cryptocurrency Ethereum co-founder as market registers strong fluctuations in days Vitalik Buterin Four recommendations to consider shared.
This is awful advice. Some actual financial advice:
NEWS CONTINUES BELOW* Diversification is good.
*Save. Get to the point where you have enough to cover multiple years of expenses. Financial security is freedom.
* Be boring with most of your portfolio.
* Don’t use >2x leverage. Just don’t. https://t.co/CIvDJcD3UG— vitalik.eth (@VitalikButerin) January 7, 2024
NEWS CONTINUES BELOW
- Emphasize Diversity: Buterin emphasized the importance of portfolio diversification and reminded investors of the first classic but rarely followed advice. While Buterin opposes the idea of “putting all your eggs in one basket,” he instead advocates spreading assets across various investment channels to reduce underlying risks.
- Learn to be frugal: Buterin recommends investing after investors have enough savings to cover their expenses. Buterin believes that investors who are not financially secure may suffer losses in difficult circumstances.
- Make Your Portfolio Boring: The co-founder of Ethereum advocates having a ‘boring’ investment portfolio as stable investments often deliver long-term profits.
- Limit Your Leverage to 2x: Buterin’s latest warning includes a warning against using leverage exceeding 2 times. This advice is especially important for those keen on using leverage, as higher leverage multiplies potential losses. As Buterin suggests, discipline brings peace of mind in long-term investing.
Although Buterin’s pragmatic advice seems simple at first glance, its implementation creates difficulties not only for beginners, but also for experienced investors. Investors can easily get caught up in this trend, believing that it is a market full of opportunities.