👋 Hi crypto enthusiasts and fellow investors!
You probably know the feeling. You want to ask a investment-related question, but you don't know anyone to talk to about it. The result is often bad investment decisions or a lot of wasted opportunities and missed tips and tricks.
That's why this week I'm doing an AMA (Ask Me Anything) and answering all your questions you've asked me since last week. I have received more questions than I can answer in one email, so I will answer them in multiple emails.
Those who missed their chance to ask a question can still do it now. Just reply to this email or comment in the Substack app.
Now, let’s get into it.
The information provided in this newsletter is for educational and informational purposes only and should not be considered as financial advice.
Which tools do you use (exchanges, wallet, apps)? - by Matthew
When it comes to exchanges, I use Kraken as my portal between fiat and crypto. I've been using it both personally and in the company for years.
I use DEXes (Decantralized Exchanges) to interact with everything related to Web3. I use Uniswap, PancakeSwap and sometimes SafePal's built-in swap feature that utilises 1inch.
For a wallet, I currently have a Ledger and the SafePal, but I will be buying a Trezor wallet soon. For a software wallet, I use MetaMask and the SafePal mobile app.
I would like to know what you would advise if someone has only 500 EUR to invest, in which cryptos and also in stocks? - by Alfred
I am glad to hear that you are starting to invest, Alred. I am legally not allowed to give you personal advice, but I can tell you what I would do. Please note that investment decisions may differ because your situation is different.
With 500€ I would decide to go either in crypto or stocks. If you split this amount fees will eat your profits, so I would go for one.
If you go for crypto, I would use 50% BTC, 30% ETH and 20% to try out new stuff and learn. You can get exactly this information on: https://ai.cryptoexplorer.cc/
The next goal is to build your portfolio by increasing your capital. This is probably the most important factor, so it is important to focus on your personal finances - even though this may not seem as exciting as investing. But you need capital to invest.
As soon as I had more than EUR 3,000, I would start DCA in a broadly diversified ETF with low fees.
Given the volatile nature of crypto assets, how do you maintain a long-term perspective and resist the temptation to trade frequently? - by Pedro
For several reasons, the two most important of which are.
First, I have a clear investment objective and a long time horizon. As an investor, it is important that we have a long time horizon, e.g. 2+ years, 5 years or 10 years. The longer the time horizon, the easier it becomes.
Another reason is that I just don't have enough time to do it. The shorter the time frame, the more effort it takes to make informed trading decisions. Since I have two companies to run, I don't have the time to focus too much on the charts.
For those who trade but want to resist the temptation to do so: As with any bad habit, try not to eliminate it but to replace it, then it will be much easier.
Have there been instances where you deviated from your usual investment strategy due to short-term market conditions? - by Pedro
Absolutely. Sometimes there are times where you are certain a specific event will happen and you try your luck with a short term trade. It also makes the investment journey a lot more fun. But I always remember only to bet a small sum as it creates risks for my portfolio.
Next AMA?
Please let me know if you would like more AMA emails, maybe once a month? Please share your thoughts by replying to Substack or posting a comment!
We will answer some of the questions in the near future:
How to stay on top of new trends & events, which sources do you use?
I'm 17 years old and I want to make a lot of money. What are the steps to do that?
Will you let us know when you think it's time to go into altcoins?
How do you foresee the crypto market evolving over the next 5 to 10 years, and how might your investment strategy adapt to these changes?
What measures do you take to ensure the security of your crypto assets?
What's the one key market indicator you monitor?
You have your own questions? Simply reply to this email or comment in the Substack app.
Wishing you a fantastic weekend!
Cheers,
Stefan
Co-Founder of CryptoExplorer