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Crypto Heavyweights Arthur Hayes and Raoul Pal Unveil Secrets to Skyrocketing Your Returns
- Raoul Pal repeatedly warns about the importance of careful investing, a sentiment echoed in discussions with Arthur Hayes.
- Hayes advises against FOMO, suggesting only a small portion of a portfolio should go to high-risk assets like memecoins.
- Despite potential for high returns, both Pal and Hayes caution against expecting life-changing wins from speculative investments.
You’ve heard Raoul Pal say “don’t f**k this up” before and he seems quite happy to repeat it at any chance he gets because, well it’s important not to drop the ball on this one.
How do you do it though?
According to investing legends Arthur Hayes and Pal—who discussed a lot more than the latest memecoins—you have to pace yourself. Pal asked Hayes how he manages to stop himself from FOMOing.
Related: Stop FOMO and read our guide on how to analyse crypto before you buy
Hayes, a co-founder and former CEO of cryptocurrency exchange BitMEX, has been around long enough to have seen a lot of degens lose their money. Which is why he only bets a small portion of his portfolio on risky assets.
If I want to FOMO, the size of the position that I’m trading is so small relative to my overall stuff that even if I lose 100% of the money, I don’t care. And so, I think that’s how you do it.
Arthur Hayes Hayes said, unless you are someone who has the time to study chat rooms and messaging boards for a living, don’t bet your life savings on things like dogwifhat.
Unless you got in weeks ago when an asset was around 1% of what it is today, your chances of outsmarting those who are in the know are low—which includes finding out about the latest memecoin on Bloomberg, because guess what, that’s probably a little late to the party.
What Size Should Your Degen Bag Be?
Pal chimed in saying he believes one shouldn’t wager more than 10% of a portfolio on risky bets like memecoins. Even so he said, his degen bag probably never reaches that number because there are too many value projects to scoop up.
Hayes agrees saying investing in memecoins is for the most part not life-changing and you should not put that many “chips on the table.”
Though some may get lucky, like the individual who turned $13k into $2m, Hayes reminds us that for every such winner, there are potentially many more losers.
Related: A Trader’s Wild Journey: Turning $13K Into $2M In One Hour with A Memecoin Surge Of 15,700%
You’re not trying to change your life with any of these coins. It can make a little bit of money, but man, you’d be real p**sed at yourself if you f**king nuke your whole stack on something like the Swerve token.
Arthur Hayes 
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
