It depends it’s not going to be the same for everyone. But I think 100% is not a good idea unless you have little to risk in the first place or are really young then maybe it doesn’t matter so much.
If you’ve stack hard enough and long enough eventually the downside risk starts to outweigh the upside potential especially in the late stages in a bull market then it might be wise to consider ways to derisk downside.
If you can’t sleep at night or the when price goes down sharply you feel depressed or extremely anxious then that is probably a sign you are over allocated or over leveraged. If you’re in it for the long term you need to be able to stay in the game and emotionally stable.
If you have 10 years salary saved in bitcoin and it dumps 70% you just lost 7 years of salary. And could take 2-3 years to recover to that previous level.
If you want to stay all in all the time you should at least have an emergency fund is cash or equivalent for when shit happens and opportunity fund for when fire sales happen.
If you’ve stack hard enough and long enough eventually the downside risk starts to outweigh the upside potential especially in the late stages in a bull market then it might be wise to consider ways to derisk downside.
If you can’t sleep at night or the when price goes down sharply you feel depressed or extremely anxious then that is probably a sign you are over allocated or over leveraged. If you’re in it for the long term you need to be able to stay in the game and emotionally stable.
If you have 10 years salary saved in bitcoin and it dumps 70% you just lost 7 years of salary. And could take 2-3 years to recover to that previous level.
If you want to stay all in all the time you should at least have an emergency fund is cash or equivalent for when shit happens and opportunity fund for when fire sales happen.