My Cryptocurrency Portfolio

My Cryptocurrency Portfolio

By johnwege | johnwege | 25 Jan 2021


If you are anything like me, you are probably obsessed at looking at your cryptocurrency portfolio. Looking at the current prices of coins, thinking of how you can improve your allocations even more and also planning for the future. Since I have gotten into cryptocurrency I have changed my portfolio drastically many times.  Initially my portfolio consisted of 100% bitcoin only. Then I discovered ethereum and dove head first into that as well; heavily investing into it.  I considered these the 2 "blue chips" in the cryptocurrency markets.

But as time went on I was tempted by the possible higher gains that altcoins could offer and entered the Altcoin Forrest. But then I made a discovery that I was spreading my funds too thinly over too many coins to make the significant profits I was hoping for.  For me having a higher concentrated portfolio not helped my profits to grow larger, but it also made it much easier to accumulate faster as well.

Since that time I have decided to invest the most heavily into bitcoin, ethereum and then much less on a few other coins that I like. Also the percentages of each allocation have changed significantly recently due to the price swings up of both bitcoin and ethereum as well. 

Please note that this is my personal portfolio and my strategy and if the coin you like isn't on my list doesn't mean that I'm not a fan of it.

Without further delay, let's dig in.

 

5) BNB 0.25%

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This is where a lot of my rewards from cryptocurrency blogging go. I will often convert the funds here into BNB and let it sit in my wallet.  I'm not necessarily planning to hold on to this for a long duration, but using it to trade into other assets that I like more such as ETH and BTC.  Although I do believe there is great potential for BNB to continue to rise in value; especially as Binance continues to burn millions of coins each quarter with the end goal eventually cutting the circulating supply of the coin to 100 million.  With millions of coins being burned, and also this being the first bull run that BNB will have the chance to participate in means there is a whole lot to like about owning this coin.  Although for me personally this is a shorter-term hold.

4) Chainlink 0.75%

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I will freely admit that when investing in cryptocurrency I like to play it safe; for my own sanity.  After all; investing into cryptocurrencies is risky enough.  I do recognize that DeFi could very possibly be the next big thing, and this could be where the largest gains are during this bull run. But from everything I have witnessed, it is much more risky as well. But I do feel that Chainlink; which is essential to many of these DeFi tokens is a much safer option.  If the DeFi market continues to surge, so will Chainlink.  Having just set a new all-time high price, and also in the future adding the ability to stake will be added means that it is still not too late to join in. I really am a big fan of this project and view it as a mid to longer-term hold.

3) Polkadot 2%

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I am a big fan of Polkadot and believe it has a great future.  With that said I must admit that I used to have much more Polkadot than I do currently. I had converted my DOT into both bitcoin and ethereum, and have since been buying back into the position.  There is a lot to like like about this project; already being able to do what Ethereum is hoping to deliver years from now.  While many people claim that Polkadot will work in-tandem with ethereum and offer interoperability with different blockchains; it is also possible it could someday pass by ethereum if it continues to have development delays. Then adding the fact that Polkadot offers a very high staking reward as well makes this a no-brainer to add into your portfolio. I view it as a nice insurance policy to have against my ETH holdings and very DOT as a mid to longer-term hold for me.

2) Ethereum  8%

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We have finally reached the "blue chip" coins.  There is so much to love about Ethereum.  It is the blockchain that has the most developers, and the most being built upon it.  ETH should be in every cryptocurrency portfolio. Although there is some risk to this mostly caused by the slower than ideal release of ETH 2.0; but I am not phased by this.  Nearly all of DeFi is built upon ethereum and this is where most of the innovation in the space is happening.  Not only that but staking has just been launched which makes it extremely easy to earn a passive income with your ETH. Also taking into account that after EIP-1559 is introduced; this will transform ethereum from an inflationary asset to a deflationary one.  Meaning the circulating supply will continue to decrease over time.  I do have some wild price predictions for where I believe Ethereum will be heading the next few years, and will probably make a post about that in the future. I definitely view ethereum as a long-term hold for my portfolio.

1) Bitcoin 89%

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The king of all cryptocurrency coins has been and will be bitcoin for the foreseeable future; making this an essential part of not only crypto enthusiast's portfolios, but it should be included in any investor's portfolio as well. While the percentage of gains may not be as high as other coins,  I still think the price of bitcoin is going to soar to a magical place that will make many people rich. Bitcoin is the "safest" asset to invest into within the crypto market; which like I mentioned before, I like to keep it boring for my own sanity. The reasons for owning bitcoin have only been heightened from everything that has happened throughout the world during the last year and has become much more respected as a viable asset throughout the investing world. While many people may not agree, I have been seeing great progress on the secondary bitcoin layers and if that continues to grow  it could make many other cryptocurrencies useless; resulting in those market caps being swallowed up by bitcoin. Naturally I view owning bitcoin as a long-term hold.

This is just a quick view of my portfolio and remember that just a few percent allocation may equal a significant amount of funds.

I would love to hear what your portfolio looks like! What does your percent allocations look like!?

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As always, thank you for reading!


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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