Hi, my name is Olena, and this is my diary of investing in cryptocurrencies. In 2022, I quit smoking and started investing in cryptocurrencies with the money I spent on buying cigarettes. You may see the results of my investments if you go to Crypto-currency Investment Diary 2022 and click on Google Charts link.
2022 was an experimental year, I was buying different cryptocurrencies using spray end pray strategy. As of today (19.02.2022), most of the coins are in drawdown -70% of first purchase. I am afraid that I will not be able to break-even before the sec regulator arrives. And most likely half of coins I bought in 2022 will not survive regulation. Therefore, I made a decision in 2023 not to buy cryptocurrencies blindly and not to chase X's. Buy only those coins that in my opinion will survive regulation and remain on the market for the next five years. Of course I will also buy speculative coins in the short term (they will be sold or reinvested in fundamental coins as soon as they reach a certain selling point).
1. Cosmos (ATOM)
The first fundamental cryptocurrency I'm willing to invest in over the next couple of years is ATOM, the Cosmos ecosystem coin. To date, it is the fastest-growing L1 blockchain ecosystem with a market capitalisation of $4 billion and a circulating supply of 300 million coins. Ethereum has a capitalisation of $209 billion ( my point is that if Cosmos is a truly fundamental blockchain, then the growth and potential of this coin is really great). In 2025 I expect to see ATOM around $100 per coin.
2. Polkadot (DOT).
The second fundamental cryptocurrency I'm willing to invest in over the next couple of years is the DOT coin, the Polkadot ecosystem. Polkadot is essentially the same as Cosmos, but with its own chips. The creator of Polkadot is Gavin Wood, a computer scientist and former co-founder of Ethereum (he is the one who developed the Solidity programming language - for the Ethereum platform). Gavin Wood is a man who is looking several years ahead and building an ecosystem that will unite blockchains and end the era of isolated networks with XCM Polkadot. XCM is a secure cross-chain exchange of any type of data. XCM Polkadot is an incredibly cool technology and in the near future we will see huge interest in the Polkadot ecosystem and correspondingly huge growth of the DOT coin. In 2025 I expect to see DOT around $150 to $180 per coin.
3. Chia Network (XCH)
The Chia Network (XCH) is an L1-level blockchain that uses a proprietary programming language called Chialisp. The Chia Network is essentially the most decentralised blockchain to date. More than 100,000 nodes provide decentralisation, a number not even found in Bitcoin, and the founder of this blockchain is Bram Cohen, the creator of BitTorrent. The Chia Network is the riskiest asset compared to Polkadot and Cosmos. Today it ranks 135th and has a market capitalisation of $1 billion. But compared to 99.9% of projects, Chia Network is the only one which is not afraid of sec. That is why Chia Network deservedly takes 3rd place in my long term portfolio. In 2025 I expect to see XCH around $1000 to $1170 per coin.
Cryptocurrency purchases for the month of January and February
And now let's move on to the breakdown of the coins I bought on February 16, 2023.
?? ICP - December 29, the price broke through the downtrend line, which was formed in September 2021 (throughout the bear market, the downtrend line was a strong resistance). The price went beyond the level of 4.50$, and continued rising, to the key resistance level of 6.30$. Having rebounded from the key resistance level, the price headed to the support level ($5), followed by a rise to $6 as I expected, where I started buying the cryptocurrency with the aim of selling above the $15 range. FIL | FLOW and KSM were bought on the same principle and with such targets (short-term speculation). ATOM* and DOT bought for the long term. A short video overview of buying and charts of cryptocurrencies, can be seen in the video:
Additional cryptocurrency purchases
Today I decided to buy some more coins, I take money for the purchase from the realized profit of Litecoin sale. This purchase is purely experimental!!!
In the chart on the left hand side, the Bitcoin Market Caritalisation (R.C.B.) is shown. The two red arrows point to the candle of the FTX dump that occurred on 7 November 2022. The green arrow points to the candle that absorbed the FTX dump crash on 9 January, thereby bringing (R.C.B.) back to its November value of $400 billion. Having broken through this resistance level, (R.K.B.) headed to the next resistance level, which is located at 460 m.p.a., where the correction I was expecting (pullback and then back up) took place. Everything is as in the technical analysis.
On the right side is TOTAL-3 (market capitalisation of the most altcoins, not including Bitcoin i Ethereum). If we compare these two market capitalisations, we see a conditional divergence in the market capitalisation structure. The reason for this is that all new money that comes into the market first goes into Bitcoin. And only after Bitcoin passes about 80% of its trend, does the money from Bitcoin overflow into Altcoin.
Right now, Altcoin's Market Capitalisation (TOTAL-3) lags behind Bitcoin's Market Capitalisation, by about -16%. But they will level off soon.
But there are coins that are very far behind TOTAL-3, which is what I will be buying today. These are liquid coins and are in the top 100 in terms of market capitalisation. Let's see what comes out of this:
?? SEE INVESTMENT TABLE ??
