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RE: A Strategic Cryptocurrency Portfolio - The 70% Core / 30% Play Money Approach
Exceptional Post!
One question, could you explain how do you decide to step out of a crypto?
I am waiting for your subsequent post!!!
Upvoted, resteemit and following you!!!
(Thanks for doing the same for me)
Will follow! You've written some interesting stuff as well I see.
To answer you question: Basically with every coin I buy, I buy it for a reason. There is something (or multiple things) that make me think the coin is going to outperform my core segment and shows potential. I also try to determine the moment in the future I should be able to prove myself right or wrong. Then I pick that date as the moment when I evaluate whether I should keep a coin or not. Usually I draw my conclusions from roadmaps, announcements, rumors, Slack channels etc. But my decision can also be based on signals of very active development. So when do I step out? When a coin does not meet my expectations at the evaluation date :-)
Btw, there is already a subsequent post, the first of a series of updates on my crypto portfolio ;-) Check it out here!
Thanks! So, in case you are not recovering the investment, do you step out from that coin as well?
Good one, should have added that to my reply ;-)
At the evaluation moment I will look at the coins future again and go through the same decision making process as before. I decide to keep it when I think it will outperform my core segment. For instance, sometimes some functionalities have a delayed release. My evaluation moment was around the initial release timing, but since it has been moved I force myself to think about it again. In the end I don't look at whether I need to sell for less or more than my initial investment. Sunk costs...