My Investment Portfolio

In today's article we see how my investments are arranged, what I am exposed to and the strategies I use to have an ever greater return. An investment portfolio has a few simple rules, which I have tried to follow in order to reduce both risks and total volatility.

Quickly summarizing, I'd say it should:

• Be diversified: this means that the assets contained within your investment portfolio should be a number greater than 2, in order to have exposure to more categories because if one goes bad you can always count on the others. Not only that, even the ways we use to rent or keep assets should be diversified, in order to increase total security.
• Have a share of liquidity: liquidity, as we know, allows us to do mainly two things. The first is to bring down the volatility of a portfolio and the second is to allow us to buy other assets.
• Be balanced: Balancing is a very important and usually very overlooked part of your investment portfolio. Having a balanced one, in fact, means being exposed to the assets according to a pre-established strategy, without accumulating large quantities of a single product and very few of the rest.

Often, the periodic summary of what you have invested in helps to have a complete and detached view, so it is always good to do it monthly or quarterly. Personally, I believe that tables and graphs speak for themselves when it is time to do a self-analysis and for this I tend to rely on them.

But why is it important to stop and check your investment portfolio often? As any investor knows, if one sub-fund of the portfolio grows or falls more than the others, it is good to do a rebalancing. Rebalancing is a procedure that involves moving certain assets from one compartment to another in order to bring the percentages of the portfolio back to the pre-established strategy that underlies it. This is not a mandatory practice, but it helps a lot to maintain the balance mentioned earlier and the sales of the fastest growing assets can be seen as a take-profit. On the contrary, when one party decreases quickly, it goes to take liquidity from the other slices to buy the asset that fell on the market, increasing the quantity held.

Asset allocation

My investment portfolio is divided into three compartments, however some "classic finance" products, such as stocks, do not appear among them. It is composed as follows:

• Cash (49%)
• Cryptocurrencies (50%)
• Precious metals (1%)

In reality, this division would lack properties that I will not include due to the fact that they cannot be included in the rebalancing or even among the products that I rent. Also, exposure to precious metals such as gold is minimized, but I plan to increase it to 2 or 3% over the next few years. My strategy is to combine physical gold with a part of "digital" gold in the form of cryptocurrency (for example $PAXG). I made this choice above all because cryptocurrencies can be rented and for this reason I would be able to perceive (on average) an annual interest of 5%. Continuing, as regards the liquidity sector, it is partly made up of cash and partly of stablecoins for the same reason as before: the annual interest received. The stablecoins can in fact be rented to earn from 10 to 20% per year, which allows first of all to protect themselves from inflation (7%) and secondly to have an effective profit.

How to make stablecoins profitable? ---> Best Ways to Earn Stablecoins Passive Income

Finally, the part about cryptocurrencies is the most complicated. I have included in this compartment all the assets that have some volatility and which, in my opinion, will increase their value over time. In particular, this part contains:

• Other (DOT, ATOM, JUNO, LUNA) 3%

My passive income

Given the possibilities offered by the world of cryptocurrencies, this part is perhaps the most interesting. I will now explain what I use to receive a passive income on the various assets I hold and why I chose the platforms that I will describe. I state that in my investment strategy I preferred to opt for greater security in terms of the services I use. Therefore, I have chosen platforms that I consider "safe" to the detriment of others with higher but less transparent APYs. Nonetheless, I have entrusted some small portion of capital to some selected DeFi platforms with higher risk, but which leads to a higher income.

Bitcoin: 

• Celsius Network
• Earn (10%)

Bitcoin represents the majority of my assets in the cryptocurrency compartment and for this reason I have chosen its allocation with particular attention. Specifically, I have equally assigned Celsius NetworkAPY = 5.51%) the largest allocation, but I have reserved a small percentage for because it often offers DeFi staking services with higher interest rates. In the future I plan to tip the allocation slightly towards to perceive more interest.

• Celsius Network
• Earn (20%)
• ETH 2.0 (5%)

Ethereum ranks second among my cryptocurrency investments and I have split it across four different platforms. I chose Celsius Network again because of the ) which is very close to that offered by staking on ETH 2.0. As for , however, thanks to the income opportunities it offers on "Flexible SavingsAPY = 2.4%) it allows me to receive a minimum interest and at the same time have a portion of capital for trades and rebalancing. , on the other hand, due to its lower ) compared to competitors, I only use it for diversification purposes.

• Binance BNB Vault/Celsius Network (100%)

's coins (BNB) that I own, I use them mainly to get the BINANCE Card cashback and also in Launchpools/Launchpads. As for the cashback, I just have to keep 1BNB on the exchange while the rest I move it to Celsius Network in order to receive a higher interest (APY = 6.71%). But when a new promotion from is announced, I just take advantage of the free withdrawals to move BNBs there.

• Staking on Terra Station
• Earn (50%)

Luna is an asset that has undergone a significant price increase recently and for this I had to keep a part of it on in order to rebalance the portfolio. However, offers decent on Luna staking () and also on Flexible Savings ). The remaining 50%, on the other hand, is staking on Terra Station () which guarantees me, in addition to the periodic interest, also many other airdrops.

Atom/Juno/Osmo:

• Staking on
• Osmosis.Zone (50%)

Recently I have also dedicated a part of my portfolio to the assets of the Cosmos world such as Atom, Juno and Osmo. These are coins that have become very famous for the airdrops that have recognized whoever put them in staking. I have divided this part of the portfolio into two sections: the first, deposited on Osmosis.Zone, gives me a variable interest from 90 to 140% which I convert into stablecoin. The second, on the other hand, concerns staking and makes, in addition to the interest of 90% on average, also a random income represented by airdrops.

Stablecoins:

• Valora ($999 cUSD)
• Anchor Protocol
• Earn (90%)

The last compartment is represented by liquidity, of which 50% is in the form of stablecoin. Of these, about $1000 are in a Valora Wallet which, thanks to the Supercharge promotion, yields an APY of 25%. The largest percentage, on the other hand, I deposited on in order to make them immediately available in case I need them to buy other assets. This part yields about per annum. As for Anchor Protocol, however, this platform yielded an APY of 20%. However, after the approval of the latest proposal by its governance, the interest will undergo a dynamic change and it will no longer be as profitable as before. For this reason, I am currently still considering whether to remove this part of the liquidity from Anchor and transfer it elsewhere.

Disclaimer: Why did I invest and you shouldn't?

Investing in cryptocurrencies is extremely simple. I am not referring to the hope of what you are doing, but rather to the practical act of buying them: you just need to register on any exchange and deposit some funds. Anyone who knows how to use a compurer is potentially able to do so, but knowing the assets and knowing how to make a profit is quite different. This is why investors should always conduct extensive research before moving any capital, even if it is very small. Before buying every asset I hold and before depositing them on the platforms I use, I studied for a long time, and I still study today. In addition to my conventional work, I spend at least 2 hours a day studying finance and cryptocurrencies (every day). This allowed me to reach a level of knowledge such as to be able to manage my investment portfolio in a dynamic way, able to be adapted to market changes and to return a fair amount of interest. Take this article as a starting point and not as an example to follow, as I am not an economist and investments must be tailored to your possibilities.

Invest only the amount of money you are willing to lose.

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