The absolute most important factor that determines how successful you will be in the cryptocurrency market is the makeup of your portfolio. When building your portfolio each person will have different needs and desires. For example, someone just entering the crypto market may focus more so on altcoins, hoping to catch lightning in a bottle to accelerate the growth of their portfolio. While others who have been in the market for quite some time may keep the majority of their crypto in Bitcoin and Ethereum. Preferring the slower yet more safe option when compared to low-cap coins.
And then you also need to determine what your investing strategy will be. Will you prefer to keep a higher-concentrated portfolio and only focus on a few coins? Or will you spread out your funds amongst several coins keeping a highly diversified portfolio? There is no right answer, and what works for me, may not work for you. We all have different situations that affect our current position and goals for the future. Some of these factors include when you got into the crypto market, your age, financial standing, what you’re trying to accomplish, and the list goes on.
Before we take a look at my crypto portfolio, it’s important you understand my strategy and mindset.
Here is my strategy. I have been in the crypto market for quite some time now, which allowed me to be early to Bitcoin and Ethereum. These are the crypto that I am most passionate about, and also trust the most. I have the majority of my portfolio highly concentrated on these two assets until I built a position that I was satisfied with. Recently, I have begun to build out a few other positions in what I view as more on the risk side. In projects that I think have great potential. But at the end of the day, my goal is still to acquire as much Bitcoin as I possibly can.
My portfolio has changed a lot over the years. Crypto that I previously held but have since sold and eliminated from my portfolio: Solana, XRP, Litecoin, Cardano, Chainlink, BNB, Uniswap, and the list goes.
Also please note that even if a crypto represents a small amount of my portfolio, that it is actually a significant amount in terms of dollars.
4. Polkadot (DOT) 0.3%
It may come as a surprise, but this is crypto in my portfolio that I am the least certain about. I was excited about Polkadot when the project first launched, but have been disappointed that it hasn’t seen the type of adoption that I anticipated it would. Last year Parachains launched on DOT and this helped it soar to a price of nearly $60. But right as Polkadot seemed to be on the verge of a special move, that is when the peak of the market happened in November. Since then Polkadot’s price has plummeted all the way down to around $5.00. Yet I continue to stick with the project. The amount of developers devoted to Polkadot consistently is near the top and the tech is some of the best and most complex in crypto. Their team is top-notch and led by Gavin Wood. Plus the staking rates remain very good. It may take some time for DOT to find its place in the industry. For now, I continue to own it and am even adding to my position with its price being down so much.
3. Internet Computer (ICP) 2.5%
I have a complicated story with the Internet Computer but have recently fallen in love with the project once again. When it was about to launch I was a big fan of it and thought it had incredible potential. The project has the best tech currently in crypto and it isn’t even close. But there were a lot of negatives that would eventually cause me to sell out of my ICP position. Inflation rates, centralization, the FUD that kept being thrown toward ICP, and the final nail in the coffin was its drastic price drop.
But as time went on we learned that Alameda/FTX was behind the FUD that attempted to sabotage ICP’s launch and image. After learning this I decided to look into ICP once again. Upon doing that I learned that a lot of development had taken place since I “had left” ICP. The ecosystem was beginning to thrive, it was becoming much less centralized, and there were plans for the chain to become deflationary in the future. Not even mentioning the great staking interest rates you can earn. The final development that made me extremely excited about the project was the integration with Bitcoin. Allowing Bitcoin to participate in DeFi natively on the ICP network. Something that I believe will be huge in the future. The price had fallen so low, that I felt that ICP’s potential has worth the risk.
2. Ethereum (ETH) 10%
Ethereum is one of the two blue chips in crypto and remains the king of smart contract blockchains. The last remaining doubt I had on whether Ethereum would continue to be successful in the future was squashed when the chain successfully merged to proof-of-stake.
As long as development doesn’t take too long to implement scaling options, I think that Ethereum won’t be overtaken for a long time. Also adding the fact that you’re able to stake Ethereum for a great passive income. This means that I have been more than happy to keep a large percentage of my portfolio in ETH. I’m trying to accumulate as much as I possibly can before prices get out of hand to ensure my passive income stream for the future.
1. Bitcoin (BTC) 87%
Bitcoin is what made me first become interested in cryptocurrency and to this day is still what I’m most passionate about. At the end of the day, I think that the name of this game, is to acquire as much Bitcoin as possible, and the rest is just pure noise. However, there is some great noise out there. Bitcoin is sound money, has a limited supply, is the most decentralized and secure blockchain, and truly has the chance to change the world. I was very lucky to get into Bitcoin early, but even today it is the crypto that I continue to accumulate the most.
Those are the four coins that currently make up my portfolio. I like to take a more conservative approach by sticking mostly to Bitcoin and Ethereum but have begun to begin taking a little more risks as my portfolio size has grown. Time will tell if those two new additions will have been good decisions.
How about you? What crypto is in your portfolio?
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The opinions in this article are my own and aren’t financial advice.
