Strategy Unveiled by F2Pool Mining Pool Founder Regarding Financial Management
In the dynamic world of cryptocurrency trading, Shen Yu, co-founder of F2Pool and Cobo Wallet, has introduced a unique approach to asset allocation - the Shen Yu four-wallet rule. Despite limited public documentation, this rule appears to be either very new, niche, or not widely documented as of now.
According to Shen Yu, the four wallets serve distinct purposes in managing a crypto portfolio. The cold wallet, reserved for major assets, is designed to prevent impulsive actions during FOMO periods and typically holds over 60% of Assets Under Management (AUM). The fiat wallet, on the other hand, operates on a "withdrawal-only" basis to cover annual living expenses, with a 4% withdrawal limit ensuring financial independence even during losses in other wallets.
The warm wallet, which stores 20-30% of assets, is intended for steady cash flow to maintain composure during bear markets. The hot wallet, used for speculative or high-risk activities like NFTs, is limited in funds, and profits are periodically moved to cold or warm wallets.
Shen Yu's multi-tiered approach mitigates risks associated with emotional reactions to cryptocurrency market volatility. He emphasizes the importance of psychological resilience, limiting impulsive actions, and adapting strategies during market corrections.
In addition to the four-wallet rule, Shen Yu maintains a trading journal to document emotions, reasoning, and predictions for later analysis. He focuses on "core" assets for investment, moving a token from the "entertainment" category only after it endures several market cycles. For experimental tokens such as NFTs, Shen Yu advises a cautious approach with a small portion of capital to explore market potential.
While the exact details of Shen Yu's four-wallet rule remain elusive, it represents an intriguing development in the field of cryptocurrency portfolio management. As more information becomes available, we will continue to explore and analyse this new approach to asset allocation.
In the cryptocurrency trading realm, Shen Yu's four-wallet rule, though not extensively documented, leverages Ethereum and Bitcoin within its structure, especially the cold wallet that operates with major assets like Bitcoin. Shen Yu's investment strategy also extends to experimental tokens like NFTs, advocating a careful approach when investing Finances, given technology's rapid advancements in the finance sector. Moreover, Shen Yu promotes diversification by recommending a portion of investing capital for exploring potential in new technologies like NFTs, while maintaining a prudent approach in the process of Investing.
