This guide is designed for three categories of cryptocurrency investors. Here’s how much they invested:
- $1,000 – Beginner
- $10,000 – Skilled
- $100,000 – Expert
I'm assuming you're all here to get rich, and cryptocurrencies are your best chance. Let’s get started, with a brief summary at the end.
If you have 10k or 100k funds in hand, 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's performance, it's not worth doing. This brings up an important point that applies to all portfolios, regardless of size.
- If you don’t earn more than Bitcoin, you’re wasting your time!
Take a moment now to measure Bitcoin's returns since you started investing in cryptocurrencies and compare them to your portfolio returns. If you're not over Bitcoin, it's time to reevaluate 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 Bitcoin’s distribution very well. Let’s explore each one.
Beginner – $1,000
You're currently at the starting point of cryptocurrency investing , but this is your chance to make some serious money. You have the advantage of being able to take on high-risk investments because even if you lose the money, it will have little impact on your life.
Your portfolio is smaller, so you won't be able to get rich overnight with Bitcoin. Don't pay too much attention to the top 100 coins before reaching the next level of investment. The only reason you are here is to:
Whatever you buy needs to have a potential return of at least 2x to 10x. This usually means investing in coins with smaller market capitalization but potential, including some that are hyped, such as meme coins.
Your strategy is not to hold for the long term but to sell for a profit when the price rises. Your main goal is to find high yields and sell when the market goes up. Get in and out quickly and don’t get sentimental about any Altcoin. Their sole purpose is to bring you profits and increase your investment.
Since time is limited, do not hold it for a long time and hope that a certain currency will rise. Chase market trends, buzz, and hype. Abandon the old investment logic in a timely manner and quickly turn to new market hot spots, even if sometimes you need to sell at a loss. Don't hold a losing currency for a long time, stop the loss in time and move on.
If you're new to cryptocurrencies, the Altcoin market can be the hardest to navigate. Most Altcoin are scams and many people will promote these coins and use you as liquidity for their exit. Don't be fooled by these games, quit decisively when you make a profit and never look back.
You need to take the time to understand Tokenomics , market dynamics and the pull-up cycle. If you are lucky enough to get 10x or more gains, it is recommended to transfer the gains into Bitcoin. Ideally, instead of betting all your money on one Altcoin, spread the risk across 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 that kind of loss, or can't invest another $1,000 anytime soon, then you need to seriously consider whether this is the investment 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 still focus 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 increasingly important as the scale of investment increases.
If you started with $1,000 and got to this level, great job! But now it’s time to adjust your thinking. Until then, your focus has been on finding high-yielding and potentially rising currencies. Now, you also need to protect your newfound wealth.
You can do this by investing some of your money in Bitcoin. Take a look at your portfolio and decide how much you plan to continue risking and how much you need to protect. Protect your wealth with Bitcoin and take risks with Altcoin.
If you have a portfolio over $10,000 and no Bitcoin, you are too greedy. Don't fall into this trap. The correct approach is:
- Decide how much of your assets you want to protect. Put this money into Bitcoin and never sell. Never. Even when faced with promising Altcoin, don’t be swayed. You hold this part of the assets for a long time and add future Altcoin profits to it.
Congratulations on taking an important step toward financial independence. Very few people get to the stage where Bitcoin is their primary investment goal. Sadly, many people remain stuck in the Altcoin mindset, often with disastrous consequences.
Bitcoin reserves will gradually become your spiritual haven, providing balance and relaxation against the stress that comes with investing in Altcoin. No matter how volatile the Altcoin market gets, you can be sure that your Bitcoin is safe. This sound investment will make you a better investor over time.
As your portfolio grows, owning at least one Bitcoin and never selling should be your goal. This is the cornerstone of your journey to 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 area.
Expert – $100,000
You have entered a whole new level. The six-figure asset already exceeds the value of one Bitcoin at the time of this article’s publication. Congratulations, you are now among the top 1% in the world! Do your best to maintain and grow this wealth while managing your risks.
You now belong to a very rare group. Very few people reach this level, most can only dream.
- You are among the top 1% in global cryptocurrency!
Even more surprising 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. This is actually 0.007% of the world. It sounds crazy, but the information is solid.
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. This is real wealth. $100,000 in a bank account does not represent wealth.
Being in the top 0.007% in the world means that out of 100,000 people, there are only 7 people like you. This is a very unique group. Therefore, you now have only one task:
- Protect your wealth!
Failure to do so would be irresponsible.
Do this by continually increasing the number of Bitcoins you hold. Ideally, you should never sell these Bitcoins, especially if you only have one. Therefore, Altcoin should not be your main focus.
In the most ideal world, Altcoin should make up only 1% to 10% of your portfolio. They are asymmetric investments with the potential to achieve 10x returns, and once achieved, you can convert them into more Bitcoins. It's that simple.
If you hold Ethereum, your allocation should always be much smaller than Bitcoin. In the long term, you should consider selling all your Ethereum as the macroeconomic environment is not favorable for it and it has been underperforming Bitcoin since 2022. Remember, don’t hold assets that don’t perform as well as Bitcoin.
In long-term investing, you should always be cautious about Altcoin. That'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 what he has to say about Ethereum, Solana, and other Altcoin.
Over time, it becomes increasingly difficult for Altcoin to find a competitive advantage as they gradually erode market confidence. This only further proves that Bitcoin is the better investment option. If you are already wealthy, investing in Bitcoin is the way to maintain your wealth.
Finally, if you have $100,000 and are new to the cryptocurrency market, just buy one Bitcoin. Don't make things complicated. Here's a way to permanently join the top 1% at a lower 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.
- It would be irresponsible to ignore the fact that when you hit six figures, you should focus on Bitcoin.
- In the long term, Altcoin should be viewed with caution.
- Besides gold, Bitcoin is currently the only sound currency in the world.
- If you are wealthy, protect your wealth with Bitcoin to stay wealthy.
