@Juan Ponce de León , are there conditions under which you'd sell some Bitcoin to lock in those gains?
Yeah absolutely. If we get a parabolic move up I'll be looking to de-risk some but mainly from my alt coin positions which I have way too much of. I also cash out some of my defi yield every week but mainly I use it to buy more crypto.
Sorry if I missed this earlier. If you don't mind my asking, @Juan Ponce de León, what % of your portfolio is in crypto vs conventional financial assets?
Is % the way you allocate to the non-crypto portion, or do you have other criteria instead (5 years' conventional assets, paid off house but the rest is crypto, etc)?
Are you seeking a FIRE target in some conventional way (eg, 25x annual spending) or using other goals for your accumulation strategies?
It's about 60/40 crypto vs stocks. That was never the plan it's just the way it's worked out. I don't put any new money into crypto and I try not to pull too much out, I'm basically playing with house money now so I'm happy to let it ride. I'm not getting ahead of myself in regards to FIRE targets or anything like that. If it happens, it happens. If it all crashes to zero I'll diversify into tulip bulbs.
I'm curious about your allocation amongst your cypto assets, do you mind sharing? Here's mine:
VTSAX = 50%
Crypto = 50%
Of the Crypto, here's the current breakdown(it changes daily, because as you know, the price of all these things is terrifically volatile):
Ethereum = 56%
Bitcoin = 34.3%
alt coins = 9.3%
Of the 9.3% that I have in alt coins, here's the ones I have a small position in:
Cardano
Solana
Uniswap
Chainlink
Litecoin
Bitcoin Cash
Enjin
Polkadot
Avalanche
Aave
VeChain
Why do I own these alt coins:Reason #1: In their own way, they each seem to be solving problems in a unique way that I think gives them value and lots of growth potential.
Reason #2: When I have a little skin in the game, I pay much closer attention to things. If one or more of these coins becomes more important, I'll feel more comfortable taking a bigger position if I've been following the work being done on each project.
What am I currently digging into that might change my strategy: Now that I am investing in the cyrpto space, I want to start actually becoming a participant in the crypto space. I think it's likely that in the next 10 years, people are going to transition to gaming on blockchain technology. Axie Infinity is the biggest crypto game right now, and it's growing because you can earn money while playing in a variety of ways. Axie Infinity is like Pokemon, except instead of one pokemon battling another pokemon, it's 3 axies battling against another person's 3 axies.
You can make money in Axie Infinity in a few ways:
1. When you win battles, you get money (in the form of the two cryptocurrency tokens created by the game...AXS and SLP tokens)
2. You have to buy axies to battle. But as those axies win battles and acquire more tokens, you can either cash those tokens out and convert to dollars (or whatever currency you want), or you can spend the tokens to breed your axies and create new axies
3. When new axies are created, you can either sell them (usually for about $300 each right now), or create a new team of 3 axies with them and you can start battling with them to earn more tokens.
4. If you don't want to spend all of your time doing axie battles, you can allow others to battle for you. If you play the game for a few hours each day, you can make about $300/month worth of SLP and AXS. That works about to about $10/day. For us, that's nothing, but for a person in a 3rd world country making $6 per day working their job in a factory, if they can go home and make an extra $10 playing a game for 3 hours, their life has changed. When you allow someone to play for you, it's called a sponsorship.
Right now I'm considering buying a bunch of axies and sponsoring other people to play for me. So I won't actually play the game, I'll just breed axies my sponsors have won enough battles for me to breed them, then I'll sell the new axies...or form other sponsorship teams to grow my portfolio of axies. Seems like a great way for me to learn more about the crypto space, and make some money while I do it.
To do that, I'll probably sell 10-20k of my alt coins listed above to buy axies. I hope to become educated enough on how to purchase/breed/sponsor to start by January of 2021, and my goal is to grow the 10-20k up to 100k+ by the end of 2022. But who knows, maybe it sucks and I'll bail on it:) Either way, the education I'll get from putting in the work will be worth a ton in its own right.