Vitalik Buterin's Financial Advice

[aTriz]

Vitalik Buterin Took to Twitter to share Some of His Financial Advice.
quoting a Tweet About Bill Gates and Warren Buffett He Wrote:

Some actual financial advice:

* Diversification is good.
* Save. Get to the point where you have enough to cover multiple years of expenses. Financial safety is freedom.
* Be boring with most of your portfolio.
* Don't use >2x leverage. Just don't.

Tweet Link: https://twitter.com/VitalikButerin/status/1743991285214527532

What are Your thoughts about his financial advice guys? I like the first and 2nd which I've been doing by myself too.

[1714603534]

1714603534

[1714603534]

1714603534

[1714603534]

1714603534

[1714603534]

1714603534

[Charles-Tim]

The last advice is very important. But it is worth knowing that if you go 1x with coin margin and open 1x long or short position, that is 2x leverage.

If you trade stable coin margin like USDT or USDC margin and you open long possible with bitcoin at $40000 when it increased to all-time-high but fell back to $40000, thinking the price will continue to increase, bitcoin decreased further to $15550 and that means the money would have been liquidated.

Another disadvantage is the funding rate which may not favour those that open a long position. This is enough to discourage anyone to leave his coin on an exchange. Just buy the coin and send it to your wallet and leave the coin alone until the right time. Be boring with it, do not continuously checking it and thinking you should sell when all-time-high has not be gotten to.

Some people even regret that they wished to have hodl instead of trading. Take note that I am only referring to coins like bitcoin and not the shitcoins.

[Darker45]

I agree with all of the above. The advice is more of the defensive way to manage your finances. Although a risky approach could be more profitable in the end, a defensive approach is most probably safer and wiser. This applies not just in terms of investment but also in terms of handling finances in general.

Particularly about savings, however, it must be pointed out that it could be done in a number of ways. One doesn't have to keep money in the banks covering multiple years of expenses. Savings could be done in the form of investment. Saving money that's enough for half or a full year is probably enough. For the rest, one could save in the form of real estate properties, pieces of land in particular.

[pooya87]

I like the first and 2nd which I've been doing by myself too.

As long as diversification doesn't translate into buying altcoins and thinking there is a portfolio, they are good advices. Otherwise buying assets that depend on Bitcoin's price and  get dumped each time bitcoin makes a move are terrible options for diversification and even for investment.

[franky1]

the main rules..
buy low, sell high
dont sell at a loss
dont use funds you NEED short term

but only do it on markets where the underlying market has:
utility, purpose, community engagement
stood the lapse of time,
still has ongoing work/project goals

once selecting a few good assets
the best strategy is to look at a range of markets and "traffic light" / "rainbow" scale their market cycles (x year) low and high and mark where the current price sits..
green buy (buy most)
yellow hold  (buy least sell least)
red sell (sell most)

[tsaroz]

The rules stated are similar to what I've been following. I'm on for diversification. I have diversified my savings on crypto and stocks. Real estate is in my list but they are too expensive for me at the moment. Among Crypto, I have a fair degree of diversification and I plan to do more as my investment increases.

Saving is where I'm struggling at the moment. The charm of crypto and stocks is so big that I can't have fiat in my saving account. I need to improve in it. Even my partner suggest me to have a good fiat saving but I'm afraid that inflation could decrease its value.

I'd say my portfolio is balanced. Not too boring, not too risky.

I'm not using leverage at the moment. Tried some leveraged grid trading and it didn't went well.

[mindrust]

Vitalik Buterin Took to Twitter to share Some of His Financial Advice.
quoting a Tweet About Bill Gates and Warren Buffett He Wrote:

Some actual financial advice:

* Diversification is good.
* Save. Get to the point where you have enough to cover multiple years of expenses. Financial safety is freedom.
* Be boring with most of your portfolio.
* Don't use >2x leverage. Just don't.

Tweet Link: https://twitter.com/VitalikButerin/status/1743991285214527532

What are Your thoughts about his financial advice guys? I like the first and 2nd which I've been doing by myself too.

I think Charlie Munger's soul found a new host.

Wtf  "be boring" is supposed to mean?

You are Vitalik for fucks sake. You invented the biggest alt in the universe. You TOOK risk. Why is he talking like a boomer out of a sudden now?

Is there a malfunction in Vitalik's code? Somebody go and debug his brain.

[bluebit25]

* Save. Get to the point where you have enough to cover multiple years of expenses. Financial safety is freedom.
* Don't use >2x leverage. Just don't.

I find these convincing that planning and investing is a process full of experience.

For those who have gone through it, they truly feel the risk/safety in any field, perfection is not absolute and the unpredictable is always present. I know that many people are overusing leverage causing the liquidation rate to be very high, a game where the creators know that the thresholds easily weed out those lacking knowledge with it. Anyway, no one can help you with personal investment, experience everything yourself to achieve the goal you have built.

[kentrolla]

These are the one of the best financial advice which looks so simple yet very important I would say these are the pillars of financial freedom and growth. Especially for the crypto industry the last advice is the most important as most of us end up losing because of leverage as we continue to see huge liquidation everyday due to the high leverages. I had some financial advice but considering this one I feel my financial advice wont make sense because this one is gold.

[icalical]

* Save. Get to the point where you have enough to cover multiple years of expenses. Financial safety is freedom.

I do agree that financial safety is freedom but for some people saving up to the point where they can cover multiple years of expenses will take decade. IMHO the minimum amount of this kind of emergency fund is to be enough for 6 months worth of our spending, multiple years is also good but I think it would be better to use that money to grow business.

* Be boring with most of your portfolio.

I don't really get what does this phrase means, does boring portoflio means risk-free or should we buying only big name?

[FinneysTrueVision]

Tweet Link: https://twitter.com/VitalikButerin/status/1743991285214527532

The replies to this tweet are the perfect example of why it was such a dumb idea to allow people to pay a fee to have their tweets boosted.

Regarding his advice, I think it is mostly common sense. Having a diversified portfolio is good if it includes Bitcoin, a few stocks and some real estate. If he meant it in the same sense that some altcoiners talk about diversification by investing in multiple cryptocurrencies then that is just dumb, but I doubt that's what he meant.

Saving is something which already widely promoted amongst Bitcoiners. Some people don't agree with just hodling your money and never touching it but it is a good plan if you are preparing for the future.

Having a boring portfolio is also good because the best performing investments over long time periods tend to be those that carry less risk.

[boyptc]

There is no magical with his financial advise. They are mostly common and we hear it typically from the usual financial advisors.

But he is right, in all of them I like what he said about have a boring portfolio. What boring is like? when you hear most people say and advise to buy the same thing, Bitcoin.

Some may take his advise to diversify, many might take it personally to the point that they will diversify with pump and dump coins which is wrong.

[pinggoki]

I aspire to do the saving part, I spend almost all of my paycheck on bills and accessories for my tech so I don't have a lot of money or should I say chances to save leftover money from that paycheck, that's why I have a problem with saving, good thing though that I don't really have the impulse to spend my bitcoins for the frivolous stuff that I buy with the fiat that I'm getting. It's nice that Vitalik didn't emphasize diversification too much because I believe that he knows that too much diversification is bad for you and it's also a good reminder for many people to not take this advice too much as if these are the literal words of God, they might seem straightforward and obvious but it's hard to follow it to heart.

[m2017]

What are Your thoughts about his financial advice guys? I like the first and 2nd which I've been doing by myself too.

I didn’t see anything unusual in this financial advice from Vitalik Buterin. I don’t think that, in principle, these tips can contain radically unusual and miraculous statements. Similar statements can be heard from many other more or less successful people. Therefore, I believe that there is no magical and easy way to become financially successful. It's all pretty boring.

I think these financial tips (simple and uncomplicated) offered by Vitalik Buterin are worth sticking to and will allow you to maintain your financial well-being.

[Silberman]

Vitalik Buterin Took to Twitter to share Some of His Financial Advice.
quoting a Tweet About Bill Gates and Warren Buffett He Wrote:

Some actual financial advice:

* Diversification is good.
* Save. Get to the point where you have enough to cover multiple years of expenses. Financial safety is freedom.
* Be boring with most of your portfolio.
* Don't use >2x leverage. Just don't.

Tweet Link: https://twitter.com/VitalikButerin/status/1743991285214527532

What are Your thoughts about his financial advice guys? I like the first and 2nd which I've been doing by myself too.

The advice may not seem to be too out of the ordinary but it is the correct way to go about it, diversification can protect you from a crash in a single asset, saving is indispensable as having more money saved allows you way more flexibility than a person that does not have that money saved, investing in good assets avoids nasty surprises and avoiding leverage is a good practice as well, the only issue is that someone following that advice will not make a lot of money, and it will be the main reason newbies may choose to not follow that advice.

[davis196]

Vitalik Buterin Took to Twitter to share Some of His Financial Advice.
quoting a Tweet About Bill Gates and Warren Buffett He Wrote:

Some actual financial advice:

* Diversification is good.
* Save. Get to the point where you have enough to cover multiple years of expenses. Financial safety is freedom.
* Be boring with most of your portfolio.
* Don't use >2x leverage. Just don't.

Tweet Link: https://twitter.com/VitalikButerin/status/1743991285214527532

What are Your thoughts about his financial advice guys? I like the first and 2nd which I've been doing by myself too.

This is the most basic and generic financial advice I've ever seen. Most forum members already know everything about diversification and NOT to use leverage in cryptocurrency trading. I don't know why Vitalik Buterin is posting such generic BS. Does he want to turn into the new Robert Kiyosaki?
Is he about to start selling books and courses about "achieving financial freedom"?
Most crypto investors aren't diversifying their portfolio. Having both Bitcoin and altcoins isn't actual diversification.
I agree that saving is important, but having a bigger income is way more important.
Making 1K per month and saving 100 is way worse than making 10K per month and saving 2K.

[JayTrain]

These tips are probably familiar to many, even a beginner, the golden rules of simplicity and safety of their assets. Most importantly, he emphasized the importance of diversification, which I also think is very correct. These tips are a reminder that in finance, stability and simplicity are often the key to long-term success.

[Lucius]

~snip~
What are Your thoughts about his financial advice guys? I like the first and 2nd which I've been doing by myself too.

It is completely stupid that you post such basic advice on a forum, and it is even more stupid that the same advice comes from someone who is supposed to be intelligent, but actually turns out to be a classic attention-seeking troll.

Save. Get to the point where you have enough to cover multiple years of expenses. Financial safety is freedom.

Who does this advice apply to? Maybe people who work 8 hours a day, 6 days a week and at the end of the month get a salary that is not enough to cover the expenses of 20 days of life? Vitalik, like all those shitcoin creators, has definitely accumulated a lot of money and can enjoy his financial freedom - which is very easy if you have an altcoin that is premined and has unlimited max supply.

[Mr. Magkaisa]

Vitalik Buterin Took to Twitter to share Some of His Financial Advice.
quoting a Tweet About Bill Gates and Warren Buffett He Wrote:

Some actual financial advice:

* Diversification is good.
* Save. Get to the point where you have enough to cover multiple years of expenses. Financial safety is freedom.
* Be boring with most of your portfolio.
* Don't use >2x leverage. Just don't.

Tweet Link: https://twitter.com/VitalikButerin/status/1743991285214527532

What are Your thoughts about his financial advice guys? I like the first and 2nd which I've been doing by myself too.

       -   There is nothing wrong with the reminders and advice he mentioned; in fact, there is truth in what Vitalik Buterin said, especially the last time he mentioned leverage. There are too many people who make mistakes and take risks in leveraging. Don't let other investors imitate those they only watch on YouTube or in videos.

They should learn to research because they have also worked hard for their money, and they will appreciate it instead of just wasting it or gambling on something they have no idea or knowledge about.

[pooya87]

Vitalik, like all those shitcoin creators, has definitely accumulated a lot of money and can enjoy his financial freedom - which is very easy if you have an altcoin that is premined and has unlimited max supply.

Basically the only advice Vitalik should give others is to "create a centralized premined shitcoin by copying the code and ideas from Bitcoin and then get lucky as people buy into your scam". The rest like talking about "diversification" and stuff is just buzzwords he uses to look intelligence.