10k Portfolio experiment – 10 Cryptocurrencies at 1k each #05.04.2018

Things are not looking to bright with this update. I started this experiment back in january.

I want to show that if you hold your coins for the longterm you will see profits in no time.

At the moment everything is bloody red after the massive bear run of the last two months

Market Snapshot

The following table is a snapshot of coinmarket.com prices on the 05.04.2017

As you can see a few currencies have taken a massive beating like Substratum and Cardano with a 75% loss in value.  In the last few months it would have been smarter to only hold bitcoin. However, hindsight is always 20/20.

Cryptocurrency Portfolio

A small descryption of each currency in this portfolio

  • Bitcoin – considered as gold 2.0
  • Ethereum – programmable contracts and money
  • Litecoin – Bitcoin with faster transaction and lower fees
  • Raiblocks –
  • NEO – Chinese Market Ethereum
  • IOTA – Internet of things payments M2M
  • Substratum – Decentralized VPN Network
  • EOS –  Decentralised applications on WebAssembly
  • Cardano – Layered currency and contracts
  • ICON – Crypto to Crypto transactions

We are currently at a loss of nearly 6000$.  A 60% loss. In a normal scenario I would have cut my losses at 20%. You can read why hodling is not always the best strategy here.

However, this experiment will be going on for a longer period of time, and I am confident that at the end of the year we will be in the plus.

Not good right? In the case of this experiment I decided to hold my coins longterm. They can go to 0 and it would be written off as a learning experience.

Reasons for the bear market?

There are many reasons. Here are a few:

  • Not enough new buyers and the hype died off. Look at the correlation between bitcoin price and “buy bitcoin” google trends
  • Market cycles – Like stock markets the cryptocurrency market needs to find an equilibrium after a big bullrun
  • Uncertainty and market manipulation by bigger players

 

What is the reason behind this experiment?

In many cases people say that you can profit more by doing nothing. Not trading and just holding your coins for a long time. I want to see if this statement is true. That is why I did this experiment.

At the same time I trade other cryptocurrencies selling a portion when they go up and buying back when it goes down. It is easier said than done because very often you get attached to a project and do not want to believe that you made a mistake.

Beginners guide to the Ichimoku trading strategy

Here is the first post I made about this experiment: 10k Portfolio Experiment 17.01.18

Let’s see how our next update looks like.

Have a great day : )

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