The Problem

As I’ve mentioned previously, there’re tons of different assets you can invest in. Crypto, stocks, bonds, seed-level startups, gold, and whatever. It’s just a small amount of the most popular ones, each of them has its own risks and its own return on investments.

However, the problem is that it’s pretty hard to choose one. And you definitely shouldn’t do it.

It’s a pretty common mistake for most people who recently got into the investing sphere.

If that’s gold, then you’ll probably not lose your money but will get several percent a year. You surely won’t become a millionaire with this strategy.

You can put all of it into stocks, but then the new market crash will come and you’ll lose all of your money. The same thing happens with crypto. However, it may double your investments in only one year.

Real estate needs a large amount of money and has higher risks at the beginning.

You can put everything on the deposit and get up to 10% each year, but you’ll never know when the currency might collapse, so you won’t make any profits at all.

The higher the risks, the higher the profits. But isn’t it possible to get pretty high returns with pretty low risks? Yeah, to do that, you first need to stop going all in on one asset.

It’s a pretty simple concept, but you probably are not using it properly.

The Solution

You need to choose several absolutely different types of assets with different risks and different returns. Let’s take these three as examples: crypto, stocks, and real estate.

Now it’s time to invest. The best way you can invest in these three assets is by using the strategy 30–30–30. Let’s imagine that you have $10,000 that you want to invest.

You put 30% into crypto, 30% into stocks, and 30% into real estate. The last 10% aren’t that important, so you can put them in something else.

At this stage, you forget about your money and focus only on the percentage of each asset. Include the fact that this strategy is long-term, so it’s not a ‘fast way’ to make money.

The first day of your investment portfolio would be balanced, each of your assets has the same amount of money inside of it, and you can’t wait to see it grow.

After a while, the balance is ruined. Now the picture looks similar to this:

• Crypto — 20%

• Stocks — 35%

• Real Estate — 35%

You might think that crypto has collapsed a little bit and that the other assets haven’t moved at all. However, we look from a different perspective at this situation.

Crypto could be in the same place as it was, but stocks and real estate increased in its value significantly. So, you might still have this $3,000 in your crypto and have much more in other assets.

So, the overall price of our portfolio might increase or decrease significantly.

However, remember that we look only at the percentage and not the value.

Now, the most interesting part. Your task would be to regulate all the things that happen to your portfolio.

If you see that one asset is significantly larger than another and has already made some profit, then you sell it and convert it into an asset that has a lower value.

So, you’ll need to take these 5% from stocks and real estate and put them into crypto. In that case, you’ll have a balance again.

Is there any sense in this strategy? Absolutely. When a stock increases, you sell it; when a crypto decreases, you buy it. The most basic and simplest rule of investing that we all know.

One more thing that I’d like to mention is that in this strategy, you should be confident in your assets and have a straight plan to follow.

You need to understand that there might be a chance that all three assets collapse at the same time. And the best thing you can do is wait without panicking.

Why is that? Because it would be pretty stupid to sell the asset that has already dropped, you’ll make tons of mistakes and lose tons of money.

Include the fact that you can and should invest additional money in your portfolio. There’s nothing more important than consistency and the right structure. If you’re investing $1,000 each month, then you can much better balance your assets.

In fact, you shouldn’t control the balance each hour, day, or even week. It would be enough to make some changes once a month.

I’ve had a situation where 80% of my investment portfolio was in crypto. I thought that it would be a good idea and wanted to get higher returns. However, as we all know, the market crashed, and the value decreased 3–4 times.

It taught me to never go ALL IN. I now get much higher returns on a regular basis without taking any risk. I understand that if crypto crashes again, I still have other assets in my portfolio and that I can now buy some coins for a cheaper price.

Again, it follows the most basic rules — buy at the bottom and sell at the top. If you’ve already made 10% in stocks, then why wouldn’t you sell a little bit a put it in other assets that have dropped a little bit?

The best part is that the market is never standing in the same place. It always going somewhere. And as I’ve said, if the market is going down, then it’s an opportunity to buy assets for a cheaper price.