👀 An easy bitcoin strategy

GM everyone. This is 2036, the newsletter that pays you.

Alright, so you're convinced you should buy bitcoin. It's the future of finance, the foundation for a new society, and all that. You're like Keanu.

But maybe now your brain is going:

• How much should I buy? How often?

• When? Should I wait until it crashes again?

• When should I sell?

• What should I have for dinner? etc.

These questions are totally normal. Don't ya worry.

Many OGs before you have tried to answer that question.

Eight years ago, Tuur Demeester, a famous bitcoiner, wrote a paper to try and provide a comprehensive answer for all of us mortals.

It's a pretty great paper. Of course, I recommend you read it.

But I'll give you his high-level answers here.

In his view, you should base your crypto decisions around 3 fundamental principles:

Principle #1: Invest in crypto first, companies later

This is pretty straightforward i.e. don't invest in crypto stocks or startups, but buy coins.

You would have been better off buying bitcoin than Coinbase private stock in 2012.

Principle #2: Focus on bitcoin

When Tuur published his article, Ethereum wasn't as established as it is now.

Today, you could probably argue that a 50% BTC - 50% ETH allocation makes more sense than bitcoin alone.

His larger point, however, is that bitcoin has stronger network effects and security than virtually all altcoins.

Principle #3: Round off your investments with a small basket of altcoins

This is where most of us go wrong. Altcoins make up 100% of our portfolio.

We YOLO into tiny coins that skyrocket in value and then lose it all in a week and spend most of our time stressed over charts thinking we can 'time the market.'

Altcoins are great for rounding off the portfolio - not as the whole portfolio.

Okay, so how could you invest $5,000 into crypto?

Tuur also addresses how to go actually get started. So let's consider you have $5,000 to invest.

If your portfolio is smaller or bigger, you can adjust accordingly.

But here's how it looks:

1. Use $1,600 for a one-time purchase of bitcoin. Set it and forget it.

2. Use $1,500 to buy bitcoin in $250 increments every month for 6 months.

3. Set aside $1,500 to purchase more bitcoin when it dips (this will satisfy your need to "buy when it's lower")

4. Invest $300 in 4-8 established altcoins

5. And finally, invest $100 in new upcoming coins (yes, your 💩coins go here)

And that's it.

That's how you could invest $5,000 into crypto.

But how much of your total net worth should you invest into crypto?

Well, that's ALSO in the article. And that's today's task.

(you didn't think we were gonna let you off the hook so easily, huh?)

✅ Task: earn $15 in BTC for Tuur's crypto/net worth allocation

Tuur Demeester's article is great to read, even if you don't agree with everything.

You can find it here.

There's a lot more info in the essay than we gave you here - so your task today is to answer the following question:

According to Tuur, how much of your overall portfolio should be invested in crypto?

(Hint: there are 3 choices...)

Reply to this email with your answer and your BTC wallet so we can pay you.

The two best submissions will win $15 each in BTC.

We'll dig out more investment strategies in coming newsletters - so stay tuned.

In the meantime, I wish you a fantastic start to the week.

Alex.

P.S. Congratulations to Jakub, Spencer, Cameron, and Brian for winning last week's task 💎

P.S.S. (or PS2?): Nothing in this newsletter should be considered investment advice, no giraffes were hurt in the making of this newsletter, etc. you know the spiel 👋