Cryptocurrency Portfolio Update | March 2021 | Crypto
Hiya, a lot of people have been asking me about my thoughts about the cryptocurrency space in general, so I thought I would just lay out what I have, what my thoughts are about certain tokens and just generally what I’m doing in the cryptocurrency space.
I won’t be going over exact allocations, but I’ll just lay them out in terms of the ranking based on portfolio allocation.
#1: Ethereum
I mean, if it wasn’t Bitcoin, it was probably going to be Ethereum, but I think this is more because I got into buying Ethereum quite early (relative to how young it is). I got in around 2017, when prices were basically 10USD per ETH and I haven’t looked back since.
I like ETH because it is uncompromising in its search for decentralization (although the ETH classic hard fork may not be the best example of this), but high gas fees and full blocks for me just support my conviction that this is a network with huge value - regardless of what people say about something like Binance Smart Chain (which I personally absolutely hate the idea of).
I’m bullish that with EIP-1559 there will be stabler gas fees with a more stable base fee which people will likely understand better (not to mention the fact that you reduce the liability to miners). I like multiple projects on the Ethereum ecosystem and I guess that’s why for me it is quite clearly the number one.
I have quite a bit on Blockfi, which I’m a fan of, gaining 5.25% per annum on my ETH and 6% on my BTC. I know “not my keys, not my crypto” and all that, but this is a big project, insured by the Gemini exchange for deposits. This has been a large project endorsed by the Winklevoss twins, etc. so I personally like leaving some crypto there. Not to mention you have one free withdrawal per month - so I like the project as a whole.
If you like what you hear, you can use this link right here to signup with Blockfi to get $10 in BTC for free for depositing USD100 into Blockfi (you have to leave it in there for a month, there is KYC, other terms and conditions apply).
#2: Cardano
To be fair, this wasn’t that big of a portfolio allocation a while back, but Cardano has been on an absolute tear, leading to it developing to what is debatably my second biggest position right now.
I like their approach being scientific, almost surgical in the sense that they will study the different ways to approach decentralization, etc. and then only execute. Not to mention you have one of the founders of Ethereum in Charles Hoskinson at the helm. Brilliant guy, maybe a bit emotional at times - with regard to snide remarks about ETH and some burnt bridges there, but still a super smart guy.
They’re much further ahead with their own proof of stake mechanism with more than 69.5% of its total supply being staked on the network so I’m a fan from that aspect. They’re also careful with migrating different things like Dapps, NFTs, etc. so this, more than Polkadot is my personal pick for potential ETH killers, although I’m still bullish on ETH.
#3: Bitcoin
Probably the most “risk-off” asset in the Crypto space given its market cap and institutional adoption, but digital gold, scarcity, all that. I see it being a tremendous asset in terms of international trade and for MNCs to store on their corporate treasury, not needing to deal with so much fiat in general, so as you would expect I’m bullish on Bitcoin (as most people should be).
Previously, I saw it as more of a means to transact day-to-day, peer to peer money, but I see it growingly as less that. I’m seeing it more as what I mentioned above. Just store of value, just like how the Bank of England stores gold in its vaults.
#4: Crypto Dollars
I keep a bit of USDT on the side earning yield on Defi products or even on Binance just so I have money to accumulate on dips, which I think people should do. You have much higher APYs relative to what you can get on a normal Fixed Deposit anyways, so I really don’t see why more people are doing this.
#5: Terra’s Mirror Protocol
If there is one thing the whole Gamestop fiasco has taught us it’s that we needed better ways to deal with stocks. There are a few people in the crypto space trying to combat it (the other protocol working on this is Injective, but I’m more familiar with Mir)
How it basically works is that you have a stable asset (USDT) and an oracle for the price of a stock (let’s say Twitter). You have 3 participants. You have the protocol, the minter of the synthetic asset and you have traders.
The protocol is similar to MAKER, but I’ll just explain it simply. The protocol offers a CDP and it basically charges a 1.5% minting fee to produce the synthetic asset. (Which is how it is profitable for them).
The minter pays for that 1.5% and effectively takes a short position. They will have to put up 150% of the value of the minted stock (mTWTR) - which uses oracles to get real time stock prices - in the form of TUSD. Whenever it drops below 150% they can get liquidated at a 20% discount to liquidators.
What minters can do - sell the mTWTR stock and if the price goes down, buy it back for cheap. Which is why it is essentially a short position. Alternatively, you can hold the token and take advantage of Mirror’s liquidity providing incentives, but minting = shorting the asset is basically the way to see it.
Traders are the third participants and they can gain exposure to these synthetic assets by means of Uniswap, or directly through their Terra wallets. Basically, you buy these mTWTR tokens, and voila you have exposure to some stocks.
I’m a fan because this is a good way to diversify some of my cryptocurrency assets and earn decent yield (LP providing on this platform in particular is pretty profitable with a stable APY and incentives that last years with a decreasing scale).
I would say this one does involve quite a bit of fees in order to get to the end point so don’t get into this if you’re going to buy 30 USD worth of stocks, especially if the Ethereum network is congested. I like the synthetic assets, I like the governance token (MIR) because this one does offer quite a bit of utility in terms of whicih assets are added, etc.
#6: GET Protocol Token
This is by no means my 6th biggest position, but this is my personal pick for low market cap (in relative terms) token with lots of utility and a whole lot of potential. In terms of product market fit, I like this protocol a lot.
I got it earlier, but at a market cap of $62 million, I honestly think that there is a lot of room to grow. When I think about ticketing for major events, I think scalpers, people who sell fake tickets and scam others, and no real way to check authenticity and basically what you get when you pay for a ticket.
This is one of those projects that combat that. I like the tokenomics, you don’t have a lot of nonsense marketing in the form of airdrops, etc. Solid fundamentals and a proper way in which the token provides utility. I haven’t really seen anyone explain it better than this guy right here, so just read that and I think he will explain it so much better than I can even dream of.
#7: Best of the Rest
Big portion is still the Uniswap governance token (from the Airdrop which I managed to clam from two of my accounts) - I’m bullish about the potential of switching on the fee switch for token holders, DPI - which reflects how risk on the crypto market is.
Enjin, VEChain and the Whale Social Token (which I think is pretty decent if you want a slice of the NFT pie without actually understanding which NFTs are valuable) hold a small space on the portfolio as well.
But that’s it for this month! I’ll try to update when I can about different positions, but I’m not a financial advisor, don’t take this is financial advice, do your own research, these are just my positions and my thoughts on them. I just think that it would be foolish to not hold ANY crypto in view of a new trillion dollar stimulus package and just irresponsible global fiscal policy.