Future of Crypto/Crypto part of asset allocation

Dear Forum,

apart from my strategy of investing more than half of my monthly salary into VT, I have been drawn to crypto again and again. For better or worse I have never made in investment but have been following the scene since 2016.

Today I just made a very small ETH purchase out of curiousity. Cardano and Polkadot seem also interesting to me.

In general my investment horizon is longterm (>10 years) as I am 24 years old and have recently started my first job. Considering this investment horizon what are your thoughts of adding a small crypto allocation to your portfolio (e.g. 5%)? Any additional thoughts on staking?

Do you have any sources that give a critical discussion of the outlook for the space in general? Something that is balanced between crypto is going to the moon and crypto is doomed too fail?

I would say that I have a very solid technical understanding of the technology and have always felt that still no killer use case has been found.

Looking forward to hearing your thoughts. :slight_smile:

I’ll let the crypto specialists write about the long term prospects of crypto. I just have this to say:

When it comes to crypto, I’d be wary about considering that a long term horizon somehow reduces risks. It increases it in my perception since we don’t know the winners yet and, lacking regulation as of now, the market is still full of actors which could be not sufficiently capitalized, experienced or be downright willfully deceptive and have ill intent.

I’d consider a bet on a specific coin like a bet on a single stock, and a bet on a crypto ETF like a bet on the specific single stock of the company providing that ETF.

That being said, my plans involve getting a small allocation in cryptos (0.4%, meant to slightly increase as I age) once I reach a sufficiently high net worth (2 millions).


Hey Wolverine,

Pls excuse the late reply. I agree with many of your points

In the end I ended up allocating a very small fun money amount.

I think that at least currently the space is extremely hot and really shows some strong resemblance to dotcom times.

Have a nice weekend! :slight_smile:

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