It's been about 4 months since the last update on my cryptocurrency portfolio. Much has happened in the crypto world, so we should all have a fire-sale and get back into more legitimate investments, right? Well, not really.
For this post, I'm only going to chart the cryptocurrencies that I chose for my portfolio. In reality, I only bought Bitcoin and Ethereum, so you can consider only those two if you like.
This is the chart for all five cryptocurrencies over the past 6 months:
Here is the chart for only Bitcoin and Ethereum over the past 6 months:
In those charts, I included the S&P 500 as a benchmark. It's the red dash at the bottom that looks like a flat line.
I inserted a line at 1 January 2018 since this is around the time that I last gave an update on my portfolio. Things don't look so great for Bitcoin from that date, but Ethereum is still looking good.
What can we learn from these mystical charts?
- Compared to the S&P 500, which for lack of a better term represents Mr Market, my selected cryptocurrencies have all done remarkably well during the past 6 months. They're all in the green!
- For the sake of full disclosure (or fool disclosure, perhaps), reckon only Bitcoin and Ethereum. Despite the volatility, you would have still made ridiculous amounts of gains during the past 6 months.
- If this kind of volatility makes you nervous, you're not alone. Volatility should make you nervous, so diversify. That's why I advise to protect the principle. In my overall portfolio, I have an index tracker that constitutes the biggest slice of the pie. Cryptocurrencies constitute only 10% of the overall portfolio, and 90% of my portfolio is far less volatile and risky.
- I don't know about you, but I'm still going to HODL!