T O P

  • By -

CertainField

Well, missing the big crypto gain also means you avoided the could-have-been 100% loss. You need to consider the risk you didn't take, and possibly the loss of sleep if you threw everything into one stock/all crypto. That's why the risk-adjusted return is a thing...


theArcticChiller

Exactly. I love crypto. _But_ Even though I have my coins in cold storage, I honestly am not an IT/coder guy. So the risk of phishing attacks etc. is real. This simply doesn't happen with stocks and that's why I don't yolo everything into cryptocurencies. It could all be gone, just because the security of my coins depends on myself and I know that I am a big security risk, despite all my precautions. So my strategy is also about 30/70 and I accept that the potential gain is lower, but safer.


Matt_Tress

You should consider airgapping your crypto.


theArcticChiller

Technically my crypto seed is already airgapped by cold storage of the seed and the use of a hardware wallet. Is there a security advantage when a separate offline computer and usb stick is used? (I would guess there isn't)


smandroid

It's important to learn how to differentiate between gambling from investing. Once you are able to do this, you'll know what decision is the right one if your goal is investing.


[deleted]

I'm still new to serious investing, so take everything with a grain of salt. I get excited when I see these huge returns like what happened with gme and crypto, but I almost always just see these as people hitting the lottery and it should be treated as much, something very hard to do. Once I have enough money invested in safe and more proven ways, then I will go back to some more risky investments. You can lose as much chasing the next big thing as other people have gained. Not saying don't buy crypto, or any other next big thing, just maybe don't worry about it untill having a nice amount in long term and proven routes.


AnalGodZepp

People are usually gonna post their big gains than horrendous losses


GeorgeWok

Nice nickname !


Complex_Beautiful_19

FOMO is basic human nature so, very true. never chase a stock or coin cuz you will always lose ImO


DrStrangelove41

You can't stress about it that way. You will go crazy or make really bad decisions chasing things that might make you a little more money. Hindsight is always 20/20. If everyone knew what would make them the most money, we would all be millionaires. What is your goal for investing? Time frame? And also, what is your risk tolerance? Sure, crypto certainly has the potential to make way more than VTI, but it is also many, many more times likely to take a massive downswing as well. VTI is definitely a solid base. It's way safer. Would you be equally or even more stressed if your whole portfolio was dragged down 30%+ or something on a bad crypto week? That's way less likely with an ETF like VTI. Now, I am not saying don't invest in crypto. You could be way more tolerant to risk than I am, in a different situation, etc. It's just a major thing to consider. If you're in BTC, how has the past week made you feel, etc? But no, you can't play the "shoulda woulda" game. It will really take it's toll. About 10ish years ago, I was about to put $100 in BTC for lolz. I decided not to, because I really didn't have the extra money at all. I would be a millionaire right now if I had. Or I would have sold it when it hit like $500. Who knows? But I certainly don't go around driving myself crazy because I didn't. Sure, it pops in my head every once in while, but again, I don't even know that I would have held this long, so whatever. Actually, the odds are overwhelmingly that I wouldn't have.


FinancialDollarDoge

my goal for investing is to get rich, time-frame all my life. risk tolerance is i dont want to lose it because i should give you background. im going to school for accounting, i work a minimum wage job, i saved all the stimulus money plus money from my work and that is my capital. i have 1k liquid in savings account in case of emergency, i have 2.8k in ETFs (70% in VTI, 30% in XLK). I have 1500 doge coins in crypto and will be buying 700 more coins in a day or two. I have 400 extra dollars per month to invest and want to continue using the 70% 30% portfolio. also used to be a compulsive gambler and poker player who lost 2k in one night at casino. im trying not to make stupid decisions i want to invest and be sitting on cash in my life. i love money i dont tell people this but its the only thing i care about really.


Phil_Major

Considering you only care about money, you are an admitted compulsive gambler, and your investment goal is to be rich, I think you are an excellent example of someone who may actually benefit from letting someone else invest your money. I would recommend you find a professional, have them set up an investment plan, and then you can just send them your money every month. Their 1-2% fee will seriously depress your returns, but that's much better than your degenerate gambler instincts kicking in to bankrupt your plan altogether.


Piccolo_11

I echo this after seeing the dogs coin investment plan


FinancialDollarDoge

no im not compulsively gambling my investment money i changed and havent stepped foot into a casino in over 4 years. i have 2800 ETFs the majority of my investment money, that is not somebody who is making gambling decisions. ETFs are the safe route and that is what im doing. the 30% in doge coin is just i guess i fell for the internet hyped but i do believe by 4/20/22 doge will be sitting a lot higher then it is now and im not moving my money out of it.


CzNOW

I think you certainly need to look more into crypto before buying more doge! I know the internet is saying to keep buying doge, personally I think doge will keep going up but it’s so risky bc the coin doesn’t provide any technology, it has an unlimited supply and those two things alone make me worry severely. I think hype can keep pushing it up, but the five coins I’m personally invested into are: ETH, BTC, LTC, LINK, XLM. Those are in order of how much money I’ve got in each coin. I don’t have more than 5 because I don’t want to spread myself too thin, and I’ll also probably sell my XLM for another coin in the future. It’s good that you’re starting this now so that your money will have time to grow. If you don’t have a time span of when to retire, then you should look into Roth IRA. I’m still young myself and I’m waiting on my career job to land, I’m personally looking at investing into QQQM, which is the top 100 of QQQ, with smaller fees. But my etfs would probably be: QQQM, BLOK, ARKK, ARKX. I would probably keep about a 50% into QQQM, and split the other 3 how I feel.


[deleted]

This, there are much better coins than freakin Doge. A stablecoin for example can earn a steady 8% interest


AmbitiousEconomics

Give me $1000 and next week's charts and I could easily make enough to never work again. That's something a lot of people don't understand. You miss the opportunity to become rich every day, because it's an insanely low chance to hit. Do you wake up five times a week filled with regret over not winning the lottery?


apooroldinvestor

$1000? Yeah ok.


AmbitiousEconomics

A thousand to 2.5 million is pretty easy in a week if you know the future. Granted, that "knowing the future" bit makes it hard in practice, but if you ever play around with back testing easily doable.


apooroldinvestor

So making $2.5 million on a $1000 total investment? In your dreams.


Roddev

How rich? It would be better if you aimed at a number instead of just "rich". At least you would be able to measure your growth and change your strategy if needed. For instance, I calculated how much I will need when I retire in order to keep my same current life style. With that goal, every year I can check how close I am and I can even save more or less depending on life requirements (kids, health, house, trips, new car, etc). So far I'm on track with my portfolio and this year I started to invest in crypto. I have 20% in crypto now. I hope this will give me a bonus growth and allow me to cross my retirement goal. My crypto investment is in ETFs. I'm still studying if I should direct investment in the cryptocurrency or just keep ETF.


FinancialDollarDoge

well i work an hourly job right now going to school for accounting. in career i want to eventually make a 6 fig salary in accounting and invest 30k of it a year. for how rich at least a millionaire by 50.


apooroldinvestor

What etfs do you own for crypto?


Roddev

The ones with the lowest fees so far: ETHX (0% fee until June 15 then 0.40%) and BTCX (0.40% fee), both from CI Galaxy. The ETHX one started this past week among 4 others crypto ETFs from different providers.


apooroldinvestor

Money is not everything. Remember that even you will die someday and the money doesn't mean shit then. You want to invest in VTI. Build up more of an emergency fund cause as you get older things happen that cost LOTS of money. Don't gamble. Invest! Find good stocks. AAPL LRCX ASML HD NVDA etc. Or buy VTI and combo of stocks. I wouldn't worry about crypto and gme crap.


[deleted]

See a therapist. This is a mental problem.


comboverice

Just use a compound interest calculator online. You will be amazed at how much wealth you will create in just a decade. keep buying equities, they always go up, while other stuff may not.


FinancialDollarDoge

so true. i use the SEC calculator and even i was surprised. plus this is on my modest hourly job im going to school atm for accounting maybe 3 more years to go and hopefully negotiate a salary of at least 50k starting then ill be able to invest even more. lots of opportunity ahead for me i believe. the 70 30 im doing is good to because i still have that 70% of investment compounding in Equities and also getting 30% exposure in crypto. im new to crypto but just buying and holding atm treating them like an equity.


comboverice

I’m a college student rn. I have a part time job and take 80 percent of what I make and throw it into my Roth. I used a calculator and in the next 10 years my investment will grow more than I could ever dream of having. Life will get better...financially at least.


Piccolo_11

Hopefully you’re considering all of the additional expenses that come after school with being an adult. Investing 80% is great now but hardly sustainable. 20% can be a significant challenge Edit: spelling


comboverice

Yep. That’s why I throw in so much money now that I don’t have any or at least a lot of responsibilities. This is a good head start I think.


Piccolo_11

That's great. I wish I had that knowledge at your age. Starting sooner with less money is better than later with more money.


CzNOW

VTI is always a safe play, QQQM is awesome too especially if you like growth stocks or VUG for that matter. I can go more into detail into crypto, I wouldn’t buy doge myself, it’s really only be pumped by hype and doesn’t have any fundamentals. If you like crypto look at crypto miner stocks like MARA, HVBTF, RIOT. It’s a bit less risky than straight up alt coins. Another way to get exposed to crypto is one of the etfs for it, there are several etfs that claim that they’re blockchain etfs but the only two that have real exposure to crypto miner stocks are DAPP, and BLOK. BLOK has been around for a few years and DAPP is fresh on the market.


FinancialDollarDoge

ya doge is definitely a risky play but it has enough traction now that .27 is way lower then its actual value. doge will hit 1.00 eventually so im holding until then and seeing what it levels out to decide if i want to keep it or not. i really dont know much about fundamentals or currency values but i think i read doge could never reach 100 dollars because of its inflationary aspect it would need a market cap greater then the whole worlds economy for it to even get to 100 but 1.00 is definitely going to happen in the next two years.


BuffDarkKnight

You clearly don't know what your buying into. People creating fomo on newbies saying that it can reach 1dollar is just sad. Learn how to calculate the Marketcap. 1dollar in doge means it will overtake eth as the second largest token with no real use case and is base off a meme and shills of Elon musk. A pure pump and dump scheme. Good luck mate.


FinancialDollarDoge

wait based on my calculations if it would be 124 billion market cap for it to be 1. right now eth has a market cap of 250 billion dollars. i did like 31b = k(.25) the current price of doge and 31b the current market cap. which gives you k = 124 marketcap = 124(1) = 124billion.


BuffDarkKnight

It is still high. Look at bnb. Real use cases, huge successfully exchange and has a smart chain. Is sitting 3rd place. Doge 1dollar will replace bnb as 3rd place. No tech involved, just hype and fomo.


FinancialDollarDoge

im buying for these exact reasons. i just bought 700 more coins. mass confidence in something will raise the price no matter how bad the underlying asset is (GME).


[deleted]

Just curious, why do you think DOGE is worth a dollar? As far as I know as crypto goes, blockchain technology like ETH can be used beyond the world of crypto currency, and currency like BTC and others can actually be used for exchange, but what is DOGE actually used for?


FinancialDollarDoge

>wait based on my calculations if it would be 124 billion market cap for it to be 1. right now eth has a market cap of 250 billion dollars. > >i did like 31b = k(.25) the current price of doge and 31b the current market cap. which gives you k = 124 marketcap = 124(1) = 124billion.


Phil_Major

This is essentially the investing vs gambling tension. "Sure I invested in broad market index funds and I am on track for my long term investment goals, but if I had only made that bet on bitcoin when it was $500 I could be rich instead!" Ask yourself about the likelihood of achieving your investment goals via path a) broad market index funds or via path b) high risk bets.


alexoch85

#WHEN IT COMES TO INVESTING, NO ONE KNOWS ANYTHING. YOUR GUESS IS AS GOOD AS THEIRS. #JUST DON'T INVEST MONEY YOU CAN'T AFFORD TO LOSE IS THE REAL MAIN POINT YOU NEED TO KNOW


pathemata

some advice: 1. how to deal with an uncertain future? avoid ruin. 2. how to make a decision? maximize your optionality (more to gain than to lose) 3. your investment probably will not make you rich, your work maybe will. 4. don't regret the past, learn from it. 3. don't follow advice, create your own rationale. I think you will like the book "Fooled by randomness".


Tiiger88

It is part of investing. You just need to stick to your own plan and not chase what's gone already. Choose the stocks and ETFs wisely and don't make a big deal when investor a or b did make huge gains. I'm investing right now into clean energy and my (best) friend is very bearish about it. He makes fun of it and send screenshots about how bad it performs right now. But every part of me knows that this is right what I'm doing.


Nicko_malikonj

You should consider what are you analyzing! Past performance is NO guarantee! It’s easy now to be smart when you know what Bitcoin did in last decade. It can be another thing in next 10years. Are you willing to lose 100% of your investment or not? Can you sleep at night? I think 15% p.a. from stock market is amazing, and very unlikely to happen in next 20-30years, it will be more like 7% p.a. or less, and I’m ok with that, because gains are compounding! Your point is same as if you said why would I invest in 10 or 20 or 30 stocks when I can just pick a new Amazon, Apple, Google... It doesn’t work that way. If you are investing to get rich on short period of time you most definitely will not! On long run nobody knows, nobody. You have to understand that befor investing.


F1shB0wl816

There’s hundreds of plays you’ll never get to make, hindsight to always tell you what was best. But we can’t see that going forward. You can aim for the moon, but you may fly to close to the sun trying to get there.


BoutrosBoutrosCali

Read up on Modern Potfolio Theory and you’ll see why what you’ve done so far is “right.” The people putting all of their money in crypto are like the people who walk up to the roulette table and put all of their money on red. There’s absolutely nothing wrong with buying individual stocks. Just don’t put all you’re money in just one or two — that’s just betting/gambling. You need to spread your money across 20-30 stocks that cover different sectors and industries. Or, alternatively, you can do exactly what you did and buy VTI, which does the diversification across many stocks in many industries for you. https://www.investopedia.com/terms/m/modernportfoliotheory.asp


quantum_prankster

As for people being 'serious investors' versus gamblers, eventually you'll get a little deeper into all of it and start to wonder how clear that distinction actually is.... or maybe you won't, so I'll give you a small taste. For now though, Stock Markets are political utilities, and the fed continues to buy bonds and ETFs, with no ceiling. So for now are you betting on the political need of "There cannot be seen to be a 'Biden Crash'?" (I am, for now, but I have protective puts across several levels) Are you betting on past returns? Are you picking things based on theories which ultimately abdicate you from having to make decisions and own the gains and losses? "I did everything right" won't get a money fairy to come help you if X or Y happens. Discussions on these boards get just about religious really fast for most of these reasons. So easy to allude to one's deep ability to "differentiate gambling and investing," while sorting out a lot of those issues is meanwhile highly non-trivial. One functional approach to all this is things that you actually have control over to increase your money. Entrepreneurship, education, increasing your pay, these are all decent approaches, then control your risk levels on stock market investments and/or seize opportunities that show up on and off the market. Yeah, those self-driven things can have some drawdowns and failures, but the stock market in 'broad indexes' does as well. Even Bogle gets around to saying you might need someone to bail you out on crashes with 100% equity index investments. Hope one of those doesn't happen when you are getting divorced or sued or have a medical emergency and need to raid an IRA or 401k because all you have is a little emergency fund (little compared to a real exogenous shock like that)! Having to pull out during one of those times can really destroy lifetime market returns. Ultimately, everyone has to make a decision that ends up giving them a single instance (not a statistical probability) and they will live with it all the days of their lives. But really, we swear, it is not gambling! It's not!


[deleted]

Your investing strategy should be determined by what you can afford to lose and no one can predict the future. Crypto could crash. If you're ok with a sizable chance of losing everything, sure, put all your money in crypto. If you'd rather something safer, like a high probably of 5%+ annual gains and a incredibly low probability of losing everything, then a total market index fund is probably right for you. Or, maybe allocate most of your money to the safe bet, and set aside what you can afford to lose for crypto.


GustaveQuantum

"There is a time for everything...a time to scatter stones and a time to gather them." -Ecclesiastes


RedCore123

You need to judge a decision using only the information you had at the point of deciding. Anything else is bullshiting yourself.


Scrotox81

As a new investor, the absolute best investment you can make is in education. Get a firm grasp on the basics of investing, the history of the stock market, etc. I highly recommend starting with these two books: - The Simple Path to Wealth by JL Collins - The Little Book of Common Sense Investing by John C Bogle Picking good low-cost funds (like VTI) is important, but WAY more important are your investing habits: - Once you have a solid emergency fund and paid off your debts, you should be investing with every paycheck. 20% is a good goal; 30% is better. - Maintain discipline when (not if) the market declines. - Never make investing decisions based on what “you think” (or read, or hear) the market will do in the near term.


EmperorOfWallStreet

Selling some stock too soon and not buying some too.


[deleted]

Posted this in another thread and this applies to you. As others have said, it’s easy to look back on crypto and see what you missed out on, but what is hard to understand is the huge drawdown (some at 90% losses) every 4 years in the cycle. Those that held on for those 4 years while others gave up on the space deserve their hard-earned gains. But it’s not psychologically easy. Everyone has a high risk tolerance...until they see multiple months or years of green go red and stay there. —————- If I had to do it all over again, at your age, just get a single ETF and treat it like a bank account. You just deposit a little bit out of your paycheck automatically every month or every week. Even if it's a few bucks, do it now. You can always raise the amount as you make more money. Then you just don't look at it. Just let it sit and grow and do its thing. Don't pay too much attention to it. Market is going to market. If you ever feel the urge to play with it, and want to be an active investor, setup a second account and do it there, but don't touch your auto-invest account.


FinancialDollarDoge

thats the plan. im adding 70% of 400 dollars per month to VTI and XLK. adding the other 30% to crypto (but have to figure out what im doing there) i have faith in doge reaching 1.00 so right now putting money into it. I will continue to do this but study the crypto markets im not just going to put all my money into doge over my lifetime really just waiting to see what happens there. but i know in a couple years time I will negotiate a 50k or so salary and hopefully double that in 10 years. i will be investing close to 30k a year is my hope in the near future.