Investment foundation for earning money.

In this lesson, we establish the investment foundation for successful investing in the cryptocurrency market. Most likely, what I am going to say today will be completely opposite to what you are used to hearing in mass media, on social networks, and on the internet. But believe me — you don’t even need to believe; I will explain everything today. I will explain why you need to start investing correctly, how to do it, what foundation you must build, and what understanding of the market every person should have if they truly want to earn money here rather than engage in speculation, gambling, or casino-style behavior hoping to get rich. I support a systematic approach, systematic investments, and systematic results.

The first and very important point. I will start with the stock market — with the stock market index. It includes the five hundred largest American companies. This index has been functioning for roughly a century, tracking the growth dynamics of the five hundred largest companies. Initially, there were fewer companies; now there are five hundred. This stock index reflects the entire United States economy and the entire U.S. stock market.

Now the most important thesis — the growth of the S&P 500 index cannot be outperformed by even the most successful private funds over a long distance. Over a short period, they may earn money and outperform the index, but over a long distance, the overwhelming majority fail. It is extremely difficult to outperform the stock market. Extremely difficult. Later I will recommend a book that explains why this happens, what causes it, and how this system works. For now, just remember the thesis: it is very difficult — even for large funds, not just private amateur investors — to outperform the stock market.

Now let’s move to the crypto market. Bitcoin plus Ethereum is the index of the entire crypto market. Here everything works differently. The two main assets that all other assets follow are Bitcoin and Ethereum. They are literally the index of the entire crypto market. Forget the diversification advice you hear everywhere — it does not work in crypto. Diversifying away from Bitcoin and Ethereum increases your risks rather than reducing them.

This is important because the stock market contains five hundred stable companies, while crypto is a completely different domain. In crypto, over its entire history, only two assets can be considered reliable — Bitcoin and Ethereum. Everything else usually does not survive even a single cycle lasting about four years. After that, most projects collapse to the bottom. It may be hard to understand this now because there is a lot of misinformation spread by influencers promoting “promising altcoins.”

But you can always look at historical charts: Bitcoin outperforms all altcoins. Ninety-nine percent, ninety-nine point nine percent of all altcoins that ever existed underperform Bitcoin over a long distance. Yes, there are occasional spikes where certain altcoins grow faster than Bitcoin or Ethereum. But over a long distance, Bitcoin and Ethereum remain the kings of the market.

Not holding Bitcoin and Ethereum in your portfolio is a major mistake. And an even bigger mistake is believing that you can pick altcoins that will outperform Bitcoin and Ethereum over the long term.

There is an entire book written on this topic. It is not about crypto but about the stock market. The idea that someone can outperform the market by picking individual stocks independently is the biggest mistake investors make. And it is not only beginners — even large funds make this mistake, although their income does not depend on outperforming the stock market. They earn from fees and charge a fixed percentage on the entire capital of their investment fund, into which naïve people deposit their money.

Here is another chart. It clearly demonstrates Bitcoin’s dominance compared to all other altcoins, even top ones. This chart does not include “junk” tokens that have dropped ninety-nine percent. Bitcoin is the king of the cryptocurrency market. You may deny it or disagree with it, but this is simply a fact.

Most likely, you are watching this lesson because you still have not achieved stable financial results in crypto. You could not earn money, you lost funds, you bought altcoins that collapsed to the bottom, and you ended up with no profits. Therefore, it makes sense to listen to what I am explaining based on real, objective data. And the message is extremely simple: having Bitcoin and Ethereum in your portfolio is mandatory for anyone participating in the crypto market. No matter how much you resist it, no matter how heavily influencers have shaped your thinking, Bitcoin and Ethereum must be in every portfolio.

So if you still have not achieved financial results, if you lost money buying altcoins and speculating, listen to what I am saying and follow the guidance I will provide in the next lessons.

Now let’s move on to the golden rules of investing.

The first rule — time is the best friend of any investor. This is the rule almost no one follows in the crypto market. That is why most people have no money and no results: they treat the market like a casino, wanting everything quickly, immediately, and in large amounts. The market takes their money and gives it to those who understand that time is the primary ally of an investor, that you must be able to wait and endure. And the market consistently transfers wealth from the impatient to the patient.

This is a simple golden investment rule that has worked for a hundred years in the traditional U.S. stock market.

The next rule is: more actions, less money. People believe that the more actions they take — more small transactions, purchases, reallocations, and rebalancing — the more they will earn. In reality, everything works exactly the opposite: the fewer active actions you take, the more you earn over the long term. Intuitively it may seem wrong, but in practice this is an actual law of investing and a law of any financial market: the fewer actions you take, the more you earn over long timeframes.

The next rule — investing is boring and slow. I do not know who convinced people that investing is exciting, dynamic, and full of constant activity. It may sound appealing to some, but in reality, investing is about repeating boring, monotonous actions, and it takes a long time for results to appear. Everything related to short-term speculation, active buying and selling — that is not investing. You must clearly distinguish between investing and speculation. Investing is boring and long-term.

The next golden rule — an investment strategy must be designed for years ahead. This is something that destroys the majority of beginners in crypto. Their maximum horizon is six months: “I’ll buy, it will grow, I’ll make money.” They have no clear plan, no financial goals, no long-term investment strategy, which should be at least two to three years, preferably even longer.

Another rule — do not buy an asset you are not ready to hold for at least five years. In Warren Buffett’s original version it sounds even tougher — at least ten years. But since we are on the crypto market, the meaning becomes: regardless of which asset you want to buy, always ask yourself — will this asset still be relevant and alive in at least five years, let alone ten?

If you look at history: everything that was “promising” in 2017 — projects, altcoins, “innovative technologies” — all of that is dead. Those assets did not survive even five years; they died within two to three years. The same will happen five years from now with most assets that seem “promising” today.

Therefore, when buying any asset, you must always ask yourself: will this asset remain relevant? Will it even survive? Will it stay competitive in the cryptocurrency market? This is why, returning to my thesis about Bitcoin and Ethereum, these assets must be in everyone’s portfolio. They represent the lowest risk while still offering enormous growth potential.

It is difficult to ignore the promises of dozens or hundreds of “X” returns that people make on the internet, but the actual performance of Bitcoin and Ethereum is extremely strong. Look at their long-term charts — the results significantly outperform any tool in traditional finance, except perhaps a few exceptional companies.

Personally, I am confident that Bitcoin and Ethereum are the assets most likely to remain relevant and alive five years from now. Everything else raises serious doubts. And even more importantly, these doubts are not based on intuition — they are confirmed by statistics. The majority of altcoins, literally ninety-nine percent, disappear. This has been confirmed repeatedly since the very first cycles of the crypto market.

A new cycle arrives — and almost everything that was popular in the previous one is already dead.

That is why everyone should download and read “The Intelligent Investor.” It should not be taken as a literal action guide, but it opens your eyes to how financial markets work, how the stock market index functions, how investment funds operate, the difference between Wall Street and Main Street, and what Wall Street actually earns from — not from asset growth, but from fees.

This book helps to put your mindset in the right place. I mentioned earlier that time is one of the most important factors. And it truly is. Here is a clear example: the Bitcoin chart from 2014 to mid-2016. Over a period of two and a half years, Bitcoin traded both at one thousand dollars and at two hundred dollars.

For most people, this level of volatility is devastating. Many investors bought Bitcoin at one thousand, eight hundred, or five hundred dollars — and then sold at two hundred simply because they could not handle the psychological pressure. This is extremely difficult.

Later Bitcoin recovered and grew, and today its price is obviously much higher than the values shown in that snapshot.

Time matters immensely. If you look not at daily charts, not at one- or two-year ranges, but at five-, six-, or ten-year horizons, the charts look completely different. On daily charts — chaos. On multi-year charts — less volatility. On decade-long charts — the line almost always goes upward.

Economies grow, markets grow, the U.S. stock market historically grows on long distances. The same applies to the crypto market. Most people lose because they look at charts on the scale of a day, week, or month. Sometimes a year or two. And that naturally triggers panic.

They are unable to think long-term, and this is the key to success in investing. In principle, cryptocurrency and the entire decentralized finance ecosystem are built on fundamental investment principles. If you do not know how to invest properly or do not follow the golden rules of investing, then everything you do on top of that will not matter — because the foundation is built incorrectly.

So now we are changing your foundation — the one shaped by so-called “experts” who talk about “promising altcoins” yet are unable to outperform even Bitcoin. Let’s move on.

There will be moments in the market when you do not need to do anything — you just need to sit and wait. Yes, because investing is boring and slow. There are periods when you may do nothing with your assets for several months, half a year, or even a full year: no buying, no selling — nothing. Simply sitting and observing. And this is the truth about investing.

People may tell you about “interesting trades and positions,” but from the perspective of investment fundamentals, you must understand: there will be periods when the only correct action is to do nothing. And you must be prepared for this. It is neither good nor bad — it is simply a fact.

Now let’s talk about the investment portfolio that I recommend for every beginner who does not know what to buy. You have two options. You can continue doing what you have done before. And most likely, if those actions produced stable results, you would not be here. Most likely, you lost money or earned nothing.

So you now have two choices:

1. Continue doing what you did before: buying altcoins, speculating — and again ending up without results.
2. Or listen to what I am saying and follow the recommendations that actually deliver strong results over long distances.

So here is how I see the ideal portfolio for a beginner. If you chose a strategy based only on stablecoins, then your portfolio will consist of one hundred percent stablecoins. But now we are discussing the portfolio for those who want to work with volatile assets and have strong long-term growth potential. Seventy percent I would allocate to Bitcoin.

Again, this is a dynamic value: you may choose to hold more Ethereum or more Bitcoin, but in general, the core structure — the fundamental base — of your portfolio must consist of Bitcoin and Ethereum, at least seventy percent. This means: eighty percent Bitcoin, seventy percent Ethereum, ten percent stablecoins. At least seventy percent of the portfolio should be Bitcoin and Ethereum.

Next: ten percent should be stablecoins, which can be used to buy assets during market dips, maintain target allocation, and also be used across decentralized finance tools. Everything is straightforward.

And ten percent can be allocated to altcoins. Again, this is a fairly high percentage. I personally would allocate around five percent, but I understand that many people find it difficult to accept advice that is completely opposite to what they hear in social media. Therefore, ten percent is acceptable.

Why this portfolio structure?

Because Bitcoin and Ethereum are the index of the entire cryptocurrency market. It is incredibly difficult to outperform Bitcoin and Ethereum. And I have not met anyone — not that I am unsure, I simply have not seen a single person — during all my years in crypto, with the many people I have met through social networks and audience outreach…

I have not met a person who outperformed Bitcoin and Ethereum over the long term. And a long-term period is not two months, not half a year, not a year. It is at least one full market cycle. I have not seen such people.

The stories about “huge gains on altcoins” apply only to short-term spikes. If you stretch the chart over a long distance, yes, altcoins may occasionally outperform Bitcoin and Ethereum in the moment. But in the long run, Bitcoin and Ethereum outperform all of these “super-profitable altcoin traders.”

Therefore Bitcoin and Ethereum are the main index of the crypto market. And just like a stock index consists of major companies, a crypto portfolio must consist of these two assets at least seventy percent.

Do not listen to those who claim that Bitcoin and Ethereum “won’t grow anymore.” Believe me, Bitcoin and Ethereum still have massive upside, simply because crypto is only about two percent of the traditional financial system.

Now regarding altcoins. It is important to understand that the effectiveness of investing in altcoins — or anything other than Bitcoin and Ethereum — should always be compared to market growth. And market growth is represented by Bitcoin and Ethereum. So if I invest ten percent of my portfolio into altcoins, I expect them to outperform Bitcoin in the long run.

Personally — just to be clear — I did not manage to do that. I am not some “super guru.” I did not succeed, neither with AVAX nor with other altcoins I have held. I was not able to outperform Bitcoin and Ethereum over the long term. Ninety-nine point nine percent of market participants cannot outperform them either, so you should not play a game where your initial chance of winning is below ten percent. It is extremely difficult.

This is why only five percent of your capital should be allocated to this kind of “high-risk, high-fantasy” game. If it works — great. Most likely, it will not, but you should have this option available. You can completely remove altcoins from your portfolio and hold only Bitcoin, Ethereum, and stablecoins — and with such a portfolio you can already earn solid long-term returns.

The main mental mistake most people make is thinking: “If I buy more altcoins, I increase risk and therefore increase returns.” In reality, the opposite happens. You increase risk and reduce returns. If you allocate a large portion of your portfolio to altcoins, you do not increase your potential returns — you actually lower them, because over the long term these altcoins still underperform Bitcoin and Ethereum.

The next important point is dollar-cost averaging. Write this down — this is what you need to start doing today, if you are not already doing it.

Your long-term results will depend on this. I mean this seriously. Dollar-cost averaging means buying assets — Bitcoin and Ethereum — for your portfolio every month, on a fixed amount, regardless of their current price. You choose the day of the month based on when you have free funds available for investing. Personally, I have been buying Bitcoin every month since the end of last year, regardless of its price.

This strategy allows you to accumulate assets smoothly, gradually, and with a very favorable average entry price. You may disagree with this idea. You may try to catch the bottom, wait for the drop, buy lower, sell at the top, and then buy lower again. But in doing so, you are playing what Charlie Munger called “the game of fools.” You will lose to the market and to those who simply stay invested longer than you.

These are golden investment principles. They were not invented by me. You do not need to be exceptionally smart to follow simple rules — you just need not to break them. It is very important not to try catching the bottom and not to try selling at the top.

This is a fool’s game. This has been known for decades on the traditional stock market. But in crypto people still think they are the smartest and can outperform the market. You will not. You are one person, sitting with your phone or computer and a Bybit account.

You cannot outperform people with enormous capital, high-end systems, algorithms, and infrastructure that see everything, analyze everything, and know everything.

Do you really think you can beat them? Do not deceive yourself — follow the approach that consistently shows stable long-term results. And this approach is dollar-cost averaging. How do you implement it? Write everything down today, take screenshots — because this is your concrete action plan after this lesson.

How does the strategy work? It is extremely simple. Here are the five steps you must follow. If you follow them consistently, without giving up, without panicking, and without making emotional mistakes — your results after one, two, or three years will be outstanding.

1. Define your monthly investment budget. Look at your main income or business and determine how much you can set aside every month. For example, twenty percent of your income. This becomes your monthly investment budget.
2. Buy Bitcoin and Ethereum every month, regardless of their price. Follow the proportion: Bitcoin should be the majority, Ethereum the minority. At least seventy percent of your portfolio should consist of Bitcoin and Ethereum.
3. Keep part of the funds in stablecoins, maintaining around ten percent of your portfolio in stables. Stablecoins give you the flexibility to buy Bitcoin and Ethereum during sharp market dips, even if you have not yet reached your next monthly deposit.
4. Use your assets in DeFi to grow your capital. DeFi tools help increase not just the dollar value of your portfolio but the number of assets you hold.
5. Do not break these five rules. Do not think you are smarter than the market. Do not try to guess tops or bottoms. Do not chase altcoins thinking you will outperform Bitcoin and Ethereum. Do not act emotionally. If you follow these five principles for one, two, or तीन years — and the longer the period, the better — your results will grow exponentially. There is nothing complicated here. I am not a genius. I simply applied this method for years — buying Bitcoin, using DeFi, acting systematically. These five points are the foundation of the entire strategy and cover ninety-five percent of success. The earlier you start — the more you will earn.

Next point — the regularity of investments. This is one of the most important factors affecting your results. A person who invests every month, consistently and regularly, over a long period — will always outperform someone who makes a one-time deposit and hopes to “grow” it quickly. Even a large one-time investment loses to small but regular contributions over time. This is critically important. Everyone has some amount they can set aside monthly. The key is to do it consistently, regularly, buy strong assets, and then use these assets in DeFi. Regular investing is the most important — I emphasize, the most important — factor that defines your results and success. Without regular investments, you will fall dramatically behind those who invest consistently every month. Therefore, if you currently cannot invest regularly, your first task is to find a way to make it possible: increase your income from your job, business, or main activity so that you have a monthly surplus you can allocate to investments. Without this, achieving results in crypto will be very difficult. And this applies not only to crypto — the same principle works in any type of investing. A one-time purchase of a single stock will not make anyone rich. Regular investing is the key to success.

Now, what you should not do:

1. Do not try to time the bottom or the top of the market. Speculation and attempts to buy low and sell high usually lead to losing all money.
2. Do not buy altcoins hoping to beat the market in the long run. Despite what influencers claim, long-term statistics show that altcoins lose to Bitcoin and Ethereum. If you want to buy altcoins — limit it to five–ten percent of the portfolio and only after you truly understand the market. As a beginner, stick to Bitcoin, Ethereum, and stablecoins.
3. Do not think you are smarter than the market or able to outperform a perfectly honed profit-extraction machine. Wall Street has been operating this way for decades, and the same mechanisms exist in crypto. Your chances of beating it are extremely low. Instead of fighting the market, invest with the market — use Bitcoin and Ethereum as the core long-term index of the crypto ecosystem.
4. Do not ignore the golden principles of investing. Decades of books and investment rules exist for a reason. They work the same in crypto as they do on traditional markets. The underlying principles are identical.

Now, for those who already have a portfolio — usually assembled under influencer influence — here is a simple step-by-step framework:

1. Open your portfolio.
2. Imagine all your assets were instantly converted into stablecoins.
3. Ask yourself: “Would I buy these same assets again in the same proportions?”
4. If the honest answer is “no” — which is the case for most people — then these assets do not belong in your portfolio. Sell them for stablecoins and buy strong, reliable assets instead. This framework is simple but extremely effective for fixing an already assembled portfolio.

These materials are created for educational purposes only and do not constitute financial advice.