Hi fellow Steemians,
I've been thinking how to do this social media platform thing. I've never done this before. I figured I'd do a kind of aggregate of stuff I read throughout the day, and how that relates to my investing style. I intend to do this nearly every day, so I'll just number the letters to organize them.
I'll start with my crypto portfolio, see below:
As you can see, I'm a huge ETH fan. It's also the first crypto I bought somewhere late last year, so the huge allocation is mostly due to historical reasons and price appreciation. The smaller satellite positions were bought more recently, meaning to hedge against decreases in ETH. I keep BTC as a hedge (I think we all agree the tech behind it is outdated), simply because I feel it is a safe haven when the alt market corrects. The rest of the coins are the ones with highest market caps, I don't bother with buying speculative coins. The only exceptions are DGD, ICN, MLN, TKN because I like their business models. For example, ICN buys back their tokens with profits made, thereby increasing token value.
One of the first things I did was estimating the growth rate of the cryptocurrency market, see the figure below.
This is simply reading market cap values from coinmarketcap.io every 6 months, taking the (base 10) logarithm, and plotting the time evolution. This market seems to double in size every year. Since stocks and bonds are reaching historical highs (I don't think it depends on the measures you use anymore nowadays, all of the measures indicate overvaluation), this definitely is a good investment. It does not correlate with the rest of the financial markets, which reduces the volatility in your entire portfolio (containing more than just crypto, hopefully!). Notice the last symbol above the trendline, it indicates an "overvaluation" of ca. 30-50 billion USD right now. I'm not saying the market will correct tomorrow, neither I'm saying using an exponential fit is the best way, but I'm mentally prepared for a crypto market correction, or subpar returns over the next year or two.
Best of luck with your crypto investments,