#6 🚀 Portfolio Update | Ethereum Strategy (4 steps)

Portfolio Update. Right now, the world’s economic networks are mostly nation-states. We talk of the US economy or the European economy or the Chinese economy.

But crypto allows the separation of an economy from a nation-state.
Ethereum is an economy without a nation-state.

More than a non-sovereign currency, Ethereum is a non-sovereign economy.
It’s permissionless like the internet, censorship-resistant like BitTorrent, and a public good like TCP/IP.

A decentralized financial system for the world. To do so, it has to go through three phases and is currently very close to completing the second phase:

  • Stage 1: ETH becomes a reserve asset for the Ethereum economy.
  • Stage 2: ETH becomes a reserve asset for the crypto economy.
  • Stage 3: ETH becomes a reserve asset for the world economy.
 

We’re in stages 1-2 right now. We’ll know we’re at three when the large financial institutions and central banks start buying up ETH and ETH bonds for their balance sheets.

Once the second phase is completed, we would be talking about trillions of dollars, approximately $2-3T, which is 5x the current capitalization of ETH. However, once the third phase is completed, we would be talking about $20-30T, which would be a revaluation of 50x the current one.

Ether (Ether is the reserve currency of the Ethereum economy) acts as money like USD—as the Ethereum economy increases in size & influence and as Ether is increasingly used as money, Ether’s monetary premium increases

Many people ask if they are late to buy ETH. The answer is no. The best day to buy ETH was 8 years ago and the second-best day is today. The main reasons why it can become the reserve of the global economy are as follows:

The Merge

This is the process by which Ethereum will change from Proof of Work (PoW) to Proof of Stake (PoS). This will decrease transaction costs, the energy it consumes to mine ethers, staking rewards could range between 10-20%, and would decrease the number of ethers that can be mined per day. This last feature would make Ethereum a deflationary token.

The merge could occur between Q1 and Q2 of 2023. But there will most likely be an upgrade to an improved version in June of this year.

Mistakes to avoid

When we are little our parents tell us not to do certain actions. We never listen to them, and as we get older, we realize that they were right. If we had simply listened to them in 10% of the things they told us, our life would have been infinitely better.

In the case of investment the same thing happens, there are many mistakes to avoid. To be honest, most of the following mistakes you will overlook and think that they will not happen to you, but they will happen to you.

If you are a bit sensible you might be able to avoid some of them, and that is the aim of this article. To do so, I will give you a strategy to implement in 4 steps.

Mistakes to avoid in Ethereum:

  • The first one most of us have committed, and that is not to be in this movement earlier, in 2014. A movement that will have sovereignty over our money. A sovereignty that will reside in everyone and at the same time in no one, and that, moreover, will be fair.
  • Having too many expenses in GAS Fees. Nowadays the Fees for making transactions with ETH are excessive, and most of the time it does not make sense to make them. If you have a small wallet (i.e. $5k) the best thing to do is to keep your tokens in an exchange (i.e. Binance, Kraken) and not try to move them to a wallet.
  • Buy when you don’t feel like buying. You’ve probably had that feeling that the whole market is in the red and your head says, “wait until it drops more to buy.” You must reprogram your head so that the moment it tells you that, you buy.
  • On the contrary, when it seems that your portfolio is multiplying several times its value, that is the moment when you should sell. The best way to sell and buy I share in the following section, to avoid what happened to this person and have incredible returns.


The above is a $1M failure. Your retirement was at that time, but greed got the better of him.

Which strategy do we follow step by step?