My Crypto Portfolio

My Crypto Portfolio

By johnwege | johnwege | 10 Sep 2021


Today I will be talking about something that I'm constantly obsessing over; my cryptocurrency portfolio.  I originally got into cryptocurrency for the gains, and have stayed for the technology.  With that said; my main purpose with these investments are to change my life financially, have financial freedom and eventually be able to retire early.  I have been amazed at just how real my portfolio has performed during the last few years making that one big dream, seem very achievable in the next few years.  My approach has been simple.  It has been to be fully immersed in the cryptocurrency market, learning everything that I possibly can.  Then pick to invest in the coins that I believe in the strongest, and keep putting in as much as I can afford to do so.  I also leverage a good size of my portfolio to accumulate even faster by either lending or staking.  By constant accumulation and passive crypto income, it has been very exciting to see just how fast my portfolio has multiplied in size.

If you have been following me for any duration of time, you will probably know that I am close to being a bitcoin maximalist.  I call myself "an open-minded bitcoin maximalist."  In my thinking this means that while I like bitcoin the most and usually would prefer just to own BTC, I also understand and appreciate some other coins.  I even own some of them.  But I pick and choose extremely carefully.  I am not here to find the hidden gems that are ranked number #500 on CoinMarketCap.  I have no interest in those.  Instead I focus on the blue chips coins that I think are the best of the best.  Or, will soon become one of those blue-chips.  Investing into cryptocurrency can be extremely risky; as shown by the recent price dump.  This is why I prefer the less risky coins to invest in.   The coins that I believe will be around 10+ later from now, and also the key players.  

Before discussing each coin of my portfolio I do want to mention one thing.  My portfolio size has grown to a very nice size and if some of the coins are even 1% of my portfolio, it is still a significant amount of money invested into it.

Honorable Mention

I do have a few honorable mention coins that I would like to talk about.  They are honorable mentions, because they aren't in my "HODL" portfolio.  Meaning that I use them only for sending transactions or for cash savings.  These two coins are Litecoin and also USDC.  I some Litecoin on hand because it has great adoption around the market and the sending fees are quite low.  I will then often convert it to a different coin of my choosing.  But I am not holding Litecoin for the long-term. Also USDC.  Personally I don't really consider stable-coins cryptocurrency, even though they are.  I more-so consider it the same as cash.  I have been pretty aggressive recently at lending stable coins to lending services like Celsius and other services to gain great interest.  

Now let's move onto my crypto portfolio.

 

4) Polkadot 1%

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While I don't consider Polkadot to have reached a blue-chip status yet, I do think it has great potential to do so.  The cryptocurrency market is still extremely young, but it is becoming more and more clear that the future involves different chains working with each other.  This is what makes Polkadot very interesting.  It is the coin that will potentially bring cross-chain interoperability to the market.  It has a great team led by Gavin Wood, one of the key people at Ethereum.  Then taking into account that you can earn 12% or higher staking it, and parachains will soon be coming that should boost the value even more.  Other chains have been getting a lot more hype than Polkadot at the moment, and that makes me believe it is a good time to be buying.  After all, you want to buy before the hype, not during the hype and have FOMO.  While only 1% of my HODL portfolio.  It is still quite a bit in terms of cash value.  Within the next few months I'm expecting that the value of this will probably rise to about 2-3% of my portfolio.

 

3) Solana 2%

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Solana is more of a recent purchase of mine.  I was wanting to add a coin as a back-up plan for Ethereum, in-case it would fail.  I have had Cardano in the past, but I do not like it and don't have any confidence in the project.  This led me to Solana.  While there are some concerns; it being more centralized than Ethereum.  It is hard to deny the technology and specs that it has.  While I prefer ethereum for its decentralized use, it is to be determined if the average person will ever care about that. Perhaps they will care more about faster and cheaper transactions.  If that is the case, there is a lot of room for Solana to fly.  While you should never invest into an asset because one person or exchange are big proponents of the projects. Solana does have that going for it.  Sam Bankman-Fried and the exchange FTX are huge proponents of Solana. Sam is perhaps the smartest and most powerful person in the industry.  While FTX is quickly becoming one of the biggest exchanges as well.  Add in the fact that you can stake Solana for a passive income, and this results in it being a very happy addition to my portfolio.  I bought it a few weeks ago and it was initially just 1% of my portfolio, but has since doubled to be 2%.  By the end of the year, I am anticipating that Solana will continue to appreciate in value and will probably be around 5% of my portfolio. 

2) Ethereum 11%

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We are now reaching the very significant amounts of my portfolio; with number two being Ethereum.  Even with me almost being a bitcoin maximalist, it is hard to deny the use-case and ecosystem that ethereum has.  The things that are being built on ethereum are very exciting and the potential it has is limitless. It has become an even better investment after EIP 1559 took place and cut the inflation rate of ETH by burning coins with each transaction.  One of my favorite things is to gain a passive income from lending out my cryptocurrency. But, the market is still extremely young and so is government regulations.  It is very possible that there will be laws or limits put on lending out crypto.  With ETH 2.0, it gives you the ability to stake ethereum for a passive income.  There is nothing that can be done to stop you.  This alone, makes investing into ethereum a very smart decision.  Like it or not, but many of the recent hype cycles in crypto have been around Ethereum.  Be it ICO's, DeFi summer, and now NFT's.  There is a lot of excitement that is happening over there.  Ethereum during the last few months has risen up to 11% of my portfolio, and I could see it easily reaching 15%+ before the end of the year.

1) Bitcoin 86%

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And finally that beautiful orange coin; bitcoin.  It is true that bitcoin is by far my favorite and the coin that is my largest position in my portfolio.  During the last year bitcoin has appreciated so much in value that it has become 86% of my portfolio.  While some may not be comfortable with it being such a large portion of their portfolio; I am completely okay with it.  In fact, I still worry that I do not have enough bitcoin.  All you need to do is to look around the world and you will quickly see that the world is moving towards bitcoin.  Just this week El Salvador officially made bitcoin their countries' legal tender.  And they won't be the last country to do so.  Bitcoin's second layer, Lightning, has made bitcoin even better.  Allowing BTC to become usable for everyday transactions.  Transforming BTC from being only an amazing SOV, to now being great as cash too.  Its' ability to be used as a currency has finally been unlocked.  Updates are coming that will improve bitcoin even more.  Taproot/Schnorr will increase privacy and also initiate the ability to use smart contracts.  DeFi is being built on BTC already with Soveryn and Stacks.  I truly believe that the world will become a place for people that either have bitcoin, and those that don't.  And you don't want to be in the don't category.

How about you? What does your portfolio look like? Which coins do you believe in the most?

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johnwege
johnwege

Hello I'm John Follow me on Twitter! https://twitter.com/johnwege


johnwege
johnwege

Living day by day, stacking sats and trying to retire early. Check out my substack blog https://johnwege.substack.com/ Follow me on Twitter twitter.com/johnwege

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