Use this cheatsheet to beat the silly crypto influencers.
Crypto has made a lot of normies stupidly rich.
I’m not here to brag or flash TikTok videos of Lambos in your face to make you feel raging envy. Nope.
You might be thinking this article is silly, considering crypto markets are right down from their all-time highs. You’d be wrong. As long as you’ve been in crypto for two or more years, the prices right now still look incredible.
My journey in crypto started in 2013, so I’m as happy as a kid with ice cream about where the industry is heading and the new opportunities coming daily.
Here’s how I got my crypto portfolio into the millions.
Every time I get paid I buy some crypto. I’ve had this philosophy since the early days. There’s nothing better than investing money in your future.
Crypto technology aka blockchain/Web3 is the future — just like social media and phone apps were the future in 2010, or websites were in 1999.
Habits create millionaires. Start a crypto investing habit.
The financial markets are all over the place.
A recession is likely based on all the typical indicators, such as the inverted yield curve. Inflation is out of control, and politics looks like a sh*t show.
This is when most people don’t invest. In 2017 crypto markets fell by, in some cases, 80% or more. All hope was lost. The critics said crypto would be banned. I believed them and did nothing. I stopped looking at my portfolio because it made me feel stupid.
Then the health disaster of March 2020 struck.
Governments printed money out of thin air, we got locked in our homes, and it looked like the end of the world.
Despite all the drama, when prices fell off a cliff I saw it as discount season. Excess money in the system normally leads to higher prices. Sure enough, the markets went into euphoria. So did crypto prices. A blind monkey could bet on a crypto and make a profit.
I started buying Ethereum at $150. That investment hit more than $4000.
When there’s fear in the streets it’s the best time to load up on crypto. That time is now.
Crypto is full of scammers.
The hype about this crypto or that can quickly ignite your FOMO. I made money in crypto by staying away from hype.
The worst places to find hype are on the Youtube videos with clickbait titles that scream “the market will crash in the next 30 minutes — must-watch!” with an accompanying thumbnail of a shocked face. Or there are the anonymous Twitter users who pump and dump cryptos.
Surprisingly, one of the worst ways to be hyped into a scam is through celebrities. If Paris Hilton or Kim Kardashian or Dan Bilzerian is talking about a crypto, run for the hills.
Opinions are like butt cracks … everyone has one.
The way I got ahead of the crypto market and all the silly influencers was through research. I went deep on different cryptos. I have done my 10,000 hours worth of research since 2013.
Once you do the research it’s easier to invest in the market. You’re no longer relying on cheap tricks, and instead, relying on your ability to understand fundamentals and the problems different cryptos solve.
Most cryptos don’t solve a problem and that’s the problem. And most cryptos are businesses with zero revenue. Few understand.
Consume research from these sources:
- Real Vision Crypto
- Not Boring by Packy McCormick
- The Milk Road by Shaan Puri
- Books such as The Infinite Machine and The Bitcoin Standard
Become a crypto research junkie to get an unfair advantage.
CoinMarketCap shows all cryptos ordered from smallest to largest.
One mistake many amateurs make is investing in small cryptos that likely won’t make it.
To avoid that problem I’ve always invested most of my money in the top ten largest cryptos, with Bitcoin and Ethereum being the biggest two — harder to invest in losers that way.
A tried and tested principle with stocks is to use the dollar-cost average method. All it means is you invest the same amount of money each month into the same investments.
Some months the prices of those stocks will be higher. Other months the prices will be low.
But over the long run the ups and downs of stock prices will even out. I used this same philosophy with crypto early on. Whether prices were high or low I invested the same amount of money.
Risk goes down when you invest money slowly into the market and smooth out any bumps.
I don’t intend to sell my crypto. This might sound nuts but hear me out.
When you buy real estate as an investment you don’t generally sell. Instead you borrow money against your house to buy another property. The same will apply to crypto soon.
My plan is to borrow money against my crypto to buy a house. The crypto will act as collateral or a deposit. These products are coming soon.
The advantage is when you hold onto your crypto you don’t have to pay capital gains tax, and you get to keep your crypto that will continue to appreciate as the market matures.
I never invested in crypto to get-rich-quick. I prefer to make money slowly.
The reason I built a big portfolio is I’ve always thought that any investment I make should be held for at least five years. That means I need to know what I’m investing in and have conviction, which I do.
Trading in and out of crypto markets is a suckers’ game. Don’t do it.
Research. Buy. Hold. Borrow against your crypto.
The internet is full of critics and skeptics.
They call crypto and NFTs a scam because they don’t understand them. They think the way the world works is the way the world will continue to work.
My crypto portfolio reached millions because I applied optimism and curiosity to investing. I dared to have an open mind and invest in a new asset class. I’m not perfect though.
Early in my finance career I declined one of the early crypto exchanges from getting banking services. A colleague of mine signed up the rejected customer and had a word with me about skepticism.
Because he was more senior than me he forced me to open my mind and learn about crypto.
Open your mind to new possibilities.
If all you do is invest in stable, bluechip cryptos you’ll limit your upside. I believe crypto investors should mix in a few smaller bets.
I have a small percentage of my portfolio invested in riskier cryptos such as Axie Infinity, Yield Guild Games, Synthetix, Solana, Kyber, Maker, Polkadot, Chainlink, Cardano, Decentraland, Flow, Chilliz, Enjin, and Avalanche.
Many of these may not make it through the bear market but some will. And small cryptos can gain traction and become leaders in their niche. When they do, unfair profits get made.
It’s hard to predict which smaller cryptos will win, so owning a tiny basket of them is the best option.
Crypto is supposed to be fun. It’s like sci-fi meets cypherpunk meets the Ready Player One movie.
As a result I also invest to have fun. I bought some Ape Coin recently to support the Bored Ape Yacht Club Metaverse, and I’m going to buy a kickass NFT to use on Web3 social media (when that exists).
Play money in crypto is how you learn. No point having a million-dollar crypto portfolio if you’re not having fun.
The strategies and principles above are how I built a million-dollar crypto portfolio. You can too.
It’s not rocket science and all it takes is a daily habit to learn about the space and understand why Bitcoin and Ethereum have been so successful.
Once you understand crypto, you have one of the greatest opportunities in history to invest during this bear market while crypto prices are on discount.