2021 has been a crazy year so far for cryptocurrency enthusiasts. Bitcoin was trading around $29,000 on January 1st, 2021. Currently, it is trading at a price of $48,192, up over 10% since its drop to $43,382 yesterday.
On December 30th, 2020, I answered the question: What will be the top 5 cryptocurrencies by 2021?
This answer saw a high interest from all sorts of people, and I’ve enjoyed talking with many of you about my picks.
Since December 30th, 2020, these picks saw the following returns:
- EunoPay (EUNO): $0.00148 to $0.00199 (+34.4%)
- Effect AI (EFX): $0.022 to $0.098 (+345.4%)
- Mantra DAO (OM): $0.058 to $0.285 (+391.3%)
- Lukso (LYXe): $1.30 to $8.93 (+586.9%)
- Presearch (PRE): $0.014 to $0.059 (+321.4%)
- LTO Network (LTO): $0.133 to $0.37 (178.1%)
- VIDT Datalink (VIDT): $0.56 to $0.558 (-0.35%)
These are significant profits. And so, there’s a few questions I received frequently:
- How do you select the projects you invest in?
- When and how do you take profits?
- What is your current portfolio like?
I’m excited to answer all three questions for you:
How do I select the projects I invest in?
First, it’s important to mention that over the course of the past couple of years I’ve read probably hundreds of white papers. I would encourage anyone to start reading the white papers of successful projects and compare them to the projects you are interested in doing research on.
The metrics I look at are:
- Financials (Are revenue numbers etc. publicly visible? Did they hold an ICO? If so, against which terms? Are we still expecting private sale participants to receive tokens, if yes, when? As this typically results into a dump that offers the perfect buy opportunity)
- Fundamentals (Competitors, team experience, use case (USPs), product-market fit)
- There’s probably more metrics I am missing here, I’d recommend you to check out earlier research reports I wrote here on Publish0x.
When and how do I take profits?
- By a thumb of rule, I sell about 50% of my position after a 100% increase.
This enables me to take out my initial investment as well as I’ll have plenty of holdings left which I can then sell partially at higher levels (typically in batches of 10-20% a time).
For this I mainly look at competitors, what is the market cap of these tokens and how does the market cap of the cryptocurrency I am holding compare to that? As well as the roadmap, are there any major milestones coming up and / or how good is this project at marketing?
This is somewhat a defensive approach in a bull market. However, making money is relatively easy versus maintaining it. Therefore, taking profits to me is never a bad thing.
What is my current portfolio like?
To make it as easy as possible for everyone to follow my moves, I decided to publish a personal ‘watchlist’ on Coinmarketcap (Accessible for free here).
This watchlist enables anyone to follow the watchlist and receive updates when I make changes to this list.
Do note that this watchlist includes projects I am following and interested in. It doesn’t necessarily mean I am holding all these cryptocurrency.
For March until June/July I am planning on maintaining my current portfolio. I’d categories these as follows:
- Ethereum (ETH)
- Binance Coin (BNB)
- Polkadot (DOT)
- Spartan Protocol (SPARTA) - Research report
- Mantra DAO (OM)
- OctoFi (OCTO) - Research report
- Presearch (PRE) - Research report
- CSP DAO (NEBO)
- EunoPay (EUNO) - Research report
- GET Protocol (GET) - Research report
- Bakery Token (BAKE)
- Burger Swap (BURGER)
I’m anticipating Bitcoin and altcoins to continue the current uptrend. In fact, I strongly believe Bitcoin can reach $100,000 before summer and manage my risks and exit-strategy accordingly.
There is however always a chance we reject further and enter a bearish market. This depends on the overall worldwide economy (stock market, gold, etc.).
Realistically, I still find Bitcoin to be the best hedge against the current inflation we’re experiencing.
- What are some of the most common beginner mistakes of cryptocurrency trading?
- What is a better investment, Bitcoin or Ethereum?
- Why is the crypto-market falling now?
This post is for informative purposes only, I’m not a financial advisor and I currently do have a position in BTC and Altcoins. I have not been paid for this post, this post is out of personal interest.