What I hold and what I’m planning for in 2021.
My crypto portfolio is Bitcoin heavy.
I’ve been interested in cryptocurrency since 2013 and purchased my first BTC in 2015. Soon after, I also discovered Ethereum and first purchased ETH when it was just $12/ETH.
It probably comes as no surprise that the bulk of my crypto portfolio is made up of Bitcoin and Ethereum.
- BTC 64%
- ETH 29%
- ADA 6%
- RVN 1%
There’s nuance in these numbers.
They are percentages, based on US dollar value.
Historically, Bitcoin has been a far more significant position in my portfolio. I want to also stress that just a few weeks ago, Bitcoin made up easily over 75% of the portfolio, if not much more.
I Want to Be a Better Bitcoiner
Ethereum has been visiting all time high prices for the better part of the last month. The surge in ETH is skewing my portfolio percentage values toward ETH, despite the fact that I’m continuing to stack more BTC.
During the recent ETH surge, I even converted some ETH to BTC. I have a goal of making Bitcoin roughly 85% of my portfolio by the end of 2021 but price fluctuations have made that more difficult.
A good amount of value in my overall portfolio is due to my early entry into ETH. Because of this, I’m still holding and mining Ethereum. I am, however, 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 about Cardano and Ravencoin.
I bought ADA as a hedge against Ethereum and because the project appears to be hitting its roadmap benchmarks with more consistency than Ethereum. I own Ravencoin because I’m alternating between mining it and ETH.
The ultimate goal with either of these altcoin holdings, however, is to convert them to Bitcoin at opportune times. I’m not anti-altcoin but I do believe the altcoin space and the Bitcoin space should be viewed separately. Because of that, I mainly see altcoins as a means to acquire more BTC unless you are specifically involved or invested in a particular altcoin project.
New allocations in my crypto portfolio come from cryptocurrency mining.
I rarely make a raw cash purchase of any Bitcoin or other crypto anymore. Currently, I mine Ethereum and sometimes Ravencoin.
Ethereum mining is being phased out as the ETH 2.0 transition brings proof-of-stake to their network. That means I won’t be able to mine ETH for much longer. I’ll continue to track the most profitable GPU mined coins such as Ravencoin or Ethereum Classic in order to determine what else I’ll mine in the future. Fortunately, I broke even on my Ethereum mining setup roughly 2–3 months after getting into mining.
The goal is to stack more Sats and acquire more Bitcoin. I’m doing this methodically, over time.
On top of this goal, I also aim to move more BTC to cold storage. Due to my mining setup, I mine crypto to either hot wallets or exchanges in order to easily convert to BTC or earn yield for a period of time before converting. This can be done via places like BlockFi or on most exchanges like Coinbase.
If you want basic info 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 be using.
My goal is to grow my BTC holdings and keep all crypto holdings in secure but accessible wallets. Primarily, I do this via cold storage but utilize hot wallets and exchanges in order to facilitate transactions from my mining operation and any conversions or temporary yield I’m making.
We’re in a bull market. Bitcoin and altcoins are touching all time high prices. There’s continuous mainstream adoption to the point that public companies are holding Bitcoin on their balance sheets.
Everyone’s a genius in a bull market though. It’s important to keep in mind that Bitcoin has historically bounced between bull and bear markets around its built-in halving cycles.
While a bear market could come in the next year, the lows of an upcoming bear market will likely be much higher than previously. More mainstream adoption, more BTC moving to cold storage and staying there, and increased user numbers are further entrenching Bitcoin into the zeitgeist.
A Bitcoin Supercycle is possible. It’s a theory, first tossed around by Dan Held during the previous bear market. But, it is possible that Bitcoin sees either a minor correction instead of a full on bear market or simply continues an extended bull market unlike that of 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 toward your own cryptocurrency portfolio. Thanks for reading my post!