If we assume the total funds on hand is 100

A better strategy is 90% in BTC and 10% in other high-risk/high-return coins.

Let's do a simple mathematical calculation:

Assuming a future bull market where Bitcoin doubles and small coins increase fivefold, the calculations are as follows:

90 BTC × 2 = 180

10 small coins × 5 = 50

The final balance would be 230, with a return of +130%

In the worst-case scenario, assuming various negative factors, if BTC really goes back to 50,000, then if BTC drops by 30% and small coins drop by 90%, the calculations are as follows:

90 BTC × 0.7 = 63

10 small coins × 0.1 = 1

The final balance would be 64, with a loss of 36%

What if we buy all BTC? The two scenarios would be:

Bull market: 100 → 200

Bear market: 100 → 70

This result isn’t bad, but compared to my barbell strategy, which only uses 10% of the principal to bear the “90% drop” risk, the entire portfolio would thus lose 9 percentage points; but if it really captures a 5 to 10 times opportunity, it can greatly increase the entire portfolio's return.

Barbell strategy: Most assets are responsible for keeping us at the table, while a small part of the assets is responsible for changing the slope of the investment.

But what if we reverse the ratio? For example, if we fully invest in small coins? In the worst-case scenario, the principal would only be 10, and at that point, if we regret not buying BTC, we would need BTC to increase tenfold just to break even…

Turning 10 into 100 is not easy, but turning 100 into another 100 is much easier; choosing to do the easier thing requires protecting the principal.

For details, refer to the image. Finally, I recommend everyone install and use FOMO; I now conduct daily operations and find hot coins all using it.

The primary reason is that it is safe enough, which is the bottom line. As a compliant project in the U.S., it has raised nearly 100 million dollars, has a high valuation, and quickly reached millions of users. The self-custody wallet scheme allows users to have control of their funds, which is reassuring.

Secondly, it is easy to use; there is no need to focus on contract addresses or worry about chains; it’s a one-click buy. This is very important for capital utilization; if there’s a hot coin, you don’t have to withdraw and cross-chain, which can help recover everything at critical moments. Additionally, the mainstream coin rates are only half that of Binance, and with contracts and everything available, apart from deposits and withdrawals, I really don’t need CEX anymore.

https://fomo.family/r/BTCdayu

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