Managing crypto investments as an index fund.

[Don Pedro Dinero]

Up till today I just own bitcoins but I plan to diversify a little bit in the future. Some people believe bitcoin will be surpassed by another crypto in the future but I’m not in a hurry to diversify because if that happens, it won’t happen overnight. So, I will have time to exchange bitcoins for the other currency if that is finally the case.

My idea is to have at least 50% of my funds in bitcoin and then diversify the rest between the next biggest 4 in market cap. I’m not looking for the highest returns here, just security and liquidity.

Index funds work in a way that when a company gets kicked out of the index, shares are sold and shares of the new company that replaces the first one are bought.

My idea is to do something similar to this, and to rebalance my portfolio depending on the movements of the market.

Any thoughts on this? Have you done/Do you do something similar?

[1714170654]

1714170654

[IBGigglin]

It is SUPER important to diversify so I think you are on the right track with this thinking.

Have you checked out the new portfolio diversification tool called Totle? You can diversify your holdings into over 100 coins with just the touch of a slider. Pretty cool stuff. https://www.totle.com

[thejaytiesto]

The problem is all these damn altcoins just can't keep up with Bitcoin's growth. I don't care about making more USD, I want to improve my BTC holdings. Very FEW coins are going up against BTC.

For example:

https://coinmarketcap.com/currencies/blocknet/

This is an interesting project I was following. It has pumped, but look at the price against BTC... it just keeps going down even if the USD goes up. Fuck that.

This is what you want to see in a pump:

https://coinmarketcap.com/currencies/iota/
https://coinmarketcap.com/currencies/cardano/