I believe that the name of the game is diversification and that applies in both crypto and stocks. And for me that translates into top tier cryptocurrencies with upside and stablecoins on one side and into historically proven stocks but also a high risk portfolio on the other side. I would say that implies a complex portfolio that contains extreme volatile assets or ones that are at the beginning of their journey, coupled with proven assets. The idea is that regardless of the market conditions - either bull market or heavy bear market - some of the assets will continue to provide and do well, while others will take a dive. I am trying to prepare psychological for the worst, but in the same time hope for the best.
Cryptocurrencies and stablecoins drive the evolution
Cryptocurrencies like Bitcoin, Ethereum, Binance, Cardano, Hive and few others are the ones that have the potential to provide the most impressive earnings. But that's a game of waiting and when patience runs off I have prepared stablecoins to keep the optimism going. And what better option on stables than HBD on the Hive blockchain which provides a sweet 15% APR with additional compounding effect on top of that. On top of that I have had my share of experimenting and I think that now I have a better understanding of what works and what doesn't in the crypto space. Thus, probably I will not choose more experimenting but rather maximize my earnings through what I know works better.
Stocks - balance portfolio vs high risk assets
I like stocks as well as they are linked better to real life and provide additional revenue streams. I have a rather solid sticks portfolio built around a majority of dividend paying assets coupled with some that have few long term projects that should show stronger appreciation once those will be completed. But in the same time, like a separate portfolio, I have opted for high risks assets which are represented mostly from companies that had their IPO on NASDAQ in the past year. Most of them are in the red and in full research and development mode and all their finances are based on additional funding. But once they will complete the development and start acquiring customers, that's when the fun will really start. And if you pick them wisely, these can truly provide algorithmic returns. For me these are long term investments and I am allowing them around 10 years to prove themselves. But I am not a high risk junkie and the size of this portfolio is about 10% compared to the main stock portfolio.
Real estate as a safe net
And guess what? Beside crypto and stocks, I have invested a little bit in real estate as a safe net for the future. I succeeded to grab some land cheap and year by year I see appreciation in value. This might not be life changing, but for sure will make for a good cushion as time passes by.
Diversification is the key to success for me
With all these diversification methods, I simply feel way better about the future and I think I will be able to face whatever uncertainty comes my way. Ok, not everything, but at least some of my investment channels should continue to provide. And things are not stopping here and my supercharged brains continue to have new ideas on how these investments can be boosted by themselves or even others can be added.
The financial world is amazing and through focus and understanding, one can truly reap great rewards and even build something that can provide years after years. Moderation is required related to the expectations, but doing it and even failing should provide more than just staying aside. I've seen this passivity amongst my friends and while I've failed many times, I've also learned much and ended up with some good incremental returns on my overall investments. And this prepared me for what's next and motivates me to keep on going and simply keep up with the pace that everything around us is transforming. And it is a true financial evolution whether you can see it or not.