While investors want to earn more in a short time with their Bitcoin and altcoin investments, advice came from Ethereum (ETH) founder Vitalik Buterin.
Commenting on Alex Voigt's post about Bill Gates and Warren Buffett, Buterin gave his investors four recommendations for cryptocurrency investors.
Reacting to the post that said Bill Gates missed a huge profit due to meeting billionaire Warren Buffett and then diversifying his portfolio by changing his financial strategy, Buterin said that the advice that the portfolio should not be diversified was very bad advice.
According to Buterine, portfolio diversification is good and one should not use more than 2x leverage in leveraged transactions.
“Portfolio diversification is good.
Save enough money to cover your expenses for a few years. Because financial security is freedom.
Be boring for most of your portfolio. So, prefer to invest in low-risk, stable assets.
Avoid high leverage in your investments. Do not use more than 2x leverage.”
This is awful advice. 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. https://t.co/CIvDJcD3UG— vitalik.eth (@VitalikButerin) January 7, 2024
*This is not investment advice.
Most people can’t effort themselves to save money. So they even can’t taste freedom.