Fantasy crypto portfolio

[smooth]

I'm currently investing zero actual funds according to this allocation, but I'm going to track its performance here for a while. I will probably update the allocation targets monthly. The goal is to maximize performance and minimize risk when measured in USD terms.

The intent is to limit the universe to reasonably liquid coins (approximately top 20 by market cap) which can handle entry and exit of significant size positions. (For technical reasons it is currently limited to coins trading on Poloniex, though that restriction may be removed.)

If you find it interesting or want to follow along on paper or with real funds (this not a recommendation; do your own research and invest at your own risk), then welcome to the thread.

XRP 44
BCH 15
BTC 12
STR 10
LTC 7
STRAT 4
STEEM 3
ZEC 2
ETC 1
DASH 1

Assumed initial value 99 000 USD.

Reference USD values:

XRP 0.20
BCH 607.3569379
BTC 7174
STR 0.02754816
LTC 54.716098
STRAT 3.11882476
STEEM 0.89875872
ZEC 226.19987874
ETC 11.57474682
DASH 270.10102826

Self-moderation will be only used to keep the thread on-topic (already a forum rule) more actively than forum mods have time to do.  

[1714169830]

1714169830

[1714169830]

1714169830

[1714169830]

1714169830

[Genesis1337]

Very interesting portfolio setup. Will definitely be following along. What metrics did you use for allocating the different percentages, for example why 44% or your portfolio in ripple?

I have been trying to set up 3 - 5 year investment time frame and can't decide what the portfolio would look like. Thanks for thread

[hodler1293]

will be following along, too bad you dont have a blog!

[mike_pocket]

in my opinion not very balanced, due to the fact that you invest ~44% in XRP.
Why do not you diversify more?

[lordzc]

We need to respect and respect the portfolio of an experienced user like you.

[ruffles2016]

Woah this is very good job. I wanna know what results it will produce. I would love to suggest you to add Monero, Waves, IOTA and Stellar Lumens to this list. I love these 3 coins.

[smooth]

Woah this is very good job. I wanna know what results it will produce. I would love to suggest you to add Monero, Waves, IOTA and Stellar Lumens to this list. I love these 3 coins.

Monero is considered as part of the universe, but happens to have 0 allocation right now. Stellar Lumens is included with 10% allocation. My Poloniex-based workflow uses the old STR symbol.

IOTA and WAVES are not for technical reasons because my analysis process currently requires Poloniex listing, but that requirement may be removed later.

in my opinion not very balanced, due to the fact that you invest ~44% in XRP.
Why do not you diversify more?

There is a relatively high correlation between most coins which means diversification between coins is of relatively little importance. Of course there is always some value in it, and generally speaking diversification and balance are important. I definitely favor diversification between crytpo assets and non-crypto assets, where the correlations are lower. In particular, even if you are the biggest crypto bull ever, you should still have some non-crypto investments for balance IMO.

[libertad]

Cool idea. Following

[nesso]

Interesting choice to use Poloniex only, that site is not popular anymore. Bittrex is ahead of Poloniex now.
For altcoin choices, pretty safe coins to invest. I'm wondering the result as well.

[renes]

A portfolio consisting of new popular ico coins would be great idea. I suggest you to add privacy coins, I think they are very risk free coins, only way is up for long term.

[1101labu]

Bookmarked ! Definitively want to follow this portfolio.

[smooth]

A portfolio consisting of new popular ico coins would be great idea. I suggest you to add privacy coins, I think they are very risk free coins, only way is up for long term.

To be clear this is neither an ICO portfolio nor a non-ICO portfolio. Some of the coins in the screening universe are ICO such as ETH/ETC and STRAT (I think) and probably some others.

The primary criteria here are high market cap and liquidity. This is needed to be able to adjust the holdings periodically without it being impractical/expensive to actually make those trades.

ZEC and DASH (both considered privacy coins) are included, though currently low weight. XMR is included in the universe but currently has zero weight.

[SerenW]

44% of your portfolio contains XRP, definitely watching it. As, I've XRP in my portfolio as well, but little percentage, thinking about to accumulate more now.

[shibob]

I'm just curious why you dont hold some ETH based on its large market cap and liquidity. Also, is that too risk for 44% XRP?

Thanks!

[guystyles]

Thanks for sharing. I found your picks intriguing.
Please, would you elaborate on your choice of ETC?

[megadeth]

Watching.

[smooth]

I'm just curious why you dont hold some ETH based on its large market cap and liquidity. Also, is that too risk for 44% XRP?

As I noted above all coins have been quite correlated with each other meaning it doesn't make as much difference as you might think which coins you hold. The more important decision is how much to hold in cryptocurrency assets as a whole. At this time the holistic factors going into the portfolio construction don't favor ETH (in that the expectation, which could turn out to be right or wrong, is that if ETH were to move up strongly, other coins would too).

XRP is a bit of an outlier. Unlike most of the others which are at least somewhat grass roots projects that derive, vaguely from Satoshi's tradition of working to build an alternative to traditional finance (though some with ICO, etc. fundraising and a formalize development organization, some not), XRP is issued by a company that holds a large portion of its supply and that company is backed by serious venture capital and has experience professional management. Its strategy and target market, at least short term, is making partnerships and deals with existing banks and similar regulated businesses. In short, it is a completely different animal from most other coins when it comes to economics. Diversification within that category might make sense if there were other candidates, but there mostly aren't. (Stellar Lumens is arguably in a similar strategic position and indeed we have 10 STR in the portfolio, so we might say that "potentially-disruptive cryptocurrencies" make up 46% and "bank coins" make up 54% of which 81% is XRP and 19% is STR.)

@guystyles ETC is only included at 1% which might as well be rounding error. I don't think it is worth paying much attention to at this point, but maybe in the future the allocation will move higher. We'll see.

[DiniazRosa]

Wow why you keep much XRP. I think they have so many coin and marketcap so high.XRP hardly to growth more.

[sezyumx]

You are very trusting with XRP. Will it be a development? There are very strong opponents on the market.

[slaman29]

I have so many of those that just seeing this list is making my heart heavy with regret. Of these, I'd already got Litecoin for very close to 10% of current USD  and BCH for free, so the ones jerking my tears are Stratis (I got at 5.90) and Steem (1.6). These are all such great value buys, even though they're fictitious.

Let me guess, you're waiting for correction time with Bitcoin? Then again, it's also in your portfolio so is this a hedging strategy or just a random 10 of Top 20 coins? Hard to go wrong here in my opinion.