Liquidity is key folks !

Now that bitcoin has corrected 40% from all time high, buying some bitcoin, ethereum etc is the best way forward. This is the accumulation phase that will truly help you be that person who got that 100x return on their portfolio before the next bull run starts.

But keep in mind, liquidity is key !! By liquidity I do not mean the liquidity in crypto exchanges which will be sufficient for most retail investors but I mean liquidity that you as a person need in your life. There will be events in your life that will require you to liquidate your assets in order to be able to make do. Could be a wedding or a new house or a hospitalization etc.

Ideally, you would want to invest only as much in crypto which you feel you can afford to let it be for at least a decade into the future. For me personally, it is 5% of my income. I'm comfortable locking 5% of my income every month in crypto for at least a decade.

I would be willing to let my crypto investments grow for at least 2 decades before I redeem them. That's how long of a horizon I have on my mind. Why such a long horizon? I personally believe that it would take another decade for crypto to have applications that actually hit mainstream and then yet another decade for these mainstream applications to peak in terms of adoption. You wanna be the guy who has that L1 token which powers the metaverse where there's a million transactions everyday. That's how you'll know you're at the very peak.

In the ensuing two decades, you'll have various obligations. If you plan on saving 20% of your income every month, invest at least 10% in absolutely safe assets like investment grade bonds and another 5-7% in stocks. Restrict crypto to the least possible allocation because it will take the maximum possible time to achieve its full potential.

Even if your crypto portfolio grows at a CAGR of 30% from now, in 2 decades you'll be up 190x. On the other hand if you invest a lot in crypto and cash out in lets say 2 years, you'll at best be up 5x assuming the bull market comes back and you chose the wise coins. What matters is how long you're invested and not how much you're invested.