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My Cryptocurrency Portfolio- April 2018

~ 9 Minute Read

And Then There Was Hope

For those who have been reading my monthly cryptocurrency portfolio updates, you’ll know that 2018 has been a difficult ride.  While I wasn’t surprised to see my portfolio go down in value from the insane highs that were produced in the later portion of 2017, it is alway hard to watch thousands of dollars disappear essentially overnight.

The hardest part for me during this crash was not knowing when the bottom would hit.  One of my biggest mistakes in investing in crypto was buying more while the market was going down.  This is commonly known as trying to catch a falling knife.  Let’s just say I lost a few fingers.

It is also interesting to observe how a market crash changes your behavior.  When the market was flying high I could barely wait 10 minutes before updating my Blockfolio app to see how much higher my portfolio had gone.  But in the lowest lows of this crash I might check my portfolio once per day.  It was too freaking depressing to keep reminding myself of the gains that I lost in the process.

On the plus side, I didn’t have to see any more of those damn Tai Lopez Bitcoin ads on Youtube.

The Last Week

Lately, it seems that things may be taking a turn for the better in the crypto market, but I’m still cautious to say that the dark times are over.  The initial positive sign happened on April 12th when Bitcoin jumped a full $1,000 per coin in a single hour!  Good times, good times indeed.

The rest of the market followed suit and my portfolio has increased by a significant 34% in just a week’s time.  Still, I’m nowhere near the peak of my 2017 highs, but it is nice to finally see some green numbers when I look at the weekly and monthly charts.

Market Sentiment Is Turning

During the early months of 2018, it seemed that everyone went from ecstatic about the price potential of cryptocurrencies to being a sad and desperate group when things went to shit.  With the recent upswing it feels like things are back to “normal” with the crazy speculative optimism and people in crypto excited to be in crypto.

This Crash Was Needed

I certainly was guilty of getting a bit foggy by the delirious highs that crypto saw a few short months ago.  And I feel for those who purchased Bitcoin at the $20,000 high, but the truth is that crypto needed to crash.

This market is very immature and there are a bunch of worthless coins and ICOs that only exist to scam you out of your money.  By crashing, crypto eliminated many of these nonsense projects and the market as a whole took another step toward maturity.  As with the internet boom of the 90’s, when the crypto market fully matures there will be a lot of losers and a few enormous winners.  The Google, Apple, and Amazons of crypto if you will.

Is Bitcoin Worthless?

I hear this a lot from those who are skeptical about Bitcoin and cryptocurrencies in general.  Often arguments from this side revolve around the idea that Bitcoin is just pieces of computer code and has no real value.

These folks seem to be oblivious to the fact that the same argument can be used with money.  I mean, its just paper so it has no “real” value.  After the gold standard was abandoned your dollar bills are backed by nothing more than the willingness of that piece of paper to be traded with others for goods and services.  Sure your government could print more dollars in a crisis, but with more supply the value of each dollar goes down.  For more on this check out what happened to Germany’s currency after WWI or several third world countries that deal with hyperinflation.

Bitcoin and other cryptocurrencies do have value in that there is a cost to mine.  They are also being traded constantly on crypto exchanges.  This doesn’t even mention the pros they have due to the integration of blockchains and the ability to send money anywhere in the world with the push of a button.

I’ll be the first to admit that each cryptocurrency has issues that need to be fixed before they will be adopted as a true useable currency, but it will happen.  In fact, this month someone paid for a Black Tie Grinder in Bitcoin, a first for my business.

My Portfolio

My portfolio hasn’t changed since my last post, but I’ll continue to keep this chart updated so you know where things stand.

Here are the current projects I’m invested in and the percentage of my portfolio allocated to each:

Coin

Percentage Allocated

Market Cap

As of 4/18/18

Investment Plan

Bitcoin (BTC)

27%

138 Billion

 Hold Long-Term

 Ethereum (ETH)

 19%

51 Billion

Hold Long-Term

 Ripple (XRP)

 9%

27 Billion

 Hold Long-Term

 OmiseGo (OMG)

 8%

1.52 Billion

 Hold Long-Term

 Waves (WAVES)

 7%

488 Million

 Hold Intermediate-Term

Monero (XMR)

6%

3.6 Billion

Hold Long-Term

Siacoin (SC)

 6%

651 Million

Hold Intermediate/Long-Term

Basic Attention Token (BAT)

6%

 403 Million

Hold Intermediate Term

 Cardano (ADA)

5%

6.56 Billion

 Hold Long-Term

Litecoin (LTC)

4%

7.773 Billion

Hold Intermediate/Long-Term

Civic (CVC)

2%

123 Million

Hold Intermediate/Long-Term

Bitcoin Cash (BCH)

1%

15.07 Billion

Hold Short/Intermediate-Term

Portfolio Performance

Here are some screenshots of how my portfolio has performed over time.  Realize that the percentages gained/lost for 1 years, 6 months, and 3 months, are not accurate as I have continued to add money into my investments over time, but it does give you an idea.

1 Year- +1,720.68%*

6 Months- +146.51%*

 

3 Months- -42.26%*

1 Month- +5.96%

1 Week- +32.87%

(* means percentage not accurate due to additional contributions)

What I find interesting is that if you look at the yearly chart, after the crash the market returned to a growth rate that has over the course of a year been pretty consistent.  Creating a projection line from this chart should give you a good idea where the cryptocurrency market will go in the next couple years.

What do you think of my portfolio?  Which coin would you get rid of, and which one are you holding for the long-term?  What does your portfolio include?  Let me know in the comments!

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