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Hey Richard, LOL, How’s That CryptoCurrency Portfolio Going?

Glad you asked. On September 3, less than three months ago by about a week, I started this portfolio specifically to show and not just talk about “my vast knowledge” of cryptocurrencies. Everybody talks, few show you their actual holdings and how they’re performing.

I had decided to create a presence on Patreaon with none of my antics I indulge in here, or on Facebook. It’s 100% business: the business of crypto and only the business of crypto. That’s going well, too.

Anyway, back to the portfolio. I started feeding it September 3 and added positions every week or two along the way. I hold Bitcoin, Ethereum, and Litecoin (the “big three”), and about 30 other “altcoins.” So, that portfolio chart includes about $3,000 of capital additions and now, about $1,200 of overall gains for about 42%.

It was only a week ago when input was at about $2,800 and gains about $500.

My “strategy” is simple.

  1. For the very large part, I buy to hold. I don’t jockey stuff around bearing trading costs. I don’t take profits. I keep it chill. I’ve barely looked at it since heading out for the holiday last Wednesday.
  2. The most “analysis” I do is to check for downtrends and corrections and wait to buy at better prices by setting limit orders and being chill and patient. I recently took 2 full weeks to take two initial positions on a new altcoin with lots of buzz and trading volume. And I got in at relatively good prices…10 coin initial position after a week, and another 5 coins at an even better price after another week.
  3. For taking stakes in altcoins, I look for two things primarily: buzz and daily trading volume.
  4. I take small stakes for each buy, like $20 to $50 at a time, usually, especially when starting out, because I wanted high diversification.
  5. I keep it spread out (diversified) so it’s self-hedging. Right now I’m in about 35 different coins, but will probably eventually get to about 50 coin holdings.
  6. Given the environment, I have taken to opportunity cost calculations on the fly. For instance, for Thanksgiving, we were parked at the sailplane port in Tehachapi, CA, and since I fly hang gliders, sailplanes, and powered, I was looking to take up a Grob to 8,000 feet for an hour. But, I said to myself, “I’d rather have the $170 in my crypto portfolio.”

Curious about Bitcoin and the cryptocurrency phenomenon? Then check out my Patreon Profile.


So, with the Patroeon gig, the intention is to show Patrons, especially the newbies, right off the bat where they might want to be putting their investments: specific coins; and they have 35 to choose from. I could talk all day with endless posts and URGENT ALERTS! but why not just show with my own stakes? And they can click a link anytime they want to see what it’s up to in real time. So, there’s never any of that touting my gains and never mentioning my losses. For instance, anyone can see that my initial stake of $65 in PotCoin is now worth $185, a 215% gain over 2 months. But, they can also see that my worst performer, Monaco, is down 23%.

Transparency. It’s the new confidential.

So the way I think about it, the active portfolio has become the chief value to Patrons. Initially, I thought it would be the how-tos, the various insights, the identifying of possible new coins to take positions on, the social and community aspects, but in the end, people want to see what’s really under the hood and how it works. They become believers to a rational extent based on real progress and performance, and not irrational believers based on hopes and a lot of unquantifiable fluff—like all the $2,000 – $3,000 per year Newsletter peddlers cater to and encourage.

And yet there are those how-tos, and plenty of active folks to help with some of the issues various people have getting started. It is both a learning and a confidence curve. But the portfolio helps mitigate that lack of confidence. It’ll probably be okay; just do what I did. It’ll take some time, but this is what happened for me in just less than three months.

…And I could have just as easily said to myself in early September, “oh, man, I’m too late; I’ve missed the boat.”

As to the learning curve, it’s different for each individual but most will find that’s it’s surmountable in just a few week’s time, and the how-to just builds from there. The more you know, the more you learn, easier and more quickly.

So, the only question remaining is, is when are you going to become a buy-and-hold crypto trader with a highly diversified portfolio? There’s an app for that.

…Oh, and if you haven’t noticed, Bitcoin has now breached $9,000 per coin for the first time. But not to worry, you can still get in without investing $9,000. You can invest in fractions of a coin, since each whole coin is divisible by 100 million units. 0.00000001 is the smallest, a Staoshi, currently equivalent to 

…I have an additional $300 sitting over in Coinbase just waiting to add to the market. What coins will I either add to, or take new positions on? My Patrons will know as soon as it happens.

Richard Nikoley

I'm Richard Nikoley. Free The Animal began in 2003 and as of 2021, contains 5,000 posts. I blog what I wish...from health, diet, and food to travel and lifestyle; to politics, social antagonism, expat-living location and time independent—while you sleep—income. I celebrate the audacity and hubris to live by your own exclusive authority and take your own chances. Read More

4 Comments

  1. John on November 26, 2017 at 10:03

    If only the Dow could compete with potcoin.

  2. Pd on November 26, 2017 at 12:53

    Hi Richard,

    I like the approach.

    With the right risk approach of investing what you can aford to lose, taking advantage of the fear and greed cycled etc, and spreading the trades, I think you are into a winner here.

    I may join you for the ride. If things unfold as it seem to be happening, the people rushing in now without a strategy or a clue will likely blow their money in the ensuing volatility.

    The FOMO crowd are likely experiencing the agony of either sitting on the sidelines or the terror of buying at the “top” of a cycle and in the drop “losing everything and bailing”

    My balls in investing grew when I invested all I could afford just before the GFC. Without that experience, I would be in there right now monitoring my bit coin returns hourly, reading every bit of hype on the upswings and every bit of doom on the downswings.

    When you enter this with eyes wide open, small risk and know you have to trade rationally and often against your instincts and deal with the short term cycles of greed and fear of others, it is fun (-:

    Paul

    • Richard Nikoley on December 12, 2017 at 15:34

      Just remember, Paul, when your hairdresser, housekeeper, gardener and waiter all start talking about wanting more money, it’s time to get out of money. 😉



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