I’ll go over my entire portfolio, including my top five holdings, why I hold them, and my investing strategy for the next six to nine months. If that sounds interesting, definitely stick around. But if you copy best traders automatically, you may earn up to 2000% APY on Jet-Bot crypto trading platform. Jet-Bot is a platform that may help to keep calm in the risky situations. Copy trading crypto is the best way for passive income on your crypto. You don’t need to deposit fund to the platform and can connect your Binance account via API keys.
Top 5 Holdings
Let’s look over my holdings. Here are my current holdings:
At the time of writing, my top five crypto holdings are going to be:
- Bitcoin, making up around 41% of my overall portfolio.
- Oasis Network,
- Polka dot.
As you can see, I’m sitting at around 25% in cash and I’m continuously accumulating my cash position. I’ll be sharing what I’ll be doing with my cash later, but let’s briefly go over my top five holdings.
Why Top 5
So number one is bitcoin, for obvious reasons. It’s the most decentralized. It’s the first cryptocurrency ever created. It’s the most trusted. Second is going to be Ethereum because it’s the largest Layer 1 blockchain today with the most amount of utility compared to other tokens. I’ve gotten a lot of comments and hate on why I don’t hold SOLANA in my portfolio. That’s just simply because I like Ethereum more.
The third is going to be Cardano. Cardano definitely makes up a lot more than I would like it to be, but it’s definitely going to be more of a high-risk, high-reward play. I really like Cardano just because of its founder, Charles Hoskinson. I’ve mentioned this many times. I just love his love for the industry. On top of that, his slow and steady approach of making sure that he does things correctly instead of rushing them.
Next is going to be the ROSE, also known as the Oasis Network. This is definitely a high-risk, high-reward play. I’m fully aware that this project can go to zero, but if it survives the bear market and there are more developers on top of the OS network, I could see this being a very high-reward play as well. The Oasis Network is also a Layer 1 decentralized blockchain, very similar to what Ethereum and Cardano are doing. They have a ton of partners and integrations, Binance being one of them. They were one of the early supporters of the Oasis Network. They also partnered up with Facebook, also known as Meta, and they are also supported by the Vietnamese Prime Minister and government. I’m earning around 10% annually on my ROSE stake, which is $173 at the time of writing. Obviously, the dollar amount will change depending on the ROSE token price.
Then fifth, we have Polka dot. By nature, every blockchain has limitations, but through the relay chain on Polka dot, a lot of these blockchains will be able to communicate with one another. For example, when you go to an airport, there are a ton of different airlines, but they are all able to communicate with one another through the technology or software that they use on what time they take off, what time they land, connecting flights, and communicating with passengers. To some degree, Polka dot, to some degree, is that technology software for the crypto world.
For the rest of my holdings, I have CRO, Chainlink, Polygon, XRP, VeChain and 0.43% other smaller coins that I hold on my other accounts, which totals up to around 8% of my overall portfolio.
Keeping Track of Your Portfolio
When it comes to investing, it’s never about how much you own, it’s always about what percentage of that makes up of your entire portfolio. When I look at my portfolio, it lets me know what to invest more of and what not to invest into. Just because some of these coins are on great deals doesn’t mean that I should jump into it just because my goal right now is to increase my bitcoin allocation.
Where & Why Cash
Now let’s go over the cash that I’m currently holding, which is around 25% of my overall portfolio. We are in a clear bear market or a downtrend, and during those times, there are three things that are best to do:
- to accumulate cash.
- to dollar cost average into the market on a regular basis.
- if you are a long-term believer and investor, stick with it through the downturns.
During a bull market, you’re trying to:
- get rid of your cash,
- choose lump sum investment over dollar cost averaging, meaning it’s better to just invest a large amount instead of dollar cost averaging up,
- to buy any dip opportunities.
Since we’re in a clear bear market, I’m going to be doing what I explained first, which is to accumulate cash, dollar cost average on a regular basis, and hold and invest long term. My current cash position is sort of spread across my bank balance.
I want to share the strategy behind why I’m accumulating cash. This is a chart or a model that I created within my Patreon group to keep track of market momentum, dividing it up into 450 days. 450 days can seem a little bit random, but this is kind of the number that I found to work well in terms of blocks and sections.
This is a very simple model where these yellow lines over here represent the bitcoin having and between each bitcoin having there’s a green, red and yellow block, and the bitcoin having occurred within or close to the green box. So the first time it was in the green box, it was in the yellow box, but very close to the green box, and the fourth time it will be in the green box as well.
Now the model doesn’t time tops and bottoms, but what it does is give us a good idea of what we can expect during that season. Green is generally a bull market color, while red represents a red market or bear market. Yellow typically means a sideways consolidation market or a slightly upward momentum. Then we have the same thing happen all over again where green is the new bull market red. And obviously, we had some bull market action over there, but ultimately, from a macro point of view, it’s a bear market. Yellow represents sideways to slightly upward momentum and then we have the whole pattern over again where green we have a bull market and red we have a bear market.
Sometime in October of 2022, we’ll be entering the yellow zone, which signifies a sideways consolidation or slow uptrend, so I do expect us to bottom out anywhere between now and October of 2022. We have the next bitcoin due sometime in April of 2024, which has always been a huge catalyst for the next bull market.
Perhaps until the end of 2024 or the beginning of 2025. Who knows what price we will top out at, but historically, if you accumulated in the yellow zone, you would have done well once we entered the green zone. That is why for the next six to nine months I’m going to be dollar cost averaging every single day on a regular basis. I’ve already been accumulating on a regular basis as late as April 2023. I will continue to do it as well, so that means I’ll be accumulating during this season, which is equivalent to almost accumulating during this range. When I’m during this range between the red and yellow boxes, if Bitcoin decides to have another huge sell-off, that’s when I’ll probably add and accumulate much more aggressively. If bitcoin decides to continue higher, that’s totally fine with me because I’ve been dollar cost averaging every single day.
DCA During Recession
By the end of July, the Fed is going to be coming out with GDP numbers . It’s most likely going to come out negative, which means that we are officially going to be in a recession. That’s when they’ll most likely announce that we’re in a recession. That can cause a mild panic, but I feel like a lot of it’s already been priced in because it’s obvious that we are going to be entering into a recession. Who knows how long?
The shortest recession that we’ve ever had was in February of 2020. It lasted only two months, but on average it can last anywhere between 8 and 11 months, which lines up with my accumulation range. If I’m accumulating during the recession, then I’ll most likely do well once we’re out of the recession.
I know 2024 can seem like a long time away, but we’re already halfway through 2022. We’re going to celebrate New Year’s; it’s going to be 2023. Just wait one more year after that.
I remember during this period over here in 2018, I was like, “Gosh, the next bitcoin event is going to be in 2020.” That’s like two years away. I thought it was going to take way too long, but it came a lot sooner than I thought. The biggest mistake I made was not accumulating enough during this time because I got in pretty late in 2017. I experienced this whole crash, and I thought, “Man, what did I get myself into?” I didn’t invest as heavily as I should have during this period, and then once we got to around $60,000. I was like, “shoot, I should have invested a lot more during that bear market time.” This time I’m not making that same mistake, so I’m accumulating a lot more. That way, in 2024, I’ll know exactly or I’ll have a better idea of when to take profits.
My main focus is bitcoin, with some dollar cost averaging heavily into bitcoin. I’m still DCAing into Ethereum a little every single day. I’m still waiting for one more sell-off. I hope it comes, but if it doesn’t, it’s totally fine. I would say about one-sixth of my US dollars, which is around 4%, is going to be allocated towards ethereum and 21% of that will be allocated towards bitcoin. Hopefully, my bitcoin holdings will account for around 60% of my total portfolio, with ethereum accounting for no more than 15%.
[This article is a transcription of a video made by Eddie Moon]
[Original video: https://youtu.be/qlMcg9MF2U4]