Which coins I recommend to be stored and their distribution

Hello everybody

Following the series of How to build a bulletproof cryptocurrency portfolio (101) today's topic will be on which coins I recommend to be stored in a wallet and their respective distibution.

As most people could already realize, there are already 1,438 coins listed (today) at www.coinmarketcap.com, and each day more and more coins show up via ICO's (this topic will be covered later on this series). This way, a natural question comes up: Which coins should be kept to have a better chance of building a bulletproof cryptocurrency portfolio?

Well, that's a tough question to answer, but, in my opinion, the currencies that should be stacked are the ones that have already proven your worth. This value can be measured, answering some questions:

1 - What is the purpose of the coin?

Some coins have a really clear goal, and they show it in their whitepaper, when its ICO is performed

2 - What kind of blockchain concept does it adopt? And is it compatible with the coin's purpose?

Some coins can have an awesome blockchain concept (POW, POS, etc), but if it isn`t compatible to the coin's goal, it will eventually become worthless.

3 - Does the coin have privacy features?

Some coins have a clear goal to have strong privacy features, while other's don't. Since the main idea of cryptocurrencies (crypto means a person who adheres or belongs secretly to a party, sect, or other group according to Merriam-Webster (https://www.merriam-webster.com/dictionary/crypto) and other dictionaries, I understand that if a coin is not partially (of fully encrypted), they are worthless, for it goes directly against the crypto definition.
Also the coins should be a peer-to-peer one, without the need of a third party to act as a intermediate person (that's also a very important concept applied to cryptocurrencies).

4 - Who is behind the coin? Is there a good team of developers?

Self-explained... lol. This will be explained further on the post about ICO's.

5 - What is the marketcap of the coin? Is it growing or not?

The marketcap is the coin's marketshare in the market. So the higher the marketcap (in USD and also in %), in theory the better it is (if all the previous requirements mentioned were already met). Current exchange rates won't be displayed, because of the market volatility and also because price is not (or at least should not be) the biggest issue while picking a coin to be stored.

Well, after answering those 5 questions, in my opinion the coins that have already proven its value (or are on its way) are the following ones:

1 - Bitcoin (BTC). Project's official website: http://www.bitcoin.org/

Bitcoin was the first great cryptocurrency created, and it's the USD (standard currency) for the cryptocurrency world. It has a marketcap of 33.1% of the total marketcap, with $233.355.231.594.

2 - Ethereum (ETH). Project's official website: https://www.ethereum.org

Ethereum is also a great coin, and it enables currencies to run smart contracts on a blockchain. It's also used as a funding method for most of the existing ICO's and coins in the market, and it was a fork of the Ethereum classic blockchain. It has a marketcap of 18.31% of the total marketcap, with $129.087.592.206.

3 - Bitcoin Cash (BCH). Project's official website: https://www.bitcoinabc.org

Bitcoin Cash is a coin that derived directly from BTC (in Aug/2017) through a process known as fork. Basically what happens is that a part of Bitcoin's community didn`t agree with some politics and practices that were being implemented on Bitcoin Core community, splitted up and decided to create a new coin. It has a marketcap of 5.99% of the total marketcap, with $42.242.806.548.

4 - Nem (XEM). Project's official website: https://nem.io/

Xem is similar to Ethereum, but with small differences. It's also based on smart contracts. It has a marketcap of 1.87% of the total marketcap, with $13.211.729.999.

5 - Litecoin (LTC). Project's official website: https://litecoin.org/

Litecoin was the first cryptocurrency that was based on a Scrypt. It is also very similar to Bitcoin, but insted of using a Proof-of-work blockchain system (like BTC), LTC uses a scrypt based on a POW. So that makes LTC almost identical to Bitcoin, but it's transactions are a bit faster (and cheaper) in comparison to BTC's ones. It has a marketcap of 1.85% of the total marketcap, with $13.073.726.722.

6 - Digital Cash (DASH). Project's official website: https://www.dash.org/

Dash was the first coin with the purpose of being a currency with total privacy and anonimity. It was created to compete directly with BTC. It uses a X11 mining algorithm (instead of SHA-256 for BTC or the Scrypt for LTC). It has a marketcap of 1.11% of the total marketcap, with $7.849.873.294.

7 - Monero (XMR). Project's official website: http://getmonero.org

Monero has a similar purpose of Dash, but it is totally untraceable, which is its best feature, and goes straightforward to the definition of a digital cryptocurrency. It uses a cryptonote protocol, and, therefore the sender's and receiver's address can't be identified, providing, this way, a total encryption on the transactions, while having also low fees. It has a marketcap of 0.89% of the total marketcap, with $6.287.798.777.

8 - Ethereum Classic (ETC). Project's official website: https://ethereumclassic.github.io

Ethereum Classic is the main blockchain of the old Ethereum project. After a fork ETH was created, and the original chain remained as ETC. Also as ETH, the great features are to have zero downtime, no possibility of being scensored and they also run smart contract for many applications. It has a marketcap of 0.60% of the total marketcap, with $4.208.403.863.

9 - Lisk (LSK). Project's official website: http://www.lisk.io

Lisk is a project based on Java scrypt applications, where developers can create and sell Java apps using LSK. It has a marketcap of 0.47% of the total marketcap, with $3.324.967.205.

10 - Bytecoin (BCN). Project's official website: http://www.bytecoin.org

Bytecoin is a coin based on a mining algorithm called CryptoNight. It's one of the easiest coin to mine using your own CPU (or GPU). It has a marketcap of 0.26% of the total marketcap, with $1.894.432.888.

From the total capital allocated in all the cryptocoin activities, I allocate 25% on stacking the coins above, using the distribution below (% are expressed based on the 25% capital share, and not from the 100% capital share):

6.25 on BTC
6.25 on ETH
1.25 on BCH
1.25 on XEM
1.25 on LTC
1.25 on DASH
1.25 on XMR
1.25 on ETC
1.25 on LSK
1.25 on BCN

As you can see, 50% of those 25% are allocated on BTC and ETH (which are the best currencies according to its purpose and marketshare indexes). After that, all the other coins are distributed equally in a 1.25%, which dilutes the risk and, at the same time, can also power up my earning, for all the coins are really volatile. So using this distribution, this part of the portfolio can be more secure on down trends (because of the 50% on the biggest coins), and, at the same time it can outperform and leverage the earnings because of the other small Altcoins.

Those are the coins I usually stack for the mid and long-term evaluation. This post has an educational purpose, and not a investment recommendation. Please do your own research prior to investing, and always invest only the money you won`t need for monthly expenses!!!

So... that's it for now people. Please let me know if you liked this post and please upvote it to help me build more content like this one!

Other posts of How to build a bulletproof cryptocurrency portfolio (101) series:

How to build a bulletproof cryptocurrency portfolio (101) - https://steemit.com/cryptocurrency/@aotearoa/how-to-build-a-bulletproof-cryptocurrency-portfolio-101

What is a bulletproof cryptocurrency portfolio and why should you have one? - https://steemit.com/cryptocurrency/@aotearoa/what-is-a-bulletproof-cryptocurrency-portfolio-and-why-should-you-have-one