As a musician and NFT collector, I am thrilled to announce this newsletter is sponsored by MakersPlace. MakersPlace is the go-to premium marketplace for purchasing rare digital artworks from the world’s top creators like comic art legend José Delbo, Trevor Jones, digital wizard Pak, artists collected by MOMA, Guggenheim, and many others. They have new artwork drops twice a week where collectors have the opportunity to add a coveted piece of rare digital art to their portfolio. Collectors can subscribe for exclusive drop notifications on Makersplace.com/thewolf. I have been eyeing a few pieces there myself and recently commissioned a painting and NFT from Trevor Jones!Two of the most frequent questions that I get from people in the crypto community are: what do you invest in and what are the best investing strategies? As a general rule, the best investment strategy focuses on maximizing gains while minimizing risk. Historically, the best assets that fit this profile have been stocks, bonds, and real estate. A well balanced portfolio has always had an allocation of all three. In the past year, crypto has finally become a viable 4th part of any portfolio. Many now view an allocation to Bitcoin as an absolute must and as an increasing percentage of the overall holdings.Every investment strategy should always have a long-term horizon and investors that begin putting money away in their 20s have an exponential advantage over those who begin to save later. Furthermore, investing money that is not needed to cover expenses and leaving it in the market for as long as possible is the primary method for accruing wealth faster than any other single strategy. Ultimately, this is the secret to getting rich!To show how this works in reality, let's take a look at an easily achievable scenario. If a person invests $250 a month at an 8 percent average annual investment return the following retirement outcomes are achieved. A person starting at age:— 25 will accumulate $878,570 by age 65.— 35 will accumulate $375,073 by age 65.— 45 will accumulate $148,236 by age 65.As you can see, an investor who begins putting money away at 25 will end up with roughly 7 times as much money at age 65 as an investor who begins at 45. This is a result of compound interest and the key to successful long term investing. Long-term versus short-term investingThere is a significant difference between long-term and short-term investing. A lot of people, particularly millennials, don’t invest in stocks because they are afraid of losing money in the short term. If one is investing for the long term, then there is very little risk. Stocks can go down, but over any 10 year period in history they are always up at least 7% per year when the gains and losses are averaged out. With a longer term horizon, stocks have literally never been a bad investment. In our episode of Trade Gods, Peter Brandt said that he tells his kids to buy stock in good companies, then hope it drops 50% so that they can buy more. Buying the dip has always worked over a long time period.I invest as much as possible in tax shelters like Roth and SEP IRAs to avoid paying taxes on the gains and to increase the amount that is compounding. I also trade commission-free on E-Trade and try to only invest in index funds that have the lowest possible fees. I also dollar cost average in each investment, meaning that I buy most of these investments on a fixed date, with a fixed amount regardless of price. Compound, compound, compound!As Albert Einstein once said: “Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn't pays it.”The world’s most famous scientist issued this comment about compound interest and time has shown that Einstein was correct. As defined by Investopedia, “Compounding is the process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time. This growth, calculated using exponential functions, occurs because the investment will generate earnings from both its initial principal and the accumulated earnings from preceding periods. Compounding, therefore, differs from linear growth, where only the principal earns interest each period.” As mentioned earlier, compounding one’s gains is the key to accumulating wealth, period.There are three key rules to maximize the advantages of compounding: — Reinvest dividends or interest into the asset. — Add more to the investment whenever possible.— Invest over a long period, the younger one starts, the more powerful compounding will be. Compounding interest has become exceptionally easy in crypto, by simply holding coins on platforms like Voyager (my favorite) and BlockFi. You can make upwards of 9% a year simply holding USDC, compounding weekly or monthly depending on where you do it. You can also earn yield on your Bitcoin - earning 6% on Bitcoin while the prices rises is incredible.What’s the bottom line?Invest early and often! This is the true key to investing success. Also seek low fee investments and exchanges that waive commissions. Take advantage of tax shelters like 401Ks and IRAs. Put your money to work for you and don’t touch it unless you absolutely need it! When you are young you can invest in almost any asset as younger investors should keep the long time-horizon in mind. Following these strategies is the surest way to leave you sitting financially pretty and you’ll have a nice stack when you need your money the most!If you do desire to get this email more often, you can join the paid version!The paid version is only $15 a month and goes out every single weekday. It is just like the issue you are currently reading! Composing this newsletter is how I spend the majority of my time, and I take the fact that my members are paying me very seriously. I would love to have you become a more frequent part of this community.https://www.getrevue.co/profile/TheWolfDen/membersIf you cannot pay with a credit card, please respond to this email and we can get you setup with crypto. If you do want to pay with crypto, I can offer 7 months for the price of 6, or 14 months for the price of 12 for the inconvenience!In This Issue:How To InvestBitcoin Thoughts And AnalysisAltcoin ChartsChart RequestsNord FinanceJulSwap - First GlanceThe Feynman TechniqueWhat Platform Supports Token X?Will Twitter Be The Next Company To Buy Bitcoin?Mastercard Officially Announces Plans To Implement Crypto Through MerchantsMark Cuban Sees The Value In BitcoinBNY Mellon Will Begin Financing BitcoinThe Wolf Of All Streets Podcast Ft. Alon GorenPhemex Launches “Earn Crypto”My Recommended Platforms And Tools
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The Wolf Den #176 - How To Invest
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As a musician and NFT collector, I am thrilled to announce this newsletter is sponsored by MakersPlace. MakersPlace is the go-to premium marketplace for purchasing rare digital artworks from the world’s top creators like comic art legend José Delbo, Trevor Jones, digital wizard Pak, artists collected by MOMA, Guggenheim, and many others. They have new artwork drops twice a week where collectors have the opportunity to add a coveted piece of rare digital art to their portfolio. Collectors can subscribe for exclusive drop notifications on Makersplace.com/thewolf. I have been eyeing a few pieces there myself and recently commissioned a painting and NFT from Trevor Jones!Two of the most frequent questions that I get from people in the crypto community are: what do you invest in and what are the best investing strategies? As a general rule, the best investment strategy focuses on maximizing gains while minimizing risk. Historically, the best assets that fit this profile have been stocks, bonds, and real estate. A well balanced portfolio has always had an allocation of all three. In the past year, crypto has finally become a viable 4th part of any portfolio. Many now view an allocation to Bitcoin as an absolute must and as an increasing percentage of the overall holdings.Every investment strategy should always have a long-term horizon and investors that begin putting money away in their 20s have an exponential advantage over those who begin to save later. Furthermore, investing money that is not needed to cover expenses and leaving it in the market for as long as possible is the primary method for accruing wealth faster than any other single strategy. Ultimately, this is the secret to getting rich!To show how this works in reality, let's take a look at an easily achievable scenario. If a person invests $250 a month at an 8 percent average annual investment return the following retirement outcomes are achieved. A person starting at age:— 25 will accumulate $878,570 by age 65.— 35 will accumulate $375,073 by age 65.— 45 will accumulate $148,236 by age 65.As you can see, an investor who begins putting money away at 25 will end up with roughly 7 times as much money at age 65 as an investor who begins at 45. This is a result of compound interest and the key to successful long term investing. Long-term versus short-term investingThere is a significant difference between long-term and short-term investing. A lot of people, particularly millennials, don’t invest in stocks because they are afraid of losing money in the short term. If one is investing for the long term, then there is very little risk. Stocks can go down, but over any 10 year period in history they are always up at least 7% per year when the gains and losses are averaged out. With a longer term horizon, stocks have literally never been a bad investment. In our episode of Trade Gods, Peter Brandt said that he tells his kids to buy stock in good companies, then hope it drops 50% so that they can buy more. Buying the dip has always worked over a long time period.I invest as much as possible in tax shelters like Roth and SEP IRAs to avoid paying taxes on the gains and to increase the amount that is compounding. I also trade commission-free on E-Trade and try to only invest in index funds that have the lowest possible fees. I also dollar cost average in each investment, meaning that I buy most of these investments on a fixed date, with a fixed amount regardless of price. Compound, compound, compound!As Albert Einstein once said: “Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn't pays it.”The world’s most famous scientist issued this comment about compound interest and time has shown that Einstein was correct. As defined by Investopedia, “Compounding is the process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time. This growth, calculated using exponential functions, occurs because the investment will generate earnings from both its initial principal and the accumulated earnings from preceding periods. Compounding, therefore, differs from linear growth, where only the principal earns interest each period.” As mentioned earlier, compounding one’s gains is the key to accumulating wealth, period.There are three key rules to maximize the advantages of compounding: — Reinvest dividends or interest into the asset. — Add more to the investment whenever possible.— Invest over a long period, the younger one starts, the more powerful compounding will be. Compounding interest has become exceptionally easy in crypto, by simply holding coins on platforms like Voyager (my favorite) and BlockFi. You can make upwards of 9% a year simply holding USDC, compounding weekly or monthly depending on where you do it. You can also earn yield on your Bitcoin - earning 6% on Bitcoin while the prices rises is incredible.What’s the bottom line?Invest early and often! This is the true key to investing success. Also seek low fee investments and exchanges that waive commissions. Take advantage of tax shelters like 401Ks and IRAs. Put your money to work for you and don’t touch it unless you absolutely need it! When you are young you can invest in almost any asset as younger investors should keep the long time-horizon in mind. Following these strategies is the surest way to leave you sitting financially pretty and you’ll have a nice stack when you need your money the most!If you do desire to get this email more often, you can join the paid version!The paid version is only $15 a month and goes out every single weekday. It is just like the issue you are currently reading! Composing this newsletter is how I spend the majority of my time, and I take the fact that my members are paying me very seriously. I would love to have you become a more frequent part of this community.https://www.getrevue.co/profile/TheWolfDen/membersIf you cannot pay with a credit card, please respond to this email and we can get you setup with crypto. If you do want to pay with crypto, I can offer 7 months for the price of 6, or 14 months for the price of 12 for the inconvenience!In This Issue:How To InvestBitcoin Thoughts And AnalysisAltcoin ChartsChart RequestsNord FinanceJulSwap - First GlanceThe Feynman TechniqueWhat Platform Supports Token X?Will Twitter Be The Next Company To Buy Bitcoin?Mastercard Officially Announces Plans To Implement Crypto Through MerchantsMark Cuban Sees The Value In BitcoinBNY Mellon Will Begin Financing BitcoinThe Wolf Of All Streets Podcast Ft. Alon GorenPhemex Launches “Earn Crypto”My Recommended Platforms And Tools