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Ethereum co-founder Vitalik Buterin responded “awful advice” to a post on X that warned investors not to diversify their portfolios. Commenting on the post, Buterin offered practical financial advice, stressing the value of diversification.

In his guide to prudent investing, he emphasized four key financial strategies including portfolio diversification, and urged investors to have savings.

“Get to the point where you have enough to cover multiple years of expenses. Financial safety is freedom.”

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

He also advocated for a “boring” portfolio, implying low-risk investments, unlike cryptos. Lastly, he advised investors against using more than 2 times leverage. This is because the probability of losing begins to increase very rapidly when the leverage used is so high.

Buterin’s advice blends traditional financial investment strategies with modern insights that are relevant in the current digital landscape.

His guidance comes in response to a social media influencer’s post on how Bill Gates, after befriending Warren Buffett, shifted his investment strategy by diversifying his portfolio away from Microsoft shares.

“Bill Gates’ fortune today is 138 billion dollars, if he hadn’t diversified it would be 1.33 trillion dollars,” read the Tweet posted by a user alex_avoigt. “Be careful with diversification and with friends who recommend it.”

Also, Buterin’s financial advice aligns with that of Elon Musk’s investment strategy, who previously said that holding huge numbers of crypto assets is not a good investment.

Buterin’s Responses Raise Eyebrows

The Ethereum community is however not pleased with Buterin’s investment advice. One crypto investor with X (Twitter) handle – CoinMamba – criticized that the advice is good only for those who are already a millionaire.

“Good advice if you are already a millionaire. But these don’t apply to someone who is trying to get rich.”

Another crypto trader and speculator added that “diversification is a distraction” in trading.

Few ETH holders were dissatisfied with the asset price moments. “However, I can’t take this advice anymore, I have over-invested in ETH, by a lot. It is what it is. Every day I am checking price and its underperforming,” said one user.

The post Vitalik Buterin’s Advice on Prudent Investing Draws Skepticism Among Crypto Investors appeared first on Cryptonews.