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Investing your hard earned money in the crypto market can be very challenging. There are so many projects with so many moving parts. This article is kind of a continuation of a previous article 3 Factors of Investing in Crypto. Before putting your money into a project, you need to know about the leader board for each crypto category. With that said, you also need to know what competing projects have on their respective roadmaps. It does require a lot of research and I recommend you do not take my advise or any anybody else advise without doing your own research.
I chose to follow a very basic investment model, "crypto categories", "total supply' and "market cap". In my opinion, this allows me to invest in the leaderboard while I am researching up and comers. With that said, my portfolio changes very little and I never sell. I am strictly cost base averaging every category. Below you will see how I am currently distributed.
The 1000 foot view of this may appear to be pretty random. However, because I focus a lot of attention to crypto categories, I break this down even further.
Crypto Categories:
I look at crypto in the currency category as store of value. So when investing, I try to maintain a 70/30 split between the leader and the runner up. Clearly I need to buy a little more LTC to get my numbers back in sync. Yes, I could sell some Bitcoin, but I never sell, just buy.
Global Software Platforms
My personal feeling is that the Global Software Platform category is going to be the biggest millionaire maker category of all. However, it is just a feeling so I maintain a level headed 70/15/15 investment strategy, for now. I have also begun studying Filecoin and like what I am seeing. If my research keeps leading me to the same conclusion, this category will probably see some changes.
Application Tokens
In the application token category, I kind violate my investment strategy a little bit. (Temporarily) I am not currently invested in Aave which is at the top of my leaderboard. Before I gathered my thoughts and developed this investment strategy, I was buying Uniswap. Once I discovered that Chainlink and Aave were higher up on the leaderboard, I set myself to researching both projects in detail. When I finished, my gut was screaming Chainlink is a must have as it is the connection between non-blockchain data and blockchain data. I could not overlook the importance of that piece of the puzzle. With that in mind I stopped all Uniswap purchases and began buying Chainlink. At some point, I will transform this category into a 60/20/20 investment strategy. I also think that Chainlink may eventually move away from the application token category into a category of it own.
The Metaverse tokens are the newest ones to my portfolio and will probably see the biggest changes over time. With Mana's recent moon shot, I have begun to research it's backend infrastructure and future impacts from further improvements in the category. Most likely the investment strategy that I will apply to this category will be 60/20/20 based on my leaderboard.
So there it is. It may not be perfect, but it is what I am moving forward with. Again, I fully recommend you do your own research. This is what makes me confident in my investments, but you may discover something that I did not. Good luck!
