Invictus Capital (Crypto20)

Malthusian

Euro_Skank said:

I wasn't certain that they were unregulated. I was kinda hoping some people would say they were regulated somewhere and that they were safe.

If you hang around the right forum people will happily tell you that cryptos are safe as houses. If you hang around this forum for that matter people will tell you that crypto can pay you 30%pa with low risk. They will also happily tell you either that cryptos are regulated (irrelevant non-crypto activity kitemarking) or better than regulated (smart contracts bro). What other people say doesn't matter.

London Capital and Finance was regulated, as were lots of other schemes that lost everyone's money.

What defines an investment as "cautious" is whether it is highly diversified to eliminate non-systemic risk, so that it can be expected to recover from short-term market falls if held for the long term; and in particular that it is diversified between different asset classes to reduce the impact of those short term falls.

This is why neither crypto tokens nor individual shares which ultimately depend on the whim of the Communist Party of China are cautious. A 100% equity fund is also not cautious because it does the first job (diversifying to eliminate non-systemic risk) but not the second (diversifying between asset classes to reduce volatility).

Euro_Skank

Malthusian said:

Euro_Skank said:

I wasn't certain that they were unregulated. I was kinda hoping some people would say they were regulated somewhere and that they were safe.

If you hang around the right forum people will happily tell you that cryptos are safe as houses. If you hang around this forum for that matter people will tell you that crypto can pay you 30%pa with low risk. They will also happily tell you either that cryptos are regulated (irrelevant non-crypto activity kitemarking) or better than regulated (smart contracts bro). What other people say doesn't matter.

London Capital and Finance was regulated, as were lots of other schemes that lost everyone's money.

What defines an investment as "cautious" is whether it is highly diversified to eliminate non-systemic risk, so that it can be expected to recover from short-term market falls if held for the long term; and in particular that it is diversified between different asset classes to reduce the impact of those short term falls.

This is why neither crypto tokens nor individual shares which ultimately depend on the whim of the Communist Party of China are cautious. A 100% equity fund is also not cautious because it does the first job (diversifying to eliminate non-systemic risk) but not the second (diversifying between asset classes to reduce volatility).

Thanks, I think I understood most of what you said.

My BABA stock is between 2 and 2.5% of my investment portfolio. I still think it's going to return well in the long term. I shouldn't need to cash in my chips for another fifteen years.