1) This weekend, I had the chance to catch up with an old roommate from my student days in London. I was telling him how he should have some crypto exposure on his portfolio and hold for the long-haul (>5 years).
2) He used to have some BTC/ETH from 2017 but doesn't want to trade a lot as doing crypto taxes is a big pain. Fair point on simplifying tax paperwork at the end of the year. He is in several chat groups with friends and they talk about rotating in/out from all kinds of shitcoins
3) I told him crypto investing is simple. Have a long time horizon and cut off all the noise. Choose an exposure between 1-10% of net worth that you are comfortable with, invest only in BTC and/or ETH, and remove all noise on all other shitcoins. Everything is correlated with BTC
4) Bitcoin's incoming new supply decreases every 4 years. In the next halving, there will be less new coins that miners can sell. The profile of buyers are very different. Back then, it was libertarians/anarchist. Today, it's US institutions. Tomorrow, it will be governments.
5) By holding for the long-haul (>5 years), you don't have to keep doing tax paperwork each year as you only need to report realized gains. I also like telling others that one can also view BTC/ETH as retirement savings and just keep it forever.
6) Keep your coins in a safe way. Most of the time I recommend a hardware wallet like Trezor/Ledger together with a backup steel device like Cryptosteel. But some people may prefer a custodial solution like Coinbase, but do make sure to secure your accounts very very properly
7) My roommate was asking me would it be better to buy the full BTC exposure immediately or dollar-cost average in? There is no right and wrong answer. In a bullish market like now, buying all in at one go could be better. But once purchased, forget and ignore ALL price movements
8) Why stress yourself out looking at price movements each day if your time horizon is >5 years? Just forget about it and go about your normal life and evaluate in 5 years time. If it bombs, it's just a small % of portfolio. If it does well, it would become a big % of portfolio
9) Many people are worried about looking like a retard for buying the peak before 90% drawdown. I remembered feeling stupid buying BTC in early-2014 at $1000+. I told him, if the investing horizon is >5 years, we are in a growth stage and price seems to move up exponentially.
10) If BTC does become the reserve currency for value transfer over the Internet, then the next couple of decades will see exponential growth. Don't even get me started on all the opportunities with ETH/DeFi etc. This is a simplified view for those who are not full-on crypto
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