How Much of Each Cryptocurrency Do I Invest in? | How Do I Choose?
Hey Everyone, this is the 3rd post in the series I'm doing about my crypto portfolio going into 2018! Here I'll show you guys what % weighting I give to each crypto that I hold. If the weighting is different for an "outlier" crypto, then I will discuss why I have it weighted that way.
Recall from the previous post that my investing strategy for crypto resembles startup investing. I'm buying into each of these cryptos with the expectation to hodl each one for the next several years. I'm investing with the goal that even if just a small number of these cryptos actually succeed long-term, I'll make back the original portfolio investment + a lot more. These "unicorns" are picked by extensive research, which will be shared in subsequent posts.
| Crypto | Weighting |
|---|---|
| STEEM | 10%+ |
| XZC | 5% |
| NEO | 5% |
| NAV | 5% |
| BAT | 5% |
| ARK | 5% |
| GNT | 5% |
| OMG | 5% |
| MYST | 5% |
| ANT | 5% |
| BMC | 5% |
| BTC | 10% |
| LTC | 7.5% |
| ETH | 7.5% |
| DNT | 5% |
| XVG | 5% |
| Iota | 5% |
| Total | 100% |
Reasons for Outlier Weightings:
1). STEEM
Steem is weighted at 10%+ because I'm continuing to earn more steem from blogging on Steemit. The more I earn, the more that % continues to go up. I use some of my SBD earnings to occasionally buy more of the other cryptos to even out the weighting if it becomes too unbalanced. I'm not overly concerned about having a lot of STEEM, it's my favorite crypto for a lot of reasons and if I could only own 1 of these cryptos, STEEM would be my pick!
2). BTC
Bitcoin is weighted at 10% because I think it represents a much more solid backing for the overall portfolio. Say what you will, but Bitcoin still has the biggest "brand" recognition and is the most stable crypto out there, imo.
3). LTC & ETH
LTC and ETH are weighted at 7.5% because I also consider them more on the stable side when compared to the broader alt-coin market. They are also listed on Coinbase, which makes them much more accessible to the public and they often serve as a stepping stone for many newbies into the crypto space.
There you have it, my crypto portfolio! Now buckle your seatbelts for an in-depth analysis of each crypto! These posts will come out periodically over the next several days, stay tuned!
Disclaimer: This is not financial advice. Invest only what you're willing to lose. This content is for entertainment purposes only. Thank you!
Thanks for reading! Here's the Question of The Day, don't forget to post your answers in the comments!
Love the balance, I need to diversify as I'm only in ETH BTS VEN adn BCH right now. Probably going to get out of BCH and lower my BTS to pick up some OMG and NAV and possibly steem, though I kind of missed the bus there as of today. THanks for your insights
You're more diversified than most crypto investors, so keep up the good work! I think STEEM is just getting started, but may see a correction in the near future because of the abnormal run-up. As soon as it comes down below $4, I'll be taking a much larger stake in it. SMTs will change the whole content game on the entire internet, imo. OMG and NAV are also great! Thanks for continuing to support me @jakeybrown, I appreciate it so so much!
Absolutely, you're one of my favorite bloggers on here, I always enjoy your articles, especially book club. I'll keep an eye on steem price, luckily we can always build it right here just using the site :D
PS. I gotta get my vote power back up, voting's tough when you're a minnow!
Thank you so much for your kind words and support throughout my posts! The book club articles are honestly my favorite posts to write, I often get side-tracked by other things that catch my attention. These little side-tracks are also enjoyable, but I feel more of an itch to write about books tbh. I know how tough it can be to vote/post as a minnow! Just keep up the good work and positivity that you're already bringing to Steemit as a whole and to my posts as well and your SP will build over time! Thanks again for always participating!
Hey great post.. I’m currently holding XRP ADA FUN XLM a small amount of TRX and ETH. Way less than your portfolio. How you have it balanced out is pretty good. Looking forward to your future post
Thanks for reading! You are still diversified more than most crypto investors, which is a great thing! I'm gonna look into ADA, FUN and TRX, I haven't heard of those before, thanks for sharing! Looking forward to talking with you more about crypto!
Thanks for sharing @khaleelkazi ! This will be year of Steem for sure!
I totally agree! We're already at $7.50 at the turn of the New Year! 2018 will be a defining year for crypto and especially for STEEM with the upcoming release of SMTs... I'm powering up as much as I can! STEEM has stolen my heart and I just know it will do so well in the future!
Me too! For 3 days market cap jump for 1.2b it is promising year ahead... Steem up!
Continuing the bull run! It's a beautiful thing 🤩
Nice. I have a similar strategy. Right now I'm at 40% BTC, 35% STEEM, 10% ETH, And 15% split between ZEN, ZEC, BCH, AION, UBQ, and EOS, in that precedence. I started wit BTC at over 60% but alts have been outperforming lately.
That's a well-diversified and very sound strategy, in my opinion. Alts have made a nice run-up recently. I'm expecting a slight consolidation for alt-coins and new ATHs for BTC in the next few weeks. Even still, staying diversified as you already are will spread exposure and increase your profits in the long-term.
I agree with your strategy. Steem just makes sense from a social, technological and growth perspective. BTC is a backbone and I like th 5 percent strategy on most of the "startups"; if just one pays off it is worth it and you have increased your chance of success through solid research!
I will follow along with you and learn more about each coin as you post!
A great exercise and it will help us all! I already know a lot about NEO, which I knew nothing about before your initial post. I already have a friend doing POS with it!
I agree, STEEM is just an amazing platform that has so much room for mass adoption. I think everything is in order for STEEM to take the crypto market by storm and climb the market cap list. Bitcoin is the backbone right now, but I really think STEEM has the potential to take that position or at least take a position alongside BTC. With SMTs right around the corner, an $8 STEEM price is nothing for 2018 imo. Thanks for the support as always! Looking forward to sharing these coins in depth with you!
You have inspired me! I am going to follow along and put a bit into each one that makes sense. I like your percentages and value waiting.
I love Steem and it is performing well! WHat do you think of Steem Dollars?
Keep it up!
Thank you so much for your support! STEEM is definitely going to prosper in 2018 and beyond. SBD is another story, in my opinion. From my understanding, and feel free to correct me if I'm wrong, SBD is pegged to $1 and can have infinite upside potential, but is constantly being printed in relation to a rising STEEM price. Given these facts, SBD should be printed at a higher rate as the price of STEEM grows. Therefore, with the rising STEEM price (currently $8), I expect a lot of downward pressure on the price of SBD as the volume of circulating SBD increases. I personally am not holding on to much SBD, I continue to power it up and add to my portfolio. Theoretically, the price of SBD could continue upwards, but I'm not sure that it will.
Reading through the comments and I feel compelled to pipe in! Your description is spot on as far as I know. I read the Steem White Paper (every user should) a while back and it supports what you are saying. There will be big time downward pressure. On the other hand, if investors see SBD as an investment opportunity, the demand may be greater than the Steem printing press! Exciting times!
Very helpful post!
I agree with your strategy. Makes sense.
Question...in the vast sea of alt coins, how do you find your picks. There is so much tech info to wade through. Do you have a reliable source of meaningful info?
I have a process: I typically hear about a coin via twitter, friends, family, fellow steemians, etc. Once I find a coin that seems interesting, I go to its website and coinmarketcap to check its numbers. If I still find it interesting, I download their whitepaper and read through it. Whitepapers can get quite technical, but even those with just a little technical expertise can get a decent grasp of any given coin. If I still like the coin, I head over to social media and do more research - twitter, youtube, Steemit, reddit, etc... After all is said and done, it takes me quite a bit of research and usually several days to make up my mind, but if it seems promising, I'll add it to the portfolio.
Do you agree with my weightings? What do you like or not like about this strategy? How do you weight cryptos in your portfolio?
Your weighting strategy is an extremely safe investing strategy. Very good for people to follow your portfolio if they are very cautious people. That's why I like it.
As for me, 30% goes to ICOs, 30% into the top 10 and another 20% alt coins and 10% for daily trading.
Going by difficulty level, the least I invest in is what I'm least confident in... which is my own trading ability XD
I appreciate the kind words and support, thank you! I really like your strategy and have a friend who deploys a very similar one. I also have a small allocation for day-trading, but it is nothing in comparison to my investments in the above portfolio. Thanks for sharing your insight and strategy, it's very interesting to hear your thoughts and I hope to hear more of them as we continue to discuss crypto in future posts!
Looking forward buddie from the other side of the world :)
A debt of gratitude is in order for sharing @khaleelkazi ! This will be year of Steem without a doubt!
Thanks for reading! I agree STEEM is going to the moon baby! 🚀
I will upvote and restreem your post
Please check my profile once
I like your strategy. It's good to invest in some stable coins as BTC, ETH, and LTC. IT's also good to take a "risk" and invest in some coins which are fluctuating more than others (the main growth will come from these ;) ). And the best is, I think to invest in Steem (more you have, more you can convert into steem power, which is great to have it).
If you have heard about SNOV, what would you suggest about it?
Thank you for sharing this precious information. I can say that you know how to invest your money, and those who will copy your strategy, I believe will have success.
Thanks for the kind words! I agree, stability and a "backbone" are necessary in any investment portfolio. As for SNOV, I haven't heard of it, but will add it to my list and take a look in the near future and then let you know!
Thank you.
What is your opinion on LTC? I'm strongly tempted to transfer 2/3 of my holding into XRP and XLM.