Top 8 Crypto Update: Dash is OUT - NEM is IN
This is just a quick update to the top 8 cryptos that I've been holding.
You can see my past updates about this here:
- Overview of the strategy
- The post where I invested my own money
- More details about my rules + how I handled a market "crash"
Today triggered a rebalance due to two happenings...
- Ripple (XRP) exceeded 20% of my overall portfolio.
- Dash dropped out of the top 8 by market cap and was replaced by NEM (XEM)
I imagine Dash and NEM could exchange places at #8 back and forth a little so I need to decide if I'm going to rebalance every time they swap places.
As you can see, they aren't too far apart from each other:
I'll share what I decide in the next update.
This rebalance was kind of a pain in the butt. I needed to drop Dash and buy NEM. However, I've been doing all of this inside of Binance so far. Unfortunately, NEM doesn't trade on Binance yet. So I had to move some of my coins out of Binance and into Bittrex just so I could purchase NEM and make it 12.5% of my overall portfolio.
Basically, every time I rebalance, I sell all of my coins into Ethereum so that 100% of my portfolio is in Ethereum. I then look at the amount of Ethereum I have and divide that number by 8. I use my Ethereum to purchase every coin in the top 8, according to CoinMarketcap.com.
This time, I made all of the purchases that I could make on Binance. I then transferred 50% of what was left of my Ethereum over to Bittrex. Once in Bittrex, I had to buy Bitcoin with my Ethereum and then finally, I had to buy NEM using my Bitcoin. Bittrex only has Bitcoin pairing so I had to convert to Bitcoin before making a purchase. Needless to say, it was a major pain in the ass and I lost like $3 or so in transfer fees.
I wish there was one exchange, that was US friendly that had all of the coins from the top 20 or so available to trade. Bittrex doesn't have Iota, which led to my decision to use Binance. Now Binance doesn't have NEM, which forced me to move coins around. Now I've got my strategy split between two exchanges, which complicates things a little bit. It's kinda lame.
Anyway... It's an annoyance and a few extra steps but not enough to stop me from following the rules that I created for myself.
Here's what it looks like since my rebalance, earlier today:
I'm up about 4% on the day, mostly thanks to Ripple (XRP) continuing to go absolutely nuts lately as well as Cardano (a coin that I'm super bullish on longterm) having a nice little rally today.
Overall, I'm up 146% from when I started, 29 days ago. That's a 3.17% DAILY RETURN on my investment. If it continues to compound at this rate, it will be worth over a million dollars in 365 days. It's highly unlikely these types of daily returns will continue but it's fun to dream. :)
It's fun to play with this little calculator over at http://compoundaily.com/:
I'm going to continue to let it play out and see how it goes. I'll ride it all the way down to zero or all the way up to millions. :) I have no idea what's going to happen but it's sure as hell exciting!
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My portfolio grew 189% during the last month :) Probably because I don't hold much BTC, and BTC has not been doing well during the last month.
Yea. I've ridden Bitcoin up and down over the past month. I'm sure I'd have much bigger gains if played the top 8 minus Bitcoin. Hindsight is 20/20... But it's a bit of a hedge for the coins that act inversely to Bitcoin. Often alts drop when Bitcoin goes up and alts spike when Bitcoin drops. It's a bit of a safety net. I'm still bullish longterm on Bitcoin. We'll see how it plays out.