This is probably going to get downvoted but I want to make a plea of sanity to some of the people on this sub.
I see lots of comments/posts about people who exclusively invest all savings into crypto due to crazy return potential. I just saw a comment by a guy who said he was in his mid-40’s and exclusively invests in crypto, and has yet to even begin retirement contributions.
This only applies to people in the US, as I’m not too knowledgeable about proper personal finance decisions in other countries – but I’d recommend anyone to at least diversify so that you meet the maximum you can on all your tax-advantaged accounts. Take every cent of your employer/government’s money that you can, and have some amount of safety for when you retire.
I’m 22 and have a semi-crap job that pays 45k a year but I still save about 15% of my take home pay specifically for retirement. About 10% of my pay goes in various cryptos. About 3 months pay sits in a high-yield savings account for emergencies, which I’ll eventually move into I-Bonds once I’m able to accrue a slightly larger emergency fund to account for the 1 year holding period – but once that’s moved over you essentially have tax-deferred savings that’s guaranteed to beat inflation indefinitely. To me, this is a far better use of my savings than just outright investing 25% of my income into crypto, despite earnings potential.
That way, I have enough in crypto to literally change my life if it does pan out. If Bitcoin crashes and sends everything else down with it, I’m not screwed and I’ll still be able to retire with 2 million or so to coast on. I try to regularly take gains from less trustworthy cryptos (AKA anything besides Ethereum/Bitcoin, which I stake) till I reach a point where I no longer have any of my original investment in it. I take those gains and put them in a stablecoin so that I can reinvest whenever inevitable 25-30% dips happen (like yesterday). I occasionally will send the USDC I have to Coinbase so I can earn 4% XLM rewards on my normal purchases with the Coinbase card – only if that outweigh my credit card benefits.
Honestly, the one thing we can rely on with cryptocurrencies IS volatility. You should not have so much invested in one place unless you are positive of earnings potential. Constantly keep your money moving, constantly take gains, and MAKE SURE TO DIVERSIFY SAVINGS FOR EMERGENCIES, RETIREMENT, AND CRYPTO – in that order.
or don’t, I heard /*insert shitcoin here/* is going to the moon 🌑🚀
TL;DR: don’t be a dumbass and diversify