Re: I have $150,000 US dollars and my target is a 10x gain. Stop me going all in now
⭐ Merited by vapourminer (1)
I now have 150,000 to scrape together.
Principles: I have a high risk profile. I am patient up to 10 years. I could buy and hold. I do believe this 2021 is a once in a lifetime year. The gains next cycle will be much less in 4 years.
I like the Bitcoin "Rainbow" Price Chart:Principles: I have a high risk profile. I am patient up to 10 years. I could buy and hold. I do believe this 2021 is a once in a lifetime year. The gains next cycle will be much less in 4 years.
I wish I would have seen it earlier. Obviously, past results are no guarantee for the future, but I've also seen history repeat itself several times.
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1. Starting today on April 10, 2021 if I invested 150k in bitcoin, how much do the gurus expect me to have in 1, 2, 5, and 10 years? Like would any idiot who just invested today and didn't sell expect a 5x increase within the next 10 years?
For 5 or 10 years, I have more confidence in Bitcoin than euro or dollar. I'm not doing short-term predictions, but for 5 to 10 years, I expect a Bitcoin price anywhere between $5k and $5M. Let's put it this way, you can lose 90+%, but you can gain much more than that.That being said, I wouldn't invest everything. A balanced portfolio has lower risk. You say you have a high-risk profile, but 10 years stock in a bull market is low-risk compared to the volatility on the crypto market.
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2. I would use dollar cost averaging, but over what time horizon? Invest 150k over the next six months? Or just invest it all today since we all know it's going up?
Another reason to diversify your portfolio is to have cash at hand to "buy the dip". DCA is great if the price drops, but not the best if the price keeps rising.Quote
3. I could withdraw the old retirement fund and get the initial investment up to 300k. Would you go all in using that? I would not have much of a backup plan for retirement if this is the case, but like I said I have a high risk profile. I do believe this is once in a lifetime.
If Bitcoin goes up 100-fold, you don't need to have $30M. You'll do just fine with $3M.But if Bitcoin goes belly up, you'll love to have $270k left for your retirement.
Note that I'm terrible at investing, I'm risk-averse and irrational (I tend to hold whatever I have and have a hard time diversifying), so take my words of caution any way you want
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4. If I want to pursue some alt coins, and again, I have a high risk profile, what % mix would you recommend? 33% alt-coins and 66% bitcoin, or 50-50, etc?
Altcoins are smaller and therefore can go up a lot faster. But most of them disappear. Compare the top ones now with 5 and 10 years ago, and you'll see most of them don't last 5 years. Drops of 99% are quite common. There's also this:tokens, like altcoins, ICOs, Forks, DeFis and NFTs, are solely created to make the creator rich. They missed out on Bitcoin when it was cheap, create their own BS, spam it, hype it, and due to FOMO and greed people give them their real Bitcoins in exchange for something that will be forgotten again 2 years from now. Then just rinse and repeat!
Before buying into crypto, make sure you know what you're doing, and know where you're going to store them. Unlike stock, I wouldn't keep Bitcoin with a broker (exchange) for long term. Learn how to keep it safe by yourself.