"If this gets bad, it gets bad for both of us." A confident Colonel Hodges said to Colonel Childers.
This can be said for those that don't follow rules. When you don't follow the rules it doesn't just affect you it affects others as well. And when things get bad they can get bad for all of us. Life can go south quickly, if you don't follow the rules. And this is not any different for the crypto community. When we don't follow the rules its not just bad for me, it can be bad for all of us. Scam's are bad for crypto, hackers and thieves are bad for crypto. When you are told to stay away from ICO's. DO IT! When you are told to protect yourself and take your tokens off exchanges listen. Or at least know the risks.
Rules Of the 100 Token Challenge
So now that you understand what rules are, I am saying that tongue in cheek. I am going to lay out the Rules that I will follow to fulfill this challenge and make sure I stay within the guidelines.
Just so you know I am a bit of a stickler, at times for rules. Whenever I play a board game the rules must be adhered to. Could be my ADHD mind that just needs structure, I'm not sure. When people don't follow the rules its frustrating. I like structure, it give me a sense of stability. I'll break down the challenge into 10 Rules. Seems like quite a bit, but we will get through it and get through it quickly.
For those of you that own a home you have early payment rules for your mortgage. Pay 15% once a year, double up your payments etc. Think of these rules in those terms. You are not allowed to go outside them without a penalty, a financial penalty. These rules can also be applied to a smaller portfolio if you wish.
Rule #1 - THE 100
It is a 100 token challenge. That means you need to choose 100 tokens. And Spend around $10.00 USD or 12.50 CAD on each.
But there are thousands, so where to start? I picked my 100 tokens by the projects I liked and researched and made sure they were within the top 300
by market cap.
Rule#2 - HODL
You cannot sell your tokens for at least one year. I am planning on holding for 5+ years. You must #hodl. This is a term used for holding the token even through the big dips. No selling if it reaches ATH (all time high) or ATL (all time low). Let profits run, or losses disturb your sleep.
Rule # 3 - REASSESS
Once 2019 rolls over we will reassess our portfolio and any coins that have died or have no gains will be sold and a new one will be put in their place. Only 10% of the coins can be sold or exchanged after one year. So 10 tokens. This theory is to cut your losses. I know a year is a long time but holding them into year two, three or four. just doesn't make sense.
Rule #4 - the 3% rule.
3% or three of the tokens you choose must be under 5 cents. These would be riskier tokens but must make up a portion of your portfolio.
Rule #5 - 10% Rule.
10 tokens or 10% of your portfolio must be made up of tokens/coins from the Top 20 minimum.
Rule#6 -
Dollar Cost Averaging
A big part of why I am doing this challenge is not to make money but to show new people to the crypto community what it is all about. And what a diversified portfolio can do. And I'm trying to enact rules that in general are good for your portfolio.
This rule is the rule of dollar cost averaging.
Quarterly - every three months you can choose to add fiat to your holdings. You can only add 1/4 of your original investment to your portfolio. Either 250 USD or 312.50 CAD. You can add this to 1/4 of your tokens. It must be spread across 1/4. $10.00 USD EA or $12.50 USD EA. You cannot dump 312.50 CAD or 250 USD into one token. This rule can be done, April 1st/ July 1st/ October 1st/January 1st.
Rule #7 - The update
You must provide weekly updates and choose one token to feature. This could be your top token or one you think is up and coming. You are not allowed to bash any tokens. NO FUD ALLOWED. I hate FUD just as much as the next guy and I don't want to be one producing it. Support the community and build each other up. Do your research for this part and do it right! :)
Further to that, quarterly you will provide an update as to which coins you want to further invest in and ones you feel could be underdogs...ahem..DOGECOIN..haha
Rule # 8 - Lockem UP
Either save up for a hardware wallet like a ledger nano S or get yourself a paper wallet for each of your crypto currencies. Or even a desk top wallet. I'll be covering where all of the currencies I have are able to be stored. If you cannot get on right away, typically it is not safe to keep your money on exchanges but if you need to don't panic.
Rule #9 - Speculation
This investment you are making into crypton currency should not take up more than 1% - 5% of your savings- retirement.
I am not a financial advisor, but many people smarter than me suggest this.
https://www.cnbc.com/2017/12/11/bitcoin-millionaire-grant-sabatier-dont-buy-bitcoin.html
Rule #10- Get involved
When I say this isnt about making money. I mean it, thats an upside. But you need to get involved in a crypto community. Sign up for Steemit a blockchain blogger space where instead of getting likes you get steemit dollars. You literally get paid to write whats on your mind. Or Basic attention community.
Ultimately this is about supporting the cryptocurrency community, and also showing the challenge to HODL and diversify make sense in the long run. Rather than day trade. For goodness sake don't day trade! Especially if we are not that experienced. You want to be able to go on vacation for a couple weeks and not have to look at your portfolio. Because you have diversified.
Lastly, to show the masses that just because crypto is new to the mainstream world doesn't mean it is bad. It put the power back in the hands of the people and helps little guys like me and you still earn some capital.
Thanks for reading! Hope you enjoyed it, keep following along. My next post will be about the Tokens I choose and I may have one before that highlighting which Token out performed the rest this past week.
Dive in!