All wallets are not equal

A

Take a look at your fingers.
All fingers aren’t equal.

In crypto, it’s the same.
All wallets aren’t equal.

We scroll through screenshots
PnLs glowing in green, 100x trades,
and captions that whisper:

If they can do it, I can too.

And honestly, yes you can (In Barrack Obama’s Voice).
But there’s a question most people skip:

Do you have the risk appetite to back it up?

Many years ago, I consulted for a bank.
For every deposit they held, they kept 1x in reserves.
A safety net for the unexpected.

Even UDST has 1:1 reserve

So when I came into crypto, I applied the same principle.
For every position I open, I keep enough reserves to back it up if things go south.

My risk tolerance can stretch sometimes $500K, sometimes $1M if the data justifies it.
So when I take a trade, I’m not scared.
Because I know what’s backing me.

Why is this important?

Don’t compare your conviction to someone else’s cushion.
Don’t mirror a trader whose losses you couldn’t stomach.

Some people can afford to lose what you can’t.
And that’s not weakness that’s awareness.

Risk appetite isn’t about how much you can make.
It’s about how much you can lose and still sleep at night.

“You don’t need to play every game.
You just need to survive long enough to play the right one.” -x2degen

About the author

x2degen

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By x2degen

x2degen

About Me

a degen doubling bags. bitcoin holder since 2011. onchain analysis advocate. sharing my unfiltered thoughts.