How smart men invest (what you can do today)

Smart men always, always invest.

Always earning and looking to earn more.

You’d have a regular income be it from employment and/or entrepreneurship. It’s an ongoing thing, which you can split into

  1. spending (essentials and luxuries)
  2. investing

You’d be looking to keep increasing your monthly take home and bonuses by increasing your skills, experience and responsibilities over a period of time.

Always trying to increase the amounts saved and for investing every month.

You’d try to squeeze out as much into savings and investments which you can then use for mid and long term investing

Prioritize safe investing approach

80%+ into conservative and “safe-ish” investments such as

  • broad based index funds
  • rental properties
  • public listed dividend stocks

Conservative and safer investments usually brings about conservative and safe-ish returns, between 5-10%. Which is pretty decent, and I gear it this way because the bulk of my hard earned money shouldnt be gambled – it’s meant to work like a machine, day-in-day-out to increase its returns and value to me.

20% into higher risk, higher return

  • growth / tech stocks such as Apple, Google, Alibaba, Netflix, Facebook (Meta), SEA etc
  • cryptocurrency such as Bitcoin, Ethereum, Cronos, and so many other blockchain projects
  • some % into low caps

Growth / tech stocks and cryptocurrency / blockchain projects are pretty similar: they do very well in bull markets with lots of money, but conversely, they can get punished and pummelled badly in bear and down markets. Same goes for low cap which is the highest risk of them all, but with the highest potential returns too.

The goal is a balance trinity flowchart of getting richer by

  1. constant earning more
  2. constant saving more
  3. constantly investing and reinvesting more into conservative and higher return investments

Rinse and repeat until you reach your desired amounts, and even then, dont stop – keep going.

My best (and lucky) crypto decisions 2022

Other than the few bad crypto regrets and worst decisions I had, I also have had a few lucky crypto streaks

Early to Cardano (ADA) & Stellar Lumen (XLM)

I chanced upon both Cardano and Stellar Lumen, and entered some mild amounts into them. In about a week, my small investment increased like mad, it went 65X!

I sold them both off and took out some good profits (which I lost some to damn trash qash), but I would never forget how that surge of price value made me feel so damn good.

Forgot about crypto for 2 years

We had gone through some hard times for about 18 months, and of which, I had totally forgotten about my crypto holdings for close to two whole years as we did our best to lick our wounds and to survive.

After that, I remembered crypto again and went back to my portfolios, and because I had forgotten them, it was such a nice thing “finding/rediscovering” portfolios here-and-there which had increased in value since.

Note to self: best way to invest is to buy and then forget it, come back a couple of years later

Introduced to crypto by my best friend

My best friend introduced me to this world of crypto first entering into NAV coin. I also bought the raspberry pi to become a validator and struggled with coding it (eventually worked); but eventually we sold off our NAV coins.

I went deeper into the crypto rabbit hole since, thanks man. I appreciate it.

Bonus: Taking crypto profits

At the end of 2021, as BTC bitcoin hit a high of $69,000, I felt that it was time to cash out some of my profits.

It was a sort of hard decision, the FOMO was real. I felt that if I took out some amounts from investment, I’d lose out on more profits. But…this time, it was a nice sort of peace that came over me.

I did it anyway – took out 60% of my principle amount, with a good amount still invested (?speculated) for the next bull run. It’s a nice feeling now that a good chunk is out, there is a clear decrease in stress and fear about losing the entire portfolio.

And I used that amount as downpayment to buy a home our family needs to live in anyway, so that’s good too.

My worst crypto decisions that I regret =(

Crypto…has been a bittersweet journey for me, ever since I started speculating in it in 2017. Other than wishing I had bought BTC back in 2009…here’s a few regrets that stand out.

Qash failure

This is one of my biggest painpoints, and I poured a large amount of my limited funding into this token issued by Quoinex. It has a large team, went very big into regulation and wanted to created a “world book” that will connect traditional finance (TradFi) to crypto world.

Ah, being smoked sucks.

Qash the trash, died a slow death, and finally got acquired by FTX.

Missed BNB entire

I bought a few different exchange tokens during that time, including Qash, another in Singapore. I decided to skip binance platform (and its token) because it’s much harder to use than Bittrex. It was about $2-5 per coin, and I decided it was also too expensive.

Oh, was a stupid, expensive lesson, especially when you see BNB going up to the high of $600. Ugh, the pain.

Rugpulls aplenty

There were lots of rugpulls and scams then, much more than now, and it was truly a wild wild west. This is so common, it’s like happening left right center. ICOs ran aplenty with literally zero regulations, so there was a lot of money lost then.

Even then, it wasn’t as painful as the two examples I gave above. Those were very personal and hurt me bad.

I hope you never get hurted like me in crypto.

Is cryptocurrency winter 2022 over?

We’re in that time of crypto period again.

Where there’s lots of blood on the streets and fear in the hearts of many. Many lost a lot of money, such as in

  • Terra Luna’s catastrophic meltdown
  • 3AC liquidation
  • Celsius bankruptcy

and there are scores more of such exchanges, tokens, coins and projects being killed or rugging people.

The last time I went through this, was when bitcoin (BTC) went into high of $19,000+ before crashing as low as $3,000+ (about 80%+ crash). Yep, that was AFTER I pumped more to buy more BTC at USD 18,000+.

Crydieme.

But it is what it is, I can see similarities today. Bitcoin as high as $69K, and been hovering around $19K (about 75% drop) for a long time now. It’s been wave after wave of negative events and news.

Should we be afraid?

It’s rationale and smart to be cautious and even afraid – it’s not a bad word.

Be cautious, but at the same time, I do not shun or look badly upon blockchain projects. If anything, I still hold onto my conviction that blockchain as well as cryptocurrency will change the world for the better. But there’s an important caveat:

Only the good ones will do that.

At least 90-97% of the blockchain projects and crypto are scams and rugpulls; and the okay-to-good ones, may be poorly managed due to insufficient regulatory measures in place. It is kinda like a wild wild west world of venture capitalism (or downright gambling, anyone?), but if you choose the right project and at the right time, you may be able to sit on a rocket to earn some delicious gains.

What to do now?

In crypto winter, it’s literally the best time to DCA, or dollar-cost-average into good projects.

Lot’s of fear to hold back that FOMO, and market moving sideways to give you time to research, speak to the team and participate in the project and community. Invest month-on-month amounts that you’re okay to lose (I dont like to lose money, but crypto can be really volatile and unpredictable) for the middle to long term basis.

Go with deep research and conversations, so that you will develop convictions beyond market swings.

I’ve been in crypto space since 2017-ish, and I’m more convinced that blockchain will change the world for the better, and I’ll be patient to continue to participate and invest for the long term.

I’m Buying The Crypto Dip (my simple reason why)

This is NOT financial advice and neither am I calling you to invest in what I’m doing – I’m showing you what I’m doing and why I’m doing it.

Also, let me also stress that there is a high chance that crypto market as a whole can go lower.

Bitcoin (BTC) and Ethereum (ETH) can go down another 20-50%.

The top 10-15 crypto projects can drop another 40-60%

ALT coins can go down another 50-80%+.

Who knows?

My simplistic basis of re-entering the crypto market is really

  1. I fundamentally believe in the technology and emerging asset class of crypto. I’m taking an asset view AND utility view for the middle to long term. So 3-5++ years of hodling, I’m good with that. 10 years or part of my legacy also is considered.
  2. Bitcoin and Ethereum has gone down at least 65-70% of their recent at the highest (ATH), and I am unable to time the crypto market at all. I dont mind buying good assets with 65%+ deep discounts, and though they may dip more the next 6 months, I will just buy more and hodl my crypto bags.
  3. I have taken some profits back to fiat (never wrong to take profits).

My goal here is that I’m not able to time the market effectively to buy at the bottomest bottom (is there even such a term) and hence zero loss. Nope, I’m not that good (though I wish, lol)

I’m happy to buy good assets with steep discounts and wait for them to zoom up during the bull cycle again.

Resource

I use https://nigelchua.com/crypto (cryptodotcom) for most of my hodling

Cryptocurrency Boom Town 2021?

Today at this point in time, 1 Bitcoin (BTC) is USD$ 56,132.90, and it has been going up to upper tiers of USD$ 61K and having pullbacks to USD$ 50K+ over the last few weeks and months.

21 March 2021 Bitcoin Price
21 March 2021 Bitcoin Price

It seems to be testing the all time high (ATH).

There are lots of anticipation following buy-ins by larger companies such as Tesla and institutional investors (just google search institutional investors buying bitcoin), which leaves lesser and lesser number of actual available bitcoins to go around. This has two fold of results that drives bitcoin price up (and staying up):

  • signalling that big boys institutional investors are condoning / approving cryptocurrencies
  • stabilizing higher highers and higher lows because there is just less number of bitcoins being traded actively

These two factors make bitcoin even more desireable and stable.

I’m excited to see how far bitcoin and cryptocurrency will go. If you’re interested, it’s very easy now to invest / speculate into cryptocurrency – my #1 app is via Crypto.com App – everything is available via your mobile =)

Remember, cryptocurrency can fluctuate greatly, so put in only what you can afford to lose, dont day trade and dont sell your home for it.