Vitalik Buterin shares his financial advice with the crypto investors

The Ethereum co-founder explained why diversification of the portfolio is necessary.

Vitalik Buterin is a co-founder of the Ethereum (ETH) blockchain and he is the top popular crypto entrepreneur because of the success of the Ethereum network, which is a second top-ranked crypto asset by market cap after Bitcoin. 

On 7 Jan 2024, A social media influencer talked about the friendship between former Microsoft CEO Bill Gates and Stock market expert Warren Buffett. 

According to this person, Gates diversified his portfolio by selling Microsoft shares on behalf of Buffet’s advice. 

Because of Buffet’s advice, Gates’s net wealth is 10 times less than what it should be without diversification. 

Indirectly the influencer tried to suggest people not to take financial advice from friends blindly.

After Bill Gates became friends with Warren Buffett, he began to diversify his portfolio and sold Microsoft shares.

Bill Gates' fortune today is 138 billion dollars, if he hadn't diversified it would be 1.33 trillion dollars.

Be careful with diversification and with friends who… pic.twitter.com/7ZLT6NkgBS

— Alex (@alex_avoigt) January 6, 2024

Vitalik quoted this information & said that the influencer’s advice was terrible and further he suggested his financial advice.

According to Vitalik, wealth diversification is a good idea to save money and the actual financial freedom is saving money to cover the expenses for multiple years, in short, financial safety is actual freedom.

Additionally, the Ethereum co-founder suggested people keep portfolios limited to particular numbers of best assets. 

This is awful advice. Some actual financial advice:

* Diversification is good.
* Save. Get to the point where you have enough to cover multiple years of expenses. Financial safety is freedom.
* Be boring with most of your portfolio.
* Don't use >2x leverage. Just don't. https://t.co/CIvDJcD3UG

— vitalik.eth (@VitalikButerin) January 7, 2024

In short, safe earning from multiple sources is a better option, instead earning from a single source.

Vitalik’s financial advice sounds good because a similar kind of advice came from Tesla CEO Elon Musk, top 10 richest person of the world, who said that he owns Bitcoin, Ethereum, & Dogecoin and he said that holding huge numbers of crypto assets is not a good investment strategy.

Out of curiosity, I acquired some ascii hash strings called “Bitcoin, Ethereum & Doge”. That’s it.

As I’ve said before, don’t bet the farm on crypto! True value is building products & providing services to your fellow human beings, not money in any form.

— Elon Musk (@elonmusk) October 24, 2021

Ethereum price action

The current trade price of Ethereum (ETH) coin is $2,190 & this trade price is 2.4% down over the last 24 hours trade price. 

Under the current market sentiments, it is expected that the trade price of the majority of the flagship crypto assets will surge rapidly in the coming days, as Bitcoin spot ETF applications will get approval from the United States Securities and Exchange Commission (SEC). 

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