I want to share with you guys my entire cryptocurrency portfolio what I’m holding how much I’m holding? why I’m holding them and which are my top five? so if that sounds interesting stick around.
So 2020 was already an exciting year for the cryptocurrency space and 2021 is looking a lot more exciting in my personal opinion we’re seeing and hearing a lot of exciting things happen such as institutions getting in adoption but at the end of the day majority of the people in this space don’t understand the technology behind each project they’re really in it because they want to make money and there’s nothing wrong with that because that’s also part of my intention as well which is why I’m excited for the rest of 2021.
Currently, I’m holding bitcoin Ethereum Litecoin polka dots Cardano chainlink Binance coin and Cro tokens bitcoin is about 55% of my portfolio Ethereum being my next highest all coin position Cardano and then the rest following CRO tokens being the least it used to be around 65 bitcoin and then 35% but then with the recent dip in bitcoin and the rise in altcoins it kind of balanced it out almost half which is okay with me but my strategy is always to hold more bitcoin than the other projects or other coins altcoin is known for generating wealth and bitcoin is known for preserving wealth so my general strategy right now at the point is to hold on to some altcoins.
after they run up a certain amount of percentage I will sell a certain amount into bitcoin and so that way I can allocate more into my bitcoin position in the long run so now I’m gonna go over why I’m holding onto these coins but I’m not gonna go over the entire details of what each company does because there are a ton of videos out there that do a way better job than explaining than me so first let’s start off with bitcoin why bitcoin because the entire cryptocurrency space would not exist without it bitcoin can be known as a global currency or as digital gold i think one thing that makes bitcoin really attractive to me is that it’s a deflationary asset and there is a scarce amount meaning that it’s going to be harder to produce or mine more bitcoin over time and on top of that once it’s out it’s out you can’t make more than 21 million bitcoin so the more that it’s adopted and more people hold on to it the more likely that the price will rise over time the technology the brand the fundamentals it’s just amazing so if you guys haven’t done your research and checked out what bitcoin really is i definitely encourage you to do so next is litecoin.
I think litecoin is not that popular in the crypto space but if bitcoin is digital gold then litecoin is also known as digital silver for me the only reason why I’m invested into it is because paypal is accepting it litecoin as a form of payment litecoin is faster than bitcoin in terms of transaction speed and it’s kind of one of those og cryptocurrencies that’s been in the space for quite a while and has built a name for itself and psychologically when people know that litecoin is digital silver they will most likely invest into that or buy into that rather than bitcoin because they’ll see the price difference people would rather own a whole share of litecoin rather than a 0.001 portion of a bitcoin so i remember in 2017 i saw litecoin run up and naturally as a new investor retail investor i was really attracted to it and i bought into it and i do see that happening this cycle as well next is ethereum polka dot and cardano I’m not going to talk about each one of them but I’m going to share why I’m invested into all three of them in the traditional markets there is something known as the paypal mafia it is a group of people who co-founded or was a part of paypal that branched off and eventually created their own companies and if you look at the circle you could probably recognize some people and companies within the paypal mafia now within the cryptocurrency space.
There’s also something known as the ethereum mafia the face of ethereum at the moment is vitalik but within that ethereum mafia we have charles hoskinson that came out who started cardano and we have gavin wood who started polka dot now a cardano polka dot etherium is setting out to do is very similar but a little bit different which means that all three of them are direct competitors to each other and in business competition is very healthy so for me the reason why I’m invested into all three is because i don’t know which one is going to be the winner although ethereum is a lot more popular and i believe that this bull run is going to be ethereum’s run versus polkadot cardana but there’s a lot of improvement in these two projects and i believe that they have the potential to become like ethereum in the future that is why I’m invested into all three but a little bit more into ethereum to me putting money into all three is like putting money into visa mastercard paypal and square t-mobile verizon or disney netflix all these companies are direct competitors to each other which is really good for company growth and that’s why I’m invested into all of them.
I’m not just invested in visa only or PayPal only I invest in every single one of them because I do see that every one of them will grow over time and i believe that Cardano and Polkadot will also have that same effect as litecoin where when new retail investors come in they look at the prices and they rather own a whole share or many shares of Cardano rather than one ethereum or a couple of shares of polka dot rather than one ethereum next is BnB or Binance coin now this coin has run up a lot and I’m so glad i bought in when it was at the bottom if you guys are not familiar with Binance it’s probably one of the larger or largest cryptocurrency exchanges the founder of finance i think he’s an amazing business guy and on top of that they make millions and they’ll probably make billions.
In 2021 2022 BNB also has a lot of great use cases i can’t go over each one but i’ll leave a link down below if you guys want to check it out but one of the more popular utility of this token is that you can save on trading fees the more you own and they also burn their tokens every quarter meaning that it’s also sort of a deflationary asset when tokens are burned the supply decreases the price increases and it’s a way for binance to pay dividends uh to investors and holders of bnb and the ecosystem and the amount of countries and people that use binance is crazy and so i love that there’s a lot of users and the same is true for polka dot and ethereum amazing ecosystem now chain link is one of those projects that sound very promising and there’s a lot of potential and it’s kind of one of its own kind chain link is pretty much set out to solve one problem and that’s the oracle problem with smart contracts meaning connecting real-world data and events into the blockchain i’ll leave a video linked down below by sergey the founder of chain link he does an amazing job explaining what chain link is setting out to do but for me the feeling that i get for this project is sort of like early ethereum day feels when ethereum was trading around a couple dollars and i do see chain link in this bowl cycle easily reaching over a hundred dollars in my personal opinion if the world wants to adopt cryptocurrency and blockchain technology then we do need chain link and that’s just how i view chain link at the moment not serial token i hold it because it’s a utility token that i use for staking my cryptocurrency through their earn program i also do have their indigo blue visa card i get three percent cash back on every purchase and i get free spotify and netflix so cro tokens is something that I’m not accumulating at the moment it’s more of being able to use what the token is created for and take advantage of the platform as much as i can but crypto.com as a whole i love the company it’s one of my favorite platforms to use i think from a branding standpoint and for new retail investors crypto.com is going to probably be the first company or brokerage that they experience.
I’m not holding much but if i were to choose a top five in order it’d most likely be bitcoin first ethereum second chain link third bnb fourth and cardano fifth now to share a little bit about my final thoughts the cryptocurrency space is a very volatile market but just because it’s volatile doesn’t mean it’s a risky investment it just means it’s very volatile i know from the end of 2020 until the beginning of 2021 we’ve seen a massive massive run with couple 30 percent 25 corrections but i just want to reassure you guys that i did not sell any of my positions i haven’t panic selled once if anything every time bitcoin dipped i bought and bought and bought if you’re just getting started i encourage you to dollar cost average it’s still the method that i use meaning if you want to invest a thousand dollar total into the cryptocurrency space then break that up into 10 sections and invest 100 a week or 100 a day until you’re out so please i hope that you’re not panic selling i hope that you’re not trying to sell a little early hoping that you can buy the lower price because sometimes the price will go up the market tends to do the opposite of what we expect it to do time in the market will always be timing the market so just hold anytime you see red days buy it or put your phone or computer away and don’t look at the prices another thing i’ve noticed about the entire cryptocurrency space.
As a whole people tend to buy when things are going up please don’t do that usually when prices pump 10 to 30 percent i don’t buy i just ride that up and the times that i like to accumulate or buy is when it dips when we see 10 red days 20 red days i know this happens because i get messages from you guys saying I’m gonna buy this I’m going to buy that when the market is pumping you don’t want to buy when the market is pumping you want to buy when it’s flat or when it’s boring also another rule that i stick by is to invest and hold on to quality projects and quality companies meaning that i only try to stick with the top 10 to 15 coins on coin market cap so for me i try to stick with projects that have good fundamentals and good reputation now just like you dollar cost average into the market you want to figure out a strategy to dollar cost out of the market through this cycle we’re aiming to make money but if you want to make money you want to make sure you do it in a very strategic way you don’t want to sell your entire position when bitcoin hits 100k because what if it runs 250 200 300k and then what you’ll end up doing you’ll phone back in you’ll buy at the top and the next thing you know the market is dipping crashing and you lost a portion of your investment so a quick example i would probably sell 10 of my bitcoin position when it hits 100k and then when it hits 120k i’ll sell another 10 and when it hits 150k sell about 20 of my position so what I’m doing is I’m scaling out little by little and i will probably not scale out entirely unless it hits my absolute peak target price target so at the absolute best bitcoin might might hit 300k if it does then i will be completely out of the market we can’t time the bottom we can’t time the top but we can make a lot of money in between if you’re smart about the way you invest and the way that you exit bulls make money bears make money but pigs get slaughtered so you want to make sure not to get too greedy in this.