I have always maintained that cryptocurrencies should make up only a minor position in most people’s investment portfolios. Appropriate diversification between asset classes allows an investor to participate in market gains while at the same time helps mitigate losses when segment downturns occur. A thoughtful approach to asset allocation can take risky investments, mix them with more stable asset classes, and create a market-beating portfolio while lowering overall risk and volatility.
Dollar cost averaging and asset allocation are the two key links in creating a strategy that can stand the test of time while building wealth. Most millionaires didn’t get there overnight. It takes patience, a willingness to respond to market forces when needed, and an open mind towards using new assets to diversify risk. It sounds easy, but it isn’t. I’ve tried multiple strategies over the years, and ultimately most of my attempts did not beat simple indexing. The primary reasons for that were taxes and fees. It’s hard to beat a low tax, low cost (0.15% annual fee) index fund when you’re paying 20-39% capital gains taxes on sales and transaction fees on top.
YouTube has mass deleted crypto content in an unannounced action taken on Dec 24th. Chris Dunn’s content was among the damage. This is nonsensical since Dunn often educates about avoiding scams, diversification and crypto risks. Many channels also did. Google has attacked crypto for 2 years, banning searches and restricting ads. This site has felt negative results due to Google and now YouTube actions and policies. The above video was restored on Dec. 28th, 2019. This is Chris Dunn’s response:
YouTuber Chris Dunn does a great job explaining this in his latest video, which you can watch here. I subscribe to his channel, and I recommend it highly for cryptocurrency investors who want to understand how to take a long-term approach to building wealth. He mentions his failures along the way, and also very much emphasizes that investing is a marathon, not a sprint. This is something that bitcoin investors forgot in 2017, and many paid a hefty price chasing gains as the market exploded and then imploded.