Topic: Vitalik Buterin's Financial Advice (Read 635 times)

If I understood the third one which says to be boring with most of your portfolio correctly then I completely agree

Well this is just personal opinion of course and anyone could do the direct opposite because it is their money after all that they are investing but i would rather invest on well established coins instead of investing on newly launched projects well maybe sometimes being risky is a good idea but if you want to play within your safety net then just go invest on coins you already are well knowledgeable about

Maybe these advices need to be explained very well from the adviser's point of view. When we talk about investment diversification, many people mistake it for portfolio diversification. If you have bitcoin or altcoins, and go ahead to buy bonds, real estate or gold, I think it can be called investment diversification. But if you own bitcoin, and buy many altcoins in the name of diversification, you are wrong. Although, I don't know the adviser's point of view

I consider this a good advice, but then saving in fiat is risky because of inflation.

I don't understand this please. Does this mean you do nothing with your portfolio, just HODL?

2x to profit is 2x to loss...10x to profit is 10x to losses.
 

He is right about the buffer of saving being the most valuable thing but its alot easier to say then do.   Obviously being rich the advice they can take in deploying capital is well done, he would be a fool not to play it safe after you get to an elite level of riches make sure you stay there is job number one.   
  Giving similar advice to those with no capital is going to be easily lost in translation, its not especially applicable.  The nearest most of us will come to a good amount of savings is either the house after repaying debt, its a liability and working asset so not straightforward.  The next target would be pension savings, whats done there is most important and frequently neglected and we dont even get those till much later.

talking about saving i always believe that its always kinda flawed way of reaching thing mainly because of the presence of inflation whats the point of saving money if by the time we use it the value already down more than 20% it becomes silly.
i think saving better get replaced by investing at the very least even if our investment only yield low amount of APY it still save us from our money being eaten by inflation and at least it could retain its value.
the point mentioned was saving until its enough to cover multiple years of expense, but it will be a lot better if we can get some passive income from that money basically we use the profit not the capital for the investment itself then only then we will be truly financially independent.

I think there is a variety of different points of views on this particular question, but I think that Vitalik kept this post simple for good reasons. He is addressing the vast majority of people in the market. The problem is that too many people engage in gambling without knowing they are. When someone does not understand leverage mechanics and how impactful market volatility on positions can be, even 2x doesn't sound like much. I talked to people trying to convince me how much control they have over 10x leverage positions. I played around with leverage positions, but not with a lot of money. It was an experiment for me to see how quickly your position can get killed. It's crazy and the worst is when someone uses hard earned or saved Bitcoin because there seems to be a shortcut to doubling the money. In most cases it isn't any more promising than playing roulette.

The first of these recommendations is a must-do: don't put all your eggs in one basket. The second one is also a must, you can't invest without saving money. These are things that everyone knows, but the majority of the society fails to put them into practice. Either saving money is difficult or investing is not for everyone. As for leverage, I don't think it should be used at all. Trying to buy and sell an asset that you don't have involves great risks. Being boring with the portfolio suggests that you should keep few assets in the portfolio and not change them frequently. I agree with all of these.
When I make my own investments, I hold Bitcoin and Ethereum from crypto assets, as well as a few altcoins. I try to diversify my non-crypto asset investments, but not to distribute them too much. The investment business requires serious discipline, and those who don't have it cannot provide good returns.

Saving is very common to us, but some still find it hard to save, most probably because they also have certain priorities in life that saving itself may come as the last priority. However, the last advice seems very crucial to all traders and investors out there. While people may seek for bigger profits, using leverage might be some others option. But I believe it’s not. It can only be safe if you are a professional and highly experienced trader, but for those who are still new to that craft, trading using leverage is always discouraged.

Vitalik should leave his bubble world for a moment and come touch the grass in the real world, where rent, groceries, bills are high, and wages are low (apart from programmers).  Nobody gets rich by saving, unless you save for all your life in some conservative ETF. 

Every single time a rich person gives financial advice, they are all bullshit.  I guess they do not realize or hear themselves.

The advice he gave seems very safe, very uninventive. You can’t get rich like that but I assume he can’t start telling you what to invest in as you could have grounds to sue for him giving bad investment advice.

the list is pretty basic but what makes it challenging is the actual implementation in your day to day life. it is how you will attack this in your actual life. anyone can give you piece of advice but it boils down to the fact that it is yourself who is making this journey of life and it depends on how you will live your life to attain such financial goals.


the only difference is that Buterin happens to be one of the top personalities in the crypto market, the creator of the top 2 cryptocurrency. and with his success on this project, he gained credibility when it comes to giving piece of advice to crypto users.

Most of these advice are pretty common and are just normal advice that you can get from other successful people as well. It's just that it's coming from a voice that has proven a lot of things and have backed most of his works with something. I'd rather listen to him who has done something rather than from someone who I don't know much about.

At this point, financial advice today is very easy to get and the message conveyed by Vitalik Buterin is not much different from what is often conveyed by many people who are active in the world of finance.
I think that's nothing strange to our ears.

This way of managing finances will work when we have money, therefore increase income so that we can control money optimally and not have a lot of worries and we can manage finances well without shortages, people who have little money will find it very difficult to diversify, or not. he has to accumulate enough time until he feels he has enough to cover his needs, but unfortunately age will be the main bet if seen from this point of view.

My thoughts is that this advice is pretty trivial, Vitalik is saying obvious things. You can get such "valuable" advise here on this forum by simply visiting every second thread. 

His "actual financial advice" is nothing new. Just vague and extremely basic. If anything, this is just Vitalik going full influencer mode. I am pretty sure he just copy pasted whatever first page google search results showed him. I am not saying that his advice is wrong. It is actually quite important and the first things any new investor should know. But there are other parts to smart advice. Doing your own research (DYOR) is extremely important. Otherwise you are investing blindly. Which is the most destructive and dangerous thing to do in the cryptocurrency world.

TBH, I don't know if saving is the main purpose of Vitalik's advice. 
However, I can agree that saving for emergency is needed. It is an advice that we already know from many years ago. Even our parents always remind us to save money for emergencies or urgent needs. I think we can do it constantly, not only for 3 - 6 months. We don't know how much money we need for the future emergencies. That's why we don't stop to allocate some money for saving. I'm also doing this, it is a common thing that most people do in my country.

Well, it is true that everyone needs to have an investment. Although the investment doesn't guarantee our future, but it must be very helpful. With investment, we have the chance to gain money constantly and we have reserved money for the future as well. Saving in fiats only reduces its nominal amount over time, but if investing in Bitcoin or other potential things is potentially raising the value day after day. 

Here are some of my thoughts on his advice, the advice aren't anything new as these are normal advice that we hear everyday. Diversification are good but not in assets that are closely related, when newbies hear the CEO of Ethereum saying diversification are good they'll think he's endorsing investing in altcoins (and on the other hand, what do we expect from the founder of a altcoin preaching diversifications without clarifying when we're suppose to diversify). They're only trying to get people to invest in their projects with their advice, this isn't different from what CZ was doing when he was the CEO of Binance.

Diversify but don't do that with close assets like cryptocurrency. Instead of saving, Invest. Saving and investing aren't the same thing, when you save you don't give your money room to grow, saving puts your money at rest but when you invest, you put your money to work to make more money for you so we should pick interest in investing and not saving. Investing is also a form of saving but saving isn't investing. Lets know the difference so we can make better financial decisions to uplift our finances.

Being boring with your portfolio is actually the point I agree with more, Bitcoin is boring, it isn't as active like altcoin with all the difference things they introduced to their ecosystem like staking, farming and so on so investing in a boring assets like Bitcoin when compared to other altcoin is actually good. I noticed boring business are giving the most profits lately.

I think this message is relevant from what Vitalik Buterin conveyed from his quote from Bill Gates and Warren Buffett's tweets and it is good to follow, but as usual everything ultimately comes back to each individual in navigating the market. Human nature changes, sometimes today it's like that, in a few seconds the plan can change to another in managing finances.

While a defensive approach might seem less exciting than chasing high-risk returns, it's like building a sturdy foundation for your financial house. It offers peace of mind, stability, and the freedom to pursue other goals without constant financial anxiety.

Traditional bank savings with their guaranteed returns and emergency fund access are a secure haven. But venturing into investments like real estate or land can potentially generate higher returns, albeit with greater risk and uncertainty.

The key is to find the sweet spot that balances your risk tolerance, financial goals, and life stage. A healthy emergency fund (covering half to a year of expenses) is a wise starting point, followed by a diversified portfolio that blends safe options with calculated risks aligned with your long-term goals.

Real estate, for instance, can be a compelling option for long-term wealth building. Land, as you mentioned, has its own set of pros and cons. It can offer steady appreciation, but its liquidity might be limited, and development potential can be unpredictable.

Some people have gambled and won... I don't know how true that is, but I have seen some crazy winnings shared on social media, some people made a lot more profit with leverage trading. I'm sure that leverage trading requires a lot of experience, but when it comes to leverage I believe it also requires a lot of luck, that's why I say it's gambling.


Well, this Vitalik gave a piece of advice to people who are already rich... So people who already have a lot of money these are good ways to protect that wealth. But for people who are on the way to achieving "financial safety" risking here and there is not something we can run away from.

Good advice but i don't agree with Don't use >2x leverage. Some people have enough experience to work even with 100x leverage. All depends on your knowledge and on the amount of available funds you have."