What I have and what I plan in 2021.
My cryptocurrency portfolio is heavy on Bitcoin.
I have been interested in cryptocurrencies since 2013 and bought my first BTC in 2015. Shortly after, I also discovered Ethereum and bought ETH for the first time when I was just it was $ 12 / ETH .
It’s probably not surprising that most of my crypto portfolio is made up of Bitcoin and Ethereum.
There are nuances in these numbers.
They are percentages, based on the value in US dollars.
Historically, Bitcoin has been a much more important position in my wallet. I also want to emphasize that just a few weeks ago, Bitcoin easily made up more than 75% of the portfolio, if not much more.
I want to be a better bitcoiner
Ethereum has been visiting all-time high prices for most of the last month. The increase in ETH is skewing the percentage values of my portfolio towards ETH, to even though I keep accumulating more BTC .
During the recent ETH surge, I even converted some ETH to BTC. I am aiming to make Bitcoin about the 85% from my portfolio by the end of 2021, but price fluctuations have made it more difficult.
A good amount of value in my overall portfolio is due to my early entry into ETH. Because of this, I continue to hold and mine Ethereum. However, I am planning to convert more to BTC over time.
I convert to Bitcoin strategically, depending on price comparisons and in a way that consolidates transactions and simplifies taxable events.
ADA and RVN
A note on Cardano and Ravencoin.
I bought ADA as a hedge against Ethereum and because the project seems to be hitting its roadmap benchmarks more consistently than Ethereum. I own Ravencoin because I am toggling between mining it and ETH.
However, the end goal with any of these altcoin holdings is to convert them to Bitcoin in a timely manner. I am not anti-altcoin, but I think that the altcoin space and the Bitcoin space should be seen separately. This is why I see altcoins primarily as a means of acquiring more BTC unless you are specifically involved or invested in a particular altcoin project.
The new allocations in my cryptocurrency portfolio come from cryptocurrency mining.
I rarely make a raw cash purchase of Bitcoin or other cryptocurrencies. Currently I mine Ethereum and sometimes Ravencoin.
Ethereum mining is being phased out as the ETH 2.0 transition brings proof of stake to its network. That means I won’t be able to mine ETH for much longer. I will continue to track the most profitable GPU mined coins, such as Ravencoin or Ethereum Classic, to determine what else I will mine in the future. Fortunately, I reached breakeven in my Ethereum mining setup about 2-3 months after starting mining.
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The goal is to accumulate more Sats and acquire more Bitcoin. I am doing this methodically, over time.
In addition to this objective, I also intend to move more BTC to cold storage . Due to my mining setup, I mine cryptocurrencies on active wallets or exchanges to easily convert to BTC or get a return over a period of time before converting. This can be done through places like BlockFi or most exchanges like Coinbase.
For some basic information on Bitcoin and cryptocurrency wallets, check out this post I wrote. As I say in the post, what you do with your crypto determines the type of wallet you should use.
My goal is to grow my BTC holdings and keep all cryptocurrency holdings in safe but accessible wallets. I primarily do this through cold storage, but I use active portfolios and exchanges to facilitate my mining operation transactions and any temporary conversions or returns I get.
We are in a bull market. Bitcoin and altcoins are touching all-time high prices. There is continued widespread adoption to the point where public companies are holding Bitcoin on their balance sheets.
However, everyone is a genius in a bull market. It is important to note that Bitcoin has historically bounced between bull and bear markets around its integrated halving cycles.
While a bear market could arrive next year, the lows of an upcoming bear market will likely be much higher than before. More widespread adoption, more BTC moving to cold storage and staying there, and more users are entrenching Bitcoin in the spirit of the age.
A Bitcoin supercycle is possible. It’s a theory, first launched by Dan Held during the previous bear market. But, it is possible that Bitcoin will see a minor correction instead of a full bear market or just continue with an extended bull market unlike previous cycles. We are at a critical juncture in the history of Bitcoin.
Let me know what you think about the future of Bitcoin in the comments below and if you have similar or different approaches towards your own cryptocurrency portfolio. Thanks for reading my post!
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