Hi steemit,

today I want to share some thoughts about finances in general and the PermaCryptoFolio experiment in particular.

PermaCryptoWhat? I’m sure you never heard about it. I announced this public trading experiment here on steemit some days ago, and in the last days I had some nice chats with other people here on steemit about this idea and I became aware that we have the full spectrum of experience regarding finances here on steemit.
On the one hand we have some hedge fund managers, bitcoin millionaires and successful entrepreneurs bringing along a lot of experience on the topics of cryptocurrencies and finance.
On the other hand there are steemians that have to make do with very little money. And in between there are here now thousands of Joe Averages und Michaela Mustermanns, all with less or more experience regarding Bitcoin and other cryptocurrencies.

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Steemit is a great community of friendly and open-minded people who are here primarily to exchange their thoughts and to find new contacts. But here are also many people who missed the giant rise of Bitcoin and want to make a fast buck now. They see, that it is possible to collect a some hundred dollars by posting a funny Meme, and are attracted to join steemit.

And they might also dream, that it is possible to gamble with thousand dollar and make a million out of it within months. For all this people I have a simple message:

That will not work

Ok, their might be some happy guys who are able to make a million short-term. But this is only the minority of a minority. If you are here to get rich the fast way, then I’m sorry to say to you, because PermaCryptoFolio is the exact opposite of the „get me rich asap“ strategy.

To get rich the fastest way by trading assets

• you need some years to learn a lot of stuff
• you need your profitable trading setups
• you need the discipline to only trade your setups
• you need a lot of time to follow the markets
• you need very good nerves

I’m a full-time employee and father of twins, so I don’t have the time to cover the markets 12-16 hours a day, and I also don’t have the nerves for daytrading. Instead I prefer to spend my valuable sparetime with my lovely wife and my children. A passive investment strategy like PermaCryptoFolio fits perfectly into my current life circumstances.

In my last posting I promised to write tutorials on how to buy Bitcoin, how to open accounts on cryptocurrency exchanges and so on. My intention was to help newbies in the cryptospace area, but meanwhile I’m confident that this is not the right way. If you are new to Bitcoin and Cryptocurrencies, just sit back and enjoy this show.

PermaCryptoFolio is a long-term experiment. Long-Term means, that I will run this experiment for years, not only for months. It will be my public trading diary. All the top traders are recommending to write such a diary, but to be honest I was to lazy to do it in the past.

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There is no reason to rush!

Watch this show, and if you think that it could match to your investment style, feel free to try it for yourself at your own risk, but don’t blame me for bad results or losses. As the rules are already defined, you can save them for yourself, and even if steemit closes down or I do not longer run this experiment for some reason, you still have the toolkit in your hands.

I said that I want to outperform the simple „Buy Bitcoin now and hold it for long“ strategy with the PermaCryptoFolio experiment. Outperformance in this case means, that if for instance Bitcoin rises 10 percent till the end of this decade with a lot of up and downs, I expect that for instance PermaCryptoFolio could generate 15 or 20 percent performance. But not 100%, and even not 1000%!

Do not expect to much!

But back to the experiment. The PermaCryptoFolio is structured as shown in the chart some lines above, but in the months ago I also thought about to weight the components (Cash, Bitcoin, Altcoins) for instance with 50:40:10 or 40:40:20. I now plan to start in parallel a second portfolio, that only invests in Bitcoin and not in altcoins.

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Doing this way we can later compare if the addition of altcoins to PermaCryptoFolio was profitable or not. That’s all for the moment. Next update with focus on cryptocurrency-exchanges follows monday or tuesday.

Stay tuned, trade safe, and enjoy your weekend!

Best regards,
twinner