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Bitcoin Portfolio Construction

Taking the time to put together a structured investment portfolio before you start dipping your toes in any asset class acts as a true north, guiding you in line with what you intend to achieve throughout your journey. Money management, psychology and adherence to a properly developed portfolio will give you a template that is a great tool to stay focused.

FOMO and self-sabotaging behavior are the 2 major reasons that most human beings will decide to invest in for instance Shitcoins (ETH & other Cryptocurrencies Not Bitcoin) and NFTs. Most Africans do not have the luxury to engage in 1st world pursuits such as spending $10 – $50 on a trip to cyberspace buying swag for a video game character or a sports card and feel nothing about it. Pyramid schemes and multi-level marketing scams should give all Africans enough chills to stay away from Shitcoins.

African youth (18-35 Years) are the largest segment of the African population suffering the most in regards to unemployment and Covid19 lockdown restrictions. Being the target demographic of BitcoinMtaani, expediting Bitcoin adoption to the youth in Africa is of vital importance as most live from hand to mouth making stacking even 1 Satoshi (Sat) a challenge.

WHY?

Developing an investment thesis to abide by before starting your investment journey will provide a much needed guide. Be very clear about what industries you want to invest in and how much you are willing to invest. Periodic adjustments should be made based on new information like how Shark Tank, Billionaire investor and Philanthropist Kevin O’Leary A.K.A Mr. Wonderful could no longer ignore investing in Bitcoin.

Various considerations that apply to people in developed nations with welfare safety nets and stimulus packages do not apply to Africans. Survival for the fittest is still the rule of the jungle thus instead of pontificating about utopia, I will concentrate on a practical portfolio construction for Bitcoin Mtaani’s target demographic, African youth.

OPERATION OMOKA

Omoka is a Swahili slung (Sheng) term meaning becoming rich. That is the sole thing on most African youths minds all day, every day. Over taxation, expensive registration and licenses to run a business are some of their challenges. The new normal presents only gloom and doom due to draconian lockdown measures with little to no cushion from the boomers ruling them. Corruption and authoritarian regimes which only pay lip service to their plight has made it very clear that they must save themselves.    

HOW

Calculating how much this would cost on an individual or family basis then choosing to utilize the best store of value by keeping the rest in Bitcoin is the best decision. A cold storage hardware wallet will provide your money optimal security from bad actors who can even be your own government or corporations who choose to target your finances simply because you do not agree with their beliefs, opinions or values. At present cancel culture is predominantly a first world problem. The very real consequences along with it will soon be upon Africa as a result of corporate media indoctrination as they seek to as always copy their western role models.  

Being in a possession of having the least possible amount of fiat currency needed to pay for necessities while allowing mathematics and physics through Bitcoin to be the custodian of your money is the way. Paying for rent, food, bus fare and airtime to mention but a few necessities might not be possible to do in Bitcoin for most African youth. Having more than 51% of the rest of the amount as calculated on a monthly basis as per your hustle in Bitcoin is the 1st step. 

Primarily having the largest allocation of your Bitcoin in a cold storage hardware wallet is the preferred course of action as NOT YOUR KEYS, NOT YOUR BITCOIN. Step 2 may be choosing to have a part of the 49% of your Bitcoin in an interest bearing account on a reputable exchange such as BlockFi as a way to eat your cake and have it. The percentage of interest you will receive (Currently at 6.2%) monthly is significantly higher than any bank account or M-pesa offers. You can decide to let the 8th wonder of the world (Compound interest) work miracles on your deposit or simply have it deposited to a bank account of your choice per month. Such an allocation can go a long way in taking care of some of your recurrent expenses as highlighted on “Bitcoin Solving Africa’s SheCESSION.”

As you must spend fiat currency to get by daily, getting a credit card in which you earn rewards in Bitcoin is a very practical and lucrative option. Step 3: Instead of spending cash or M-pesa to make that purchase on a great offer on Jumia or an emergency payment, use a credit card that earns you Bitcoin as rewards. This is a great way to at the very least have fun knowing you inch closer to financially emancipating yourself while using the same fiat currency you are used to. The rewards you earn keep you on track to accumulate more Bitcoin.

Remember to stick to your plan by periodically moving Bitcoin to your cold storage hardware wallet to maintain at least 51% there.

NO STRESS

In the process of ‘Operation Omoka’ most African youth might need loans for different endeavors they seek to pursue. The legacy financial system in Africa has neglected the youth but Bitcoin is the gift that keep on giving. Getting loans against your Bitcoin deposit without invasive and long processes at much better rates than banks, M-pesa or Sacco’s is a reality with very many reputable exchanges.   

Circumstances such as poverty and poor financial decision like using loan apps to finance entertainment, have led to many African youths having bad credit scores. Determining the future for Africa’s youth through credit score systems that are poorly structured and managed, making it almost impossible to get out of the black list once compliant is problematic. As Africa’s ‘regulators’ and ‘leaders’ learn to do their jobs, save thyself. Opt out of the legacy financial system be in a position to get a loan against your Bitcoin disregarding their black list.

Strict adherence to the law of the land is a must. If you are on the black list, just migrate to Bitcoin and resolve the listing issues as you still hustle to pursue your goals. You will not only be in a position to pay your debts and once compliant you can get fiat currency loans to buy more Bitcoin making a killing.

NEW FRONTIER

Embracing various avenues to earn Bitcoin through mining and online trading will prove lucrative if taken seriously. The latter is not a license to invite Shitcoins into your portfolio rather to capitalize through learning new skills that have the potential to earn you a lot of Bitcoin in multiple asset classes. As a technical analysis day trader on the MT4 platform, you can test and combine different indicators to form a trading algorithm with a positive Return On Investment (ROI). You can use it to trade and or sell it to different interested parties with huge demand worldwide.

Other than Crypto jobs, there are so many ways African youth can earn Bitcoin. Moral and ethical is relative depending on beliefs, principles, and values however, always make sure all your dealings are legal as per your jurisdiction.

CONCLUSION

There are numerous advantages of utilizing Bitcoin as your preferred store of value over fiat currency, chief among which being the latter is guaranteed to depreciate your spending power.

Employed, hustling, in school or any version in between, every African youth owes it to themselves to formulate a plan of how to opt out of their 3rd world fiat based legacy financial system.

Take ACTION.

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