How much is too much exposure?

This is the time in crypto that we have all been dreaming about since the last bull run in 2017/2018, I have been writing a little about my experiences, I could only imagine this in my minds eye, how I would position myself, how my strategies would work, how I might have to change tactics at certain times and for certain reasons.

Okay, this is probably blasphemous, but life changing wealth is a pretty amazing thing. Will it change your life? Change your community? Change the destiny of the whole planet?

Or will it just multiply the problems you currently have?

Money is like this, it can do a lot of things, but by itself it probably cannot change you - only you can do that.

Life Changing Wealth - how can it change your life?

So hopefully you have done this before now, but now is a good a time as any if you haven't, consider - how would so-called life-changing wealth actually change your life?

Would you buy a new car? Would you quit your job? Would you do something different?

I think the evidence shows that if you don't consider it beforehand, wealth is unlikely to change your life very much at all. In fact, its likely to flow to someone else pretty quickly.

But I did think about it before hand, and I had a pretty good idea that I wanted to build a new house and buy some more land.

And you can see here and here that that's exactly what I have been up to. We've also purchased a new car and worked on fixing up the road to our farm.

All of this takes and has taken money, and it has come at a cost of less exposure to promising crypto projects. I have, as planned, been reducing my exposure to crypto and increasing my exposure to Car, working road, land and house type assets.

Exposure

Exposure is a funny word, in a sense it means open to risk or danger. Here's a definition from the internet:

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In this sense, having exposure is a dangerous thing! And boy have I felt it with the recent ups and downs. Here is a more finance based definition:

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Even here, we can see that exposure is based on risk of loss, on danger - the danger of losing money.

Here is my current risk profile when it comes to Splinterlands:

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Splinterlands is absolutely taking off, and they deserve it. The game and gameplay has improved immensely over the last 3 years, and each new mechanic has shown that the creators have a deep understanding of how gaming and gameplay works. I often find myself having fun while playing Splinterlands, though not always - but in general I do enjoy it especially if I haven't played recently.

The thing is, $24,819 dollars is a lot of money for me. Its a lot of exposure to risky game assets. Except for the rest of my current crypto portfolio, its definitely more money that I have ever had in my life - EVER. This bull run has definitely produced 'life-changing wealth'.

Now I don't post this to brag, but to communicate to you all the very real challenges of knowing how much exposure is too much exposure.

How much risk can I really take, dealing with amounts of money vastly superior to anything I have ever held in my hands at anytime in my life previous?

And I think the answer is, Stick to the Plan.

I like to read @vimukthi's blog a lot. His recent piece on Splinterlands is very good - he is very bullish on Splinterlands and has been for some time. His account value has grown and now surpasses mine, his accumulation of Splinterlands assets is the prime reason for this.

And that he continues to grow and accumulate Splinterlands assets, I think - that's great. What a good plan!

And as I slowly sell some Splinterlands assets, among other things, I think - this is great - Stick to your plan!

I don't think there is one right answer/wrong answer to many finance questions. What is the thing to do with Splinterlands assets right now? What should we do with HIVE? What should I do next?

It depends on your Plan!

So make sure you have one. Take some time, make a plan. Figure out what your goals are, and work towards them.

Here's a bonus video from Jordan Peterson, recommended fellow that I like listening to, this one is a chop job from several of his talks/lectures. He is talking about fixing problems in your life, but he agrees with me - make a plan!

Freedom and Friendship



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Thank you for the mention. One thing I have to add to my post is that I am mostly interested in generating liquid income through my assets. Think of it as a Crypto/NFT equivalent of dividend stocks. I've been living my life like a looser while most everyone I know are in fancy positions and buying fancy things and often getting into large amounts of debt. Here I am getting close to 6 figures in net worth.

I have tried day trading and I have friends who are stressed and always working on their trades. They are getting a lot of market experiences and gain many skills. But I feel their risk profile is higher than mine as I HODL some assets that are likely to have their value for a long period of time.

HIVE dipped almost 98% from STEEM ATH. But I was only getting more and more bullish. Why? It was the community and DAPP development. @splinterlands is just a beginning IMO. Not all of my bets are going to work. I've lost my crypto betting on various projects on HIVE that did't o far. But my portfolio itself is up.

Best part is that I have time to learn and grow as a person. I spend hours on various platforms and try to learn things. Recently my marketing skills helped a friend get in touch with a founder of company that is doing many things including launching satellites. It was proof that I had learned real valuable skills over time.

I didn't charge any money for it. It was more of a fun job for me. What I know is that if I didn't bet bi on some passive income generating crypto assets and HODL for long term, I would not have had time to learn the skills that can get a person in touch with a founder of massive technology company.

Money < Skill < Peace of mind & Spirituality

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Bang, I did it again... I just rehived your post!
Week 76 of my contest just started...you can now check the winners of the previous week!
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Interesting piece.

Accumulation of wealth would not change a person, but bring out the hidden part that was already there.

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Exactly this! But with contemplation and good planning we can improve ourselves in time to save ourselves from our new found wealth!

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Yes, with more light on the good planning. It is really key.

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I definitely understand the desire to move to safer investments. Crypto can go down at any point in time and there are a lot of projects that are bad or die off over time. While I don't think Splinterlands will crash, the price correction is definitely something I think can happen.

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In fact right now I am more worrying about having to sell before it booms again! But I will stick to my plan.

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Once I'm rich my plan is to release commercial products and then write rap songs about them.

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