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Bitcoin Portfolio Letter: Taking altcoin profits and buying back into Bitcoin

Published / by kgao

Hi everyone, here is my second Bitcoin Portfolio Letter where I share my exact crypto investment portfolio, what trades I’ve made, and which assets I’m looking at. Each week I alternate between a portfolio letter like this one and a news letter.

Thanks!

Kevin (@kgao)

Performance relative to Bitcoin price benchmark:

I’ll release March performance results in the next letter. Probably outperformed Bitcoin due to the strong run-up of Ethereum and Dash. In January Bitcoin fell 5% and my portfolio fell 2.5%. In February Bitcoin gained 24% and my portfolio gained 29%.

Trades this month

  • Sold 5% of my Bitcoin BTC holdings when the price passed $1200. Right now I’m buying a little each day, because I think it’s underpriced due to hard fork drama
  • Sold 5% of my Ethereum ETH holdings at $43
  • Sold 10% of my Dash DASH holdings at $73
  • My general philosophy is to take small profits when I’m seeing 300%+ price spikes. In the long run my goal is to be investing with the house’s money, so to speak
  • Invested 1% of portfolio into Decred DCR at $5, then sold 10% of that when it spiked to $15

What I got right and wrong since the last Portfolio letter

  • Right that Decred DCR was a good investment – was trading at $5, now trading at $12
  • Right that Shadowcash SDC was crap – was trading at $3.50, now trading at $1.50
  • Verdict still out on Augur REP – was trading at $8.50, now trading at $10
  • Wrong on Zcash ZEC – was trading at $45, now trading at $69. I still suspect the issuance rate / mining-driven inflation is too high to be a good near-term investment but may take a small position

What I’m looking at now

  • NEM / XEM – what I like: no inflation, no PoW (blockchain is secured by a PoS-like model), incentivized staking, geographic depth (the top altcoin in Japan), potential synergy with its private blockchain solution Mijin and early but promising enterprise use cases
  • Bitcoin BTC is underpriced despite HF risks and I’m buying small amounts daily. Right now Bitcoin is 63% of my portfolio and I’d like it to be 65-70%
  • The HF debate has me increasingly concerned about the long-term viability of PoW only blockchains. All this time we’ve been concerned about external 51% attacks without realizing, like all large systems, that corruption comes from within. PoS or at least hybrid PoS / PoW may be the future
  • While I still think Monero XMR will win the privacy coin war in the short-term, I’m questioning whether its price will reflect this victory. I may reduce my position
  • Published a Crypto Cheatsheet (screenshot below) which has key facts and concepts for most of the assets in my portfolio

That’s it. Thanks for reading! Hit ‘reply’ to contact me or find me on Twitter.