My Top 5 Holdings For Bull Market - Portfolio Update
Market situation
Most analysts and investors agree that we are out of bear market.
Choosing the good investments for bull market is the key since this is when most of the gains are generated.
I do believe that unlike in the 2017 bull market where even the biggest shitcoins generated income during this bull market only good and established projects will do well.
This is because there are simply too many cryptos nowadays and not enough wealth to go around.
Following are my 5 biggest current holdings. I do hold more but these are my 5 biggest (in not specific order)
Bitcoin (BTC)
What is it?
Bitcoin is the cryptocurrency that has started it all, is by far the one that sees the most adoption and is currently still the most dominant one with a dominance of over 55%. This means that Bitcoin by itself is worth more than all other cryptocurrencies combined. For a lot of people cryptocurrency = Bitcoin and it is not very likely to change.
Current situation
Bitcoin has been outperforming most altcoins for a long time and is still the catalyst for majority of current cryptocurrency pumps meaning Bitcoin increases first followed by others.
Why do I own it?
While you shouldn't expect x1000 returns from Bitcoin anymore it is still the safest cryptocurrency investment out there. It is also predicted that most institutional money will flow into Bitcoin which should be a catalyst for futher increase. Halving is also coming up so less suply meaning increased demand. All of that means Bitcoin should be included in every portfolio
Ethereum (ETH)
What is it?
Ethereum is the crypto that started the 2017 bull run. While it wasn't the first one that introduced smart contracts is was the one that made them popular and was a first crypto platform that actually had use cases other than payments. Ethereum also started the ICO craze which kickstarted plenty of significant projects.
Current situation
Ethereum is still the leader in the smart contract crypto space however it is no longer the only option with platforms like EOS or Tron also having dapps. Still, it is the second most popular cryptocurrency (after BTC) in terms of usage, infrastructure, team size and general popularity.
Why do I own it?
Ethereum still has the most unique and varied dapps and significant majority of most popular projects are still built on Ethereum meaning demand for ETH. I do also think that if we compare it directly to BTC it does show oversold conditions especially considering how far it is from ATH.
Vechain (VET)
What is it?
It is also a platform like Ethereum where dapps can be built. It aims to connect blockchain technology to the real world through smart chip used to track items throughout their lifecycle. This means that Vechain should be mostly used in logistics and transport.
Current situation
Main network has been released but the activity is still reasonably low which is reflected in the current marketcap which is very low considering the potential
Why do I own it?
Vechain is partially owned and working closely with DNV GL (4,500 employees and 350 offices operating in more than 100 countries - working closely with logistics services). Deloitte also annouced they will be developing on VechainThor (286k employees, $43B revenue). On top of that Vechain has plenty of other partnerships. I feel considering the current valuation it is a medium risk high reward investment.
IOTA (MIOTA)
What is it?
IOTA is an open-source distributed ledger that concentrates machine to machine economy mostly micropayments between machines. IOTA is unique since it doesn't use blockchain like most cryptocurrencies and since there are no transaction fees making it perfect to machine to machine payments.
Current situation
Just like with Vechain IOTA is all about partnerships - they work with Jaguar Land Rover, VW Bosch, Fujitsu, DnB NORD bank and that is just the beginning. They are also annouced that they are removing the Coordinator from the IOTA network making it fully decentralised network.
Why do I own it?
The partnerships are promising, the team large and active and the technology promising without major competition. IOTA did very badly this year the current valuation is actually quite low with plenty of room to grow if everything goes well.
Binance Coin (BNB)
What is it?
Binance Coin (BNB) is the cryptocurrency supporting one of the biggest cryptocurrency exchanges (if not the biggest) in the world: Binance.
Current situation
It has plenty of use cases: reduced fees if paid in BNB, higher referral bonuses for holders, used in ICO buying, as a market and to convert tokens. Recently also as a separate Binance Chain where other projects can be built on top of it. It has been doing extremely good mainly because of how well Binance has been doing.
Why do I own it?
Binance has been the dominant exchange for a while now so it came as not surprise that BNB has been performing super well this year outperforming all other cryptocurrencies. On top of that Binance has been burning tokens. Keep in mind though it is highly dependant on how well Binance is doing.