Scroll down to read the Cryptocurrency Portflio Updates
A couple of years ago, I bought my first two Bitcoins. Since then, a lot of new currencies have been introduced such as Dash, Ripple and of course, Ethereum.
These currencies could be the future of money, so at that time I decided to invest 5% of my assets in Cryptocurrencies. Currently, this 5% investment has more than tripled in value. Madness. I wonder if and how long it will last. Right now, I’m only invested for 30% of realized profits. If it goes up, and it turns out to be the currency of the future, great for my portfolio. If it drops to 0, I’ve had great profits and a nice run.
When BTC and ETH crashed in March, I added Ethereum at $36, currently trading at $90 (edit: June 2017 @ $260, edit: June 12 $400, really…): Tulip Mania? Recently, end of May, I took some profit on Bitcoin when it traded > $2600, waiting for a new opportunity to add coins (BTC, ETH, Dash, Z-cash) in the Bitcoin $2100 area.
Stay tuned for updates below! Feel free to ask questions if you have any or check out the latest update on Bitcoin and Ethereum on my homepage (blog). For the latest update of my blog and my view on the financial markets, click here.
Cryptocurrency Portfolio Updates
This section is updated every month. For short term trading updates, click here.
For the 1st time, I bought Bitshares (BTS) and now I am back at the 5% threshold (sit on my hands and do nothing). I will sell when I reach the 10% threshold or buy if the weight of cryptos vs total portfolio drops below 4% of total assets. I keep cash (38% of the 5% investment in crypto portfolio) to buy the dips.
These are my 6 largest crypto investments as of June 30, 2017:
I closed 50% of the Dash, Ripple and ETH positions that I entered on Tuesday, for a decent profit of almost 35% in 2 days, not bad.
Now, I’ll wait for a new dip to buy.
I used the dip and the hammers (bullish reversal candlestick patterns) in the 4h charts, as mentioned here in the Trading Updates section, to add to my investments in Cryptocurrencies. I used a large part of my cash position to add Dash, Ethereum and Ripple. My strategy is simple: buy the dips and take (partially) profit when there’s a nice run of 20% or more. Keep some cash on the sidelines to make sure you can anticipate the dip(s).
Top 5 Cryptocurrency Portfolio:
The hammers in the 4h chart of Ethereum and Bitcoin made me decide to convert cash into cryptos again
Buy the Dips and Sell on the Rips
I bought back my BTC.
Total exposure to Cryptos 5.2% of Assets.
I keep some cash on the side, in case an opportunity arises to buy the dip.
Top 5 holdings:
I sold my stake in Bitcoin and Zcash, bought Ripple and some other (relatively unknown) coins (NXT, STR) but overall I decreased my exposure to cryptocurrencies from 8.3% of assets to 4.9% of assets. I would like to use the cash position to buy a dip (if there comes one, of course). If not, I’ll enjoy the ride up with the remaining positions.
DASH – THE ONE THAT’S STILL IN THE (MAINSTREAM) DARK
A couple of weeks ago, I spoke to a colleague of mine, an expert on cryptocurrencies and one of the really early ones on board, and I asked him which cryptocurrency he favors. He was clear on that one, Dash had the greatest potential as most promising cryptocurrency. And the best thing is, it’s still low radar, not very known/spoken about in the mainstream media (once it’s on the cover of the front page, do the opposite…remember who owns the media). So the crowd does not seem to be in on this one yet.
So based on his knowledge, I raised cash by selling Bitcoin > $2600 and I used that cash to buy the dip/increase my investment in Dash last week. Now, my 4 largest investments in cryptocurrencies are: 1. Ethereum, 2. Dash, 3. Z-Cash and 4. Bitcoin. Just a simple example/switch from investing in the pro league (BTC) to the talent league (Dash)…(Keep in mind that I almost tripled my money in a short period of time, now playing with the original investment, so I can “afford” to lose…Do not play this market if you can’t stand the heat of dropping to 0).
Currently, this is my Top 4:
Dash Weekly (left) and Daily Chart
Dash trades near the $180 key/resistance level
The Weekly chart shows a Hanging Man (potential Bearish Reversal Candlestick), support at $125, ‘early adapters’ getting on board during March 2017, and a RSI that shows Bearish Divergence, but still in Overbought area. A lot of analysts say/think that Overbought (RSI > 70) is a bad thing, but in my view, it’s a sign of strength of the underlying trend and increases the chances of another Higher High to come. Most importantly, the Pattern of Price is forming Higher Highs and Higher Lows, so we’re in an uptrend. Main position in an uptrend should be long exposure, so buying the dips > $125.
The Daily chart shows price facing resistance at $180/$190/$200 and possible support at $150, $125 and $70. Furthermore, also here the RSI shows Bearish Divergence and facing the choice to continue the green uptrend or follow the red/green triangle for a break out. It all comes down to this: if Dash is able to break $180-$200 resistance area, the uptrend could steepen even more and in case that happens, $260 ($140+$120) is likely to be reached in a matter of days. If Dash is not able to break the $200 area though, but instead breaks out to the downside, first support should kick in at $150. Summed up: I will look for new buying opportunities in the $125-$150 area or a Break Out > $200.
Two tools that I use to invest in Cryptocurrencies are: my e-wallet (Cryptonator) in which I buy, sell and switch with the click of a mouse between coins, and I use my CFD portfolio (eToro) to hedge the downside potential of my wallet exposure when I see fit and Copy Traders that Trade the Cryptocurrencies (saves me the trouble of micro managing).
Want to Read More? Click here for an overview of my Total Portfolio. and here for some examples of Traders that you could Copy to profit from this latest Tulip Mania. Or click these articles to read more about Ethereum, Bitcoin or 50.000 Reasons to become a Millionaire.
Trade safely and enjoy the day!
Since the last update, June 2, I added two cryptocurrencies, both based on absolutely no fundamental knowledge, not even technical analysis. Simply because I experience GREED worth $150 and these two had the lowest price per coin:
Dogecoin, bought 25.000 coins for $83
Reddcoin: bought 25.000 coins, for $71
So now I have 50.000 reasons, a gamble worth $150, to become a millionaire 🙂
Prices of $20 per coin are not realistic for now, I know, but a man can have a dream, right?
I bought these coins, and will put them on the shelf, forget about it, $150 written off. I use Cryptonator as my wallet to manage the coins. If you sign up via this link, you get a welcome fee of almost 4000 Reddcoins ($10, same as me). Easy money for the both of us.
Maybe, someday, these 50.000 coins pay off. Worth the gamble in my view. Could help my son pay for college and in the best case, buy the whole university….Worst case is $150 down the drain….
I do wonder….
Are my two latest additions, buying something purely based on Fear (of missing out) and Greed (to hit the jackpot)….
Are these two investments the key signals it is all one big Tulip Mania?
CRYPTOCURRENCY WALLET & EXCHANGE – CRYPTONATOR
I’m using Cryptonator as my digital wallet. It’s very easy to use and it offers an opportunity to switch between the different currencies with the click of a mouse.
Click on the picture below to visit the webpage of Cryptonator and receive a $10 bonus (same as me) when you deposit $1000. The first 1% return is here to pick up, for free.
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