The cryptocurrency market is a place that can make all your dreams come true, but it is also a place that can destroy them even faster. Everything depends on the decisions that you make and the portfolio that you decide to build. All you need to do is find the right projects and stick with them.
It may sound simple enough. Finding high-quality projects, buying them, holding them, and then potentially selling them when the price is right. However, doing just these things correctly will be one of the most mentally challenging things you have ever done. Living through and surviving bear markets is no easy task. Your conviction will be tested, and you will begin second-guessing why you ever entered this market.
However, if you can do all of this, there is a very high chance that you will be able to change your life financially forever.
Ever since I entered the cryptocurrency market, one of my favorite things to do has been to look at how other people build their crypto portfolios. The coins that they decided to put into it, and what percentage of the portfolio they allocated to each asset. There are now millions of projects to choose from, creating endless possibilities.
The other factor I’m always interested to see is if a person decides to take a highly diversified approach, spreading out between many crypto assets, or a heavily concentrated approach focusing on just a few instead.
Personally, I have always been more of a fan of using the heavily concentrated approach. In the crypto market, everything seems to move at a thousand miles per minute. One week’s worth of development in crypto would be a year’s worth in normal investing assets. I feel that when you’re spread out so thin between many cryptocurrencies, it becomes very difficult to keep up to date on all of them.
I prefer to do my own deep research and find the assets that I have true conviction and passion for. This is what has helped me survive the bear markets, and I would argue is also one of the key factors contributing to my success.
Projects that I’ve Left
Even with deep research, not everything you invest in will be a winne, and you will have to choose to cut loose from these crypto investments. Over the years, there have been several projects that I invested in where I saw success, but lost confidence in them and decided to swap to other projects.
In the last several years, some of the projects that I personally invested in but have now left are Cardano (ADA), Polygon (MATIC), Polkadot (DOT), XRP, Litecoin (LTC), Arbitrum (ARB), Internet Computer (ICP), Chainlink (LINK), and the list goes on. It doesn’t mean these are bad projects or that they will fail. However, for one reason or another, I lost confidence in them and thought my capital would be better invested elsewhere.
One of my strongest beliefs is that anyone can still change their lives with crypto. You just need to have enough patience, a long enough timeframe, and invest in the right assets.
You can make great gains in your first full crypto cycle. In your second cycle, you can become very well off financially. Finally, in your third full cycle, you can become wealthy.
Also, please keep in mind that while percentage allocations of my portfolio may seem like a small amount. We are actually dealing with large amounts of capital. Without further delay, let’s take a look at my portfolio and its allocation.
3. Solana (2%)
Solana is a project that I have had a love-hate relationship with since I began investing in it. I was always a fan of the huge potential it had, essentially being a faster, cheaper solution to Ethereum. But it came with a lot of extra baggage.
The blockchain would go down often, and then there were centralization concerns. However, the biggest area of fear was its deep connection with FTX and SBF. When the FTX scandal broke out, there was a real fear that it would result in the death of Solana.
However, for one reason or another, the community stuck with SOL and arguably became even stronger. That took me by surprise, and that was when I really began to heavily invest in Solana. Since then, the price has done over a 10x and performed incredibly.
As time goes on, the blockchain has become more consistent, and there is no denying the potential it has in the future. What once started as an investment backup plan for my Ethereum has become a decent portion of my crypto portfolio.
2. Ethereum (7%)
My second-highest allocation in my portfolio belongs to Ethereum. Even though I have continued to buy ETH, the truth is that it used to be a much higher percentage of my total portfolio. The reason for that is until now, it has significantly underperformed compared to BTC this bull cycle. But that has changed drastically within the last few days.
Ethereum is an asset that I have been investing in for several years and have extreme confidence in. Not only is it the most adopted smart-contract blockchain, but now there are real signs of it also becoming a reserve asset. All the while, you are able to stake to earn a passive income with staking, and thanks to EIP-1559, a portion of ETH gas fees are burned, which lowers the supply of ETH and has the potential to make the chain deflationary during times of high use.
I have the firm belief that with Ethereum’s recent upsurge, it has solidified without a doubt that it is the second blue-chip project in the cryptocurrency market. The only other one currently being Bitcoin. It appears that many cards are currently lining up for ETH’s price to move significantly. It will be exciting to watch.
1. Bitcoin (91%)
Finally, we have made it to the largest allocation in my portfolio, Bitcoin. If you have been following me for any length of time, this won’t come as a shock to you. Bitcoin is the project that I believe in the most and also has the most potential, in my opinion. It is also the most likely to survive in the long term.
Bitcoin has reached a price of over $120k, and it appears that things are only getting started. With countries buying, ETFs, company treasuries entering the space, retail demand, and the bitcoin halving taking place last year. We are seeing demand like we have never witnessed before. All of a sudden, those outlandish predictions that we could potentially see a Bitcoin “supercycle” no longer seem quite as crazy.
The name of the game when it comes to crypto is to own as much Bitcoin as you possibly can. I would now also include Ethereum on that list as well.
Overall, I have recently been re-energized by the upswing in the market. I believe we are on the horizon of some truly amazing things that are about to happen. Lives will be changed forever, and I hope you are one of those people.
