ANDIKA BULLETin 5 OCT 2024
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With some big moves in crypto markets, here's an update on the Confidential crypto portfolio.
The price of crypto feel sharply last night with Bitcoin under $AUD 60K and Ether a little over $AUD 4K.
I have used the weakness to add modestly to the portfolio in both of these coins. The additional investment has still left me room to make additional purchases if prices continue to fall.
A ready rule of investment is not to try and catch the 'falling knife'.
This means don't try to pick the bottom of a market as it is always better to let prices stabilise before adding to investments.
It's probably the best way forward here too. However, I am committed to adding to my crypto-currency positions every month. The rationale is that excess dollars stored in a bank account are a diminishing value asset because governments are printing more money every day.
As long as I have enough cash to cover a few months of expenditure then I am happy to allocate the remainder across a series of investments.
To maintain purchasing power, those dollars need to be put to work by investing in stocks, property, a private business, commodities or crypto.
Right now I am focussed on the crypto part of that equation as I think we are still very early in the shift to a digital world.
That monthly commitment means sometimes I'll get the timing right and other times it won't be to my advantage. I can accept that on the assumption the long-term will smooth out the prices paid.
It's basically dollar cost averaging and it is borne of my belief that crypto (particularly Bitcoin and Ether) will be much, much higher in the years ahead. I am also in the fortunate position where I am familiar with the volatility and am happy to live with the dramatic changes in price.
I have also bough more LINK on a big selloff of nearly 25 per cent.
The additional positions have been added to maintain my holding ratio which is as follows.
For every 1 BTC there are 10 ETH and 200 LINK.
What is important here are the ratios, not whether you own a fraction of a coin or multiple coins. The ratio I use is 1:10:200
That way, as I add funds to the portfolio I know the broad positions to purchase to maintain the formula.
The current portfolio holdings are (as a percentage of portfolio value).
BTC - 52.5%
ETH - 36.4%
LINK - 5.7%
Sushi - 1.8%
Aave - 1.8%
1Inch - 0.9%
Graph - 0.8%
I also added another token on a whim but I won't mention the name - yet!
The reason being is that I am really not sure that it is investment worthy and already I have some buyers remorse.
The background read so well and was so interesting that I acted hastily. That means I will be doing some further research before deciding to hold or sell.
If the decision is to hold I will add it to the portfolio and let you all know why.
All purchases (aside from the whim) were made through EasyCrypto and the process went without a hitch. I know many of you have used them too and are as happy with them as I have been.
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