Let’s face it, the crypto space can seem like the Wild West. Promises of instant wealth, meme coins hitting the moon, influencers pumping the next best thing. It can be tempting to play the short-term game, running after money that’s up for grabs in the market’s hype cycle. As someone who believes in responsible wealth building, I think we need to take a step back and ask ourselves: are we truly investing, or are we gambling?

I don’t consider crypto any differently than I would consider any other investment. I come to this work with a healthy dose of skepticism and a very strong commitment to due diligence. Are you winging it and hoping for good luck, or are you approaching it with smart design and sound fundamentals?

Forget the Lambo dreams. Forget the Twitter hype. Put aside all your preconceived notions about crypto. Join us for an exploration of what it takes to construct a portfolio oriented towards true value. In my opinion, that means focusing on three key areas:

Look, I’m the last person to say that government bureaucrats know better than free markets and entrepreneurs. With that freedom comes responsibility. Within the crypto space, that looks like requiring responsible governance practices from the projects we support through our investments. I link this notion to the cut and thrust of private enterprise that ought to rule any profit-making body or idea. Would you pour your own money into a firm with a reputational death wish and a reputation for backroom deals and black-box processes? Probably not. So why would you want to do it in crypto?

Ethical Code Is The Foundation

It can be all too easy to get dazzled by the lure of big returns, but don’t ever sell out on your values.

  • Transparency is Key. Is the team open and communicative? Do they have a clear roadmap and are they delivering on their promises?
  • Decentralized Governance Matters. Are decisions being made by a select few, or is the community involved? A truly decentralized project empowers its users and builds trust.
  • Security First. Has the project been audited by reputable firms? Are they taking proactive steps to protect against hacks and vulnerabilities?

This is where things get interesting. Here’s the thing—you should always look to a project’s tokenomics as a preview of its long-term sustainability. Does the token structure incentivize long-term holders and further build sustainable growth? Or does it just serve the oligarchs and those with the greatest access and advantage as insiders and early adopters, leaving everyone else in the dust?

Sustainable Tokenomics Not Ponzinomics

Think of it like this: A healthy ecosystem, like a well-managed forest, has a natural balance. The same goes for crypto.

I’ve watched hundreds of projects generate hype with beautiful websites and moon missions, only to fall apart at the knees because their tokenomics did not hold up. Don't be fooled by the hype. Get educated and learn the mechanics behind the token before investing a dime.

  • Inflation vs. Deflation. Is the token supply capped, or is it constantly being inflated? Inflation can devalue your investment over time, while deflation can create scarcity and drive up prices (but be careful of deflationary spirals!).
  • Staking and Rewards. Does the project offer staking rewards that incentivize users to hold their tokens? This can help to reduce selling pressure and create a more stable market.
  • Utility is King. Does the token have a real-world use case? Is it being used to power a valuable service or product? A token with no utility is essentially a digital collectible – fun to own, perhaps, but not a sound investment.

Let’s be honest, AI is not going anywhere. In my experience, projects that smartly fold AI into the very foundation of what they do have some of the biggest advantages. AI is not as simple as putting a fancy AI sticker on something and calling it a day. AI for social good I’m referring to initiatives aimed at leveraging AI for tangible social impact, building efficiencies or developing wholly new capabilities.

AI Integration Is A Necessity

Imagine – AI is already making waves in sectors such as healthcare, finance, and transportation. Given this fact, why wouldn’t it be a revolutionary influence on the crypto space?

Mostly I want to hear about work being done on AI-ing better security, better trading strategy research or more automation in the financial modeling. Still, it is healthy to be skeptical and ensure that there are strong guardrails in place.

  • Real-World Use Cases. Is the AI being used to enhance the functionality of the project? Is it solving a real problem, or is it just a gimmick?
  • Data Security and Privacy. How is the project handling user data? Are they taking steps to protect privacy and prevent misuse?
  • Decentralized AI. Is the AI being run on a decentralized network? This can help to prevent censorship and ensure that the AI remains open and accessible to everyone.

Now, you may be thinking, “What about [insert hyped crypto here] that’s going to give everybody 1000x returns by May 2025! My answer is simple: be careful. Let me be clear — I’m not arguing that any of those projects are bad in and of themselves. Do not take them at face value; approach them with a healthy dose of skepticism. Follow through on due diligence with every stakeholder you meet with. As the old saying goes, if it sounds too good to be true, it likely is.

Remember, investing in crypto is inherently risky. Only put in money that you’re prepared to lose the full value of. And as always, conduct your own due diligence when making investment choices.

Imagine investing in crypto as if cultivating a garden. Plant the right seeds—projects—in the right places. Fertilize them with research and due diligence, water them with battle-tested wisdom, and protect against invasive species that are the scams and the hype that inevitably surround innovation. By taking the long view, you can grow a portfolio that will flourish for decades to come.

At the end of the day, that is what principled, patient, informed, and successful crypto investing looks like. Don't get caught up in the hype. Look for projects with a clear ethical governance structure, sustainable tokenomics and/or tangible real-world utility. And never forget—the single greatest return on investment is your own human capital.

This is not financial advice. This is not investment advice. Always do your own research before investing in any cryptocurrency.

Final Thoughts

Ultimately, the key to successful crypto investing is to be principled, patient, and informed. Don't get caught up in the hype. Focus on projects with strong ethical governance, sustainable tokenomics, and real-world utility. And always remember that the best investment you can make is in yourself.

(Disclaimer: This is not financial advice. Always do your own research before investing in any cryptocurrency.)