Hey there steemians,
When I wake up, one of the first things I do is check Coinmarketcap. So today I woke up, and witnessed a battlefield, with most crypto's down 5-15%!!
Not really the thing you want to wake up to... Or is it?
The dilemma
As I already mentioned in my earlier blogs, I just recently found out the whole crypto-world, and I am immensely fascinated and excited by it. A big part of my excitement is due to the immeasurable amount of investment potential these cryptocurrencies bring! Unfortunately I was late to the party, and all crypto's had just peaked and set their all time highs when I wanted to start investing in them. Since, the market is correcting the amazing rally of de past few months , and I am left with a burning desire to start investing, but little opportunities.
Moreover, the upcoming soft fork for Bitcoin on August 1, probably also plays a tremendous role in the meltdown we saw today! There is a lot of uncertainty about how this will end, and what effect this will have on the cryptomarket. And as you all know, nobody likes uncertainties, especially when their capital is depending on it.
Bitcoin still is the undisputed market leader, and all altcoins tend to follow it's path.
That brings the whole cryptomarket... Yea, you guessed it... DOWN
My plans
So for the past 3 weeks, I was constantly thinking about investing in crypto's; what coins, what terms, which entry points, etc... over and over and OVER again. And, I came up with 3 options!
Doing nothing
Till August 1th, nobody really knows what will happen. There could be a rally, but more likely the market could proceed this brutal obliteration. The trend looks to be bearish, and (as much wiser people than me alway say:) the trend is your friend. So... If you do not want to lose money, byt you are like me, looking to enter the cryptogame, it could be quite wise and profitable to just wait!
Going all in
To be completely honest, the market already corrected itself quite a bit! Ethereum came from $390 to $180, which is a 53% drop!!! Note, that ethereum is certainly not a exceptional case here. In fact, it is one of the many examples of this meltdown, which left only a handful of lower-tier, mostly unknown coins unharmed.
So, in the light of this information, there could be argued that today is not a day for mourning, but a day for celebration! As it brought many great buying opportunities! And... we al should go all in.
The sweet spot
Finally my mind mixt the 2 approaches, stated above. This created a more balanced and ingenious approach. I call it the sweet spot, which consists out of 4 steps:
Step 1: This started of by me buying Bitcoin. Despite the upcoming soft fork, Bitcoin stays the market leader. This makes it sort of a must have! On top of that it already plummet a lot, which makes it quite a safe buy. And above all, in order to purchase most of the other (less known) alt-coins, Bitcoins are needed! That is why I started my portfolio out with Bitcoin! For the record, I invested 20% of the total investment capital, I wish to invest into cryptos.
Step 2: This is the step I am currently in. When Bitcoins will reach the $1800-1900-mark I will invest another 10% of my initial investment capital into Bitcoins (I then invested 40% of the total amount I wish to invest). To this point, I am still 100% invested in Bitcoins.
Step 3: I will then use these bitcoins to acquire other crypto's. My aim is the following portfolio:
| Crypto's | Amount |
|---|---|
| Bitcoin | 40% |
| Ethereum | 20% |
| DASH | 15% |
| Antshares/NEO | 15% |
| Litecoin | 10% |
Step 4: The steps mentioned above, were all still pre-august 1th, and remember up until that point I will be only 40% invested! The final step, will be taken 1-3 weeks after August 1st. I expect the market to be very, VERY volatile this first weeks after the fork, whatever the outcome. This volatility will help me strengthen my portfolio! I will be on the hunt for great medium to long term investments, which I will purchase with the remaining60% of my investment capital.
I am looking at Bitcoin, Ethereum, Antshares, Dash, IOTA, Monero and of course Steem (hahaha...), as possible candidates, but this is mostly depending on their performance after august 1. However, I firmly believe in Bitcoin, Ethereum, and Steem, so you will definitely find those in my future portfolio!
In future blogs, I will let you guys know if, when and why I make any changes to my investment portfolio. And of course how they did preform!
Applicability to my fellow steemians
So yea, if you are like me... just 1 month late to the crypto-circus, do not worry! Yea, we mist a incredible change, but this is the first one of many! We are still in the early adopter stage, with a long way to go till crypto's are finally mainstream. As you know, the more users, the more money! So, with all these new potential user's to come, during the mainstreaminization (yea, I made up that word... haha) there will be a tremendous amount of investment opportunities! So we can use this time to learn as much as we can, set-up some nice buying-positions and wait till the next surge to 1 Bitcoin being 10-20k! Great right <3
Mainstreaminization = money, Mainstreaminization = life
Your idea's
What do you think about my investment plans? Are they wise to carry out, or does any of you crypto-guru's have a beter approach or other suggestions?! Please let me know. I am always looking to improve myself. After all, as I stated repeatedly, I am still a noobie, desperate for your feedback! And, together we know more than one.
Furthermore, what crypto's are you guys watching? Where are you invested in? Let me know!
Finally, if you guys enjoy my blog, please follow me (there is A LOT more to come!), and an upvote would also be tremendously helpful! It took me a long time to complete this post, haha... So, as you can imagine it made me incredibly hungry! Fortunately, my girlfriend is already cooking, BUT she requires my help...
So... I got to go. In the meantime enjoy this picture of a bald guinnea pig. I will write you guys tomorrow!
Much love,
Raoul