The Essence Of An Investment Portfolio
So why do individuals build up Investment portfolios over years and decades? The simple answer is, security! An investment portfolio that grows over time is a portfolio that is working. For many, this is a type of nest egg and something that they are looking to utilize later in life. For me, an investment portfolio should be more, and with Crypto, it can be! The risk factor of altcoins always comes into the argument against being too heavy, or “all in” on alts and Crypto in general. This is all relative of course because time in the market really will protect your initial investment, even when the heavy dips arrive.
How This “Crypto Thing” Actually Works
However, looking at a Crypto portfolio one year in simply doesn’t work. It doesn’t work because there is a lot of present and short-term volatility taking place. Due to the long-term trajectory being so significant, those volatile moments are literally invisible on a long-term chart. It’s as if those heavy corrections never happened when they are expressed over time. The only way to get yourself into that position of strength is to get into the market and begin putting months and years behind you.
Interesting to note that up until this point, BTC has not moved as aggressively this cycle as in cycles past. However, altcoins performed remarkably well. Many alts rallied thousands of percent during the course of 2020 and 2021!
Calculations That Matter
When working a job or career, every hour that you give of your time has monetary value. In essence, the exchange that is taking place is grossly “unfair” and even foolish. Why do I say, foolish? Well, time is the scarcest and most valuable of assets and you are exchanging it for an asset that is in abundance within the Crypto realm. Doesn’t that sound silly? I use the term, “incentivized economy”, when referring to what is currently happening within the Crypto space. Earning opportunities, along with the monetization of activity is literally changing lives.
In my thinking, one should be looking to create a portfolio that is able to generate income. The purpose of this is way more important than money.
The Reason Is Twofold
Firstly, the amount that one should initially aim at generating is your hourly wage. If you work 8 hours a day, you need to generate the monetary equivalent via an income-generating portfolio. The beauty of this idea is that a portfolio works 24/7 and not just 8 hours a day. Once this is achieved, the second reasoning behind this idea becomes rather apparent. Now, you are no longer under any obligatory behavior. You are removed from having to take part in the common exchange of your time for money.
In essence, your time is your life broken down into sections. Being removed from a mild form of slavery does not necessarily encourage laziness or stagnation.
Free To Be Free
It’s as simple as that and yet many fail to see the beauty of freedom. In freedom, you can continue working, or even work harder than you did when you were forced to. The difference is that you are free to choose! Not many people work towards this goal, they do however work towards climbing corporate ladders. As Crypto has grown over the years, I will say that I have noticed a significant change. People are generally more financially knowledgeable than they have ever been and as a result, are now thinking differently to generations past.
Success Is Freedom!
Earning the equivalent, or even more than your salary via an income-generating portfolio removes the obligatory exchange of your time for money. Freedom will however also come at a cost. You will have to work towards a goal, consistently building and growing your portfolio until such a time as it can stand alone. This is an idea I find exciting and enjoy building towards a clear goal, as it is extremely rewarding!
Thanks for journeying along and I hope to see you in the next one!