Today i am submitting my homework task for professor
@yohan2on. The lecture by professor helped me to understand important concept relatd to designing of portfolio. The homework task set by professor is a practical work to check understanding of lecture by students. It is good luck of all of us that our professors are teaching us in such a wonderful style that promotes learning.
Homework demands us to write about
Using an initial investment of $50, practically design your own cryptocurrency investment portfolio.
- Your Crypto portfolio should have 6 Cryptocurrencies and briefly explain why you have chosen to invest in each one of them.
- Use a Crypto wallet of your choice to hold your 6 cryptocurrencies.
Wait for a day or 2days, then showcase the final results of your investment portfolio.
- Use proper screenshots to showcase before and after. Is your total crypto portfolio in profits or losses? Which cryptocurrencies have increased in value and made you some profits? And which ones have declined in price value and made you some losses? Or have all of them made you profits? What’s the growth percentage of your Crypto trading portfolio after the 1 or 2days waiting period?
Your Crypto portfolio should have 6 Cryptocurrencies and briefly explain why you have chosen to invest in each one of them.
My portfolio for this task includes BTC, WIN, BTT, WRX, DOGE, USDT. I have made a total investment of about 100$. I am holding these investments on Wazirx. Basically i am using BINANCE for trading and from there i send tokens to wasirx for further actions. I am holding steem on Binance too. As wazirx don't support steem, so i kept it on BINANCE.
Reasons for choosen tokens.
Let me briefly explain the reasons for selecting these cryptocurrencies.
BTC
BTC is the most commonly traded token by me on BINANCE. I always choose STEEM/BTC pair as my primary trading option. And we are all aware of recent dip in price of BTC from earlier mark of more than $60K to $53K now (approx). So taking the advantage of dip, i thought it is a good investment token to gain profit in near future. Moreover, it a parent coin. So it can't be ignored.
USDT
As mentioned by professor
@yohan2on in lecture that a stable coin must be a part of portfolio to make it more balanced. Reasons cited by professor were very solid. If i can remember correctly, first ome was to, cash out in need and second was to buy cryptos in bear market. For the same, i invested in USDT. However the results were a bit different as discussed below.
BTT and WIN
I have been holding these 2 tokens for more than 6 months. These are very cheap and as of now, their price swings in either direction won't pose any burden or give any boost to my wallet. However, they have been kept for future. In cryptosphere, no body knows, what will happen tomorrow. Although both of them have gained some momentum when compared to price 6 months back. BTT has
shown boom in price few weeks ago which depicts its potential to rise again. Moreover the popularity of BTT can be envisaged from its utility is dapps like Bit torrent,
dlive etc. wIN is no ways behind in race. It is TRC 20 token based on TRON platform, native token of WINK app.
WRX
WRX is a native token of wazirx and as for my research into this token is concerned, based on technical analysts by many professionals, WRX is considered a good investmentt token. Its price is expected to quadriple within few years. As of now there are no significant price fluctuations, so it is comparable to USDT in that context and can serve the purposes which USDT can.
DOGE
DOGE coin is low price good investment token with good future prospectus as well as huge price hike in between . So it can holded and if significant amount is purchased, it can give a good return too. On 16 Apr , DOGE hit its all time high and reached 0.45$ ( 400% up } , may be due to its listing on coinbase. It is not confined to only online trading platforms but has gained popularity on social media like Reddit and Twitter for rewarding users producing quality contentcontent just like a tip .
Results of investment
DOGE ---> Gain 15.77 %
I bought 10 DOGE for 214.77 INR and if i sold now, I'll get 248.52 INR. That amounts to a toal gain of 15.77% in total.
screenshot at the time of purchase
screenshot of hike now after 2 days
WIN ----> Gain 10.84%
I bought 1000 WIN token worth 95.8 INR. If I'll sell it now, i get 106.1 INR. A total gain of 10.84% in 2 days.
Purchasing price 2 days ago
After
WRX ----> 13.4 % gain
I bought 10 WRX token for 2097.8 INR and if i sell it now , it would give me a yield of 2366.4 INR. It amount to a total gain of 268.6 INR. That equals total gain of 13.4%.
Before
After
BTT ---> Gain 2.67%
I bought 100 BTT worth INR 55.07 INR and now i am getting 56. 50 INR . A total gain of 2.67% . No doubt it is small but still better than loss.
BTT purchasing price before
After
BTC ----> 1.08%
I bought Bitcoin worth 4447.48 INR and i got 0.00103 BTC. Now, if i sell same, I'll get 4490 INR. A gain of 42 INR. It equals 1.08% gain.
At the time of purchase
At the time of making post
USDT ----> Loss of 1.8%
I bought 10 USDT worth of 806.9 INR. If i sell it now, I'll only get 791.9 INR. A loss of 15 INR. A loss of 1.08% . Since i am not selling it. So in practice, i haven't lost any amount yet.
Before
After
Summary Table
| Crypto | Gain (%) | Loss(%} |
|---|
| DOGE | 15.77 |
| BTC | 1.08 |
| BTT | 2.67 |
| WRX | 13.4 |
| WIN | 10.84 |
| USDT | - | 1.8 |
NET GAIN= 4.4
Summary of my portfolio.
On 26 Apr 2021 , at 12:10 am, i invested 7714 INR in cryptos and on 28 Apr at 7:15 pm, if I'll sell these assets, I'll get 8058 INR INR. It will give me a net profit of 345 INR, which equals 4.5 % profit in total.
DOGE earned max yield of 15.77% , where as minimum yield was by BTC at 1.08%.
UsDT is going to land me in loss by 1.8% , if i sell it now. But i won't sell it unless it yield me some profit.
Overall profit at the end of two days by all 6 cryptocoins of my portfolio is 4.4% .
Conclusion.
The lesson that i learned at the end is to keep portfolio diversified so as to minimize loss due to dip in price due to one coin and to maximize gain. In addition, one should learn to be patient and don't do panic selling, instead practice strategic selling when needed.
Hi @drqamu
Thanks for participating in the Steemit Crypto Academy
Feedback
This is excellent work. Well done with the designing of your Crypto Investment Portfolio. It's nice to see that you considered the diversification aspect of your portfolio and that is indeed one of the great ways to manage the risk. Congratulations on your 4.4% net gains realised from your portfolio. I hope it can accumulate more profits for you. Indeed Crypto investment requires some patience and that's how you can acquire more profits.
Homework task
10
Hope so, as i am holding with the hope of gaining more.
Thank you very much.
Very insightful post and pretty informative too. It's needless to say that diversfication is the safest form of investment unless you're involved in arbitrage investments;those can be very helpful in reducing risk associated with crypto trading. Thanks for sharing
I look at diversification and Arbitage from 2 different perespectives not linked with each other.
Thanks.
Wow congratulations,Finally you are in 4.5% profit.
Thats great. Doge pumping from Elon musk shilings only. So always keep Stop loss For Dogs,Any time it can fall drastically so be aware of it. If you get profit in Doge better to book dont keep for long run..
Nice presentation from you. Take care.
As it is a low price coin. Risk is affordable if it dips down. I am planning to hold it long to look for progress in future.
Then ok.
Thanks for sharing