Portfolio Performance: February (+Monero, -Dash -Litecoin)

This continues a series of regular posts where I share the details of my crypto portfolio, trades, and observations on the market. Here’s January.

In February 2017, the Bitcoin price increased 24%. My portfolio increased 29%, so I outperformed slightly, due to Dash’s price rocket and Ether’s rebound. Past performance is at the bottom of this post.

Here’s what I currently own (also posted here):

  • Bitcoin: 75%
  • Ether: 13%
  • Dash: 9%
  • Monero: 3%

Observations:

  • I sold my small (~1%) position in Litecoin; it finally hit me that I had no point holding onto it even as a Bitcoin catastrophe hedge and the coin (wrt technology and community) is going nowhere
  • It’s clear post-SEC denial of the COIN ETF that cryptoassets have begun to shift from Bitcoin to altcoins and digital tokens. Perhaps for diversification reasons, perhaps because big investors are seeking the drug of ever-increasing returns. I expect Bitcoin market dominance to fall below 75% before rebounding
  • Dash has been a huge beneficiary of this move away from Bitcoin. I purchased the bulk of my position around $17 and it’s currently trading at $78. I do believe Dash can become a $1B market cap coin but am skeptical of its long-term potential for a variety of reasons (quality of team is the biggest). I sold 1/3 of my position between $45-50 and may sell more in the coming days / weeks
  • In seeking even more upside (perhaps a dumb move) I’ve started to research altcoins outside the top 10 by market cap. I’m even looking at digital tokens although I still remain VERY skeptical of their average technological and network value

Portfolio benchmarks:

  • In calendar year 2016, Bitcoin increased 137%. My portfolio returned 107%, so I underperformed significantly largely because of Ether’s performance
  • In January 2017, Bitcoin fell 5%. My portfolio lost 2%, so I outperformed slightly
  • In February 2017, Bitcoin increased 24%. My portfolio increased 29%, so I outperformed slightly, driven by Dash

I’ll publish at least one of these posts every month. If you want more frequent updates, subscribe to my investment newsletter below. Thanks, happy investing!

If you enjoyed this essay, here’s a list of the assets I own and the ones I’ve researched. Find me on Twitter and signup on the right to receive an update when I publish a new essay.