Monthly Crypto Portfolio Update (Oct 2018)

in #busy5 years ago

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Despite the slow and largely uneventful month of October for the Cryptocurrency market in general, there was a number of individual moves that have been interesting to follow. For example, stablecoins have continue to attract the focus of many centralized organizations seeking to capture market share from the embattled Tether as they continued to be the center of rumors and FUD. Interestingly, despite an almost 30% reduction in market capitalization, Tether continues to be in the Top 10 and its competitors have not gained commensurate market cap as it seems that most of those assets went into bitcoin or back into fiat. However, the focus on stablecoins continues to be of interest as it can be a positive catalyst for general cryptocurrency adoption. Despite overall market capitalization falling from $224 billion to $209 billion in October, bitcoin was able to remain roughly flat while traditional financial markets like stocks did poorly at the same time.

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Source

My overall allocation to cryptocurrencies remain much lower than my target as I continue to focus to adding positions to benefit my #STEEM stake. My #STEEM related assets are not shown here as I treat them separately but they remain my focus given my belief that it remains undervalued given the amount of development and its future potential. This month, I actually reduced my positions in ETH and BTS after a bounce they had and created a stake in the @buildteam token. This allows me to continue building positions around the #STEEM ecosystem which I want to ultimately become my main blockchain and cryptocurrency investment over time. As mentioned, the traditional financial market also declined this month which made my overall allocation not have a material change.

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Within the portfolio, however, I have started to see some of the assets perform uncorrelated to the general market. While the general market as measured by market capitalization was down about 7%, bitcoin was flat. Certain assets like ZRX, BAT, and POLY outperformed bitcoin and the market given individual news and development. ZRX was the first ERC-20 token to be listed on Coinbase’s platform this month which drove volume and price higher. The prospects of Coinbase adding additional listing will be interesting to see in the coming months as it has potentially to move prices higher given their broad reach as a fiat gateway. BAT is another that has been mentioned but also rose given its latest Brave browser upgrade that takes one step closer for users to earn tokens for browsing and rewarding content creators or viewing ads. I am particularly interested in POLY as it showed some life as the Securities tokens sector has had renewed interest. Given my position in tZERO which also finally issued its tokens to the participants, it will be interesting to see how they start to trade as more Security token offerings appear in the market.

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There were also some outliers on the downside as well as most of the platform plays like ETH, EOS, NEO, and ADA were down more than bitcoin this month. It seems as platforms have had challenges as many observers are watching closely how DApps are being developed and if adoption is being experienced or not. Recently, it has been reported that many of these platforms have less than a handful of DApps with more than 300 daily active users on them. I believe this had led to some of the weakness seen. However, these platforms continue to develop and seek ways to improve as the demand for blockchain technology continues. The other laggard in the portfolio has been Dash which I have found surprising given how attractive its features are and how greatly governed their protocol is. This is an asset I am watching closely to potentially add to given my recent experience with my lack of monetary sovereignty.

As I prepare for the end of the year, I am considering some changes to the composition of the portfolio considering that I currently have a tax liability if everything remains as is. However, like many investors this year, I have accumulated some fairly sizeable unrealized losses in some positions. I may potentially sell these to realize a loss and make some reallocations in the meantime. I expect to move into more cryptocurrency assets more heavily towards the beginning of 2019 so diversify my exposure to uncontrolled assets. I am currently researching stablecoins in addition to other tokenized assets like gold backed cryptocurrencies. I would like to see at least 20-30% of my invested assets in these portfolios around the start of 2019. While it has been a challenging year for the portfolio, I have learned a lot through my investments in education and time which I hope to leverage to position myself for the value creation coming from blockchain technology in the future. While hurdles remain, the potential continues to build.

Given the potential of changes to my portfolio towards year-end, I am interested of the community’s perspective on my portfolio and if any interesting projects are out there to consider. While I continue to focus on my #STEEM related assets growing, I am also open to interesting opportunities on the blockchain area. Please let me know your thoughts and feedback in the comments below! I look forward to engaging with you!

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DISCLAIMER: The information discussed here is intended to enable the community to know my opinions and discuss them. It is not intended as and does not constitute investment advice or legal or tax advice or an offer to sell any asset to any person or a solicitation of any person of any offer to purchase any asset. The information here should not be construed as any endorsement, recommendation or sponsorship of any company or asset by me. There are inherent risks in relying on, using or retrieving any information found here, and I urge you to make sure you understand these risks before relying on, using or retrieving any information here. You should evaluate the information made available here, and you should seek the advice of professionals, as appropriate, to evaluate any opinion, advice, product, service or other information; I do not guarantee the suitability or potential value of any particular investment or information source. I may invest or otherwise hold an interest in these assets that may be discussed here.

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Interesting thoughts as the market has continued to go sideways. It is still not showing any new trend for sure!

Posted using Partiko iOS

No trend is better than a downtrend!

I didn’t realize how “financially astute” you were! I think you have a solid approach to you’re Q1 goal of having 20-30% of your investments in stable coins

Interested if we’re gonna see another tip come Chinese New year and tax szn

Posted using Partiko iOS

I decided to realize some losses a couple weeks ago, so that I could get into some coins I wanted to ride up without needing to put in more USD. It was a tough decision (took about a $15k haircut!) but I actually feel great about my portfolio now, which is the main thing for the long run.

On Tether, yeah, still top 10 if we believe the coin is actually being mostly traded by someone other than the company that makes it. I suspect them of trading with their own accounts to pump the price. I mean, if they're just going to print more and SAY it's dollar backed, what won't they do?

Losses are hard to take but there are many scenarios where they are needed to move on... The Tether model makes sense to me as I have always compared it to a money market fund but the fact that no audits or proof of reserve are provided makes it not feel right... I will not even consider that asset; looking at other options with True USD or Gold Backed Tokens (like the one you mentioned earlier today).

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