Always going all in on leveraged trading coins? Wu said, dForce founder talks about the correct asset allocation

"Wu Blockchain" founder Colin Wu and dForce founder Yang Mindao discussed recent market investment trends on Twitter, emphasizing the importance of mainstream coins in asset allocation as the key to stable profits.

Founder of "Wu Says Blockchain": Why Don't People Love Mainstream Coins?

Colin Wu stated that in the cryptocurrency circle, long-time investors often advise newcomers to hold BTC and ETH for the long term rather than competing coins. However, this may completely overlook the fact that newcomers have never considered such a conservative strategy.

New investors may only have tens of thousands of RMB, and a three or fourfold increase may not make any difference in their lives, while the hundreds or thousands of times increase in competing coins is what they desire.

However, Colin Wu also explained that he is only describing the psychology of the crowd and does not advocate for the radical strategy of going all in on competing coins:

The conservative approach is to find a good job in the cryptocurrency circle and allocate mainly to mainstream coins like BTC, ETH, with a small amount invested in high-quality competing coins to achieve stable growth.

那些彻底劝大家屯比特币屯以太坊瞧不上山寨币的人可能忽略了一个因素，或者过于自大。因为不是谁都有很大的本金，可以接受只有几倍的涨幅。比如我只有几万到十几万的本金。买比特币以太坊涨到几十万又有何用。对于绝大多数人来说，山寨大赌场，牛市时候上百倍甚至千倍涨幅才是他渴望的。

— Colin Wu (@WutalkWu) December 4, 2023

Founder of dForce: The Right Investment Ratio is 7:3

Yang Mindao also retweeted Colin Wu's tweet.

He pointed out that in the past few years, very few investments have outperformed BTC, and even fewer have outperformed ETH. Most are actually survivorship bias:

In terms of asset allocation, mainstream coins versus competing coins should be at a ratio of 7:3. In terms of human nature, most people are easily losing luck and losing the era.

He emphasized the importance of mainstream coins, further highlighting that in their eyes, BTC and ETH are just larger competing coins compared to the $900 trillion fund size in traditional finance.

投资的两大悲剧：

一个是赶上最大的时代，却赌上最小的本钱；

一个是赌上最大本钱，却遭遇最坏的个运；

实际上大部分人能赶上大时代已三生有幸，个运很难跑赢时代。

过去十年，整体能跑赢比特币的很少，过去九年跑赢以太坊的更少；其它大部分是幸存者偏见和配置比重偏见（一元百倍战士）… https://t.co/KOnoX0pbOQ

— Mindao (@mindaoyang) December 4, 2023