Need advices from experienced investors for optimal coins allocation

[The_honey_bager]

My goal at the moment: Invest only in coins I believe in and increase my stack with a time based rebalance startegy and eventually (when I will be more experienced) threshold rebalancing with the help of a stable coin (USDT).

I read about the general theory but I'm a n00b in practice...

So here is the allocation I'm thinking to begin my portfolio with:

USDT 35%
BTC 50%
ETH 15%

So I'm looking forward to read your opinions and advices about this.

BTW I will also be grateful if you could also point me out at any good learning material about the subject.

Thank you!

EDIT: I just want to add to this post that I want to invest in BTC and ETH for the long run. The 35% allocation of USDT is to take advantage of upswing and downswing to increase each stack with a time based rebalance strategy. I really don't want to invest in USDT.

[Bitum]

I don't see any point in investing in USDT at the moment, BTC and ETH have fallen very well right now. It will be much better if you still buy BTC and ETH for your 35% USDT.
 But that's my opinion, not a recommendation

[The_honey_bager]

I don't see any point in investing in USDT at the moment, BTC and ETH have fallen very well right now. It will be much better if you still buy BTC and ETH for your 35% USDT.
 But that's my opinion, not a recommendation

Just to be clear: I don't want to passively hodl my portfolio without touching anything.

I want to do a time based rebalance each day to increase the profitability of my long term investment. Apparently, adding a stable coin to the mix could help increase my stack of each other coins with the volatility of the market. At least, that's a strategy I just learned in theory and I would like to implement in practice. I'm pretty sure some experienced traders here should have a idea of what I'm talking about.  

[TrevorS]

Why do you need to rebalance? Without proper experience in this, you are likely to aggravate the situation and make mistakes.
What prevents you from investing and adjusting assets only with significant movements in the market? Do not complicate your life for now.

The choice is yours anyway.

[The_honey_bager]

Why do you need to rebalance?

Because from what I have learned, it is suppose to help increase my coins stack (in this case - BTC & ETH) and at the same time, the profitability of my long term investment.

 

[jrrsparkles]

My goal at the moment: Invest only in coins I believe in and increase my stack with time based rebalancing and eventually (when I will be more experienced) threshold rebalancing with the help of a stable coin (USDT).

I read about the general theory but I'm a n00b in practice...

So here is the allocation I'm thinking to begin my portfolio with:

USDT 35%
BTC 50%
ETH 15%

So I'm looking forward to read your opinions and advices about this.

BTW I will also be grateful if you could also point me out at any good learning material about the subject.

Thank you!

There is no point of investing on USDT, it should be used only as value storage coins and it should be kept playing with volatile pairs to bring money into your side.I don't think Ethereum is right choice at the moment,you should increase more coins like litecoin even ripple could be good for traders in short term.

[BitMaxz]

I don't see any issue on having USDT on the portfolio it is actually a good backup or reserved when the major coins or the BTC and ETH drop. So you can buy low price using USDT to increase your stacks then exchange back to USDT when the price increase.

Because from what I have learned, it is suppose to help increase my coins stack (in this case - BTC & ETH) and at the same time, the profitability of my long term investment.

I'm not an expert in trading but if you want to learn more about trading I have a large list source of knowledge about crypto trading.

You can check these below.
- https://github.com/learn-crypto-trading/learn-crypto-trading.github.io
- https://github.com/Helmi/awesome-crypto

[milewilda]

There is no point of investing on USDT, it should be used only as value storage coins and it should be kept playing with volatile pairs to bring money into your side.I don't think Ethereum is right choice at the moment,you should increase more coins like litecoin even ripple could be good for traders in short term.

If you do try to read up again and understand then USDT would really just play as a reserve for possibly upswings or opportunity for him to buy on which is pretty wise act to be done rather than missing out those chances for you to buy low and since you do have that reserve waiting down then you can anytime make decision to increase up or to accumulate and sell later on when you do see some gains.
Answering the question on what are the optimal coins? I'd say go for 80% for btc since its still cheap atm and the rest would be 20% of coin your choice, ETH isnt a bad one though.

[The Cryptovator]

To be honest everyone have their favorite coins and likely they will suggest you to invest on there. But personally I will suggest to invest only on good potential coins like Bitcoin, ETH & LTC. USDT isn't something to invest but you can keep it as a backup to buy coin on more dip. Your portfolio distributions thougt isn't bad but I will suggest to increase more for ETH and put some percentage on LTC as well. Don't put your money on any shitcoin what mistake I had done previously. Remember, investment on cryptocurrency is high risk. We don't know what will happen tomorrow. So do your own diligence before you invest on any coins and only invest that amount you can afford loss. We aren't your legal advisor here.

[Rodeo02]

I don't see any point in investing in USDT at the moment, BTC and ETH have fallen very well right now. It will be much better if you still buy BTC and ETH for your 35% USDT.
 But that's my opinion, not a recommendation

Investing in USDT will give you opportunity to buy in the bottom .

Its not actually investing you are preparing for something that never expected .

Like what happen in the past day that bitcoin and other crypto decline upto 40% in just a day. This is great timing for other to make a short trade and earn while market is in red.

[yanto@1977]

EDIT: I just want to add to this post that I want to invest in BTC and ETH for the long run. The 35% allocation of USDT is to take advantage of upswing and downswing to increase each stack with a time based rebalance strategy. I really don't want to invest in USDT.

If you don't want invest with USDT just don't, make your money into another coins that already have analysis and worth to buy. People interesting with USDT because stable coin label and that's not true. For recovery you can use money management but need only one coin, decision is up to you. Or you can invest in currency, like or not this is the best option for recover because profit not always came from one side.

[jrrsparkles]

There is no point of investing on USDT, it should be used only as value storage coins and it should be kept playing with volatile pairs to bring money into your side.I don't think Ethereum is right choice at the moment,you should increase more coins like litecoin even ripple could be good for traders in short term.

If you do try to read up again and understand then USDT would really just play as a reserve for possibly upswings or opportunity for him to buy on which is pretty wise act to be done rather than missing out those chances for you to buy low and since you do have that reserve waiting down then you can anytime make decision to increase up or to accumulate and sell later on when you do see some gains.
Answering the question on what are the optimal coins? I'd say go for 80% for btc since its still cheap atm and the rest would be 20% of coin your choice, ETH isnt a bad one though.

Newly minted tethers were liquidated into the market after this fall on crypto market which is really more danger for cryptos especially altcoins and who know people might skip USDT with the fear of losing their total capital,so I will say we have to stay away from USDT at any conditions.

[rexxarofmoknathal]

Why do you need to rebalance? Without proper experience in this, you are likely to aggravate the situation and make mistakes.
What prevents you from investing and adjusting assets only with significant movements in the market? Do not complicate your life for now.

The choice is yours anyway.

There is that (as per the comment above) which are very valid points to consider before venturing out acquiring which ever coins you think could be profitable in the future. However, I tell you that maybe now is not the best time to make your move, this much unrest in the world can easily shift the markets either way and the volatility makes it (in my opinion) very difficult to gauge what the next trends will be.

Just a precautionary thought!

[pawanjain]

That's a nice strategy but I would suggest that you alter the numbers a little.
Instead of investing 35% in USDT, you can invest 30% in USDT and 50% in BTC and the rest 20% in ETH.
Cryptocurrencies are at a very cheap price right now. So investing more in coins would yield bigger profits in future.

[el kaka22]

If you are going to be so heavy on cash (usdt) it might be a smarter move to actually keep it in cash, or even in a bond/stock/gold or whatever so that it wouldn't lose its value. I can only speak about the crypto part of this and say that you can add one or two more coins into this, that way you could potentially have a lot more profitability, but I am not entirely sure what to suggest you.

I would say bnb is a good start, you can also invest into something like litecoin or eos, they are fine as well, with just those two added you will be a lot better off, you can make it more like 50% btc, 20% eth, 10% bnb, 10% eos, this is full on crypto part tho, not the cash part. If you want to also have cash, and invest into dollars, I would say do it differently.