WOW! 655 comments from one video and counting. Thank You! Truly. Our 50X Portfolio really hit on something that you, our Altcoin Buzz Army, want to know more about. And my job is to serve you by giving you actionable information about crypto that you can use.
So today is our first update on our 50x portfolio. How do you think we did? Make money? Lose money? How would you construct your ideal portfolio? We go over all that and MORE as today is the UPDATE DAY for our portfolio.
Brief Review of 50X Portfolio
Before we get into the exciting update, it makes sense for me to review our portfolio. We did a deep analysis and looked at what, why, and how much in our original video. You should go check it out when we finish here.
And although we go into much more detail in that video, here we will tell you that we have:
- 81% of our money is in large blue chip or potentially blue chip projects. Many are leaders in their sector of the crypto economy. Bitcoin is in there but ETH is not. But some other leading projects like The Graph and Polkadot and MATIC are too.
- 9% are in small caps. Two of our 3 are small-cap gems.
- And 10% are in stablecoins so we are ready to buy more. We have not added any value by staking, lending, or adding liquidity with our stablecoins although you obviously can as long as they stay liquid for a purchase you want to make.
And here are our holdings in order of portfolio %:
Our Calculations & Portfolio Rules
We made a spreadsheet where we based the numbers on our film date of September 27th. On that day, we looked up the prices and bought for a $10,000 portfolio at the allocations we showed you.
Then we calculated our P&L based on the pricing from 2 days ago. Next our rules. Rules in trading are very important. You can’t plan your trade and trade your plan if you have no plan. So here is our plan with our rules:
- Taking Profits: When we hit 50% profit we sell 10% to take a little off the table and book those profits
- Cutting Losses: Because I know we selected quality projects, a drop is a chance to buy the dip. However, other things can happen too. So at a 20% drop, we will reevaluate the position of the project in its sector, fundamentals, and technicals and decide to Sell, Hold, or Buy more
- Rebalancing: We will not be rebalancing just for the hell of it or to try to chase returns. Because we bought quality, we are looking for a big fundamental or technical analysis change to cause us to sell a position or swap out 1 of our 9 for another project
So, how do you track your crypto portfolio? Do you have an app you like? Or do just use Google Sheets or Excel like I’m doing here? Let us know how you track performance in the comments below.
Benchmarks: How did We do Against the Market?
Despite our sizable holding of Bitcoin, I feel the best gauge of the market is to look at both Bitcoin and Ethereum’s performance during that time. So, how did Bitcoin and Ethereum do in the last month? The month has been quiet….quiet for crypto that is.
Bitcoin’s return: -3.38%
Ethereum’s return: -1.24%
Benchmarking, which is what investing pros call this, is a measure of how our portfolio does versus the general market. After all, nothing operates in a vacuum. If market conditions are tough as they are now, then thinking you can crush the market with a 5x return in a month is just not realistic.
If you see here, the market lost money in the last month. With 35% of our investment in Bitcoin, you would think we lost money too. And guess what? We did. But thanks to the solid structure of our portfolio, we lost less than Bitcoin did. Our other 8 choices (other than stablecoins) did better than the market.
We know this because our return for the month is -1.03%.
Did we lose money? Yes.
Did we lose less than HODLING both ETH or Bitcoin over this month? Also, Yes.
Profits By Project
Portfolio construction is important here. I want some diversification but not too much. I don’t want to BE the market. So, we have 10 holdings here and 1, the stablecoins, should not change value unless I’m ready to buy something new.
Of our 9 holdings, 3 of them made money plus our stablecoins holding their value. You can see in these 4 rows, that Fuse made a small profit just above break-even to a profit of $15 on a $300 investment. The numbers are small but that’s a 5% return in a month. That’s a good performance.
It’s a good performance but the worst of our 3 moneymakers. Our next best was Polygon. Our investment of $1200 earned us $166. That’s an ROI of 13.8%. In one month. And for one of the biggest projects in the industry. Pretty sweet.
Then, our top performer, one of our Gems, Lukso. Lukso pumped more than 50% this month earning $158 on an investment of $300. ROI here is 52.6%. WOW. If this holds after filming, we will sell 10% per our Trading Rules. Book some profits.
Now some of you might be thinking, man if you could put all $10k into Lukso, look how much you’d have. And while we all think about what could have happened at times, this is absolutely not just the wrong thinking, but it’s DANGEROUS thinking.
I like Lukso. In fact, almost everyone at Altcoin Buzz likes Lukso. But what happens to our risk when we spread it out from 9 projects plus stablecoins to only 1? Risk SKYROCKETS. Our goal is to be here for the long term, not live and die by any 1 project, especially one that did not exist 3 years ago and might not exist 3 years from now.
My portfolio allocation addresses these risks by the amount I have invested in them. Do Bitcoin and Polygon have a lower risk of project failure than Lukso? You bet they do. So their portfolio allocation is higher.
Now if you want us to, we can make a small cap-only portfolio and video just on small caps. Would you like that? If so, definitely comment below. All your great comments last time are why we are doing this follow-up. I and the Altcoin Buzz Youtube Team want to hear what you like and what you don’t. So let us know in the comments if you want a small-cap portfolio video too.
Losses By Project
The biggest loser by percentage. The Graph. GRT lost 18.7% in just a month. This just shows how unpredictable the market can be. You have the #1 without-question project for querying and organizing blockchain data and in a month it drops 18%. That’s why we have other holdings too.
Next is another of our small holdings: Kujira. Kujira lost $42.50 on an investment of $300 or -14.1%. This is why we want some portfolio concentration but not too much. Just as easy some other month, Kujira and Lukso could flip places. And I don’t know if or when that could happen. And neither do you.
The next 2 biggest losers are 2 of our favorite Layer 1 and/or Layer 0 projects: Polkadot and Avalanche. They lost 12% and 10% respectively. I don’t expect that to continue. Last in the loss column, and covering 50% of our total holdings are Bitcoin and BNB. They lost 3.38% and 0.4% in the last month.
All that got us to -1.03% for the month.
How would you construct your ideal crypto portfolio to manage risks in the market? Tell us below in the comments.
Lessons
So what did we learn in this last month? We learned that:
- Our portfolio construction looks solid so far as risks are relatively low.
- For that risk, we beat both HODLING BTC and ETH, both of which are common long-term strategies.
- For our other 8 holdings (aside from Bitcoin and stablecoins), it’s absolutely impossible to gauge where their price might go in the short term like 1 month.
- Because of #3 and we have no idea, we chose 9 solid projects and built out our portfolio by % based on risk.
- And lastly, what we are doing seems to be working.
Let’s see how it does next month.
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