Reviewing My Crypto Portfolio: What I Discovered
This morning, I was adjusting my portfolio in response to new acquisitions and changes I have made. I also decided to add some of my smaller holdings, which I typically don’t pay much attention to. However, it is actually a good idea because if anything changes significantly, I will see it immediately. When a holding is initially at 1% and then suddenly jumps to 5%, you know something is up!
I have loads of coins in the 1% or lower category. To be fair, many are 0.25% to 0.5%. Some may think that this is foolish, but it is actually quite the contrary. It’s actually quite simple and rather astute because the risk/reward ratio is highly favorable. Let me explain. If I hold 10% of my portfolio in high-risk alts, the worst that can happen is I lose that 10% allocation. To be honest, in Crypto, that is nothing.
I would still have the other 90%, which is still quite significant. On the other hand, if some moon, I can 5X my portfolio or more! I have seen this play out with multiple investments and can attest to the efficiency of this particular strategy. It has a solid risk/reward dynamic and can be very effective, especially for new investors who can then simply allocate 90% to Bitcoin and Ethereum.
Solana Performance Analysis: Growth, Volatility, And Key Insights
My entry on SOL was around $0.30 in 2020. Anyone who bought a 1% allocation at that point increased their portfolio by 10X relative to the peak. This also takes the portfolio’s initial value as the base. This thinking is summarized in a tweet I recently saw.
you get rich by taking large amounts of risk with small amounts of money you stay rich by taking small amounts of risk with large amounts of money
Investors who are risk-averse should not even be in Crypto. Risk is very much part and parcel of this game. It is actually these massive risk/reward ratios that make the gains possible. You cannot have one without the other. Perhaps tokenized real estate might be a better investment option for the more conservative “Crypto” investor.
Which Crypto Assets Performed Best? Winners And Key Insights
Yes, Solana was by far my best call of 2020. Approximately 900X from my entry point. There were a few other significant gainers that came modestly close to Solana. I am measuring these gains against their recent peak prices, not current valuations. Unibright (UBT) did a 422X, almost half of Solana. This one was actually obtained in the final months of 2019, but I have added it as well, as it was quite a stellar performer. Even measuring from 2020, the return would be very significant.
Kusama was acquired long before the hype at approximately $9 and did roughly a 66X in this recent run-up. ASD, formerly BTMX, muscled a crazy 100X, which is ginormous for an already somewhat known exchange token. I am only addressing the coins I wrote about so that readers who remember them can revisit those posts if they so choose.
Solid Crypto Performers: Not The Best, But Still Strong
When it comes to NFTs, I am not very involved in what is happening right now. I started minting NFTs in 2020 and looked for a relatively low-risk investment, which is why I took this approach. RARI performed a 30X, which many would say is definitely not less than stellar. However, compared with previous returns, it is slightly weaker.
ANKR was another project I was quite excited about in 2020 and held on to into 2021. I am still holding a bag I set aside for the long term. This project only did a 30X, which was rather disappointing for me, as I had hoped for more. It is still a great return, though, so I definitely won’t be ungrateful.
There were a number of other smaller mentions that managed a 4X to 20X at best. These include some very speculative plays such as SNTVT, GARD, EDG, and BAND. There were also others I did not write about who did fairly well.
Which Crypto Asset Performed The Worst and Why
Well, this was actually shocking, to be honest. SXP was an absolute failure at generating returns this year. At best, it is a 3X to the peak. However, it has been a fairly decent oscillator, so it has been quite good for short- to medium-term trades. Anyway, I didn’t have much, and even though the market is down somewhat, I have not lost anything. The lack of regulatory clarity is most likely the most significant contributor to SXP’s poor performance.
What About The Rest?
There are others that I didn’t write about, but have started mentioning and accumulating. These are projects such as FTM, RAY, MANA, and some other DeFi tokens. Oh yes, I actually forgot ETH! I lost a lot of ETH in the March 2020 dump because the networks were congested and unable to process the funds needed to fund leveraged positions.
It is quite sad to think back on it because, had my funds cleared in minutes, as they should have, I would have been fine. Some transactions took more than 24 hours to confirm. I tried multiple times in the hope that something would take. After the loss, I bought my own blood back at approximately $80-$100 per ETH, which was an absolute bargain even in 2020.
Final Thoughts
This turned out to be a great move, as ETH performed a 45X to the peak. Not bad for the number two coin! That is quite a gain for ETH at this stage of the game. So, yes, gains are still on offer in the altcoin market! Anyway, that’s my wrap-up. Thanks for reading, and for those who were riding along on the journey, I hope you enjoyed the recap.