Scott Melker is one of the most recognizable names in the crypto trading world. His alter ego, “The Wolf of All Streets”, is aptly named because of its versatility in space.

Melker is, on the one hand, a crypto thought leader and influencer who has deep discussions on his podcast with leading names in the crypto and financial sectors like Jim O’Shaugnessy and Michael Saylor, and on the other hand, he’s known for sharing his quick daily crypto -Insights to his almost 400,000 Twitter followers.

He is also a well-known crypto investor and trader known for bringing his expertise to the masses in the market through his daily newsletter.

All of this follows on from an already successful 20 year career in music as a DJ starring alongside Steve Aoki and Kanye West.
A crypto investor who trades

”I should be very, very clear that in the amount of my trading I see myself as an investor first and always“, Melker told Insider in an interview. ”Whoever asks me, I say I am an investor who trades. “

Melker takes a balanced investment approach compared to most known Crypto Bulls by continuing to play in traditional markets.

“I believe that people should have at least 60% to 70% of their wealth for long-term investments and 15% for cash and 15% for trading because, as we know, traders tend to underperform the market,” Melker said .

Crypto is part of a broader diversified portfolio that ranges from real estate to equity investments.

“In fact, I was telling people by the end of 2019 that I didn’t like having more than 10% of my net worth in crypto,” Melker said.

That has now changed. Melker is now growing his crypto fortune and makes up a far larger percentage of his portfolio.
Crypto asset allocation

For Melker’s crypto allocation, he maintains a similar investment mentality. He holds 70% of long-term investments, mostly Bitcoin and Ether, the home currency of Ethereum.

The rest of his long-term strategy focuses on trades that have done exceptionally well.

“In Crypto you can make 10/20 100 times your money on a trade, and I will transfer the last 20% of that position to the investment portfolio and just let it grow for years or let it go to zero because I’ve already made my money” said Melker.

Melker also mimics the 15% allocation to cash found in traditional portfolios in its crypto holdings as stable coins have been created.

Stable coins are cryptocurrencies that tie their value to an external asset such as the US dollar or gold in order to stabilize the price. Currently, they can be held on various platforms such as Voyager and BlockFi and have an annual return of up to 10%.

“I think it’s absolutely unbelievable,” said Melker. “For me, it’s actually the biggest innovation in the crypto space in the last year or two.”

Then the last 15% goes on sale and is more active in the market, said Melker.

    HODLing or Investing?

However, Melker believes that investing is more key to success in cryptography than in trading.

“Honestly, I think the people who do best in crypto are the ones who have strong hands and buy things and just wait,” Melker said.

Investors who can get in early and hold in the midst of volatility will reap the rewards, he said.

Some in the crypto world refer to this as “HODLing,” a slang for investors who buy and hold their positions regardless of what happens to the price.

“As in any market, you buy when there is fear and sell when there is greed,” said Melker. “And if, like many of us, you have bought in the last three years when the market was terrible, you are seeing the fruits of that labor and you don’t have to trade much.”

Investor focus should be on two core resources, bitcoin and ether, Melker said, even for those new to crypto trading and investing.

The strategy of 80% Bitcoin and 20% Ether is sensible, Melker said. However, he said he would increase the allocation of ether slightly.

Basically, everything is in place for much larger moves for both assets, Melker said.

    Manage 100x opportunities

Although investing is Melker’s largest allocation, he believes there are still opportunities for crypto traders to make substantial profits even as markets become more efficient and much of the volatility so attractive subsides.

“I would say if you are very knowledgeable and a decent collector of these smaller coins, you can literally spend 100 times your money on one of these coins in a week,” said Melker. “Taking advantage of some of these opportunities with less of your capital becomes very significant.”

Melker also holds some under-the-radar tokens in relatively small positions. He shares five coins that he is currently holding and believes that he has great potential as a long-term investment rather than a short-term trade.

1. LINK – Link, the native token to the Chainlink network. YTD: + 300%.
2. DOT – Dot, the native token of the Polkadot network. YTD: + 345%
3. EGLD – EGold, at home in the Elrond network. YTD: + 590%
4. UTK – Melker has a stake in the UTrusts company and this is their mark. YTD: + 414%
5. POLS – Melker said this was a trade that has performed exceptionally well and that he has moved on to his investment strategy.

Melker was a one-time owner of Dogecoin, the meme cryptocurrency that is up more than 20,000% in one year thanks to support from celebrities and entrepreneurs like Tesla CEO Elon Musk. He held it for some time before cashing it out a while ago while the token was still worth less than $ 0.01 compared to the $ 0.53 he’s currently trading.

“Honestly, do you want to talk about it because it hurts?” Melker joked.