Topic: I just realized I'm 99.9% crypto and 0.1% in fiat - page 2. (Read 728 times)

I guess I am 75%-80% in crypto and the rest in fiat money, save in my bank account.
I never thought that I had been drag deeper into crypto
But that makes me realize that using crypto can be my investment besides having gold, and having crypto is a new opportunity that not many people can see and realize.
We are so grateful to have crypto because we have many chances to invest in any coins we want, and we only need to sell some amount to fills our daily needs and prepare some money for urgent situations.

OP what have you found to be to a trusted staking mechanism? Still holding onto my crypto on my own. Bitcoin mainly and a smattering of other fun alts but not noteworthy. Basically just holding on to whatever earnings I have (virtually 100% crypto earnings if I'm honest now due to remote nature of work in past years).

Have examined all these staking options but it seems you either have to trust a company, or trust a blockchain network. And I don't really, other than the Bitcoin network itself.

But curious to see what other Bitcoin holders are willing to try out?

Also >95% in crypto 

90% in crypto and the rest is fiat since I have a real world business I'm running for my family sake, still I have end up turning crypto into bank, it's actually where I keep most of my money even earnings from my business

You sound like perfect with your allocation of funds with purposes. Rental property cannot be possible in most countries unless otherwise I need to be a millionaire in my country. I do invest in gold in electronic format as that ensures more security along the way I am enjoying all the returns of gold investments. Surprisingly I may be having more than 70% of my saving in cryptos and remaining are stocks, gold etf and few other format of investments.

Fortunately bitcoin tops in terms of higher returns hence I guess having it in more percentage in my portfolio makes sense. Looking for passive income generation is something I having dreaming for years still there hasn't been any proper opportunity for me so far with respect to my allocated funds and time required to setting one up.

Having crypto and Fiat is indeed but what about Gold? Even if I am a strong crypto believer I don't think Gold is useless because it can be much helpful in emergency conditions. If I am not wrong at least 30% of my total asset value is in gold 40% in rental property because it is stable and passive income so no need to worry if your other investment is not working.And the remaining only is in the crypto and liquid cash and saving in my bank will be about 5%.

Yeah it just depends on your situation. For me I have no investments or assets (stock, real estate, etc) outside of crypto so it is easier to have almost 100% in crypto. And to have a 6 month emergency fund in the bank only takes 0.5% of my money, which I will save up to over the next few months because having an emergency fund is important. If I'm about to buy a new car or something I'd go over 1% fiat but that would be very temporary just to make the purchase.

This bull run will keep going for a long time, and even if we do get a sizable downturn at some point, I'm still going to be making enough from staking rewards to live off of, so there isn't any reason for me to hold extra money in cash.

However for most people unless you're already rich from crypto yea I agree over 80% means you probably are over-risking yourself cuz the market could be down at some point and you end up needing cash.

People's finances, in order of priority, should be:
1. Source of income
2. Enough in fiat to cover the next month's expenses
3. Emergency fund of 3-6 months in fiat savings account
4. Bitcoin as long term savings
5. Ethereum and optionally some of the major altcoins as investments, ideally some of them are staked coins to generate income. Alternatively you can also use real estate and stocks as investments that generate income but they are just going to grow much slower than good crypto investments.
6. Optionally you can then invest in more risky altcoins outside of the major promising ones, realizing that these are very risky and over the long term you may lose money on these instead of making money, or at the very least have smaller gains than if you had just bought more Bitcoin.
And of course you might own a house to live in which will consume some of your assets.

For me, (1) my source of income is staking from DOT, but I will also stake ADA and ETH soon, plus also I have a trading account that I can cash out from when I need to cover expenses. (2) Right now at 0.1% fiat I only have enough in the bank to cover the next month's expenses. (3) Over the next few months I'll move enough DOT rewards or trading profit into fiat to have 6 months cost of living as an emergency fund in my bank, and I used to have this but just allowed my bank account to drop because I didn't want to sell any crypto right when the bull market was taking off the past few months. (4) I have a ton of Bitcoin as my long term savings. (5) I have DOT, ETH, LINK, ADA as my safer long term crypto investments as they are all both promising and among the top cryptos. (6) I also have gotten BAT, PRE, and RUNE recently as more speculative and risky smaller cap long term investments.
And I don't own a house or any other investments but I will likely eventually buy land for myself, maybe rental properties, and stocks.

Yes Right

I actually dont know how to work out my percentages.

I dont have FIAT savings other than the month to month savings for bills and utilities.

So Crypto to FIAT is 99% - 1%
I have a FIAT loan outstanding which I used to buy some Crypto.

I have a mortgaged property with positive equity and a small car loan, so I do have debt

For me personally I think anything above 80% of your money being invested in the crypto industry is considered dangerous especially for the people who don't have anything set aside at all if one of the worst cases come which is cryptocurrencies going down which all of them will immediately be affected in this situation. But I guess this will really be dependent on each person as maybe there are people who have a bigger risk appetite compared to what I have and has trust that cryptocurrencies will give them bigger gains.

Seems all of your stashes are in crypto I wonder where do get your daily expenses? is your country already accepting Crypto as a payment? Anyway, it is not recommended to put all of your money in the crypto cause' it is a lot of risks to take, yet you never know when this bull will come it could go all down when bear comes unless you are can afford to lose it all. Consider giving more allocation for Fiat at least perhaps 30:70 ratio would be enough 30% for Fiat while 70% for crypto. Not all institutions accepting crypto yet that is why having cash on hand would be better.

I am obviously not as high on crypto as OP but that changes from which day of the month we are talking about. Currently I am on about 10% or so fiat and 90% on crypto, using that 10% to live for the rest of the month honestly and that is not a bad situation for me. By the end of the month I will be 1% fiat and 99% crypto as well, and on the first day of the month I will be 30%+ on fiat and 70% or less on crypto, why? Because at the end of the month I have no money left to spend and by the start of the month I get paid my salary and that is why I have more fiat.

I do end up buying bitcoin with my salary but only a bit, rest I end up spending to live basically for that month. That is why I can't say how much of my money is in crypto and how much is in fiat as a fixed rate since it changes the more fiat I end up spending, every single day my fiat % drops that is for sure.

I never do that, because all household is on me. So to spare only a little percentage to real life and all in crypto is impossible for me. But at least as long i still can gain profit and minimize loss, already enough for me. Who can spend all in crypto means he not use it to fulfill household needs right?

Maybe I'm like you with 99.9% crypto and only 0.1% fiat. Actually in my bank account is no more money can to withdraw, All my money in crypto, every week I send around $30-$50 to my bank account and withdraw for my real life for a week. Always like that, I never cash out my crypto if I don't have something to buy. I'm sure that crypto is the best way

That is a way to show that Crypto will rule our future. You are not alone and I only convert to fiat when the need arises. We are in the era of digital payment which blockchain makes possible without any interference.

If I would have to think more often times, fiat opportunities made me frustrating because I couldn't get more profit compared from cryptocurrency. Failures made me stronger and I admit I was weak and my emotions affected me, when market started to saturate. How I wish I may recover those losses, and my alternate strategy is storing crypto for years so I could have closer focus on those asset which I'm going to reach a sustainable value.

I live in the US, I don't use crypto as a payment method. Granted, right now I am low on cash, in fact this morning I just cashed out a couple thousand dollars from my trading account to pay expenses at the end of this month. Also I easily make enough from staking rewards to live, so I'll probably build up to 0.5% cash from that over the next few months so that I have an emergency fund.

And well your % in fiat would depend on how much money you have overall. 1% of my crypto would cover my cost of living for a year, so 20% would be 20 years of expenses just sitting in cash being devalued every year by inflation, which obviously is not a good idea. The only time I'll ever need more than 0.5% in cash might be for a major expense like buying real estate.

Jesus, that is a high percentage.

But unlike others, I don't think that it is that risky. In fact, I would say that you take the most risk if you opt-out of putting crypto into your portfolio. As long as you're not a weak hand, a long term holding of cryptos will prove to be one of the best preservers of wealth.

I'm more skewed towards stocks compared to you, but definitely still >50% crypto for the long run.

Quite awesome but I wonder how you manage your daily life with 0.1% fiat. Does your country accept bitcoin or crypto as a payment method. IF they do, holding 99.9% of crypto is really a dream come true. But if I were you, I would try to equilibrate my fund by at least 20% of fiat. Too much crypto is not always good. Im always afraid that I sudden dump will appear and has a high chance to swipe out my balance

Well, up to now, bitcoin still performs marvelously. New ATH has been made and you must be one of the happiest guy in the planet

I don't take loans and credit cards, that's it. Whenever a bank teller asks me that they can offer me good deals with their credit card and they'll waive the fees, I turn it down. I don't need it. You don't take loans even if you're having a huge salary, it's just a matter of managing your finances and you need to keep your standards low. Living frugally is the key and don't increase your way of living just because you're earning that much. It's okay to enjoy your money if it's cash but if you're doing it with credit, you can't afford it and then just don't do it.