How You Build a Killer Crypto Portfolio!🚀💰| Luke Belmar

Summary

The script emphasizes the importance of patience and strategic thinking in building a successful crypto portfolio. It suggests focusing on quality teams and strong narratives, rather than chasing short-term gains. The speaker advises against day trading and instead recommends getting involved early with projects that have a long-term vision, especially during market downturns. The key is to understand the project's stage in its cycle and the token allocation process, to avoid getting 'wrecked' by market volatility. The speaker also highlights the unique opportunity in crypto to engage directly with founders and teams, allowing for deeper insights and involvement in the projects.

Takeaways

• 🎯 Patience is essential in investing; wealth often moves from the impatient to the patient.
• 📈 It's crucial to bet on teams and people rather than just chasing price increases on platforms like CoinGecko.
• 🛠 Focus on narratives and trends; invest in projects with attention and liquidity to ensure portfolio survival.
• 🔍 Understand the project lifecycle stages to determine the best time to invest, avoiding projects post-listing on major exchanges which might indicate a peak or reduced opportunity.
• 💡 Recognize the importance of token allocation and the timing of VC exits, which often coincide with big listings and can impact token value.
• 🚀 Aim to be close to the builders and involved in projects early on to minimize risk and maximize rewards.
• 📊 Look for low-risk, high-reward opportunities with low market cap and strong teams with a solid narrative and trend.
• 💸 Avoid buying in bull markets or out of fear of missing out (FOMO); this can lead to poor investment decisions.
• 🤝 Engage with the community and founders to understand projects better, which is more accessible in crypto than traditional markets.
• 🔑 The ability to communicate directly with founding teams is a unique aspect of crypto investing, allowing for deeper involvement and understanding.
• 🌐 During bear markets, there are opportunities to invest in quality projects at depressed prices, and founders are often more accessible for communication.

Q & A

What is the key to building a successful investment portfolio according to the speaker?

The key to building a successful investment portfolio is making a few well-calculated bets rather than numerous trades, and understanding the importance of patience in the investment game.

Why is it important to bet on teams and builders in the crypto space?

It's important to bet on teams and builders because they are the ones who carry projects forward. Investing in people with a strong vision and commitment to their project is more likely to lead to success.

What does the speaker suggest about the timing of investment in crypto projects?

The speaker suggests that it's better to invest early in the project's cycle, preferably before major listings, as this is when the potential for high rewards is greater and the risk is lower.

How does the speaker relate Warren Buffett's investment philosophy to the crypto market?

The speaker relates Warren Buffett's investment philosophy by emphasizing the importance of patience and the idea that wealth is transferred from the impatient to the patient, which applies to investing in both traditional stocks and crypto.

What is the speaker's view on the role of narratives and trends in crypto investments?

The speaker believes that narratives and trends play a crucial role in crypto investments. Investors should bet on projects with strong narratives and trends that can attract attention and liquidity.

Why does the speaker advise against investing in projects that are already listed on major exchanges?

The speaker advises against investing in projects already listed on major exchanges because they may have reached a stage where the opportunities for high returns are reduced, and the risk of significant price drops increases.

What does the speaker mean by 'betting on narratives and trends' in the context of crypto investments?

Betting on narratives and trends means identifying and investing in projects that have compelling stories and are aligned with current market trends, as these factors can drive the project's value and attract investor interest.

How does the speaker define 'low risk, high reward opportunities' in the crypto space?

The speaker defines 'low risk, high reward opportunities' as investments in projects with low market caps, quality teams, and strong narratives or trends that can inject liquidity and potential for growth.

What is the speaker's stance on day trading and frequent trading in the crypto market?

The speaker is against day trading and frequent trading in the crypto market, as it can lead to significant losses due to trading against algorithms, quants, and market makers who have access to order books and can predict market flows.

How does the speaker suggest investors should approach the crypto market during bearish cycles?

The speaker suggests that investors should use bearish cycles as opportunities to get involved with projects at depressed prices, communicate with founders, and understand the projects at a deeper level, positioning themselves for potential future growth.

What advice does the speaker give on the importance of community involvement in crypto investments?

The speaker advises that community involvement is crucial in crypto investments as it allows investors to communicate directly with the founding team and other community members, gain a deeper understanding of the project, and potentially influence its direction.

Outlines

00:00

💡 Investing in Crypto: Patience and Team Bet

The speaker emphasizes the importance of patience in the investment game, drawing a parallel with Warren Buffett's philosophy. They argue that instead of frequent trading, a few well-calculated bets on quality teams and strong narratives are key to building a successful portfolio. The speaker shares personal experiences of investing in projects like B&B in 2018 and PancakeSwap in 2020, highlighting the importance of getting involved early and understanding the project's lifecycle and token allocation. They caution against investing in projects already listed on major exchanges, as they may be past their peak potential and carry higher risk. The advice is to seek low-risk, high-reward opportunities and to avoid buying into hype or fear of missing out (FOMO).

05:02

🌐 Navigating Crypto Opportunities and Community Engagement

This paragraph discusses the unique opportunities available in the crypto space, especially during bear markets when projects may be undervalued. The speaker suggests that even if one cannot get involved at the inception of a project, there are still opportunities to engage with founders and understand projects deeply through community interactions. They highlight the accessibility of crypto project founders and the chance for investors to participate more actively in the building process. The speaker also mentions the strategy of liquid investing, where one invests in already listed tokens during bear markets for better liquidity and potential gains. The importance of community involvement is underscored as a way to understand a project better and to be part of its growth.

Keywords

💡Portfolio

A portfolio in the context of the video refers to a collection of investments held by an individual or entity. It is the main subject of the video as it discusses strategies for building a successful investment portfolio in the cryptocurrency space. The script emphasizes the importance of making well-calculated bets rather than numerous trades, highlighting the concept of quality over quantity in investment choices.

💡Patience

Patience is a key virtue emphasized in the video for successful investing. It is defined as the ability to wait without anxiety or discomfort for a long-term reward. The script mentions Warren Buffett's advice on patience, suggesting that wealth is often transferred from the impatient to those who can wait for the right opportunities, which is a central theme in the video's investment philosophy.

💡Cryptocurrency

Cryptocurrency, often shortened to 'crypto,' is a digital or virtual currency that uses cryptography for security. The video discusses constructing a crypto portfolio, which involves investing in various cryptocurrencies with the aim of achieving gains. The script advises on how to invest wisely in crypto projects, focusing on teams, narratives, and trends.

💡Betting on Teams

In the video, 'betting on teams' refers to the strategy of investing in projects based on the strength and reputation of the team behind them. The script provides examples such as investing in B&B in 2018 and PancakeSwap in 2020, based on the belief in the team's ability to deliver on their project vision.

💡Narratives and Trends

Narratives and trends are important factors to consider when constructing a crypto portfolio. A narrative refers to the story or concept that a project is built upon, while a trend is a general direction in which something is developing or changing. The script advises that successful investments often align with strong narratives and emerging trends in the market.

💡Token Allocations

Token allocations refer to the distribution of a project's tokens, often to team members, investors, and sometimes to the public through sales or airdrops. The script discusses understanding how token allocations work within crypto projects and the implications of these allocations on the market, especially when projects list on major exchanges like Binance.

💡Liquidity

Liquidity in the context of the video pertains to the ability to buy or sell an asset quickly without affecting its price. The script mentions the importance of investing in projects with good liquidity, which is essential for the smooth functioning of a trading market and for the investor's ability to enter and exit positions.

💡Risk Management

Risk management is the process of identifying, assessing, and prioritizing potential risks to an investment. The video script advises on finding low-risk, high-reward opportunities and emphasizes the importance of not getting 'wrecked' in the market, which means avoiding significant losses that could prevent future investments.

💡Market Cap

Market capitalization, or market cap, is the value of a company that is traded on the stock market, equivalent to the share price multiplied by the number of shares outstanding. In the script, it is used to discuss the discrepancy between a project's market cap and its actual revenue or utility, indicating potential overvaluation or investment risk.

💡FOMO

FOMO stands for 'Fear of Missing Out' and refers to the anxiety that an investor may feel about missing out on a perceived opportunity. The script warns against buying into investments out of FOMO, especially during bull markets or when prices are high, as this can lead to poor investment decisions.

💡Discord

Discord is a communication platform popular among gamers but also widely used by crypto projects for community engagement. The script mentions Discord as a place where investors can get involved with projects and teams at a personal level, fostering a deeper understanding of the projects they invest in.

💡Bar Markets

Bar markets, or bear markets, are characterized by falling prices and a negative sentiment among investors. The script discusses the opportunities that can arise during bear markets, where quality projects may be undervalued, providing investors with the chance to 'buy the blood' or invest at lower prices.

Highlights

Building a successful portfolio requires strategic investments rather than frequent trading.

Patience is key in investment, as Warren Buffett emphasizes.

Investing in crypto should focus on backing strong teams and builders, not just price trends.

Understanding project cycles and token allocation is crucial for successful crypto investment.

Avoid investing in projects post-listing on major exchanges to minimize risk.

Seek low-risk, high-reward opportunities with quality teams and strong narratives.

Avoid buying in bull markets and out of fear of missing out (FOMO) to prevent disastrous investments.

Wealth in investing is often transferred from the impatient to the patient.

Evaluate a project's market cap in relation to its revenue to identify potential discrepancies.

Crypto offers opportunities to communicate directly with founders and teams.

Engage with projects during bear markets when they may be undervalued.

Liquid investing involves buying tokens that are already listed for better market access.

Crypto investors can get involved in building projects, unlike traditional markets.

Community involvement allows for a deeper understanding of projects.

The importance of saying 'no' to late opportunities in crypto to avoid getting 'wrecked'.

Making a few well-calculated bets is more effective than numerous trades.

The value of personal interaction with project founders and teams in the crypto space.

Discord and Twitter are platforms where investors can connect with project teams directly.

Transcripts

all it takes to build a fantastic

portfolio is a few well-calculated bets

you don't need a th000 trades you don't

need to be out here day trading on one

minute charts Warren Buffett said at

best if you want to win in the

investment game you need to understand

patience because to challenge a bit here

or kind of reframe not everyone is you

so not everyone can go to meow before

the token launches and say Hey I want to

get involved right no I disag I disagree

and I'll tell you

as an investor one of the most important

things to understand is that you don't

want to get wrecked cuz if you get if

you don't have chip like to to play the

game basically you you can't play the

game the next time right so how would

you advise people to construct a crypto

portfolio not to optimize for the THX

but just to survive because what we've

been talking about since the beginning

is survival right one you need to bet on

teams you can't bet on what you see

going up on coin gecko when I started

buying B&B in 2 18 20 yeah 2018 for $2 I

was betting on CZ when I bought pancake

swap in 2020 after doing Clubhouse with

CZ and him talking about the pancake

swap team you bet on Builders you bet on

people because people are the ones that

carry projects one two you need to bet

on narratives and Trends you do not want

to be out here in a place that has no

attention and no liquidity so that's the

first part the second part is

understanding where a certain project is

in their cycle are they in their

Inception stage are they in the area

where it's just getting built are they

already listed on binance which tends to

Signal a a top or t tends to Signal a

area of less opportunity and realizing

how Venture Capital Works how raising

money Works inside of crypto projects

and how token allocations take place and

realizing that once projects usually hit

big listings that's when token unlocks

take place that's when big VCS dump on

your ass and the goal is to not get

wrecked you need to be as far right as

close to the builders as possible as

early on as the stage as possible and

betting on those individuals I very

rarely will go out and place a token

allocation on something that's already

listed on coin market cap why because

it's probably not at its Inception stage

the the risk is a lot higher and with

crypto your portfolio can get nuked 50%

in two days so my objective is I need to

find low risk High reward opportunities

which means low market cap quality teams

and teams that are building upon a

strong narrative and a strong Trend that

will inject liquidity in order for my

portfolio to to continue to perform well

and most most people they are out here

buying when everybody else is buying

they're out here buying in the bull

market they're out here buying one of

the taxi drivers you know checking his

stock portfolio as his crypto portfolio

while he's driving as opposed to buying

when the blood is out and buying when

the candles are green and pumped and

buying out of fomo tends to be a recipe

for disaster and Warren Buffett said it

best but he talked about it in the stock

market I think it applies to investing

in general enal the concept of investing

and if you want to win in the investment

game you need to understand patience

because wealth is usually transferred

from the impatient to the patient and if

you build with long-term people then

there's a high probability of success

that's why the people that get wrecked

you usually sit down with them and you

ask them what do you have on your

portfolio well what do you know about

the what do you know about this token

what's the utility behind it oh there's

something that's worth $300 million

market cap well how much revenue do they

generate oh5 Grand that seems like a

price discrepancy right there between

the market cap and the actual value

proposition of the project I think these

are a couple things that people need to

be looking at and understanding that the

markets will be here forever they're not

going anywhere there's always more

opportunity you don't have to chase

opportunity you need to attract

Opportunity by positioning yourself in

the right rooms that's a key element

actually I uh Jord Alexander he was he

was on the podcast and one of the thing

he was saying is in crypto there is so

many opportunities that the only thing

you have to do is to say no to

Opportunities when it feels like they're

too late because there's going to be so

many others your only job is not hey I

need to find all the best opportunities

is I need to find a few ones early

enough so I don't get wrecked right and

if I feel that I'm too late I just say

no because there's going to be others

and the last part with that is all it

takes to build a fantastic portfolio is

a few well-calculated bets you don't

need a thousand trades you don't need to

be out here day trading on one minute

charts you're going to get

wrecked you're trading against

algorithms you're trading against quants

you're trading against people that are

market makers you're trading against

people that have order books and they

can see the flows that's a very

dangerous game I want to play a couple

High sizable Bets with winning teams

Jupiter for example with winning

Builders with people that I trust and

before I allocated multi figure play

with with Jupiter my entire premise was

I'm I want to sit down with the homie I

want to see what his vision is I want to

see what he thinks he's never talked to

me about price he's never talked to me

about anything except how many users he

wants to onboard in crypto and that's

the mission and rally that I'm that I'm

able to put forth now I did the same

thing with lucanet and pudy penguin and

I mention mentioned this to you the name

of the game is coming in getting

involved with projects and teams when

the blood is in the streets when

everybody's fighting it when everybody

is running for the door that's when you

want to find the winning teams and the

people that have a long-term vision and

rallying behind them sticking behind

them and empowering them to move forward

so to challenge a bit here or kind of

reframe not everyone is you so not

everyone can go to meowo before the

token launches and say Hey I want to get

involved right

and I'll tell

you okay no no Luke was involved in

Jupiter afterwards right he would did

interview and stuff but after after La

is very important yes after no no no not

before just clarify that no no so here's

the beauty with crypto you have the

ability to talk to Founders you can get

into the Discord you can get into the

communities and you can get to know them

right at a personal level just because

I'm Luke Belmar and just because I go

and I have the opportunity to sit down

in person you still as a community

member look how how many people from

your community have become either team

members or become moderators a a ton I

think you can get involved absolutely

many many many many or I would say like

that's why I was more saying reframe I

would say if you can't for some reason

there is an O amazing opportunity which

is these Cycles there are bare markets

where you have these amazing teams that

have been building amazing things at

very depressed price and you can go in

there and talk to the people and look

what's happening and for example Sol is

a great example and probably I mean a

lot of other project that are doing

really well now that will do well there

is crazy opportunities during bar

markets so much so that there is even

some guys another guy who was on the

podcast Arthur Chong from def Finance

Capital One of the things is focusing on

is liquid investing what does that mean

I just buy tokens that are already

listed right why because I can get them

in the bare Market it's much more liquid

I can sell them whenever I want and I

can get them at an amazing at an amazing

price because of these Cycles right so

again like even if you can't get in at

the very beginning there's opportunities

afterwards because there is these crazy

Cycles where you can go in there and

talk to people because doing a bird

market no one is looking almost no one

is looking so the the the founders are

going to be

basically with that that that as an

investor in crypto you have the ability

to communicate with found the founding

team so much more than amazing amazing

and you can get involved with your

Investments at a bigger level than you

would in any sort of traditional Mar

when since when can you uh message the

CEO of PG you know and PNG and say hey

how's it going buddy no no not

possible right because like again I I I

feel like many in many many ways right

um most companies have lay and lay and

lay and less hierarchy right I'm saying

you know right but what I found to be

very interesting for example in the in

the B market right Last ccle Man toy was

there just no seriously toy was famous

he was on Twitter 24/7 right I we we'll

be we'll be hanging out somewhere and

he'll be like on his phone you man

he adding to Twitter he's

replying to everybody on Twitter versus

talking to people you know right and

that I feel like I feel like and for me

and Stu like you know I I do a Twitter

space every um every every once or twice

a week right you know I I like everyone

talk right I get to speak right you know

you you you everyone can message me in

the Discord right I get a notification

right don't spam me okay thank you but

then but then um but then I I try to

respond right that problem I think um

yeah for example I'm very very often

someone be like hey me this not working

that's not working I have to fix it you

know so I feel like that's actually a a

very important thing about crypto and it

relates to the whole Building Concept

okay because now you have a chance to

actually get involved in building

something you know in in being part of

something that you just had no

possibility so as a result if you

actually get involved the community

right you can actually get to understand

the project at a much deeper level that

was never possible before