An Inside Look At A Successful Crypto Portfolio: Essential Investing Principles & Decision-Making... (Part TWO)

in crypto •  9 months ago

Onwards we carry on, from Part ONE...

We pick up walking through just one successful crypto portfolio. Why?

Because part of the real key to success in this game is paying forward the blessings.

There is alot to learn in this game, alot of different projects and platforms and tokens and shitcoins to navigate, and it can all get a bit overwhelming and confusing for those new into it.

While this entire series is not a short read by any means, consider it a condensation of my near-two-year journey investing in crypto - complete with priceless lessons and key principles woven in, that if grasped, can greatly shorten the learning curve for someone never into the game.

The point is not just to give an overview of what tokens are in the portfolio, but rather to lead through the process of its growth - giving a glimpse of the lens and framework through which opportunities have been analyzed to deliberately select a handful of the many tokens on the market for specific reasons and purposes.


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To clarify: this is NOT investment advice.

However, it is my hope and intention that if digesting the contents of this entire journey, you may be better equipped to make your own decisions, having your attention brought to certain factors that consistently distinguish good from bad investment opportunities.

If you've already got a reasonable amount of crypto investing under your belt, this might not be the article for you. (Though you might learn something anyways). If not, this is an opportunity to get the Coles Notes from my 20 months deep in the space and leverage the most critical lessons I've learned to accelerate your success while building your own portfolio.

All parts of this will take some time and energy to read through and process, however I promise you - there is alot weaved within the subtext here that will make you very rich if you truly understand and implement it.

(And then, it will be your turn to pass on your lessons for others to benefit from. Deal?)

Without further ado, let's carry on...





BTC (Bitcoin)

What can we say here that hasn't already been said...?

First-mover advantage. Public spotlight. Proof-of-concept. Momentum.

Bitcoin has become the gold standard of crypto. Recent price projections estimate price is heading towards $500k and $1 million - and if you invest the time to really study it and the cryptocurrency space, you'll realize such estimations may not be far-fetched.

Are there other tokens and investment opportunities that may produce greater returns? Absolutely. However, many of the newer ICOs have their risks as well as upsides. Meanwhile, Bitcoin is on a fairly steady ascent - even considering there will be ups and downs along the way, and it is to be expected the doomsayers will insist "the bubble has burst" during the dips. Regardless, while bigger gains might be made elsewhere, Bitcoin represents an asset that can realistically be expected to continue steadily increasing, with perhaps considerably less volatility and risk than many altcoins - and statistically, it still has outperformed a majority of tokens.

Thus, not a bad addition to any diversified portfolio.





BTS (Bitshares)

While the public spotlight has primarily been on Bitcoin and Ethereum, there have been two blockchains that have outperformed them consistently in terms of speed and number of transactions per day: STEEM and BITSHARES. (Though as seen on Blocktivity.info, Ethereum has finally overtaken BTS as #2).

I came across Bitshares shortly after realizing a large amount of the Steemit early adopters had come from the Bitshares community - both being the brainchildren of Dan Larimer, who's sinced moved on to developing EOS.

While Ethereum has been a major player with excellent marketing and network effects, Bitshares started earlier on, though has taken a different strategic approach - growing a foundation slowly and steadily, focusing on performance first. It became apparent doing more research that while Bitshares might seem like an underdog project in comparison, there is a quiet-confident strength amongst the community of loyal supporters and a notable degree of character and maturity that stood out in contrast to much of the arrogant immaturity I'd come across in many crypto networks such at the BitcoinTalk forums.

Most of what I could include on my reasoning for investing a larger percentage of my portfolio for the long-term in BTS started to be laid out here:

What You Need To Know About Bitshares: A Newbie’s Map To Navigating The Platform, Tech, And Community

Since, it seems there's still been progress occuring more behind-the-scenes than in the spotlight, however recent noteworthy news includes a number of remittance apps/projects choosing Bitshares for their blockchain infrastructure as well as a partnership with the world's first decentralized bank. I'm not sure on what all else is in the pipeline, though if such momentum keeps up, it is quite reasonable to expect a signficant price increase in the years ahead as more investors and companies learn of the platform and its advantages.

(Personally, I'd love to see @haejin's projection of $342 BTS by 2020 unfold. Though even at this point, having started buying at $0.004 and it having risen to $0.40, it's proved to be a great investment thus far.)

Two excellent sources for updates on Bitshares are the blogs here from @steempower and @stan, the
"Godfather of Bitshares."

Key Points & Takeaways:

Some investment opportunities require more digging into the details than others to uncover the fundamentals validating an excellent decision to add them to a portfolio - and sometimes, the developments that don't get the mass hype and spotlight may prove more solid than the ones hogging the spotlight. Diamonds in the rough.

The investment that pay the ultimate dividends: knowledge.

Bitshares is one I had to spent weeks and months assessing the territory to get a proper sense of where things were at in its ecosystem. Upon a quick glance, there is alot going on in the space that would easily get missed - yet, the deeper I dug, the more reasons I found contributing to the growth of confidence in this investment.

While there do come along opportunities that may feel like an instant hit and require little research to justify investing in, others can entail a process of deeper exploration that not only unveil a great profitable opportunity, though also bring the non-monetary rewards of discovery itself - and the later payoff of knowing those senses cultivated through the research were right, and being able to confidently say, "I told you so."





EOS

Having been immersed in Steemit since the start, EOS came to my attention quickly upon its launch. The third project of Dan Larimer after Bitshares and Steemit, it was clear to see the performance track record and there was substantial reason to believe EOS would have what it takes to succeed.

Building upon his past successes, Dan set out to build EOS as a smart contracts platform that could achieve what Ethereum wanted to - though doesn't yet have the performance capabilities to fulfill upon. I don't know the technical details to provide insight into the precise why's of how this is a significant project, though managed to grasp enough of the basics to see it's a project with some significant backers and potentials.

My one regret with this: not having bought in on the initial few days of the token sale, and/or when price later dipped to near $0.50. Unusually, there is a year-long token sale on this, and I really wasn't expecting price to climb so fast - though it's currently peaked over $11. Nonetheless, it's quite realistic this'll hit triple digits by the end of 2018, so still represents a great opportunity.

Anyone interested in a basic intro to EOS might be advised to check out the following:

Introduction To EOS: The Epic (Blockchain) Operating System

Key Points & Takeaways:

Investing based on hype isn't always smart. To a degree, I did buy EOS on the hype it was getting from especially the Steemit community - however, it was evident that behind the hype, was a developer with the track record that could realistically deliver upon the hype.

As to just how big EOS may get/go, time shall tell. I personally don't see it living up to evangelic claims of it being an "Ethereum killer" in any way, as developments are occuring with Ethereum to solve its scaleability issues - so even if EOS manages to deliver a technically-superior product quicker, Ethereum probably will catch up, and it'd be quite surprising if EOS could parallel anywhere near Ethereum's network effects and widespread adoption.

Nonetheless, it was clear from the start that this was not a project to overlook. And thanks to my involvement in the Steemit community, news came of this one early. Thus, keeping active in the right communities and on top of early news pays.





AGRS (Tauchain)

This project came to my attention via @dana-edwards, who I've recognized as one of - if not the - smart people on Steemit. The guy (assuming, with the unisex name) has earned respect, and his perspectives are worth consideration, being very well informed and educated. When he started writing about Tauchain, I didn't fully understand it, though knew it would be quite a significant development were it to unfold according to plan.

I've done a brief writeup on Tauchain in this post and included links to some of the material Dana has written that's summarized some key points.

At the time of my investment, Tauchain was theory. Only this last week was the first version of the code actually released. Thus, the investment was made not based on any proof-of-concept, but only a concept itself. Not always the best strategy. However, there were two factors that fostered my confidence to make a signficant investment in this:

  1. My faith in @dana-edward's insight and expertise, as I'd seen it consistently demonstrated over time.
  2. The recognition of reasonably strong prospect, based on a generalized understanding of some of the key concepts and trends the Tauchain project seemed to be fusing together and the tell-tale signs of a genius developer working on a game-changing development.

There was zero hype to be found on this anywhere. No marketing. The existing website was rather basic, and definitely not catered to the average crypto-investor. Everything about this signaled that at the forefront, were priorities of a truly revolutionary development with full-focus on the project first.

My strategy with this one is not necessarily one I'd recommend.

The technical details seem incredibly complicated and are well-beyond most people's ability to comprehend (including my own). As per Warren Buffett's commonly-shared principle of not investing in what you don't understand, going against this and buying into projects/tokens you don't grasp probably isn't a winning strategy.

But then again, sometimes rules are meant to be broken.

And sometimes, there is a middle ground.

Even if not understanding the full scope of something, that doesn't mean one may not be able to grasp key concepts and foresee the signficant potential implications of their development - such the case with myself and Tauchain.





LTC (Litecoin)

I've had a little bit of Litecoin on and off, though never really resonated strongly enough with it to stay steady and deep. Prior to them implementing the Lightning Network, I didn't see a strong value proposition, nor did I see any really strong fundamentals that'd justify.

I rebought in about a month ago when there was some news coming out that made it seem like it had some good prospect with the speed and cost advantages over Bitcoin, and a new marketing plan going into effect. "If Bitcoin is digital gold, Litecoin is silver," so it's been said - so I ended up putting some in my portfolio just for the fuck of it.

Not the strongest reasoning, I admit.

At some point, I'll probably ditch all my holdings to put into something with alot greater profit potential, and which I'd like to morally support. Especially if/when Bitcoin gets onto the Lightning Network to solve the speed, cost, and scaleability issues - as at that point, I really don't see the value of Litecoin as anything special or different worth staying committed to when the capital could be allocated elsewhere towards projects that are doing cool things for the world.





ANT (Aragon)

I bought in to this simply because I loved the concept: a platform for creating and managing DAOs (Decentralized Autonomous Organizations). But aside from the technical jargon,

While their are plenty of great articles on their Medium blog that get into more details, there was one in particular that really sold me on the vision:

Decentralized organizations can solve the world’s worst problems.

I only bought in a little at first, liquidated later as the token wasn't performing that well, though again bought in later if for no other reason that to continue supporting the project because it was apparent how much good can come of this model being implemented in upgrading decentralized organizations - especially in situations as explained in the article above, where entrepreneurs in developing nations could utilize it to bypass challenges posed by restrictive governments and unfavorable economic conditions.

It seems pretty early on still for these guys, though it's been interesting to hear of their partnership with District 0x recently, implying things are moving forward well and the concept is one being put into action with other innovators in the niche.



And that's a wrap for Part TWO


Carry on to Part THREE here...

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Awesome thanks for sharing 👍

Wow ,what q nice post about crypos,,,
Thanks for sharing ,,you can upvote and comment posts @horlly

Eos is my point. Bitcoin seems too high priced.

Really nice post about the cryptos! thanks for sharing

Great info here @rok-sivante there are a lot of sound messages, and a very nice recap of the companies in a breakdown context. I try not to be too much of a polyanna when it comes to talking about steemit/steem but the future here seems jacked with upside. Countless users still available to be grabbed upon a free, user paid content, ad free, video game style status building, not to mention so many other features that are also very pleasing to the working age, genius to ordinary individual. Great points thanks for the post!

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indeed - not to mention that it's probably the most proven, functional blockchain app easily-accessible to the general public, with an actual utility to its token.

though, there still are challenges to be overcome...

Very good publication, my friend, @rok-sivante, part 1 and part 2, helped me understand many things, thank you for always filling us with valuable information for our Steemit process. God keep blessing you.

So Rok, this post had all of the ones I wanted to know about.

If you had to pick 2 winners for 2018, if you could buy 3, which of those would be? Only from this list.

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I'm pretty confident Bitcoin, Bitshares, EOS, and Tauchain will all do very well this year, so probably wouldn't go wrong with any of them.

In terms of upside potential, I'd bet on Bitshares and Tauchain.

As for putting my money where my mouth is, in order of what's actually in my portfolio: Bitshares, Tauchain, Bitcoin, EOS.

@haejin's put projections of Bitshares at $342 by 2020 and even possibly $48 mid-2018.

@dana-edward's predicted $200 Agoras (Tauchain) this year.

Thus, those two probably have the largest room for growth.

Although it sounds like common consensus that EOS' will reach 3 digits. And a 10x for BTC probably wouldn't be entirely unrealistic either.

Of course, this could all be mere speculation. :-)

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Interesting... I invested in BitShares and was ready to invest in EOS. Those were the ones I wanted to read on this series of yours.

I don't believe Bitcoin will climb that much, I'm a Skeptic for that coin, but then again I am a guy who likes low valued ones, exponential growth is something I hold dear.

Now I'm thinking... EOS, or take a slice out of EOS and apply it on Agoras. for the price of it, it wouldn't hurt I guess.

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one thing to factor in, however: Tauchain/Agoras is still very early on in its development. IF momentum picks up, from what I've gathered via Dana's translations, it could be HUGE. If.

Meanwhile, EOS might not have quite the same degree of upside potential (or it could), though it's realistic to count on its development given Dan's track record and progress so far.

sometimes this market confuses me

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there is alot to learn and assess.

however, the longer you spend doing your homework and learning the fundamentals, the easier it all gets to navigate.

there are a limited number of tokens and projects, a limited number of concepts and applications, and a limited number of combinations of those. one you start grasping the basics and seeing the patterns, it becomes much simpler to pick things apart and accurately separate the wheat from the chaff... ;-)

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a concentrated mind is what i lack i guess... thanks

Bitshare and Litecoin is good but I want add some coins : XLM(still cheap) ,Waves(good project) ,Doge(low transfer fee),BAT(brave browser and project) and Monero....

Never heard of Tauchain! Will check it out. Thank you for this informative post.

Ahh these links will all prove extremely helpful but it will take a long time to go through all of them!

I like that’s aside from profit potential you try to support coins that you have a moral resonance with.

If you like paying it forward to those who pay it forward you always know where to find me dude X-D

As usual with your writings there are always some key resonating phrases that stand out to me.

-- here's one so far from this post, maybe an undervalued piece of wisdom here but I almost laughed at how sneaky smart this little gem was....

Bitcoin represents an asset that can realistically be expected to continue steadily increasing, with perhaps considerably less volatility and risk than many altcoins - and statistically, it still has outperformed a majority of tokens.

Dang it, this is a good series.

I know I can send people directly to this series now who might like some good info the way you lay it out.

I do hope you consider my other comment earlier today and embed this series into the footer of your posts go forwards as a library, for all the new people to your blog that see it daily.

Would really be a shame to see this only get read for a couple days and buried like 98% of stuff here with all the info coming at us on here daily.

Great stuff this is.

--

Now I have got your Bitshares 101 article pulled up LOL.

There is so much going on there with BTS, I am lost. But I keep plodding along and trying to learn and be involved a bit.

(:

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I know I can send people directly to this series now who might like some good info the way you lay it out.

Awesome. Yes, do pass it on to anyone who may be interested or benefit. Accelerated learning curve for sure.

I do hope you consider my other comment earlier today and embed this series into the footer of your posts go forwards as a library, for all the new people to your blog that see it daily.

This is a damn good idea. Can think of two others as well to include, would be a great way of pinning the content most recommended newbies read. Thanks for the suggestion. :-)

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You are welcome man.

I was out today with Bob the Statist since I still need help doing basic things daily and told him about this series actually.

Just got back in the door now.

Your stuff is a good blue collar, fun resource so that is what I tried to convey even on the Tweet I sent today about this.

This is great. Two of the coins on this list i have never heard about is now on my radar. Thanks!