[BlockTwits Live] Crypto Expo Asia 2022 - How Ownership of Bitcoin Affects Your Portfolio

BlockTwits reporting live at Crypto Expo Asia, Singapore. Christopher Tahir, Trading Specialist at Exness, shares how ownership of Bitcoin affects our portfolio. Other than trading, Christopher is one of the translators of Bitcoin whitepaper in the Indonesian language. Before investing in cryptocurrency, Christopher believes people need to first understand what is Bitcoin, hence there are so many translated versions of Bitcoin whitepaper.

Not only limited to Christopher, the whole world is also having the same problem now. Inflation is rising at a fast pace, our money becomes less valuable. To beat the inflation, we need to grow our money and find a good investment instrument.

Christopher compares the performance of 4 instruments: inflation (top left), stock markets (top right), gold (bottom left), and Bitcoin (bottom right).  

Apparently, Bitcoin is the faster horse, if not the fastest horse when it comes to an investment instrument. However, Christopher doesn’t recommend anyone to go all in on Bitcoin or any other cryptocurrency due to the high risk and volatility. Before investing in cryptocurrency, he suggests we should start with ourselves, by doing risk assessments. Next, we need to manage our personal finances well, prepare our emergency fund, settle our insurance policies, and most importantly, avoid lending, and leverage derivatives. Lastly, based on our investment portfolio, set our numbers on how much to allocate to crypto assets. Despite so many types of cryptocurrencies out there, Christopher suggests investing only in Bitcoin, in terms of liquidity, decentralisation, and the ability to survive multiple crises.

How does a 5% allocation in Bitcoin affects an investment portfolio in 10 years’ time? For example, if an initial investment of $10,000 and a monthly investment of $1,000 are all invested in ETF, the outcome would be $365,000, while with just a 5% of Bitcoin allocation, optimistically one could bag $486,000 and the lower end is $408,000.

In the end, Christopher warns Bitcoin may boost the performance of our portfolio, but we also must pay attention to the risk. He thinks now might be the best time to start investing in Bitcoin; we could just buy a little bit every month using a portion of our salary, and always ensure not to leverage, know our risk appetite, and look for long-term investment.

Reported by: [BlockTwits] Nell