How you'd invest $50,000 into crypto starting from scratch in this crypto winter?
We are living a crypto winter like never before with world crises at every step, war, and high inflation, which simply makes you doubt any decision of investment. The bear state of the market and the economy surely feels daunting, so coming into the market and trying to build a retirement portfolio surely has its challenges and risks. Things don't look good and I think they will only get worse before getting better with the economic slowdown, recession, and high crediting which will not allow any money infusion into the crypto world anytime soon. The market is hanging on because of the long-term investors and HODLers who can wear the current "winter" conditions and hope to get well on the other side.
Some hope is coming if we look at the crypto market history and its cyclicity and we've already seen that while the market went through multiple bear markets, usually these were followed by longer and more consolidated bull markets. That's because the blockchain industry simply got stronger and stronger, innovations matured and more investors and institutions jumped into the space without getting out anytime soon. This means that if we were to build up a retirement portfolio from scratch and invest $50,000 into that we should be balanced, cautions, but also optimistic about the long-term yield of it.
Of course, I don't have $50,000 flying money to invest now in the crypto market, but if I had I would bet my money on the big players. Here is how I would allocate the funds into different assets.
- Bitcoin - 40% out of $50k, which means ~ 1.052 at $19k a piece
- Ethereum - 30% out of $50k, which means ~ 11.320 at $1.325 a piece
- Rune - 10% out of $50k, which means ~ 3,048.780 at $1.64 a piece
- Hive - 10% out of $50k, which means ~ 10,000 at $0.50 a piece
- HBD - 10% out of $50k, which means ~ 5,000 at $1.00 a piece
Once I got my assets in my portfolio, probably I would put some of them to work. Others will just HODL.
- Bitcoin - HODL in a Hardware Wallet
- Ethereum - Stake it in Ethereum 2.0 contract to earn on the PoS blockchain
- Rune - Probably just HODL, otherwise would need to pair it with an asset and add liquidity in a pool
- Hive - I would Power Up all of it, and start a Power Down, but while doing so curate out of it
- HBD - Deposit it into the HBD Savings for a 20% APR considering just a 3-day withdrawal lockdown
Splitting the assets this way would minimize the risk considering that I've stayed away from Liquidity Pools where Impermanent Loss can play a big role in the yield of the asset. At the same time the funds would be easily accessible when I would want to liquidate them, but due to the nature of the investment that would not happen anytime soon. Anyhow, this was a good exercise where I would invest $50k. Now a question for you...
How you'd invest $50,000 into crypto starting from scratch in this crypto winter?
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