Thread by @derrybrown

Rules for winning in #Crypto 🧵 - Not Financial Advice

1 - Can I stomach my account falling by 90%? If not then I have too much money in Crypto. Emotions must be zero.

2 - Would I hold this token for 10 years even if it fell by 90%. If not then don't buy it.
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3 - If I'm wrong can my portfolio recover? If not, reduce the allocation.

4 - Have two portfolios: Growth and Yield. Growth is money you are OK with falling by 90%. Yield is for farming stable coins and delta neutral. If it isn't delta-neutral then it counts as growth.
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5 - Use the yield from your farming + DCA from your surplus income to build your Growth portfolio until 10% yield across all your assets = 125% of what you need for your lifestyle.

E.g You want 100K = (100K * 125%) / 10% = 1.25 Million

Why only 10%?
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Because the fat yields in crypto will decline over time and you shouldn't degen high yields on a big portfolio. PLUS you must have returns leftover to compound and build your wealth to keep up with inflation.

Otherwise, you will run out of money in 5-10 years.
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6 - Re-allocate some of your Yield portfolio into your Growth portfolio when the market is down.

If the market falls 30% then allocate 10%
Down 50% allocate another 30%
Down 70% allocate another 30%
Down 85% go all in 🦍🦍🦍
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7 - How much should you have in your Growth portfolio? As much as you can stomach losing.

8 - When do I add to my Yield portfolio? I DCA into Yield when the market is euphoric (now), when I'm waiting for opportunities or taking profits (although I mostly HODL)
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*** 90% of success here is about removing emotion.

Let me know if you want a thread on choosing good projects to invest in.

We are so early. The entire industry is going to pump next 5-10 years. A diversified portfolio of quality projects will do well long term.
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