Ways To Invest $1000 In Cryptocurrency Today - Crypto Breakdown February 10, 2022

Episode Summary:

In this episode, I give an example of a beginner crypto portfolio for $1000.

I break up the $1000 into categories with percentages and give you a list of breakout coins for each percentage category.

Questions? Ask at [email protected] and we will answer!

Hosts:

Joe Dewitt Follow at: https://twitter.com/metabitz

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Disclaimer: All of the information, material, and/or content contained in this program is for informational purposes only. Investing in stocks, options, and futures is risky and not suitable for all investors. Please consult your own independent financial adviser before making any investment decisions.

Unedited Transcript:

Hey everybody happy Thursday. My name is Joe Dewitt, and this is the crypto breakdown. Today. I'm going to discuss where to invest a thousand dollars and how to diversify your portfolio. But first we have a question from a listener Ethan Case as he loves the podcast and wanted to see what I thought about ever-growing coin, ticker EGC.

So evergreen coin is a deflationary token, which really reminds me of safe moon. This has an 8% reward for every buy and sell transaction where safe. They have a 3% for every buy and sell transaction is sent back to the buy wallet, 2% transmit to the liquidity pool on pancake swap. The one thing I do is that the ever-growing system consists of NFTE lending and their marketplace and a content subscription platform, diversifies, a little bit of where the liquidity is coming from.

And the thing about evergreen is Ethan. K. If you got an early enough, then I think it could be a great investment. I wouldn't personally recommend this to people that I know just because I know how these. Deflationary tokens work. And with that 8% fee is really punishing when you want to come around to sell.

But if you were in early enough, I think you could definitely make some nice gains here. For the most part, I just like to play on the safe side. So I do like to stay away from tokens like these, but that doesn't mean that there's not money to be made. And now we're going to jump into where to invest a thousand dollars and how to diversify it.

 Keep in mind, guys, this is not financial advice. This is only my personal opinion, and this is essentially an introductory investment portfolio. So this is how I would diversify a beginner's portfolio or someone's starter portfolio. Now with. Absolutely 30% means to go to Bitcoin. Bitcoin is so important because it is essentially the gold standard for defy.

Everything is backed by Bitcoin. And if Bitcoin goes down, markets are going to follow. So having a good share of Bitcoin is definitely very important on a lot of people in the space. Think that it doesn't matter too much. Although as Bitcoin rallies come rolling around, it will definitely regret those.

So 30% in Bitcoin and 20% in Ethereum. So that is the first 50% gone. And two tokens. Now, if you know me, you know that I am an advocate for diversification. So you might be thinking, wait a second, 50% in two coins. That's not diversifying. This is Bitcoin and Ethereum and defy is built on these two Ethereum being the number one layer one, and the most popular blockchain for decentralized application.

These two projects aren't going anywhere and is going to be very important to hold these two in your portfolio. And it's nice to keep in mind. It's very good to have a larger portion into safer coins just to minimize the risk when trading. So now that first 50% is gone with Bitcoin and ether.

So for the next 20%, I would recommend investing in other layer, one tokens like Salana near AVX BNB. And if you wanted to use those examples for the 20%, you could just do 5% of. Now the reason I recommend doing this is to diversify into other layer ones that aren't Ethereum. So you can get a feeling of what's out there.

And as these other layer ones succeed you will have your foot in the door and have a little position that you can grow on. Now, 10% and two layer twos like polygon or Lupron layer, two projects are going to be crucial for the future of scaling blockchains on they help verify transactions and de clog the network layer.

Solution doesn't investments are going to be very lucrative. Now I had another 10% and two decentralized gaming. So something like manna for decentral land sand, which is the token for sandbox AXS for ACCE, infinity, or Pollis for star Atlas. Now, this is a good way to diversify into the defy gaming world.

There are so many plates earn games and blockchain games that are becoming popular and very lucrative. So to smart, to hop on board soon while they're still being developed and investing in these games while they're still very young is a great way to see what is out there and get every angle of defy rather than just investing.

And doze coin or Bitcoin alone. Now for the final 10%, I would recommend stable coins. Now, most people wouldn't say this, but I would absolutely recommend stable coins for last 10% of your portfolio sizable chunk. Just because it is very important to stay liquid. If you have 10% in USB-C or tether coin, Any stable coin like that.

What it allows you to do is when you find positions that you'd like or positions you were comfortable with, you are able to enter those positions. If I gave you a portfolio with all 100% of the thousand dollars in tokens, you wouldn't necessarily be able to invest in something new when you saw it, you'd have to upload some more money onto your exchange.

You'd have to start a new position this way. If you have stable coins, you can take out of the stable coin as you see fit, and you can put profits into it to keep it. So that being said a little quick recap, we got 30% in Bitcoin and 20% in Ethereum making the first 50% next 20% to layer ones like soul near Avox and BNB 10% towards layer twos like polygon and Lupron, 10% towards decentralized gaming manna, sand AXS Paulus and 10% and stable.

So this might not be the most explosive growth portfolio out there. No, not at all. What this is a very safe diversification into everything in defy that you would need. Now, a portfolio like this over time is not going to do bad. It is going to. Just purely based on the diversification. If you widen your range into different branches of defy, it most likely will work out for you.

And I just want to mention one more time that this is not financial advice. This is only my personal opinion on what I see fit on a beginner's portfolio. And that's all the time we have for today. Guys. I hope you found that insightful. You can follow and subscribe to our podcasts, which will all be going to.

Have a great Thursday