Alexander Lorenzo argues crypto investors make one critical mistake: mixing short-term trading with long-term holdings. He recommends splitting a $100,000 portfolio into $20K long-term positions, $70K medium-term swing trades, and $10K short-term trades, then sticking to that allocation with discipline.
If you try to take a short-term strategy and you treat it as a long or a medium, I don't care how good the coin is, you're hooked, you're done. There's nothing you can do. There's a good chance you lost all of your money. This is one of the biggest problems that people make is you need to separate strategies. You really need to separate which coins are for what. It's extremely important. If you don't feel comfortable with trying to handle 3 different strategies at the same time, maybe just pick one. Okay, so the first thing I would say is, number one, is the coin you're talking about long, medium, or short? It's the first question I would ask, right? Because the answer will vary like dramatically on all 3 of these. I recommend everybody in this group should be focusing on this and this. Once you get comfortable, you migrate yourself over here. Highly suggest it. So for example, this cycle over here, you know, there was coins that did like a 1,000x On this run, they died and went down like 98% here and never actually came back. So we really, really have to clean up our portfolios and manage it professionally. And it's not that hard. All you have to do is allocate a certain percentage of your portfolio. So let's say hypothetically you have $100K in the portfolio, right? All you have to do is just say which one— how much money do you want to put into each position? Right? So for example, if you want to go 50/50 on the long and the medium, that's okay. You have to like pick. Like we recommend, as a— for us, this is what we follow, is we do 20/70. Everybody should be writing this down because if you start mix-matching strategies, you're done. Like you're cooked if you try to take a short-term strategy from like me putting in a buy call or Jesse putting up a buy call, and we clearly explain that it's a swing and you treat it as a long or a medium, I don't care how good the coin is, you're hooked, you're done. There's nothing you can do. There's a good chance you lost all of your money. But what— for this $100K portfolio in this split year, it'll be $20K to long term, $70K to short term or medium term, and $10K to short term, right? And once you have that really dialed in Then you'll know how to allocate risk, right? So for example, if you have a high-risk coin that you really like, you know that you're not going to get your long-term portfolio or your medium-term portfolio involved. You're going to get your short-term portfolio involved. A lot of you, like, by your knowledge know this, but if I were to— I'm not going to— but if I were to go into your portfolio and dissect it, you wouldn't be following it. It's like, um, you know, like, the gym workout, but then you don't go to— you go to the gym, you don't follow it. That's basically what a lot of people are doing. So I would say that like doing the simple stuff and humbling yourself will make you the most money in your life.
