On... Balance Sheet vs Income Statement
"When crypto 20x in the next Bull Run, I'm going to sell everything so that I can accumulate more when the bear market arrives. How about you?" That was what I was asked in Discord. Myself? I'm just going to hold my long term stack. Why? Because my long term stack sits in my Balance Sheet instead of my Income Statement. First, we have to understand what a Balance Sheet and Income Statement is. That is how I basically run and report my portfolio. A Balance Sheet is the financial balances of an individual or corporation. It is where Assets and Liabilities are recorded. An Income Statement is a statement of Profit and Loss. So, how is my Networth recorded in this regard? My long term holding goes into the Balance Sheet. And my day-to-day trade goes into the Income Statement. I consider long term holds as Assets and this portion of portfolio is not touched unless there is a need of additional cash or an emergency situation. My day-to-day trade is considered as Income. So,...