Today I want to discuss why I use for my crypto investment.
This tool is very simple it’s called: composed cryptofolio.
Finance has a principle that says: Don’t put all your eggs into one basket. It’s a principle of diversification.
I have only one rule for this, it may be flexible but I try to stick to it: No crypto should have more than 33.3% weight in USD in all my portfolio.
The values of my portfolio are invented, but the percentages aren’t. They are real.
I would only like to add: that regarding to crypto 6, I purchased some tokens at the end of the year from online sales. And the price of this token doubled during the last 3 weeks.
Regarding to December 20th, the crypto 7, was 18 USD, it had the highest participation on my portfolio, around 20%. The holding in fiat value increased by 1 USD, but the % participation decreased from 20% to 14%.
However the biggest winner was the crypto 1, which increased from 12 to 32 USD. Now it has the highest participation on my portfolio, around 23%.
Crypto 3 had pretty nice performance too, from 9 to 13. It’s one of the top 10 cryptos. Can you guess which one is it? Even if it increased around 50%, its % participation lost 1 percentual point.
If we divide the total result between two dates, dividing 138/88, we obtain a total profit of 56%.
When I analyze all my cryptos, only one became a negative player. Only few of them almost haven’t changed. And one of them recorded over 200% bull run, that was Presearch. Check on Coingecko if you don’t believe me.
This technique has worked out for me, even during the bear market. I started to implement it actively since October, I was literally hunting the cheap cryptos, and got one: Presearch on November 15th. While almost all my portfolio has been sinking like Titanic, PRE has been able to control my losses in the last 2 months. During November there was one week, when all the portfolio jumped up by 40%.
So during December my complete portfolio was locked within a sideway trend. Let say I had an average value of 100 USD. It was within a range of /- 10%, that means between 90 and 110 USD.
Therefore I recommend to monitor it every day and if you have want to make any change to your portfolio, do the corresponding TA and Fundamental Analysis as well, and respect the basic rules of trading.
I want to tell you that regarding trading, I consider myself as a real beginner, but I started to respect the basic patterns of trends and moving averages and emotions under control. I am aware that I have to learn much more because I want to master my investor's technique. But despite all the lack of knowledge, 56% increase in the last 20 days, I consider them good enough.
I would like to ask you what tips have worked out for you during the cryptocurrency investing?