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My Cryptocurrency Portfolio – May 2018

Contents

~ 8 Minute Read

 

Here We Go….Again

 

Oh, how I already miss the days of April.  Back in the good ol’ days (30 days ago) Bitcoin was gaining $1,000 in the span of an hour and the market was picking up steam for the first time since late 2017.

Unfortunately, practically all the gains made last month have now evaporated thanks to the shit storm that has been the crypto market the last few weeks.  To be honest, I’ve been busy with my other ventures (and coming down with hand, foot, and mouth disease that was passed on to me from my daughter) to take a close look at what may be causing this trend.  I’ve also found that those expressing opinions on such a crazy market are simply providing a mix of their best guess and speculation.  It may be comforting to read such articles, but in the end they are worth about as much as my opinion on astrophysics.

Where Do I Go From Here?

As I mentioned in last month’s cryptocurrency post, I was excited to see green in my portfolio but was cautious and needed more proof that we were out of the hole.  Well, I got proof….that we are still in the hole.

In times when the market is down it is important to remember a few important factors.  First, the run from late 2017 was insane, and no matter what you heard was not sustainable.  Remaining patient and accepting the possibility that 2018 may be a down year should be a part of your mentality if you are HODLing.

Second, the cryptocurrency market basically operates without regulation.  This mofo is manipulated beyond comprehension.  Because of this you can expect to continue to see these wild ups and downs based on what those who have the most power (money) decide they want from the market.

Third, almost all investing in cryptocurrency is speculation.  This is a pro and a con.  Speculative markets generally see the greatest potential for gains (and losses).  This increased volatility generally allows for returns that can’t be obtained from more conservative investments. Until more projects develop working products and partnerships volatility will continue to be high as the investing being done is essentially a guessing game.

My One Opinion On Crypto Has Changed

When I began investing in cryptocurrencies I strongly considered the possibilities of DAPPS made possible by platforms like Ethereum.  While I still think these have a future, I’m becoming less confident in the size of the impact they will have.

At the end of the day the best use cases for cryptocurrency is that of a currency and a commodity (like gold or silver).  Even if that is the best crypto can do, that is still a huge market as it opens up an entirely new asset class for investors.  Realize, that institutional investors are still largely on the sidelines.  I think this will change in the next 2-3 years with a great variety of investment products and easy investment vehicles for the average joe.

DAPPS that help with currency transactions are certainly worth considering, especially those with true problem solving powers like OmiseGo.  But if the future of non-currency DAPPS are collectable kitties, then I’d have to be a seller on that.

Fact: The Vast Majority of ICO’s Are Sh*t

Before all the crypto fanboys have a stroke realize that I’m not saying ALL here.  But the simple truth is that the majority of ICOs fail and for good reason.  Some of these projects have good intentions, but as is the case with most emerging startups they fail for one of many reasons.  Other ICOs are flat out scams and I hope that those who invest in these learn from their mistakes, and that the scammers face repercussions.

My advice: avoid investing in ICOs.  IPOs are the stock market equivalent of the ICO, and IPOs have historically underperformed the greater market.  With the majority of ICOs failing the average investor would be better off using their money as toilet paper.

Sure, you could hit the ICO jackpot (Ethereum, Ripple, etc.) but that’s a long shot.  Let the initial investors decide which projects are worthwhile and then invest after the dust has settled.  You may get a  smaller return on the winners (will still be huge), but it is a much more rational approach.

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 5/30/18

Investment Plan

Bitcoin (BTC)

28%

126 Billion

 Hold Long-Term

 Ethereum (ETH)

 23%

55 Billion

Hold Long-Term

 Ripple (XRP)

 9%

23 Billion

 Hold Long-Term

 OmiseGo (OMG)

 6%

1.04 Billion

 Hold Long-Term

 Waves (WAVES)

 6%

410 Million

 Hold Intermediate-Term

Monero (XMR)

5%

 2.51 Billion

Hold Long-Term

Siacoin (SC)

 6%

514 Million

Hold Intermediate/Long-Term

Basic Attention Token (BAT)

6%

 269 Million

Hold Intermediate Term

 Cardano (ADA)

5%

5.28 Billion

 Hold Long-Term

Litecoin (LTC)

3%

6.65 Billion

Hold Intermediate/Long-Term

Civic (CVC)

2%

107 Million

Hold Intermediate/Long-Term

Bitcoin Cash (BCH)

1%

16.59 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 and 6 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- +328.75%*

6 Months- +34.61%*

3 Months- -36.22%

1 Month- -28.18%

1 Week- -5.42%

(* means percentage not accurate due to additional contributions)

As I mentioned earlier I have not done much research on this recent pullback, and honestly I’m not too interested in finding out.  I’m in this market for the long haul and I am confident that most of my investments will turn out to be smart decisions.

Previous Cryptocurrency Portfolio Reports:

April 2018

March 2018

February 2018

 

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