If I Started Investing $100,000 in Crypto, This Is What I Would Do

Summary

In this video, a crypto strategist shares a structured approach to investing $100,000 in crypto. He emphasizes the importance of avoiding emotional decision-making and influencer hype, focusing on solid research and access to primary markets. The speaker advocates for a portfolio largely centered around Bitcoin and Layer-1 tokens, with cash reserves for flexibility. Key strategies include taking profits at market highs, deploying funds cautiously, and using OTC trading for larger investments. The speaker also highlights the significance of security, proper execution, and the value of a community-driven approach to crypto wealth-building.

Takeaways

• 😀 Stay logical, not emotional: Avoid getting caught up in the hype of crypto trends and influencer-driven recommendations.
• 😀 Focus on layer 1 projects: The growth and returns often come from foundational blockchain networks like Ethereum and Solana.
• 😀 Get access to primary markets: Invest in promising tokens before they are listed on major exchanges to maximize potential returns.
• 😀 Take profits during market euphoria: Sell into strength when the market is heated, and buy during downturns to capitalize on future growth.
• 😀 Have cash reserves: Keep liquidity on hand to take advantage of opportunities when they arise, especially during market drops.
• 😀 Avoid retail hype: Many investors make the mistake of buying too late or chasing hype without doing proper research.
• 😀 Crypto investing is not gambling: Structured, researched strategies are key to building wealth, rather than relying on luck or speculation.
• 😀 Don't procrastinate on execution: Make sure you're ready to move quickly when opportunities present themselves; don't wait for the peak.
• 😀 Manage risks with a diversified portfolio: A mix of Bitcoin, altcoins, and cash ensures flexibility and long-term stability.
• 😀 Use OTC trading for larger transactions: For trades over $25,000, consider Over-the-Counter (OTC) platforms to get better rates and liquidity.

Q & A

Why is it important not to get caught up in the hype of crypto projects?

Getting caught in the hype leads to emotional decision-making, which can result in poor investment choices. Influencers often promote projects for personal gain, and retail investors tend to buy into these projects too late, causing them to lose money when the hype fades. It’s essential to stay logical and avoid emotional investments.

What is the role of primary markets in crypto investing?

Primary markets are essential because they provide early access to tokens before they are listed on major exchanges like Coinbase or Kraken. Getting in early gives investors the chance to capitalize on the upside potential of a token, which may not be possible if they wait until it hits an exchange.

Why are layer 1 blockchains so important in crypto investing?

Layer 1 blockchains are the foundational networks upon which other projects are built, similar to how iOS or Android serve as the platforms for mobile apps. These projects often have the highest potential for growth, and they represent the infrastructure of Web 3. The speaker advocates focusing investments in layer 1s due to their long-term value and potential returns.

How does the speaker recommend managing a crypto portfolio?

The speaker recommends allocating 75% of a crypto portfolio to Bitcoin, which serves as a stable foundation, and 25% to altcoins, which allows for more aggressive growth opportunities. Additionally, it's crucial to have cash reserves for flexibility in making decisions during market fluctuations.

What is the significance of having cash reserves in a crypto portfolio?

Cash reserves provide flexibility, allowing investors to take advantage of opportunities when they arise, particularly during market downturns. Without cash, an investor might miss out on strategic buys during market drops or become forced into unfavorable positions.

What common mistake do new crypto investors often make?

A common mistake is investing all capital at once, driven by fear of missing out (FOMO). This can lead to buying at market tops and suffering losses when the market corrects. The speaker recommends using dollar-cost averaging (DCA) to manage investments gradually over time.

How does OTC (over-the-counter) trading benefit larger crypto investors?

OTC trading allows investors to execute large trades without facing significant price slippage or high fees typically associated with spot exchanges. It provides better liquidity and more favorable rates, especially for transactions above $25,000.

Why does the speaker believe that 98% of retail investors lose money in crypto?

The majority of retail investors lose money because they follow hype-driven advice from influencers or make impulsive decisions based on emotions. They often buy at the peak of the market and sell during downturns due to fear, rather than following a structured, research-driven strategy.

What is the significance of the speaker’s strategy for taking profits in a bull market?

Taking profits during a bull market is crucial for protecting gains and ensuring long-term growth. The speaker suggests selling into strength—when the market is euphoric and everyone believes prices will keep rising—and then using profits to re-enter during market corrections or downturns.

How does the speaker advise handling the potential bear market in crypto?

The speaker recommends using the bear market as an opportunity to acquire undervalued altcoins. The profits taken during the bull run should be stored in stablecoins or cash to allow for strategic redeployment when the market corrects. This approach ensures that investors are positioned well for the next cycle.