* * * Original: Liu Jiaolian * * *
Outside the number, outside the number: Today, " Internal Reference: Retire from the Circle" was published on "Liu Jiaolian Internal Reference" . Welcome to pay attention to the official account "Liu Jiaolian Internal Reference" and read it.
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Overnight, Bitcoin fell slightly below 30k and then pulled back. It is currently sliding near 30k.
A question about the entry threshold for crypto investment has aroused heated discussions in overseas crypto communities. The reason is that a novice asked a certain big V, how can someone with only a few thousand dollars start to invest in crypto? Is it reliable to invest in Bitcoin, Ethereum, memecoin, and altcoins that outperform Bitcoin?
Big V's answer is concise and clear: find a job.
why? Yesterday Liu Jiaolian's article said, "Earning ability is the best alpha" .
The dialogue is still on a normal track so far. But the next speech by another KOL, a former partner of an encryption fund, is about to stir up waves with one stone.
You probably need more than $10 million to step away and start investing on your own, he said . Maybe you can survive on less money, but the margin of safety will get lower and lower. It is better to invest while working.
The entry threshold of $10 million is indeed jaw-dropping. That's why so many people were stimulated.
I remember a statistic a few years ago, saying that there are more than 600 million people in China whose per capita monthly income is less than 1,000 yuan.
I can't squeeze out 1,000 yuan a month. You can talk to me about 10 million dollars to get started?
But in fact, the person said, this is the standard for full-time independent investment. For most novices, it is best to focus on working to earn money first.
Turning 1,000 yuan into 2,000 yuan can only be achieved by successfully making 100% investment income. For many novices, it is really as difficult as the sky.
But through hard work, it is relatively easy to increase the speed of making money outside the market. Just like raising the monthly salary from 1,000 yuan to 2,000 yuan, it is not so difficult and hungry.
So when your principal is too small, it is not worth your time to speculate coins full-time. Small funds require high leverage, and high leverage is extremely easy to liquidate. Lost, devastated. Earn, in fact, did not earn much. It also involves a huge amount of energy, so the gain outweighs the loss.
At this time, the best strategy is as the saying goes, focus on improving the ability and level of earning money outside the market.
Many investors in the encryption circle quit their jobs early to speculate on coins full-time. This is not desirable.
But do independent investors really need more than US$10 million in funds?
The key lies in the standard of financial freedom. According to the FIRE theory of early retirement, as long as the asset scale exceeds 4% of living expenses, it can be regarded as reaching the FIRE standard of financial freedom and can retire early.
For example, if you or your family have a total annual expenditure of 200,000 yuan, divide it by 4% to get 5 million yuan in assets, which can be used for FIRE.
Even if you devote yourself wholeheartedly to crypto investment, it doesn't mean that you have to work hard when you have time. Often, the more you toss, the less you will get, and even if you are not careful, you will fall into the harvesting range designed by predators.
If encryption investment is regarded as a professional investment, it may require such a high threshold. But if encryption investment is used as a financial management tool, then it is often impossible not to do it because the principal is too small. Financial management is often the sooner you start, the longer you persist, and the effect will be seen after the accumulation of sand into a tower.
Jiaolian believes that the power of crypto comes from making finance more long-tailed. The mutual cutting among a few capital predators is not the vision of Bitcoin. The wide and popular holders, especially the poor can participate in and benefit from it, which is the source of strength of the new monetization.
* * * Produced by Liu Jiaolian * * *
Liu Jiaolian official account related articles to read:
From Investing Novice to Financial Freedom
Getting Started: Bazijue Buying Bitcoin
Move as fast as a mountain horoscope
Saving Bitcoin Gives You Financial Freedom
Money management, investing and saving
The light boat has passed ten thousand mountains
(Public account: Liu Jiaolian. Knowledge Planet: Reply to "Planet" from the public account)
(Disclaimer: The content of this article does not constitute any investment advice. Cryptocurrency is a very high-risk product, and there is a risk of zeroing at any time. Please participate carefully and be responsible for yourself.)