My first month with Crypto

I bought my first cryptocurrency on 19 December 2020. I put $100 AUD into Bitcoin when the price was at around US$23,500. I received 0.00331 BTC. Bitcoin had rallied to over US$20,000 a few days before. Over the next days and weeks Bitcoin continued to rally — throughout Christmas and the New Year — all the way to US$38,000! And then it touched US$40,000, before cooling off at around the US$36,000 mark. Wow!

Unlike the stock market which trades the usual Monday to Friday business hours, the crypto market trades 24/7 365. The crypto market is a very active market. A lot can happen in just 1 hour, or in 24 hours. As of this post, my crypto assets have an unrealized capital gain of 101.59%! (Cardano soared; Ethereum soared; I also bought some Synthetix just before it soared; and, Bitcoin — too — increased in value.)

Up 101.59% in just a month!

During the month I bought into five different coins/tokens –

Cardano (ADA): I believe in the possibilities of the Cardano network. I support this network by staking my ADA using the Yoroi Wallet app.

Celsius token (CEL): I found out about the Celsius Network the first week I started crypto. I got super excited about it. (Why? You can read that here). The CEL token is the native token of the Celsius Network. As a user of the Celsius network there is great utility in holding the CEL token.

Synthetix (SNX): As per CoinMarketCap: “Synthetix is a derivatives liquidity protocol on Ethereum that enables the issuance and trading of synthetic assets”. SNX is one of a number of DeFi (Decentralized Finance) tokens that are used to trade within the DeFi space. I hold this token for two reasons: 1) The DeFi space currently has a market cap of about $32 billion, but I am bullish on its potential. I’ll post about this another time; and 2) The Celsuis Network pays you generously for this token (16.16% APY if earning in SNX; 21.49% APY if earning in CEL — I earn in CEL).

Bitcoin (BTC) & Ethereum (ETH): Quoting the Winklevoss twins: In this new crypto world, “Bitcoin is the Gold; Ethereum is the Oil” (article here). It is common for crypto investors to have around half of their crypto portfolio in Bitcoin/Ethereum.

My current thoughts:

Bitcoin is a standard/store of value. It is the crypto gold. Ethereum is the crypto oil, for now. There are a number of Blockchain 3.0 projects (3rd generation) that may gain some dominance over Ethereum in the future (Cardano, Polkadot, and Zilliqa to name a few). I am also fascinated about the DeFi space. I believe there is enormous potential for it. Think of the current off-chain financial derivatives market… It’s massive. And it’s going on-chain. That will also be massive! I had my mind on the DeFi space a few weeks back and I’ve watched it rise substantially since then.

My current portfolio targets are –

45.0% Bitcoin/Ethereum: 30% BTC/15% ETH
20.0% Celsius Network (CEL)
15.0% Cardano (ADA)
10.0% DeFi tokens: 5% Synthetix (SNX) / 3% AAVE / 2% Chainlink (LINK)
10.0% Stable Coins: 10% USD Coin (USDC)

These are the targets for now. These targets will change over time.

Some reading:

Blockchain 3.0: Beyond Bitcoin and First-Generation Distributed Ledgers, From Aion to Cardano, EOS and Zilliqa –https://dailyhodl.com/2020/04/22/blockchain-3-0-beyond-bitcoin-and-first-generation-distributed-ledgers-from-aion-to-cardano-eos-and-zilliqa/

Tyler Winklevoss: Bitcoin Is Gold, Ether Is Oil, Litecoin Is a Testnet –
https://www.investopedia.com/news/tyler-winklevoss-bitcoin-gold-ether-oil-litecoin-testnet/

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Reality is nonlinear.

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Speedyalmaza

Speedyalmaza

Reality is nonlinear.

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