In 2017 I got really into crypto.🪙

Like obsessively into it, honestly.🤩

I was reading white papers and researching various coins all day…📖

Trading on platforms like EtherDelta, which most people were afraid to touch…

And putting a significant amount of money into various coins.💰

 

I made tons of mistakes, but one of the biggest (in hindsight) was not just holding Bitcoin and Ethereum.

 

I kept buying and selling, trying to time the market, etc. I was half day-trading and half being a flighty investor.

Had I just held every time I bought BTC and ETH back then, I’d have millions of extra dollars right now – but I didn't.

One thing I did get right is that in early 2018, I predicted the price of BTC falling to $5k within a year.

This was when it was at close to $20k, and I ended up being right about that, which was cool…

But then I never bought the dip.

Instead, I held onto the various coins I already had throughout the dip (which has paid off now)…

And started to ignore crypto.

That’s been the case up until today…

But now I’m changing my tune.

I’m getting back into crypto, sort of.

So let me explain why and what “sort of” means.

I’m going to start putting about 13% of my monthly income into crypto each month, specifically ETH and BTC.

Why am I doing this?

 

A couple of reasons:

 

1. Diversification.

There are people out there who think that we’re seeing a transformation of the financial system etc. They could definitely all be wrong. But on the off chance they're right, it’ll be good to be a participant and not a passenger.

2. Potential Upside.

A recent poll found that 50% of young people (age 18 to 37) are trading cryptocurrencies, compared to just 25% trading equities.

It's also estimated that 10% of Americans currently hold crypto.

What does this tell me? It shows me that while young people are pretty savvy to crypto, it’s still early in the bell curve overall. There’s a lot of room to go up.

3. FOMO

And frankly, there’s a FOMO aspect to this too. When I attended the 100MM Mastermind in Miami, I was surprised at how many high net worth people I know who are deeply focused on crypto. If they all think crypto is worth paying attention to, then I might as well put a little bit of cash into it as well.

Now, what does “sort of” mean?

Here’s my overall investment strategy right now:

Investment Allocation:
$100k Real Estate Per Month (Various Funds, Properties I Like)
$50k Markets Per Month (Vanguard Index Fund)
$30k Crypto Per Month (Dollar Cost Average)
$40k Into General Investment War Chest Per Month (For Buying Businesses, Investing in Businesses, Moonshots, Individual Stocks, Speculative Crypto, and So Forth)

This might change. But that’s where I’m at currently.

So while crypto is a part of this strategy, it’s not the dominant portion.

This means being disciplined to not go too deep down the crypto rabbit hole.

I’ll probably spend a few hours a week reading about various alt coins, trends in the market, predictions, disruptive technologies, etc…

But I’m not going to start spending 15 or even 20 hours a week on crypto.

Been there, done that, and while yes, it can be financially rewarding…

It can also cause you to lose focus on many of your other income-producing activities.

In other words, if I spend all my time on crypto…

I’ll miss out on many of the other activities that actually generate the income from which I’m able to invest…

And this would be counterproductive.

 

– SPG

P.S. This post originally came from an email I sent to my private list. If you want to see more stuff like this from me, you can apply to join my list using this link