Curiosity Got This Cat
This morning I was adjusting my portfolio, in regard to new acquisitions and changes I have made. I also decided to add some of my smaller holdings, which I typically don’t concern myself about much. However, it is actually a good idea because if anything changes significantly, I will see it immediately. When a holding is initially 1% and then suddenly becomes 5%, you know something is up! I have loads of coins that are in the 1% category or less. To be fair, many are 0.25% to 0.5%. Some may think that this is foolish but it is actually quite the contrary.
My 10% Rule
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!
My entry on SOL was around $0.30 in 2020. Anyone that bought a 1% allocation at that point, increased their portfolio by 10X when measured against the peak. This is also taking the initial value of the portfolio as the base. This thinking is summarized in a tweet I recently saw on Twitter.
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 that are averse to risk 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.
So What Performed?
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 up to their recent peak prices and 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 would be a very significant return.
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 that I wrote about so that readers who remember them can go back and revisit those posts if they so choose.
The Less Than Stellar
When it comes to NFTs I am not that involved in what is currently going on. I started minting NFTs in 2020 and looked at what would be a viable investment with relatively low risk, which is why I took this approach. RARI performed a 30X, which many would say is definitely not less than stellar. However, when compared to the previous returns it is a bit weak.
ANKR is another project that I was quite excited about in 2020 and held into 2021. I am currently still holding a bag that I have 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 some others that I did not write about that did fairly well.
The Worst Performer
Well, this was actually shocking, to be honest, SXP was an absolute fail, in terms of generating returns this year. At best it is a 3X to the peak. However, it has been a fairly decent oscillator, so it was 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.
What About The Others?
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, due to networks being congested and unable to fund leveraged positions. It is quite sad to think back on it because had my funds cleared in minutes as they should, 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 $100 per ETH. 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. Anyway, that’s my wrap-up. Thanks for reading and for those who were riding along on the journey, hope you enjoyed the recap.