Vitalik Buterin, co-founder of Ethereum, recently posted a tweet to correct financial advice deemed ‘terrible‘. With undisputed expertise, he delivers golden recommendations, perfectly suited to the constantly evolving world of crypto.
Crypto: Diversification and savings
In a world where investing in crypto is becoming more and more common, the question of diversification arises acutely. Alex Avoigt recently questioned this practice on X, formerly Twitter, using the example of Bill Gates. The latter, after his meeting with Warren Buffett, diversified his portfolio by selling Microsoft shares. This reduced his fortune to $138 billion, which could have reached $1.33 trillion.
Buterin, whose achievements in the crypto sector are well established, quickly challenged this vision. For him, portfolio diversification is essential, whether in traditional assets or in crypto. He advocates the distribution of assets between different sectors to limit the risks.
Although he did not specify this in his tweet, this could be particularly relevant advice in the volatile crypto space. Buterin also emphasizes savings, essential to ensure several years of expensesa pillar of financial security, even more crucial in today’s digital economy.
Limit the risks
In addition to the importance of diversification and savings, Buterin emphasizes the need to limit the risks. This is one of the fundamental principles both in traditional investing than in crypto. He advises keeping a majority of your portfolio in stable, less risky investments. This, with a view to obtaining constant gains in the long term. This recommendation goes against the sensational stories of quick fortunes that are particularly prevalent in the crypto world right now.
But also, Buterin also warns against excessive use of leverage, advising to do not exceed a leverage of 2x. This tool can be particularly risky in the crypto context, where volatility can turn potential gains into considerable losses.
His advice combines traditional investment wisdom with a keen understanding of the digital economy. Which offers a balanced perspective and relevant to investors of all backgrounds.
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