⚖️ Risk vs Reward & The Money Flow
👋 Hi finance enthusiasts and fellow investors!
At CryptoExplorer, we often encounter a recurring question: What should I invest in? Memecoins, NFTs, Ordinals, DeFi projects, or sticking with the tried-and-true stalwarts like Bitcoin and Ethereum?
It's no surprise – everyone is looking for that golden ticket: Profit. The allure of the coin with the highest potential return is strong, but what often goes unconsidered is the other side of the coin: Risk. As newcomers to the investment realm, our minds tend to focus on the upside, brushing aside potential pitfalls. It's a psychological dance we're all familiar with. Remember this: Potential gain and risk go hand in hand. No risk, no reward.
The information provided in this newsletter is for educational and informational purposes only and should not be considered as financial advice.
What’s the best investment?
So, the burning question: Where should you invest? Wouldn't it be nice if there was a straightforward answer?
Well, here's the scoop – there isn't a one-size-fits-all answer. I could easily play the guru card and suggest a specific token for you to buy, potentially benefiting myself in the process. Many do just that.
But let’s keep it real: I don't know your current financial situation. How much capital do you have available? What are your near-future capital needs? Do you have an emergency fund? Which coins and tokens are already in your portfolio? These are just a few pieces of the puzzle…
If I had all this information, I might be able to provide a tailored response. However, that would put me in the shoes of an investment advisor, a role for which I lack the necessary international licenses. While I am a state-certified financial advisor in Austria, I'm still unable to dispense international advice.
Nonetheless, I can offer general, non-personal tips for smarter investing. In fact, we've already implemented such tips at CryptoExplorer AI, and the initial results are genuinely promising. I truly believe we're making a positive impact on many individuals! If you're not yet on the waitlist, here's the link: Join the Waitlist
PS: The alpha launch kicks off on Monday, and we're onboarding our first cohort – it's going to be 🔥!
My personal strategy
As for my personal strategy? Over the past months, I've primarily positioned myself in Bitcoin. Why, you ask?
Consideration of past and present regulatory situations (what qualifies as a security according to the SEC)
Analysis of the crypto money flow
Back when I continued to invest a few months ago we were on the left side, the best time to enter the market. Now we moved slightly more to the right, but we’re still far on the left and have not reached the Bitcoin step completely.
My belief that Bitcoin best reflects the sentiment of the crypto market, a sentiment I've honed over the years
If I wouldn’t have invested so far, I would start or continue Dollar Cost Averaging (DCA) into Bitcoin. But that’s just my take 😉
I shared all trades & transactions of my public demo portfolio with CryptoExplorer Pro members since April 2022 to demonstrate it’s not luck. So far we have outperformed the market by over 100% and the Top20 projects on average by over 300%.
Bitcoin Maxi?
But does this mean there's no room for anything other than Bitcoin? Not at all!
Participating in a trend or hype, especially when identified early, can indeed hold potential. Yet, ultimately, it's crucial to invest with a long-term and diversified outlook, steering clear of the allure of quick gains.
We've all heard tales of individuals striking it rich with isolated investments – memecoins, unrealistic DeFi projects, and the like. However, let's not forget the numerous others who've lost it all. When we weigh the two sides, a handful may have reaped substantial gains, but the majority suffered losses.
And in this newsletter, our focus is not on losing money but on earning it! Therefore, we pay heed to both profit potential AND risk.
Summary
Still chasing after the next big trend with the majority of your portfolio? Want a shot at the biggest possible gain? Then play the lottery! Buy a ticket for a few bucks and stand a chance to win millions! At least there's no rug pull or exit scam involved 😄
I suspect many of you already share this perspective, but especially for those new to the game, thinking otherwise is common. Believe me, when I started investing over 6 years ago, I wasn't immune either 😄 I hope this helped some of you!
I hope you have an amazing weekend and as always, happy investing!
Cheers,
Stefan
Co-Founder CryptoExplorer