Topic: I just realized I'm 99.9% crypto and 0.1% in fiat - page 3. (Read 667 times)

I never really "bought" bitcoin to be honest, I did a small part but that is very tiny part of my bitcoin amount. I have worked for it and earned it. That's why I got into bitcoin, it was a place where I can provide my skills and talents to people and I could end up working and earning money because of it, that's what I did, I worked as writer, affiliate networker, web developer, and even community manager for few projects, all helped me making money, now I am trying to build my own project as well, that is why people should always be very careful about what they are using crypto for, I have not bought too much bitcoin compared to what I made, but I kept some of my income as bitcoin and that really helped me a lot, I have like 5 months worth of salary saved thanks to this. That is what people should focus on, how great bitcoin could be if you use it as currency and not an asset.

I just wonder how it has become possible for you people to lead a life with zero debit. Because, in my country, banks are too intensive on selling credit cards and loans which make most of my folks to go availing loans which eventually made most of my country people with debits. I have a friend who has more loans hence his 70% of salary from his regular job goes for loan repayments. But, I must need to appreciate your level of lifestyle.

I do not have any real world investments as I do invest all my savings only into bitcoins. Honestly before I am getting into bitcoin I had zero investments. But, now I have some savings, thanks to bitcoins. So, I never think about investing outside bitcoins.

Yup, exactly.

Stuff like rebalancing and diversifying is for when you no longer want to prioritize gains and just want to reduce volatility of your portfolio and prioritize stability to protect your capital over growing it. You don't diversify out of or rebalance away from your winners and into worse investments when your goal is growth.

And yeah when I need fiat hoping on an exchange is easy enough. I just cashed out $2500 from my trading account this morning because i need it to pay my expenditures at the end of the month. Easy as can be.

This is the standard that I'm following as much as I can. So whenever I revert to more percentage in bitcoin, I don't have to think of any obligation that would come except the monthly bills. But being zero debt is very encouraging knowing that you can shift if you have any investment that you want to add to your portfolio. And as for my crypto money, I think I have it around 40%-50% this time and sell if I'm short of cash. The rest, they're in different real world investments.

You have too much fiat LOL, but seriously speaking I don't see anything wrong with what you are doing, if you need a little bit more of fiat then do so after all only you know how much fiat you need to have in order to cover your expenses and any kind of emergency, some people may think that you are investing too much in this market but they do not realize that diversification is a strategy to protect your capital.

If you want to raise your capital then you need to concentrate most of it in just a few key investments that are going to do very well during the next years and without a doubt bitcoin is the right choice for that.

I'm sure most people have smaller amounts in crypto, it could just be that the people who have so far wanted to comment on this thread are the ones with really high percentages in crypto.

I've for the most part had more than 90% of my money in crypto since late 2017, though it probably slipped under 90% in late 2018 just cuz prices had fallen so much, before I loaded up at the beginning of 2019.

Eventually, like later this decade, I figure I'll want to diversify a little bit into stocks and real estate, so I could imagine by the end of this decade holding like 90% crypto, like 0.2% in cash, ~5% in stocks and ~5% in real estate. But for now I'm perfectly happy being 99.9%/0.1% crypto/fiat.

I don't care about bear markets. I'm retired now thanks to bitcoin, I won't be selling any just because we are in a bull market. Bear markets are temporary, I could care less about them. I used the last bear market to load up on Bitcoin at the bottom and retired half a year later because of it. And I got DOT recently so I can easily live off of DOT staking rewards, I have no need to sell anything other than staking rewards as my only income, so bear markets mean nothing to me. I've exited the fiat game now, I only will hold enough for monthly spending and a bit extra in case of emergencies. If I ever need to buy anything big I can just buy it in the future with Bitcoin or sell some to fiat for the purchase.

I haven't done my calculations yet but since I'm earning in fiat, I guess putting in 10%-20% as BTC buys (sometimes ETH now) means that is my exposoure?

I do earn pure BTC as well in very small amounts but that I leave to invest and/or gamble, so I think 50% of that ends up going to my wallet (if it isn't lost in investment).

Well done to you OP.

Hard to say, depending how much my real estate is worth. But it's roughly 90% BTC, 9.5% real estate, and 0.5% fiat.

Not an investment advisor nor anything near it but I'm surprised to see that majority of the people here have most of their wealth in cryptocurrency rather than fiat, is it because of the bull market that is why there is a shift in percentage or is it before that? Nonetheless I think we are all aware about the dangers of keeping most of your capital/wealth in a volatile market? I'm pretty sure that if you put in most of your wealth in one market it can shift drastically with just one reversal or correction. For me I'll be more comfortable having fiat currency which can maybe sustain me for a year and maybe the rest of my wealth can be diversified in both the stock market and the crypto market.

In my case, 80% is in crypto, which is definitely risky - but I don't prefer to have more cash than I need for all the basic necessities of life - and keeping cash in banks doesn't make sense to me at all. In addition, I can always sell crypto if I need it, so I am convinced that the risk that crypto has is well worth it.

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I may be wrong, but philipma1957 is mining some altcoins - at least that's how it seemed to me from his posts - but I don't understand why anyone would differentiate between virgin coins from China and from anywhere else, they are still virgin coins. When I looked at the context it became clear to me, but I consider it one big nonsense.

Believe me or not; I am 100% in crypto and 95% in bitcoins and the renaming are in altcoins and out of that I may hold 0.5% in stable coin as I am making use of stablecoin for P2P transactions. My employer pays me in bitcoins and my signature campaign earning is on bitcoin hence obviously all my networth are in crypto. But the properties and some stocks which I got by inheritance are my other saving which I never consider as liquidate things for any emergency need.

I am able to convert my bitcoins into fiat in less than 2 minutes which is another reason why I keep all my saving in bitcoins. I just cash out whenever I need money to pay my bills and  for any other expenses. People are debating about bitcoin to replace banking system but in my view it is already started happening in my life.

I know that putting most of your money in crypto is a good idea since we are in a bull run but what will happen to you if the bull run ended and the bear market starts and your money are still into crypto?
Cashing out or taking profits isn't a bad strategy especially if you are happy with the profits that you have. As for me, I will take profits gradually until I reached the point where I already cashed out already. I will hold some Bitcoins and other altcoins still but will cash out a huge portion of it overtime.

Right now, I'm 90-10 with crypto at 90% and fiat at 10% but in the next months like I said I will gradually take profits and put some into fiat so in case the bear market will happen I have some fiat to use to buy cryptos .

For those of you asking about real estate, yes absolutely include that. Just include it as the value of the real estste minus the amount you still have to pay.  Im talking all assets in this thread: cash, crypto, real estate, stocks, bonds, metals, whatever else you got. I just happen to not have anything other than crypto and cash.

The house counts as an asset and the mortgage is unknown cost, ideally you will have a fixed interest rate because the situation could spike but invariably the face value on the debt does not reflect true cost as we know money is going to lose alot of value at this rate over a long term hence normally why rates would be rising.
    Portfolio balancing is counter intuitive and it will never perform as well as gambling it all on your best bet, sometimes that will do best like now an asset class comes out of nowhere and is constantly dismissed till fairly recently.   Now its accepted that has to be the tail end of 'near term' speculative gains I guess, longer term hopefully further expansion and development occurs but the idea to balancing value is you meet future costs.   The highest worth for cash is security not wealth exactly which is why strange things unexpected things can happen when governments are biased into volatility over security in regulation of currency.
  I'd say silly things like 1% gold and so on which leads to arguments on theoretical usage and future prospects but for security over speculation its hard to argue against just paying off an asset which houses you every day.   Land, gold, water and just whatever long term prospect you can think of is the ultimate destination for alot of speculative wealth short term.

For this year it looks like I am using more crypto than fiat. because in previous years (2018-2020) I completely only used fiat in all forms of payment. Because in that year I didn't want to give away my crypto. I just save and keep steaming. But this year, I used crypto for electricity, water, etc.

In essence, when crypto value is cheap, I feel like I have to pay dearly for everyday life. But when crypto has a high value like today, I feel for daily necessities it is very cheap.

At this point my priority is crypto and its about 90%., because i dont want to miss all the opportunity that comes from it while market still at the bullish trend, but yes i need cash but only for my daily expenses, wherein no more reason to cash out some cash.. It doesn't matter if i don't have cash left on my wallet, indeed my virtual wallet is most secured than my physical wallet . Lol ..

In my case around 65% index funds/stocks, around 33% BTC 2/3% cash. I don't know if we should count RE here but so far no one has included it in their explanation. I recently saw a video about Billionaires which was mainly about them having only 1% of their net worth in cash. It is normal, if we think that cash is trash that depreciates at a high speed.

I got kids, I always need cash near me. 
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That's good enough for me or else someone will be mad for not having money in our physical stash.
A problem if your partner is not ecstatic about cryptocurrencies. Yeah, she likes the stories of how I can make more $ but it's better if she will see it in cash. 
It's okay for me, it's always better to be ready, accidents happen and you don't know when it will come.

I prevent myself from looking to this perspective , yeah sometimes i am short iN Cash but i keep on Looking to other option than checking my Crypto wallets , You Know why?

because i Invested in coins that really Pumping these days and withdrawing or converting them is really not a good idea.

And Staking ?lol i staked my coins in Time staking in which i will need to wait certain time before i can take my stake