🎙️Crypto Portfolio 101 | Pod 169
What’s up everybody, it’s LG Doucet here.
For many of us (and yes I very much mean myself), owning and managing a juicy portfolio or crypto assets, be it BTC or fringe NFTs, is a brand new problem in life.
I’m a late bloomer. I didn’t saved very little in my 20s, and didn’t learn what Dollar Cost Averaging was until way too late.
So these last two years have been quite the leap for me: starting with buying ETH in March 2020 when it cratered to $90 USD, only to sell it all for a 3x profit a few months later (amazing at the time, but emotionally devastasting a year later), all the way to
investing falling backwards into Top Shot, PFPs, and various meme coins and airdrops.
Having many assets to manage is a great problem to have, but its incredibly stressful if you’ve never been there - and even worse when its in a sector with practically zero historical precedent (CryptoKitties notwithstanding).
And it’s even worse when the bull market comes to a brutal end. The volatility is hard to stomach.
It makes you question whether you want to be here. The last few months, I’ve often found myself wondering “how do I stay in crypto and sleep at night?”, which has made me realize that I never really had a strategy for any of this.
So naturally, I’ve been looking to the veterans of the space for some sense of how to build a crypto portfolio, even if its just structural advice…
🎙️Today’s Pod: Crypto Portfolio 101 | Scott Melker
Enter Scott Melker, The Wolf of All Streets, a writer and investor that I follow on the daily. Not so much for degen plays, but more so for his newsletter that often captures the emotions of the market (and his own).
I asked Scott on the show and tell us about his experience, his recent plays, and the fundamentals of shaping your crypto strategy.
And although he does own some NFTs, they are not his main focus. Rather, he spends parts of the pod explaining how he believes that Bitcoin is the most important asset ever created, and how trading often yields more losses than wins.
Wether you want to be day trader, passive investor, or just occasional degen, this episode carries many fundamentals that I think the NFT narrative lacks, like the 70/15/15 rule, or the advice of never trading on your phone while you’re out enjoying your day.
Tune in to hear Scott talk about:
Scott started buying stocks when he was 13 years old (3:45)
his first stocks were Disney, Caterpillar, and Apple (5:55)
he is no longer a trader, but rather an investor (11:00)
how Scott managed his emotions when he traded (15:10)
the rules he set out for trading (16:30)
Have set rules and a workspace where you do it
forgive yourself for bad trades, and learn that losses are irrelevant
losing 8 out of 10 times doesn’t matter if you have big wins
it took him years to develop his own rules (19:30)
chasing perfection as a trader (22:55)
building a classic crypto portfolio (25:50)
70% long term, 15% degen trades, 15% cash
always rebalancing profits into investments and cash
always having cash on hand to buy dips
the bear market is best spent researching alt coins and base layers (28:45)
the factors that affect crypto prices the most (32:10)
why creating daily content sucks right now (36:45)
why bitcoin is the most important asset ever made (39:30)
how to spot the next big asset (42:30)
the long term bull case for NFTs (44:20)
the first big bubble for NFTs (48:00)
would you rather (53:00)
There are many quotable moments in this one. Have a listen:
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**This is not financial advice. Nothing in this newsletter, podcast, or publication should be considered financial or trading advice of any kind. Please do your own thorough research and make your own trading decisions. This is not advice.”
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