Today, I will be presenting my method of investing in crypto. Though, I will not disclose my investments in this post, to avoid any bias. The only thing I will show you here, is my cryptocurrency investment strategy.
The core idea behind the 0xtardigrade Super Ultra Mega Moonshot X Investment Method™, is hyperdiversification. What I mean with hyperdiversification, is the idea of investing in tens of different cryptocurrencies, always with the same amount of money.
Most people investing in crypto have an incredibly not-diversified portfolio, with most of the time less than five different cryptocurrencies. Then you have a minority of people who have a diversified portfolio, which in crypto means having +-10 assets. And only then, you have the people like me, the minority of the minority who have more than 20 assets in in their portfolio. That's hyperdiversification.
The core advantage behind hyperdiversification, is that whoever wins the game, you win. If the DeFi ecosystem goes up in value, I win. If the blockchain-based AI ecosystem goes up in value, I win. If the decentralized platform ecosystem goes up in value, I win. Whatever sector using crypto goes up in value, I win.
Besides, the advantage is that my portfolio is much more stable than 99.9% of the people investing in crypto.
That's the passive part of the method, it's basically just holding more than 20 different assets, with completely different marketcaps, activities, communities,...
But there is also an active part, which is that you constantly have to rebalance your portfolio. By rebalancing, I mean selling the profit you made on one asset. Let's say I have 50$ worth of BTC, and Bitcoin goes up by 20%, I now have 60$. So what I do is that I sell the profit, 10$, and reinvest it in a new cryptocurrency.
This is what makes the 0xtardigrade Super Ultra Mega Moonshot X Investment Method™ incredible. Because you can start using it with as low as 50$ invested in just one asset. And as the market goes up, your portfolio becomes increasingly diversified, which increases the safety of your portfolio, when the market goes down.
Though, it's definitely not the ultimate money making trick. You will make much less profit than if you had found the next Raiblocks, though, you had a <1% of finding it. So there is no point. And with the 0xtardigrade Super Ultra Mega Moonshot X Investment Method™, you will be much more likely to find it, though, you will make less profit than if you went all in.
And for it to work, you need to invest in all the possible types of cryptocurrencies. If you only invest in small cap coins, it will not work. If you just invest in the top 20 of cryptocurrencies by marketcap, it will not work. If you only invest in decentralized platforms like Ethereum, it will not work.
Essentially, you want to find cryptocurrencies with as less similarities as possible, with just one being that they have to be high quality projects, and you have to believe in them of course. Never invest in project you don't believe in. Because if it goes down, the only thing you will want to do, will be to sell your investment, which is the worst thing to do when having losses.
This will be my technique for the next bull run. I will write here every single month about the results I'm getting with this technique.