An Investor of Bitcoin Beginner [2024]

Bitcoin Beginner We asked crypto influencers, seasoned traders, venture capital fund founders, and more to share their top tips. Prominent Twitter followers, and stories behind their best deals. In this issue, we speak to trader Ray Tong who is full of practical advice for new and experienced investors alike.

According to Stranger, Ray Tong stumbled upon Bitcoin before most people even knew about it while working on a college project in 2011. on the other side of the world. (Luckily, it’s been made a lot easier.) By the time Bitcoin’s price shot to $30, he was hooked. He delved into trading during his post-college years at Facebook, an active member of a popular internal crypto channel. These days, he divides his life between his day job (a product manager at the online fashion site Farfetch, where he develops internal tools unrelated to crypto) and managing his crypto wallet. It is packed with practical, everyday tips for new and experienced traders alike.

Ray Tong’s Favourite Work For Bitcoin Beginner

He knows some people think this is crazy, but Tong hasn’t sold Bitcoin since 2014. First only because he didn’t know how to deal with the tax implications of profits, but because of Bitcoin’s potential as a store of wealth. Emerged over the years, it has become a strategy. “I just kept buying and stopped selling,” he laughs. “Which, of course, helped tremendously with the 2017 bubble.” So probably the best trade I’ve ever made is doing nothing.

Resist FOMO

No matter how good your timing, you will never be perfect. You will regret entering rising coins late and not giving up falling ones sooner exiting later from a jumping position. A variety of other scenarios got into bitcoin was fewer than a tenth of a per cent of its current value. Setting goals helps set goals; let’s say Ethereum is now $500. Set a goal of selling maybe 10% when it hits $1,000. And another 10% when it hits $1,500. Such a framework is conducive.

Set Limits

Friends sometimes ask Tong to suggest a good amount of money investing in crypto, but he thinks they ask the wrong question. Instead, they should think about what percentage of their investment portfolio (and ultimately their net worth) they want to put at stake. “Once you find that number. You can further break it down into three segments: the desired percentage in Bitcoin desired percentage in Ethereum, and desired percentage in all other coins.”

Crypto Assignment Recommendations For Bitcoin Beginner

Financial advisors, certified financial planners, and other financial experts are beginning to increasingly rally around a 1% to 5% asset allocation recommendation for cryptocurrencies. A 2019 Yale study found that 4% to 6% is an adequate portfolio to allocate to cryptocurrencies. The study included all cryptos, specifically naming bitcoin, XRP, and ether. And stimulatingly. The Brazilian city of Rio de Janeiro invested 1% of its cash reserves in crypto last month, which will be an important case study at the government level.

A 1% allocation is rough of a magic point. It is small enough that a stock market crash is almost undetectable and exposes average investors to double the returns they would see without it possibly. As the amount of institutional crypto investment appears to make a complete collapse. Less and less likely, consumers and advisors are understandably holding their breath. Therefore, Edelman points out, 1% is a sufficient contribution to be considered “material.”

Hypothetical Scenario

Edelman incorporated this model into a hypothetical scenario involving what he describes as a typical portfolio containing a 60/40 mix of assets. T without bitcoin would offer returns of around 7% in one year (conservative estimate) , And, thanks to compound interest, 14.5% in two years. But changing that asset allocation somewhat to 59/40/1, an addition of 1% crypto. The potential gains could rise to 22% in year 1 and 15.4% in year 2 (down 85 %). Which would e Historical data from the time of bitcoin’s historic bull run in 2017 shows a 1,500% increase in the price of bitcoin, followed by an 84% decline.

And in the rare event that the crypto crashes completely. The 59/40/1 allocation still results in a return of 6% in the first year and 13.4% in the second year, Edelman explains.

“It shows that allocation can significantly improve performance, but the downside risk is negligible,” he said.

Track your Wealth For Bitcoin Beginner

Tong suggests creating a spreadsheet or using one of the free online tools to keep track of your stocks and make strategic decisions. It uses a web and mobile application provided by crypto market information site CoinGecko. “They deliver every currency and every stock symbol,” he says. “And you can manually enter how many coins you have and quickly see how they stack up against each other.”

Search, Search, Search For Bitcoin Beginner

Tong reads major online crypto publications like Coindesk and Mercari but says the only source moving at the speed of cryptocurrency is Twitter. His favourite followers are big fund people who have far greater analytical resources than any trader. Their proposals include Three Arrows Capital founders Su Zhu and Kyle Davies and Spartan Group. “I also follow pretty much the entire Paradigm team – they’re brilliant, and the stuff they put out is super technical,” he says. “When I read their posts and don’t know what they’re talking about, it forces me to investigate.”

Think Bitcoin, Not Dollars For Bitcoin Beginner

It’s not easy. But Tong suggests changing your mindset so that Bitcoinor Ethereum becomes the base currency of your crypto wallet. Instead of always thinking about its value in US dollars (or whatever your primary fiat currency is).”Try to find the currency you believe in the most and make it your base currency,”. It tells you to make transactions that will ultimately earn you more coins. Many large companies start with this.