Thread by @JackNiewold

Crypto is panicking. It's not fun.

Here's the universal framework I use to keep my head and make money through nasty downturns. 👇

(thread)

My strategy for investing in altcoins is holding them, not trading them.

Everyone constantly posts their short-term technical analysis, flips, and trades. This is difficult to perform reliably/over time.

A better strategy: hold high conviction alts.

Don't sell them.

Your goal is to use crypto like a venture capitalist. Explore a basket of many smaller market cap projects (on average, they perform better than blue chips).

Let them go to zero or 100x.

Only a few in your portfolio have to succeed for you to outperform.

Have conviction in these assets. The crypto market is short-term irrational and greedy, making it hard to hold fundamentally strong assets.

Fortunately, these assets tend to perform incredibly well over time.

That's why research is vital. Don't be scared out of your positions.

Few understand conviction.

It should be developed BEFORE buying, not after.

Understand the asset, develop a thesis, make an investment. Then be convicted enough to hold it.

Don't 'develop conviction' after finding out your bags are shit.

Avoid buying shit in the first place.

ALLOCATION:

Make sure to diversify. Many assets will go to zero.

Here's an example portfolio of why you should diversify.

This is a somewhat unusual view in crypto, but I think that stocks have an important place in most portfolios.

While they can experience drawdowns, the dips don’t get nearly as ugly.

21st century: Stocks/Bonds
20th century: Crypto/Stocks

Never say no to life-changing money.

If you happen to have a home run (stay around long enough and you probably will), TAKE PROFIT.

The point is not to have the numbers on a screen go up.

The point is to make meaningful changes in your life and achieve financial independence.

One of my first big wins allowed me to start my business. I was happy to sell crypto to become self-employed.

Now I have no boss and live in a beautiful home.

Could I have made more money? Yes.

More money was never the point. The point is achieving what you want.

I woke up today down nearly 35% from the all-time-high of my crypto portfolio.

But my girlfriend is still sleeping peacefully, I'm writing this over a cup of coffee.

I’m content knowing I can provide for her and myself in any market conditions.

If this was helpful, please do me a favor by liking and RTing that first tweet. I've linked it below.

Follow me if you would like to learn more about this strategy of investing and finding fundamentally strong altcoins: @jackniewold

https://twitter.com/JackNiewold/status/1467185121740550147?s=20

I write a newsletter on this style of investing. We explore and analyze altcoin investing with data.

There's a free list on investing strategies and a paid list of research reports on specific altcoins.

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