I am an average salaryman in my 30s this year, and I have an ambition to not be stuck in the rat race forever.
How do I go about that? Retiring (let alone retiring early) requires me to have a steady passive income stream as well as minimal debt and sufficient funds for my children’s future.
The next wave of technological reform
In my lifetime, I have seen (and missed out on) 2 big tech waves. The dot.com boom (circa 2000) and the mobile app boom (circa 2010). Blockchain (*and crypto*) is the next wave that will have a profound impact on our lives, and I do not want to miss out on it.
There is no doubt how much our lives will change when blockchain and crypto becomes mainstream. I have zero doubt that the tech is here to stay. What is uncertain, however, is who are the players that will dominate in the future and what that future even looks like. Will bitcoin be the future of currency? I highly doubt so. But there will be a stable coin protocol that can serve as a means for us to exchange value.
Research. Research. Research.
In the meantime, as with every hype, there are thugs who will try to profit from those who are clueless. Be very careful with what you do with your money. Money is hard to come by. If you bother to research how to get the best bang for your buck before spending thousands a new MacBook, then why should you do anything less when you intend to invest thousands or more into crypto?
Only with research will you get the conviction to hodl through the tough times. Seeing a correction of 40% in a day is normal for the crypto markets. Volatility is correlated with uncertainty. The newer a space is, the higher the uncertainty and thus the increased volatility.
Even in the dot.com boom and bust, it was normal to see star stocks like Amazon go to a high of $94 in Dec 1999, before falling $8 in Apr 2001. But ask anyone today if they would buy Amazon shares ($AMZN) given the option to purchase the shares at $8 a piece. There is no doubt they would go all-in (for context, AMZN is trading above $3,000 a share at the time of writing), signifying a 375x (more, actually) of your original investment.
This is not rocket science. It’s basic arithmetic. History is being written before our eyes. This opportunity does not come everyday. There may never be another opportunity like this where the average man is able to participate so easily.
This is not financial advice. But if you have the same ambition like me to create generational wealth, then participating in this wave *may* just be the chance to do it.
I would highly recommend you only put in an amount that you are willing to lose
Why, you may ask.
For 2 chief reasons:
If the amount is far too large for you to stomach when the crypto markets >20% in a day (which is par for the course for crypto), you may tend to sell off too early (read: paper hands)
If we turn out to be wrong (on either the thesis about the growth of the industry, or on our coin picks), then at least you can still recover from this position
Size your portfolio accordingly.
I am currently vested with 66% of my investment portfolio, or about 50% of my total net worth. Do your due diligence and have your basic personal finance matters sorted. Things like having 6-months of emergency funds set aside, purchasing sufficient protection through insurance, etc. Be a responsible person by looking after yourself and those who depend on your FIRST, before making a ‘speculative’ move into crypto.
To the moon, my friends.
I hope you found this useful! Navigating a brand new space is challenging, but I’m here to help. Still have a question? Ping me at @fastgamecrypto and we’ll get you sorted in no time.