Thanks for sharing! I don't think you have too many projects, and I like your industry distribution! I actually think 50% for Bitcoin and ETH is a little too high. Both projects are facing fierce completion from better technologies. They were both first to the market and have an enormous name recognition advantage, but will that be enough?
I just made a similar investment strategy and spreadsheet!
I also decided to have 30% of my capital in my top 2. I only have 15% into Bitcoin, and 15% in Dash. I have high hopes for Dash Evolution to bring crypto to the mainstream this fall.
The next 3 get 10% each. So my "prime" picks include Ethereum, Steem, and IOTA. I see IOTA and Steem as "slam dunks." I'm more reserved about ETH, because it has so much competition, but it can't go lower than 10%.
My next 5 get 5% each. My "B-Class" includes EOS, Golem, BitShares, Lisk, and Iconomi.
The next 10 get 1% each. My "C-Class" includes Litecoin, NEM, Waves, Siacoin, Gnosis, Basic Attention, OmiseGo, Swarm City, Veritaseum, and Ethereum Classic.
The final 5% can be split into as many as I want. If I am interested in a crypto, I will usually buy at least $20-$30 worth to help me "keep an eye on it." I'm looking to move Wagerr, Ubiq, LBRY Credits, and NEO up the list. Is there any I should "demote" to make room? Do I have too many ERC20 tokens?
Thank you for contributing your ideas. That is really interesting and it seem there are several similarities in how we manage the portfolio as well as in the picks we made.
Your post let me rethink my evaluation of DASH. Why is it one of your two most favorite picks? Your argument for ETH that it has many competitors would fit here as well. Dash has a lot of competitors: XMR, PIVX, ZCash, Komodo just to name a few. What I feel is special about Dash are the master nodes (but on the other side that concept doesnt seem as good as the graphene concept of BTS, EOS and Steem) and the privacy bit which seem to be better solved in other coins (zero proof etc.). That is why it is "only" a B-pick for me so long. Did I missed s.th.?
I see IOTA also very strong. But it has the lowest percentage together with GNOSIS within my A-Picks. What makes you feel that IOTA is equal to Steem a "slam dunk"? I am very interested in your arguments.
Regarding your questions: The first two coins I would rethink if I would like to move other coins up are BTS and ICN. BTS is great - graphene - Dan (ex.) all that is great. No. of transactions is high so it is used. A few week BTS would have been at least a B-Pick for me. But I think EOS will cut into BTS. With parallel processing game will change in terms of transaction speed. And to be really successful BTS you would need to evolve to that.
That brings me also to your ERC20 token questions. Actually I haven't marked how many of my tokens are ERC20 ones. But that is a very good point which I have to take up. Because if EOS will change the game to parallel processing all dapps on etherum will get a problem I guess. So from a project business perspective that doesn't matter but it might bring up competitors who are doing same thing but are designed for EOS an therefore come with certain advantages also for the user.
NEO is starting to get my attention as well.
Thanks for your input! I agree that the long term potential of BTS could be disrupted by EOS. I was lucky to get into both BTS and ICN somewhat early, and have already sold off a few chunks. I see ICN as more long term than BTS though.
I like Dash so much for a few reasons.
As for IOTA, "Slam dunk" may have been the wrong term, because I do not see it as a sure thing. I see it more as a "no brainer" to invest in because the risk-reward ratio is absolutely off the charts. The "Tangle" of IOTA could disrupt the blockchain industry before the blockchain even goes mainstream. The instant transactions and total lack of fees are exciting, and I think the sheer amount of tokens will be an advantage in the coming years, as new investors will be intimidated by the prices of most cryptos, and will find comfort in buying millions of IOTA for a few bucks.
BUT they need to develop a more user-friendly wallet. IOTA might also be ahead of its time. Before the Internet of Things takes off, a new technology might find a way to do it better.
Finally, a thought about handling ERC20 tokens.. Perhaps it would be better to own these tokens as a percentage of your ETH instead of as a percentage of your portfolio? For example, my ETH + all ERC20 tokens = 20% of my portfolio.
I so much enjoy to read your views on things. Thank you for taking the time to share your thoughts so sorrowfully.
Regarding dash: I was aware of the fact that the master node concept leads to a huge number of coins being locked. For me that was also one main driver for DASH taking of beginning this year. In my evaluation I ignored that fact to be honest. I might need to reconsider. It might make sense to go so far to try to reach being a master node.
IOTA - I agree on your points - It sure has great potential and is an obvious use case.
I think summarizing all ERC20 tokens und ETH is to restrictive. You could imagine that an successful dapp migrates on other plaftforms. There might even be "adapters" or "VM" for making that possible. So I could imagine there is a "ethereum on EOS" VM which helps projects to migrate. Of course on the long run the would need to be rewritten (parallel processing) or might not if the don't need that transaction volume.
But as a risk indicator it would make sense to see the % of your investment is related to the ethereum platform. I need to include that in my portfolio and check what the outcome is. Than I will decide what for rules I like to give my portfolio about that.
I just saw that I haven't mentioned why I considered ICN as a possible replacement candidate in your portfolio. I just see TaaS as a stronger candidate with it's dividend strategy and being swiss based (a personal thing).
Thanks again! I was not aware of TaaS, but it looks solid and very exciting at a market cap of 17 million! I haven't had much time to read about it yet, but it looks very promising! If I understood correctly, TaaS will manage a hedge fund and return profits to the token holders, while ICN allows individual users to manage their own accounts and gain "followers" to invest. I'm also taking a closer look at Lykke and Filecoin thanks to your recommendations!
I think a Dash masternode would be one of the best investments right now. If I had the $$$, I would get one immediately! Also, I forgot to mention one of my favorite things about IOTA. It is already scalable and resistant to quantum computing hacks. I am not a technically gifted person, so I don't know exactly what that means, but I've heard much more intelligent people than me say that will be a huge advantage in a few years.
Also, great point about successful ERC20 tokens migrating to another platform. I had no idea this could be possible, and has given me one more thing to think about and research.
Yes - you summarized the idea of TaaS quite well. What I also consider an advantage is that TaaS (like Lykke and ethereum) is based in Switzerland and here are the regulations quite positive for cryptos compared to other countries like the US for example and Switzerland has a huge history and knowledge in Banking. So Hedge Funds (TaaS) and Financial Platforms (Lykke) are great. You can see that also in how Lykke is handle. It is the only project I know of for which you find a regular (like a stock) annual report (2016). Which increases my trust in that project dramatically.
I am glad that the discussion was a fruitful one not only to me but also to you. Let's keep in touch about Cryptos on this platform.
Thank you for your in-depth comments @skycornish! Definitely inspired me and I gave you some credit on the recent tweaks in my portfolio approach :-)
Definitely keep on bringing these great thoughts to the platform!
Hello mate! nice insight. regarding to this "Both projects are facing fierce completion from better technologies." what technologies are you talking about? I'm new in this world of cryptocurrencies and every information I can get is valuable, Cheers!
I think that Dash, NEM, and IOTA are all currently better technologies than Bitcoin. This could obviously change, but the governance of Bitcoin is locked into fighting and bickering instead of actually fixing their shortcomings. Bitcoin's Proof of Work also consumes ridiculous amounts of electricity and computing power, which is very hard on the environment. The free market may decide they want a more environmentally friendly world currency.
Ethereum is arguably facing more competition from the likes of EOS, Waves, Stratis, Lisk, etc.