As many of you may know Warren Buffet is one of the richest men to have ever lived and I have been studying his rise to riches for years now. As many may argue he definitely had the way paved for him by his family. but it does not mean that we cannot learn from his success in order to translate it into our own personal success. Now when it comes to cryptocurrencies it is very important to understand that I do not believe it is a good means of depending solely on cryptocurrency earnings to live off of. I think this is a very risky strategy and as we have seen over the course of the years the crypto space can be very unpredictable (I'm looking at you Do Kwon). What I do believe is that there is a massive opportunity to capitalize on the potentially massive rewards of Web3 industry. A small investment can go a long way in the new Proof of Stake systems we are seeing emerge within the crypto space. Never invest all of your money or more you are willing to lose in crypto and make sure what you are investing into has value and a way of generating income by selling an actual product. Furthermore, I currently and will continue to hold a job in a career that allows me for advancement opportunities and will use that income to make my investments into the crypto markets. I think this is important for young people to understand that the world will not reward laziness and over-consumers. Yes, some people may become lucky with meme coins, and other such risky ventures. But consistency and hard-work will triumph all. We live in a hybrid-tech world where there are multiple realities with the internet and the physical world. I believe that the younger-generation are neglecting this fact but it is very important to understand that without taking care of the physical world the digital world cannot exist. Seeking to improve or contribute to the physical world will allow you to acquire the income needed in order to make money in the digital world. This is how to acquire wealth long-term so you can have a bountiful retirement savings account.
For example, in my personal life I am actively involved in the creation of food. Essential industries will reward you with everything you need monetary wise if you accept the fact that these jobs need to be done. People have to eat, have shelter, and use the bathroom. I believe that the best course of action for one wanting to make money in Web3 is to understand the importance of not neglecting the development of the physical world. The reason I will become immensely successful is due to my passion and dedication to advancing the physical world to the best of my capabilities. My career in the food industry allows me to provide an essential need for people, while rewarding me for my contribution to society. If you take this approach to life I believe you will find success as well. Most importantly, as I continue to acquire wealth I do not slow down or become content. In fact, the more money I make the harder I work. I have 24 hours everyday to maximize every second and I personally do my best to capitalize on every waking second I have. Just imagine 20 years of persistency and good decision making. This is what I am doing.
With that being said, let's continue into my investment strategies that I have modeled after Warren Buffets own personal financial philosophies. When it comes to cryptocurrency I am a huge fan of staking. When it comes to staking, I always cash out a portion of my earnings and never re-invest what I have saved, rather I only invest with money I work for. This ensures that I am building up cash savings while still dollar cost averaging my portfolio. Also, I do not wage more than 25% of my excess income into cryptocurrencies as I still strongly believe in the value of investing into the traditional American Stock Market and mainly the DOW Jones and S&P 500. I believe that if you take a proper risk-management strategy with acquiring cryptocurrencies, staking them, and cashing out a portion of your staking rewards while reinvesting the other portion you can make tremendous returns in the next 7-10 years with the right investments made. Overall, I think there are a number of great ways to hedge against risk and benefit off of the growing Web3 ecosystem. The enhanced productivity and added value of time that can be earned by using Web3 social platforms is something I think is very undervalued right now especially if you consider how Facebook has a current marketcap of around 500 billion, and all time high market cap of around 1 trillion. There is still endless opportuntiy for growth in the Web3 social media sector as people are simply unaware of the value for monetized social engagement, which is due to the newness of the concept. As with all things early adopters will be the most heavily rewarded, and there will still probably be some rockiness in the space in the next few years. However, I believe my investing strategy into the cryptocurrency market is going to payoff massively for myself as its based off the simple principle of value investing and re-investing.
My overall outlook on the crypto market is this, 99% of coins are garbage ponzi schemese, 1% of coins have the potential to increase massively in value as they become increasingly implemented into major industries like healthcare, freight transportation, finance, and social media. The decentralized aspect of cryptocurrency allows for bad actors to get away with running these unethical coins, but that is the nature of the free market, and as the market dictates, value and utility will arise from it. Ultimately, there will be some sort of auditing industry to establish a standard for ICO's which will allow assurance for investors as to the legitimacy of the coins that they are investing to. We have already seen some early platforms launch with this concept in mind such as TrustSwap and Certik. Now taking into account the 1% value belief I have of the crypto market I do not invest into what I perceive as garbage, i.e. memecoins, ponzi-scheme yield farms, and other nonsense in the market. What I invest my capital into are coins that I believe will exist until I die that have a clear means of making revenue and generating profits for investors.
There are some very interesting real-world companies launching on various blockchains that have physical locations, or a means of generating income outside of needing someone else to buy after you. What I also look for is the ability to stake as staking is a next-gen dividend these cryptocurrencies can generate that allow for the investor to passively accumulate in order to compound your holdings. Therefore, my current strategy is this. Acquire and stake good layer-1 coins that will allow the most number of valuable Dapps to run, which will generate infinite transactions and continuously payout investors. Research real-world blockchain-based companies that sell an actual product with a plan to payout investors with a percentage of the profits off the product they sell, often times this in the form of staking rewards. Then cash out half of my staking rewards while reinvesting the other half of my rewards back into these currencies in order to further compound my holdings. This long-term outlook combined with value investing I believe will shield myself from the volatility and craziness that can occur in the market, while allowing for me to generate basically infinite cryptocurrency.
Now I am not a financial adviser so take my picks lightly and please research any investment before you make it, but the layer-1 coins I am currently invested into and am staking are ETH, ATOM, EGLD, and HBAR. I am looking at other Layer-1s to acquire and stake such as ADA, DOT, MNW, VET, potentially HIVE, SOL, and HBAR. What I wish to see before buying into a blockchain is a good selection of valuable DAPPS that will exist and be implemented into the real-world for years to come. Most importantly, the beautiful thing about the blockchain and proof of stake is that it allows me to take my staking rewards and acquire the blockchain (or layer-1) coins I do not currently hold, then stake those, and get even more staking rewards. Most of the coins move together anyways so if you stake 5-7 they typically have similar movements in price. But I do still believe in diversification of a portfolio that way in the event of another LUNA you are protected against total-loss at the very least. Now when it comes to real world blockchain-based companies I currently hold a few, but am looking to find more. Keep in mind that these are very new and still very risky, but the real world coins I hold are QWT and EVLD. I did not make a big purchase of EVLD as it in pre-sale but I am optimistic on the future value of these coins due to the product they sell in the real world which gives them value. Furthermore, these companies offer staking incentives with a percentage of their revenue whenever they sell their particular product. As I find more coins I am optimistic I will update my findings, but, again that is what makes the acquirement of cryptocurrencies so amazing to me is I am able to place my bets on these coins with the interest I earned from staking the Layer-1 coins that I hold. So my real risk as long as the Layer-1s I hold continue to develop and expand is really not much and might be zero. And to repeat my strategy as I acquire interest from these riskier bets on real world blockchain companies I take a portion of the rewards, cash them out, then place another portion back into my layer 1-s to recoup the interest I lost, then I take another portion and acquire more shares of the real world blockchain crypto.
I hope this post provided value to you in some way I will be posting more good luck and feel free to educate me on any cryptocurrencies you are optimistic on I would love to learn more!