What happens if I lost all my crypto holdings and portfolio?
I had a nasty nasty nightmare, that woke me up in shock and it took a couple minutes before I realized it was a dream (it’s a scary realistic nightmare man).
It’s probably a combination of trauma and reminder of my deep-seated unspoken fear about investing and speculating in cryptocurrencies (so easy to lose all your holdings by losing your security keys!)
…especially triggered with the recent UST – Luna – Anchor Protocol crypto collapse as well.
Deep and very serious reminders to:
Do not invest more you can afford to lose
Dont invest more than you can afford to lose and definitely, definitely do NOT borrow to invest (speculate or gamble) in high risk investments.
Crypto is definitely highly volatile and you can lose everything you put in there.
Take profits
My 2X rule now is that whenever an investment 2X (or ideally 3X), I need to take out 1-1.5X out.
Let the remaining amount go as far as possible.
Diversify beyond crypto
Don’t go all in or balls-deep into crypto (or any ONE investment).
Look, I believe in crypto, but it’s highly volatile AND doesn’t provide me cashflow like rental or dividends, so me and missus are now researching into income-generating assets to diversify into.
Start a side hustle to
- diversify your income (multiple sources of boss-less income)
- grow your network
- profits can be used to invest in other income-producing assets or reinvested
- potential to grow and scale