I have a hypothetical question, triggered by the thread quoted below.
Would your answer to the question 'If you had $1 million, how much would you put into crypto?' be the same as your answer to the question 'If you had made $1 million from crypto, how much would you keep in crypto rather than cashing out?'. For simplicity disregarding any existing crypto holdings, and any existing 'real world' bank balances and assets. We are assuming that this $1 million is everything that you have. Also disregarding taxes and other complications.
If your answers are different, then why are they different? Logically they should be the same (shouldn't they?).
For me, I think the amount I would put in (the first question) is less than the amount I would keep in (the second question). I think I know why, but would like to hear other people's thoughts.
Where and how would you invest 1m dollars? What coins will you buy? Or will
you just put them in Bank?
The same amount of money but then there is a difference of how you acquire it. If you have a $1M fiat money then it may be from your retirement pay, from a business, from other investments etc. and somehow it involves hard work assuming you got it from your own business or from your retirement so you wouldn't risk that much to put into something that you don't know yet the risk. I would just put maybe 2% to test the market and then after that, if I understand the risk then maybe I would top it up.
If I made $1 million in crypto though, I would have been in the market for some time so I would know the risk involve so I would cash out half of it because a $500k capital is even big enough for me. Even a $100k is big so depending then on the potential investment opportunities that I can find how much would I left in crypto. I would like to have multiple sources of income and knowing the volatility of the crypto market, I would make sure I have pull out my initial capital and then some profits from it.