What I think and what I plan for 2021.
My crypto portfolio is Bitcoin heavy.
I’ve been interested in cryptocurrency since 2013 and bought my first BTC in 2015. Soon after, I discovered too ether and first bought ETH when it was just $ 12 / ETH.
It’s probably no surprise that the bulk of my crypto portfolio is made up of Bitcoin and Ethereum.
- BTC 64%
- ETH 29%
- ADA 6%
- RVN 1%
These numbers have a nuance.
These are percentages based on the US dollar value.
Historical, Bitcoin was a far more significant position in my portfolio. I would also like to emphasize that Bitcoin was easily made amends just a few weeks ago 75% of the portfolio, if not much more.
I want to be a better bitcoiner
Ethereum has visited always high prices for most of the last month. The rise in ETH distorts my percentage portfolio values in the direction of ETH. despite the fact that I keep stacking more BTC.
During the recent ETH boom, I even switched some ETH to BTC. My goal is to make bitcoin rough 85% from my portfolio until the end of 2021, but price fluctuations have made this more difficult.
A good value in my overall portfolio can be attributed to my early entry into ETH. Because of this, I still hold and Mining Ethereum. However, I plan to switch more to BTC over time.
I convert to Bitcoin strategically, subject to price comparisons and in a way that consolidates transactions and simplifies taxable events.
ADA and RVN
A note on Cardano and Ravencoin.
I bought ADA as a hedge against Ethereum and because the project seems to meet its roadmap benchmarks more consistently than Ethereum. I own Ravencoin because I’m switching between mining and ETH.
However, the ultimate goal with both altcoin holdings is to convert them to bitcoin at the appropriate times. I’m not an anti-altcoin, but I believe that the altcoin area and the bitcoin area should be viewed separately. Because of this, I see altcoins primarily as a means of acquiring more BTC, unless you are specifically involved in or invested in a particular altcoin project.
New assignments in my crypto portfolio come from cryptocurrency mining.
I rarely buy Bitcoin or other cryptos in cash anymore. For now, I mean Ethereum and sometimes Ravencoin.
Ethereum mining will be phased out ETH 2.0 The transition brings a proof of stake to your network. That means, I won’t be able to dismantle ETH for much longer. I will continue to track the most profitable GPU mined coins like Ravencoin or Ethereum Classic to determine what else I will mine in the future. Fortunately, around two to three months after mining started, I hit breakeven on my Ethereum mining setup.
The goal is to stack more sats and acquire more bitcoin. I do this methodically over time.
In addition to this goal I also want to bring more BTC into the cold room. Because of my mining setup, I use crypto in either hot wallets or exchanges to easily convert it to BTC before converting or to generate income for a period of time. This can be done through places like BlockFi or on most exchanges like Coinbase.
If you need basic information about bitcoin and cryptocurrency wallets, Check out this post that I wrote. As I say in the post, what you do with your crypto determines the type of wallet you should be using.
My goal is to grow my BTC holdings and keep all crypto holdings in secure but accessible wallets. Primarily I do this via a cold store, but I use hot wallets and exchanges to facilitate transactions out of my mining operation and any conversions or temporary income I have made.
We’re in a bull market. Bitcoin and Altcoins always touch high prices. There is continuous Mainstream adoption to the point that public companies keep Bitcoin on their balance sheets.
Everyone is a genius in a bull market. It’s important to keep in mind that in the past, Bitcoin has switched between the bull and bear markets for its built-in halving cycles.
While a bear market could come next year, the lows of an upcoming bear market will likely be much higher than they were before. More mainstream acceptance, more BTC conversion to and remaining in cold rooms, as well as an increased number of users, further anchor Bitcoin in the zeitgeist.
A Bitcoin Supercycle is possible. It’s a theory that Dan Held first tossed around at the previous bear market. But, it is possible that Bitcoin either sees a minor correction instead of a full bear market, or simply continues an expanded bull market contrary to previous cycles. We are at a critical point in Bitcoin’s history.
In the comments below, let me know what you think about the future of Bitcoin, and whether you have similar or different approaches to your own cryptocurrency portfolio. Thanks for reading my post!