stablecoins get more allocations
Nowโฆ
In alt seasonsโฆwe get to bet more on high risk plays to capitalize on the current market condition
But for a bear market, where you want to be a little bit more defensive
The Stablecoins get more allocations
Nowโฆ
in as much as stablecoins are regarded as a safe haven
There are still risks involved, which include :
โข Top stablecoins being centralized
โข lack of transparency of the USDT
โข Attack on algorithmic stablecoins
So its best you diversify your stablecoins
Spread
There are still risks involved, which include :
โข Top stablecoins being centralized
โข lack of transparency of the USDT
โข Attack on algorithmic stablecoins
So its best you diversify your stablecoins
Spread
into usdt ,Dai ,usdc ,busd & so many more
In a bear market where the stablecoins have more allocations,you can opt to farm more of it
But then be careful of chasing high yields
Where to farm ;
โข Lending platforms like Aave
โข Incentivized liquidity pools
& so many more
But,
In a bear market where the stablecoins have more allocations,you can opt to farm more of it
But then be careful of chasing high yields
Where to farm ;
โข Lending platforms like Aave
โข Incentivized liquidity pools
& so many more
But,
I want you to know that thereโs a fine line that exists between Diversification & Over diversification
Because thereโs a general misconception,that the more you diversify, the more risk you reduce
But over diversification allows you lose potential returns with insignificant โฆ
Because thereโs a general misconception,that the more you diversify, the more risk you reduce
But over diversification allows you lose potential returns with insignificant โฆ
risks.
Honestly there is no need diversifying if your returns are lesser, yet your overall risks stay the same
Keep this in mind :
Diversification is key to reducing risk. But,when you reduce risk, you trade off potential returns as well. Your portfolio may be underperforming.
Honestly there is no need diversifying if your returns are lesser, yet your overall risks stay the same
Keep this in mind :
Diversification is key to reducing risk. But,when you reduce risk, you trade off potential returns as well. Your portfolio may be underperforming.
& thatโs a wrap!
Key takeaways ;
โข Keep stacking blue chips ( a mix of solid ones)
โข Understand risk management
โข Bull & Bear market stablecoin allocation strategy
Key takeaways ;
โข Keep stacking blue chips ( a mix of solid ones)
โข Understand risk management
โข Bull & Bear market stablecoin allocation strategy
If you enjoyed this follow me @izu_crypt for more
& other solid chads with great contents:
@arndxt_xo
@0xSalazar
@crypthoem
@CryptoGirlNova
@MichaelSixgods
@Frank_The_Wiz
@Zaqueen_
@Simple_simeon
@DannyCrypt
@SamuelXeus
@DOLAK1NG
@_Quivira
@stacy_muur
@Hercules_Defi
@belizardd
& other solid chads with great contents:
@arndxt_xo
@0xSalazar
@crypthoem
@CryptoGirlNova
@MichaelSixgods
@Frank_The_Wiz
@Zaqueen_
@Simple_simeon
@DannyCrypt
@SamuelXeus
@DOLAK1NG
@_Quivira
@stacy_muur
@Hercules_Defi
@belizardd
@iam_Riichard @kendrickNoble7 @fitforcrypto_ @VanessaDefi @Defi_Warhol Please like & RT this first post of you found value( the link below )
Also Follow me @izu_crypt for more
Also Follow me @izu_crypt for more
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