Like I said, that doesn't sound threatening or scary at all. Because it happens all the time. Crashes, rug pulls, hacks...all regular occurrences.
That's the price to pay for the incredible upside potential. People that can't stomach this, should simply not be in the game.
Alternatively, and the wiser strategy, is that you put a portion of your wealth in crypto, say 10-25%. The absolute worst thing that can happen is to lose it all, which is only possible if you don't know what you're doing. But is still survivable, as you still got your 75%.
Let's assume you're "sophisticated" and have 100K.
If you're not a complete moron, you then turn that 25K into 100K. It's stupidly easy to make money in crypto. Wait for a crash, get in, wait for the bull market. Which comes and goes. Allocate 75% to Bitcoin and ether and take more risk with the other 25% on midcap coins. Derisk by deploying a progressive profit taking scheme and auto buy small amounts using a DCA strategy. None of this requires even touching Tether.
So let's do the math. Your downside potential is from 100K to 75K. Your upside potential is from 100K to 175K. A reasonable timeline is 2-3 years, given cycles.
That's a 400% return on the crypto part. Doing only 400% in crypto terms makes you a shitty trader, it means you're very bad at it.
So that's why they call it an asymmetrical bet. The upside is many multiples of the downside. Asymmetrical bets are rare, once in a generation.
It is easy to make money right now because crypto just had one of the greatest bull runs of all time. How could you say that it would be the case in the future? 400% is easy? Easy to look at a chart and assume you can grab a chunk before it moons. How do you know there will be more 100%+ gains in the future? With the gaining popularity, bitcoin and eth will probably only fluctuate less and less over time.
It's not just easy to make money right now, it's been like that for over a decade. Crypto in general is still growing exponentially (in usage and holders) at a rate faster than the rise of Facebook and the internet.
It's being mainstreamed, Wallstreet discovered it, the first nation has implemented it, VCs are massively investing, the first batch of musicians/artists are embracing it and Twitter is about to integrate both Bitcoin and NFTs.
There's plenty of very serious signs for further growth. It's still early in a way.
But I could be wrong, but that doesn't invalidate the point. Sizable downside risk, far larger upside potential. If you want something risk-free, just stay out.
Note that earning 400% is not only achieved by buying low and selling high. You can drastically speed up earnings using derivatives and leverage. Which is also the fastest way to lose it all, so don't. It's for the pros.
That's the price to pay for the incredible upside potential. People that can't stomach this, should simply not be in the game.
Alternatively, and the wiser strategy, is that you put a portion of your wealth in crypto, say 10-25%. The absolute worst thing that can happen is to lose it all, which is only possible if you don't know what you're doing. But is still survivable, as you still got your 75%.
Let's assume you're "sophisticated" and have 100K.
If you're not a complete moron, you then turn that 25K into 100K. It's stupidly easy to make money in crypto. Wait for a crash, get in, wait for the bull market. Which comes and goes. Allocate 75% to Bitcoin and ether and take more risk with the other 25% on midcap coins. Derisk by deploying a progressive profit taking scheme and auto buy small amounts using a DCA strategy. None of this requires even touching Tether.
So let's do the math. Your downside potential is from 100K to 75K. Your upside potential is from 100K to 175K. A reasonable timeline is 2-3 years, given cycles.
That's a 400% return on the crypto part. Doing only 400% in crypto terms makes you a shitty trader, it means you're very bad at it.
So that's why they call it an asymmetrical bet. The upside is many multiples of the downside. Asymmetrical bets are rare, once in a generation.
But they're not for everyone, and that's fine.