Risk Tolerance

Good To Have.. Hard To Do!

You basically have one or more factors to contend with when scaling your risk tolerance and you should always ask yourself some important questions.

1.1. "How Soon Do I Expect To Need The Money I'm Investing"?

Stocks have been known to fall hard and fast in a short 24 hour period, so it wouldn't be wise to invest a mortgage payment but if you are then you will want to make sure the liquidy ratio returns are in your favor and your full initial investment is withdrawable on-demand. Otherwise you could lose the house. Therefore, don't commit to an investment contract with early withdrawal penalty and fee terms.

1.2. "Can You Ride Out A Bear Market"?

This is a very common miscalculation if not the #1 itself. So many have seen a stock rising as though it is about to take off and assume they are going to miss out. Then the bear market suddenly hits and you will be in a cold dilemma, pull out and lose your initial investment or try and ride it out with hopes of a quick bull run

What you will soon realize is having a backup plan would have come in handy and what good backup plans look like are steady, highly dependable rates of income. Even if it's merely $5 - $10 a week, it should not be underestimated because the most prominent investors started out small timers.

The Conservative Portfolio

Playing Many Positions

A strong portfolio should always be able to outweigh and balance your risk outperforming any (24 hour, 7 day, 30 day, etc.) adjustment in the market. There will be many and they will happen very often but here's what you need to know.

Bitcoin Is A Stable Investment

• Bitcoin dictates the market because Bitcoin pairs are most the popular and reliable. In any market you cannot purchase alt-coins without Bitcoin which has an even bigger advantage because Bitcoin can be brought and sold in USD without any barriers. Additionally alt-coins volatility will always be linked back to Bitcoins' market performance.

Ethereum Is A Reliable Investment

• ERC-20 tokens and smart contracts introduced the world to Ethereum. There are currently over 2000 alt-coins (ERC-20 Tokens) powered by the Ethereum Network. Basically if the Ethereum Network shuts down, more than 2000 ERC-20 tokens and smart contracts (Trading, Withdrawing, Sending, Depositing) will essentially become worthless immediately.

Litecoin Is A Smart Investment

• Litecoin dubbed the Beta Testing grounds for Bitcoin upgrades (i.e. SegWit Technology), built on a solid peer-to-peer ecosystem, reliable track record and can be purchased for under $100. An overall great value, low-risk and positive ROT on your investment.

These three assets combined lead and dictate a billion dollar and growing cryptocurrency market and when the market recovers they will always be the first to lead the bull. Additionally, during a bear run they will not see a significant decline in value.

The Ruling Tax

Airdropping Some Wisdom!

Participating in an ICO, Hard Fork or Airdrop can be beneficial, Uniswap is the latest example. However, FREE MONEY isn't always free money. The new IRS Tax Law Rulings which have recently come into effect proves just that. The same tax guideline which applies to reporting regular cash money income should be assessed to your blockchain assets.

Tip 1. Assume Value is $0

Tip 2. Wait for Exchange Listing

Tip 3. Use Value of the Future Market

Now you are setup and ready to do your taxes.

1.1. IRS Revenue Ruling 2019-24 - Hard Forks

"If the taxpayer did not receive new units of cryptocurrency after a hard fork, then no, they do not have gross income."

1.2. IRS Revenue Ruling 2019-24 - Airdrops

"If a taxpayer had cryptocurrencies that went through a hard fork followed by an airdrop, and they received new units of a cryptocurrency, then there is a gross income, and that is taxable."