The BEST $1000 Portfolio for Crypto's Next Bull Run

Today we have a new challenge. Invest $1000 Conservatively. What would your most conservative picks be? What would you put your parents’ money into? Your in-laws’ money? Or good friends who aren’t crypto natives like you and me.

Well, my bosses asked me. What would you invest in for your in-laws portfolio? And I told them these 4 coins. 

1) Bitcoin

Now I’m going to put my parents or my in-laws’ money into something in crypto. This standard means I have to believe in it and believe that it won’t lose money or rug me in 3 months.

I have to think it will be worth more 2 or 3 years from now than it is today. And no coin signifies this more in crypto than Bitcoin. Bitcoin is the biggest, strongest, and safest of all cryptos. It’s the most likely to still be around in 5 years. Even more than Ethereum. It’s the most likely to increase in value.

The idea that governments feel threatened by Bitcoin as a form of money and no other crypto should tell you something. No one loves ATOM and the Cosmos ecosystem more than we do here at Altcoin Buzz. And you know what never happens? The Government of ABC Country decides to ban or outlaw ATOM. Ethereum either. BNB too. The only one that worries them is Bitcoin.

It’s got great tokenomics, decentralized, and censorship resistant. It’s for these reasons we are comfortable putting $300 of Mom’s $1000 into Bitcoin.

2) Ethereum

For another $300 of Mom’s $1000, we are taking the king of dApps. Ethereum. If Bitcoin is the king crypto, and it is, then Ethereum is the crown prince.

Ethereum’s goal of being the place where anyone can build their own apps is becoming more accurate every day. Ethereum has its faults. No one knows them better than us. We have crypto power users at AB that refuse to use Ethereum. And yet they are still engaging with ETH-based dApps thanks to all the Layer 2 solutions in the market.

Polygon, Optimism, Arbitrum, and smaller L2’s like Starkware, Shardeum, Loopring, and ZKSwap all exist because Ethereum does. And there is power in using ETH for gas and in the network effects that ETH has built up over time. The only network with more network effects than Ethereum is Bitcoin. And they do it with fewer developers because the ecosystem is smaller.

Network effects are powerful. And that’s why I’m comfortable putting another $300 of Mom’s money into Ethereum. Fat protocol theory affects Ethereum in a big way. Positively that is. Have you heard of this? Ultra-successful tech and crypto VC Union Square Ventures in SF came up with this theory. It says that due to network effects and other reasons like:

  • Shared data. 
  • Enhanced security most of the value of dApps will not stay at the dApp level.

In plain English, this means that a great app like Uniswap does capture some value and its token is valuable. But most of the value accrues (goes to) Ethereum instead. Because Ethereum is providing the chain for the app to operate, gets the network effects, and transactions require ETH to pay gas. All benefits for Ethereum. And Ethereum sees these benefits over and over with many different apps, not just Uniswap.

I think it will be around and worth more 2,3 or 5 years from today than it is now too. Just like with Bitcoin.

3) Optimism

Now that $600 of our $1000 is in action, I’m going to look at solutions to big problems. This is the most conservative way to invest in crypto’s growth. Look for a big problem and proposed solutions to that problem.

So, one big crypto industry problem is how high ETH gas fees are. It makes many small transactions not worth doing. Are you going to pay $25 in gas to send $40? Of course not. Neither am I. But, as the leader in both DeFi and NFTs, this cries out for a solution.

Enter the Layer 2s. While Polygon is the most established of the Layer 2s, and we love it, that’s not our pick here. Our pick here for a top Layer 2 solution is Optimism. It has over $800 million in TVL and is growing fast in tough market conditions.

If you believe as I do, ETH will become the base layer, then most of the transactions will settle on Layer 2s. Then there is room for lots of winners. Polygon, Optimism, and Arbitrum have a big lead in the Layer 2 race. The fact that Optimism has its own token $OP for in-network transactions gives it the edge over Arbitrum. The rumors keep coming that Arbitrum will airdrop its own coin, but they haven’t yet. And until they do, you still have to pay with ETH. And we’d rather not.

So we are taking $200 of Mom’s money and telling her to not even look at this one for 6 months. That $200 is going into Optimism.

4) Aleph Zero

Our last $200 is going towards another BIG problem. Privacy. 2022 left some deep and painful lessons for everyone who stuck around. And if you are still here, give yourself a pat on the back. This market has been rough. Most bear markets in crypto don’t last this long.

Along with the centralization and self-custody lessons that people are taking more seriously, right behind that we have privacy. The privacy policy nonsense with Infura and Metamask was a good public example. Now people really care about privacy again in a way they didn’t use to before.

So who do we pick for privacy? One of our Altcoin Buzz gems is a privacy-based Layer 1 blockchain. That gem is Aleph Zero.

They are not only building out their own chain but their own ecosystem. Plus they are doing it in Substrate. This makes them compatible with Polkadot and provides a link to interoperability between chains. Their goal is fast, cheap, enterprise-grade smart contracts. And private.

As a project that got its start in 2018, the AZERO token has already fought past the hard first advances for growth and its first bear market. This adds some protection for us when investing Mom’s money that we see they can withstand surprise negative events like black swans.

Although they have a 10% inflation rate per year, they still overall have good tokenomics. More than ⅔ of the total supply of 323 million are available in the market today. So while this one is a little smaller than the others at a $278 million market value, we feel like $200 of Mom’s money can grow here and downside risks are less than some other comparable investments.

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