🤪 This guy is crazy!

👋 Hi finance enthusiasts and fellow investors!

The other day I came across something interesting. Raoul Pal, a major influencer in the investment world, mentioned he has over 80% of his total capital invested in crypto! Another friend of mine told me he's got a whopping 85% of his six-figure net worth in crypto.

As someone who's been into crypto for the last 7 years and remains bullish for the long term, I often get asked why I still diversify and hold a substantial amount in stocks, ETFs, and commodities.

My answer is simple: I would find it completely crazy to put so much of my capital in crypto!

Don't get me wrong, I’m still very bullish on crypto in the long term. Very bullish, in fact. But let's be real, the market is unpredictable, and there are plenty of scenarios that could cause it to crash:

• A USD Tether scandal…

• A massive exchange hack…

• A Black Swan event, which by definition nobody can predict...

There's simply never 100% certainty.

But this doesn’t mean everyone has to be as "cautious" as I am. I often say it when people ask how much of their capital they should invest in Bitcoin…

It depends.

---

It depends on:

• How willing you are to take risks...

• How old you are...

• What your time horizon is...

• How much loss you can handle...

• And above all: how much capital we are talking about.

If you're young, don't have a family to support, and can potentially earn back your investment within a few months of work, putting a bit more into crypto might not be a big deal. But when we're talking about six-figure or seven-figure wealth that’s been built up over many years of hard work, you probably don’t want to take on too much risk.

Feel free to reply to this email and share your thoughts, but for me, having 80% of your wealth in crypto is just too much. You might call me a cautious investor… and I am. I don't like losing money!

“The first rule of an investment is don't lose [money]” - Warren Buffett

But it’s not just about being cautious; it's about following a key principle:

It is easier not to be wrong than to be right.

And putting 80% of your wealth in crypto? To me, that’s trying too hard to be right. That's why I always aim to avoid being wrong in my investments.

Stay diversified and invest wisely!

Cheers!

Stefan

Co-Founder of CryptoExplorer & InvestmentExplorer

P.S: How do you approach diversification in your investment portfolio? Let me know your thoughts!