Percentage of portfolio in crypto?

KrazyKMM

Hey, all, I am a fairly new investor and would like to add crypto to my portfolio. What percentage of your overall investment portfolio is crypto? I want a little bit of risk because luckily I am getting into this fairly young.(I am 32) If I plan to have 20 different stocks in my portfolio, should I add 5 cryptos to that? Then I would be 80% stocks and 20% crypto. Would love to hear what others are doing that works for you. Thanks in advance.

Irish_rat

All in one crypto project if you're under 10k capital.

If you want slow and safe returns btc/eth

If you want higher risk you need to do some research.

Mine right now is only 5% but I want to increase that to much higher position

KrazyKMM

https://www.boards.ie/discussion/comment/118638240#Comment_118638240

Thanks for your input. I really appreciate it.

FastFullBack

I really only started properly investing in crypto since November. (25% down right now 🙄)

My crypto is worth 2.5% of my total net worth right now. Hoping to get that to between 5-10% by the end of the year.

ThomasFo

Up to 50% of the portfolio is cryptocurrency, especially in some countries is not taxed. Newcomers who are not good at using analytical tools sit in front of their computers all day long trying to make money on the volatility of digital currencies. Such business takes a lot of efforts and nerves and does not always bring a positive result. At the same time, the trading strategy can be so simple that it can be automated by writing a special bot-program for cryptocurrency exchanges. The need for constant monitoring by the trader at least to avoid scammers so well reviewed at scammerwatch. This is an important disadvantage that crosses out almost all of the advantages. The fact is that the bot cannot be left to work on its own. If it is based on an oscillator, then it should be used during horizontal ranges. If the bot is written on the basis of trend indicators, it is better to use it when there is a clear trend in the market.

Jim2007

https://www.boards.ie/discussion/2058233193/percentage-of-portfolio-in-crypto

A high risk portfolio is one that has more that 6% - 7% in total in commodities, precious metals, property and other speculative securities. With 20 stocks you will be unable to replicate the performance of any major index over a thirty year period, which is what you are looking at. So you are a long way from low risk. If you want low risk, with a high probability of a reasonable return over the long haul then you’d be better off sticking to dollar cost averaging on indexes and concentrate on asset allocation. That is the low risk benchmark and how much you stray from that depends on how much risk you want to take on.

Jim2007

https://www.boards.ie/discussion/comment/118666267#Comment_118666267

When one confuses investing with trading and fails to appreciate the nature of risk, one can produce a lot of drivel.

Jim2007

https://www.boards.ie/discussion/comment/118660962#Comment_118660962

You don’t invest in currencies you speculate - a currency has no intrinsic value and a crypto currency is even further away as it is not a facilitator of commerce. Regardless of the instrument, some will do extremely well due to a high degree of timing and luck, some will loose their shirt trying to get on the next wave and the majority will most likely come out a little ahead of the game. Where you end up is determined by your understanding of financial risk.

dirk_dangler

https://www.boards.ie/discussion/comment/118666405#Comment_118666405

You are hung up on the currency part.

Forget about that part of the name, (a rookie mistake) and look at the potential utility of the crypto, what use has it now and what is it trying to do in the future, that’s where the money will be made.

Link is everywhere and that should be simple to DYOR on and Rose requires a little bit more work to understand, but it’s all there for you to see with a little bit of research, think Chinas WeChat app and that’s a potential use of Rose in the west with Meta, plenty more as well.

The starting point for all research should be who are the early investors in the project, these hedge funds are in the business of making money, so just follow them and you won’t go to far wrong.

Crypto is a one in a life time opportunity to turn €1000 in €1 million if you get in early on the right project , that’s not happening with the traditional stock market.

Jim2007

https://www.boards.ie/discussion/comment/118668462#Comment_118668462

Let me spell this out:

• You are speculating in a currency who's entire value is based on perception and while there is not doubt that the some of the underlying technology has value (indeed I have used and implemented it myself), you are not investing in the technology. Value based on perception combined with a sophisticate underlying technology means that should speculators loose confidence in a particular currency it will adjust faster than anything you have ever seen. It only takes someone like the BIC, Fed, ECB etc.... to instruct banks to stop allowing the conversion of a currency and it will be gone in a matters of hours. The people invested in the technology and using the technology will still be there and will still continue, but those who simple held that currency will be wiped out. Now that is a rookie mistake as you call it.
• As for the hedge funds, part of my services was to provide them with performance and attribution information, so I have a pretty good handle on their internal working. Hedge funds regularly have to be reconstituted, closed out, frozen etc because they loose the clients too much money. On top of this you have no access to the reasoning being any strategic position a fund is taking nor what other strategy is being played against it at the time. So ya, good luck in your expectations of replicating their results.
• Over the past thirty years I have been involved as the picks and shovels guy in everything in trading weather futures, debt securitisation and even the recover of the disaster that was LTCM. The difference this time, just like every other time, a different set of guy thinking this time it is different.... it's not.
• You spend a lot of time talking about the capability of the technology, while mistakenly believing by speculating in a currency that you are investing in it.....

At the end of the day it is your money and apart from those that might have to depend on you, it is you that will deal with the out come be it good or bad.

I hope it is good for you.

KrazyKMM

https://www.boards.ie/discussion/comment/118660962#Comment_118660962

Great idea trying to work up to that. Right now is a good time to buy in, but I don't want to put a lot in all at once.

KrazyKMM

https://www.boards.ie/discussion/comment/118666267#Comment_118666267

I definitely don't want to actively trade it. I would be a long term holder so more of an investor than a trader and would do 5 tops. Would like to find at least 1-2 solid choices.

KrazyKMM

https://www.boards.ie/discussion/comment/118666365#Comment_118666365

Thanks so much. I appreciate the input. I have been buying some VOO lately since it is a good time to buy it. I feel like having the solid base with the ETFs is a good way to start. Then once I get into a full position there, I will continue to DCA into it, but start positions in other stocks. I would do the majority in value stocks, but eventually I do want to add the crypto and will do a couple of growth stocks, too.

KrazyKMM

https://www.boards.ie/discussion/comment/118666373#Comment_118666373

I responded to that one before I saw you posted this. I definitely do NOT plan to day trade. I am willing to manage my portfolio, but I do not have the time nor patience to watch the ups and downs like that. More power to anyone who can. I want to do bullish positions.

KrazyKMM

https://www.boards.ie/discussion/comment/118666405#Comment_118666405

What are your thoughts on Bitcoin and Ethereum? Do you see any utility in either of them?

KrazyKMM

https://www.boards.ie/discussion/comment/118668462#Comment_118668462

I get what you are trying to say, and I agree. I asked Jim this...do you see a lot of utility for the future in Bitcoin and Ethereum? I have been doing quite a bit of research on them. I am leaning toward an investment into Ethereum due to its utility and involvement in the future metaverse. Also going to proof of stake. I only wish that I was able to start positions in multiple things at once. The prices right now are great. Also, you mentioned Hedge funds getting into crypto. Is there a good one to watch? I will not go in blindly. I want to gather resources and facts from multiple sources, but also like to hear about opinions, too.

KrazyKMM

https://www.boards.ie/discussion/comment/118675534#Comment_118675534

Thanks for sharing your thoughts. What do you do for a living, Jim? Also, what do you think about the government putting regulations on crypto and the fact that it is taxed? It is subject to capital gains rates just as stocks are. I feel like the United States government might think of this as a cash cow for themselves, and if they put regulations on it, then that is their way of controlling it but also making money off the taxes. In doing so, they are "acknowledging" the crypto as currency in my mind. Would love to hear your thoughts on that. Thanks.

cnocbui

I'd say 15-20% BTC/ETH

My initial BTC investment was 1.25% of the total and it now comprises 28% due to 2,355% appreciation.

Peregrinus

Making something subject to CGT does not acknowledge that it is currency; just that it is an asset - i.e. something which can be bought and sold. Most CGT applies to transactions in assets that are not currencies.

dirk_dangler

https://www.boards.ie/discussion/comment/118675534#Comment_118675534

You are still hung up on the cryptocurrency part, The tech is blockchain, the most famous is BTC, a cryptocurrency.

The name cryptocurrency has gained acceptance but the reality is it’s blockchain.

Now think of blockchain as the internet and we have seen Google, Facebook and so on becoming huge building on the internet, so now we see similar building on Blockchain, so forget about the crypto currency aspect and look at the utility of the projects being built.

The same people who built the internet in the USA and China are pumping big money into blockchain projects, there is no rivalry between these 2 countries they are working together , the same investors are building it in both countries, see early investors in Google, Facebook and Baidu, Tencent they are the same people, so if you can look at the bigger picture and pick the future blockchain winners you can make big money, forget the currency part and look at the utility, that’s where the money is.

Two early investors in the internet are now investing in blockchain, these 2 are total insiders connected to the highest levels of government, so don’t worry about a government ban, it’s not going to happen. DYOR. It’s all out there if you look for it.

https://en.wikipedia.org/wiki/Tim_Draper

https://en.wikipedia.org/wiki/Jim_Breyer

ThomasFo

Any success stories to share?

Peregrinus

https://www.boards.ie/discussion/comment/118678928#Comment_118678928

This is a perhaps compelling argument for investing in blockchain technology. But investing in something which relies on blockchain technology, like cryptocurrency, is not remotely the same thing as investing in the technology itself.

You might as well argue that by buying an ICE car you are investing in the oil industry. You are not. While it's true that your car will be worthless if the oil industry winds up, the converse is not true; your car does not rise in value if the oil industry booms.

dirk_dangler

https://www.boards.ie/discussion/comment/118682483#Comment_118682483

Start here, global standards... look at the people and who they are associated with

https://gbbcouncil.org/

Then check out here, the people and who they are and what they are invested in.

https://en.idgcapital.com/

Peregrinus

https://www.boards.ie/discussion/comment/118685444#Comment_118685444

If you think there's information that should interest me there, tell me the information. I'm not doing your investment research for you.

Spit it out. Are you saying that the members of the GBBC are heavily invested in cryptocurrencies? And that this shows that investing in cryptocurrencies is the same thing as investing in blockchain technology?

Jim2007

https://www.boards.ie/discussion/comment/118682483#Comment_118682483

Yep, this guy seems to think consuming the product of the technology is the same as investing in the technology…. Bit like thinking you can invest in the butchers by eating more sausages…..

mind you with the way war and sanctions are going I would not be surprised if there is a move to regulate crypto to prevent it being used by the Russians to circumvent sanctions or possibly a moratorium on converting by the banks, which could be implemented quicker in fact. We will have to wait and see.

Jim2007

https://www.boards.ie/discussion/comment/118685444#Comment_118685444

Yet another post about the technology that is not relevant to the discussion. Go back and read the question posed and try to make your posts relevant to the question of asset allocation. At this point there is no point in responding to you.

cnocbui

https://www.boards.ie/discussion/comment/118688975#Comment_118688975

Bitcoin proved to be very useful for Venezuelan refugees that fled their country so it may well also prove to be of similar use for the unfortunate coming Ukrainian diaspora.  It has also been of great use for the unbanked in Africa with family working in Europe using it to send money they earned back to family members in Africa who while not having access or use of bank accounts, had a phone. https://forkast.news/cryptocurrencies-remittance-africa-blockchain-bitcoin-money-transfers-fees/

https://www.bbc.com/news/business-47553048

Don't be so keen to throw out the baby with the bathwater. The nature of the blockchain makes bitcoin transactions far more open and visible than fiat via banks usually is. If your banking sector is regulated and KYC compliant, there is no need to get hot under the collar with imagined indignity that crypto is facilitating crime. 99.999% of crime is facilitated by conventional fiat and it's associated systems..

dirk_dangler

https://www.boards.ie/discussion/comment/118688958#Comment_118688958

I’m not going to spoon feed you, you want to make money put in the effort, if you can’t be bothered to browse a web site and see what is clearly happening, well that’s on you.

dirk_dangler

https://www.boards.ie/discussion/comment/118688996#Comment_118688996

You are clueless.

Here is a starting point for you to get stuck into.

When internet was created someone had to then come along and standardised certain aspects of it, HTML I’m sure you know, well we are at the start of blockchain and the standards are being created right now.

So if you hand any sense you would be looking at who are setting regulations and who then is working to meet these requirements to operate in the US/EU/China, these will then become the global standards, it’s not difficult to understand or is it?

Peregrinus

https://www.boards.ie/discussion/comment/118694732#Comment_118694732

What is difficult to understand is how this in any way suggests that acquiring cryptocurrency would be a wise investment. You've been invited several times to bridge that particular gap in your argument and you have pointedly declined. In the absence of better evidence, I'm of the view that you are unable to do so.

KrazyKMM

https://www.boards.ie/discussion/comment/118676565#Comment_118676565

Thank you. Do you continue to dollar cost average into them? How long ago did you start?

cnocbui

https://www.boards.ie/discussion/comment/118706736#Comment_118706736

No, I don't DCA. I started in early 2016, stopped in 2017 and have been hoddling since.

KrazyKMM

https://www.boards.ie/discussion/comment/118681028#Comment_118681028

I just recently heard of the Stock Moe YouTube Channel. A friend of mine is a member of his patreon, and he sent me the link to a video that he did giving an overview of a lot of different cryptos. Apparently this guy used to mine crypto like 10 years ago. https://youtu.be/AWaJdMSf8YE He said that he keeps a crypto portfolio for his patrons and has done pretty well for himself. I was considering joining to follow along with his plays. Especially right now since crypto prices are low.

Peregrinus

If anything, now would be a good time to start progressively realising some crypto investments, in order to lock in accrued gains on a cost average basis.

I've noticed advertising encouraging me to invest in crypto. Call me a crusty old cynic, but when people start advertising an asset class, to my mind that's the time to think about selling; if its characteristics recommended it to investors at current prices, there'd be no need to advertise it.

KrazyKMM

https://www.boards.ie/discussion/comment/118694732#Comment_118694732

I agree with you. I read A Random Walk Down Wall Street and they talked about the dot com era. I was too young to personally remember that, but apparently there were a lot of companies back then that were start-ups but obviously failed. I feel like crypto is the same. It is in infancy stage right now. But there are going to be those cryptocurrencies/alt coins that are around for a long time because they have good utility. It is just a matter of finding the ones that will be good long term.

KrazyKMM

https://www.boards.ie/discussion/comment/118689067#Comment_118689067

I think Ethereum is another one that will be around. Especially when it moves to 2.0 and proof of stake. Ethereum is the basis for so many ERC-20 tokens. And they WILL find some interoperability for some of those.

KrazyKMM

https://www.boards.ie/discussion/comment/118706744#Comment_118706744

I get what you are saying. Get in early because it is too late once everyone is talking about it. I have looked at the coinmarketcap website because it shows all crypto and the recently added coins. I have no idea how to go about trying to figure out which ones could be successful besides just finding some that I like and watching their utility progress. Taking big chances to put money in that early though(I have not). I looked at the ETH chart for 6 months and even a year out and it is at a low right now. If you bought in high over 4K, it wouldn't be a good time to sell.

KrazyKMM

https://www.boards.ie/discussion/comment/118706737#Comment_118706737

That's awesome. Congrats. I'm jealous. How is it for you during the times when things are super volatile. Do you worry? You have diamond hands for sure.

cnocbui

I don't worry at all. I followed the principle of not investing more than I could afford to loose so it's more a form of entertainment than a worry.

Peregrinus

https://www.boards.ie/discussion/comment/118706751#Comment_118706751

No offence, but this is a classic rookie investor error. Whether it's a good time to sell an asset doesn't depend at all on the price which you paid for it. The price that asset traded at at any point in the past, never mind at the particular point where you happened to buy it, doesn't affect in any way whether the price will go up or down in the future from where it is right now.

dirk_dangler

https://www.boards.ie/discussion/comment/118706561#Comment_118706561

I will try make it as simple as possible so yourself and jim2007 and anyone else who is struggling can understand. Its not cryptocurrency, it blockchain, get your head wrapped around that and you will have a easier time understanding.

Traditional finance is moving lock, stock and barrel into blockchain and have been for several years, dont mind what they say mind what they are doing, James Dimon CEO JPM has said anyone buying BTC is a idiot and he would fire them, he could be true to his word, but JPM are putting money into blockchain and have been since before ETH was launched.

https://mobile.twitter.com/notgrubles/status/1473302752038199302

So two things we all know about in finance are Money transfer and Attestation/Auditing, who would be considered the gold standard for both? So we are on the look out for the coming blockchain gold standard

Money transfer =Swift

Attestation and Auditing = PWC, Deloitte, EY and KPMG

We know a blockchain solution for money transfer is coming, Swift has told us so, it will be ISO 20022 compatible, that info narrows the field down, so you look for ISO20022 compliant blockchain projects one of them will become the blockchain standard.

Ripple is ISO20022 and rumours are Russia could use it to bypass the ban from Swift, could be why the SEC is cracking down on Ripple? (dont forget XRP token not needed to use Ripple).

PWC, Deloitte, EY and KPMG, $167b in revenue, so when traditional finance moves to blockchain it will need these services, so lets say 10% of this business moves to blockchain, that would be $16.7b per year in revenue, now lets say there is only one show in town for this service on blockchain, it has 1billion tokens, at $1 each today, once up and running it will generate the $16.7b in revenue , this will be shared with the staked token holders, so each token will earn its holder $16.70 per year, so a investment of $1,000 today will generate $16,700 for the holder. Now do you think a token that generates $16.70 per year in earning will stay at $1? At a unheard of in traditional investment, return of 20% would value the token at $83.50 each, 10% return at $167, a more realistic return on your traditional investment of 5%, that is a stunning $334 per token.

How will we be making money i hear you ask, well these blockchain services will run on POS and by holding and staking these tokens you will get a share of the revenue equal to your holdings. Venture capital funds usually have a website with their investments listed and they are mad for POS tokens.

Currently ETH is POW and all the transfer fees (GAS) all go to ETH miners, once ETH moves to POS all of these fees go to ETH holder who stake their ETH, you need to stake 32ETH to get a full share, now ETH is expensive today but it launched at 31c

Today ETH $15 avg transaction fee, it fluctuates, today its 46.81gwei, 1st Feb it was 155gwei

1.1mil transactions

$16.5m transaction fees today would shared among the stakers when POS is up and running.

90%+ of blockchain projects are worthless, So you want to be looking for projects that are setting themselves up to become the standard in blockchain, look for project that are aiming to do one thing and do it well, one thing to look out for is who is investing in these projects, these wall street banks and Venture capital funds are out to make money and if they can will gobble up the lions share of these tokens, lucky for us to avoid monopoly and anti-trust lawsuits the projects are available for the public to buy, but they hide in plain site what they are doing, it requires a bit of digging.

Five years from now in front of regulators the banks and Venture capital funds will be saying "Honestly it not a monopoly, anyone could have bough it if they DYOR and seen the potential like we did". and they will be correct, and those here who fail to understand this golden opportunity will be sick to the pit of their stomach.

Peregrinus

"PWC, Deloitte, EY and KPMG, $167b in revenue, so when traditional finance moves to blockchain it will need these services, so lets say 10% of this business moves to blockchain, that would be $16.7b per year in revenue, now lets say there is only one show in town for this service on blockchain, it has 1billion tokens, at $1 each today, once up and running it will generate the $16.7b in revenue , this will be shared with the staked token holders, so each token will earn its holder $16.70 per year, so a investment of $1,000 today will generate $16,700 for the holder. Now do you think a token that generates $16.70 per year in earning will stay at $1? At a unheard of in traditional investment, return of 20% would value the token at $83.50 each, 10% return at $167, a more realistic return on your traditional investment of 5%, that is a stunning $334 per token."

Spot the glaringly obviously wrong assumption.

KrazyKMM

https://www.boards.ie/discussion/comment/118706754#Comment_118706754

No offence taken. So you would sell at 2.6K if you bought at 4K? That is all I meant. Ethereum was at 2.6k last night at the time of my posting. I understand that nobody can time the market. That is why I do dollar cost averaging. Takes the emotion out.

Peregrinus

https://www.boards.ie/discussion/comment/118712028#Comment_118712028

If it's at 2.6k and more likely to go down than up, yeah, you should sell. By holding longer you simply magnify your losses.

It is, of course, hard to know whether it's more likely to go down that up. But the fact that you bought at 4k is not a relevant data point in making that judgment. I acknowledge, though, that on a human level it's really hard to stop the awareness that you paid 4k from affecting your judgment about likely future price moves.

dirk_dangler

https://www.boards.ie/discussion/comment/118711960#Comment_118711960

I assumed nothing!

I tried to dumb it down as much as I could so everyone could follow, it seems I did not dumb it down enough, anyway if you do ever buy crypto I hope you make a good profit.

For those still up to speed, it all about global standards, what will be used in US/EU/China, remember the gate keepers are the SEC, GDPR and BSN, get approved by all three and you have a winner.

Russia kicked out of SWIFT, oh no! What will we do says Putin, we will use the Chinese service CIPS.

Lets take a look at CIPS and see what it all about.

https://en.wikipedia.org/wiki/Cross-Border_Interbank_Payment_System

ISO20022 is here again

So we dig a little deeper into Chinas BSN and what do we find?

https://www.prnewswire.com/news-releases/bsn-integrates-chainlink-oracles-bringing-real-world-data-into-its-irita-powered-network-301081572.html

""BSN has an ambitious plan to provide a standardized, nationwide public infrastructure network supporting most efficient blockchain development and deployment. Chainlink is the industry-leading oracle solution provider. ............"

In the works for years with SWIFT and China

https://chainlinktoday.com/at-swifts-smarter-securities-chainlink-co-founder-sergey-nazarov-discussed-how-institutions-can-prepare-to-interface-with-many-different-blockchains/

Do what you will with this info, but I don't ever want to see any posters moaning that they missed out because they did not know.

Peregrinus

You assumed nothing? "Let's say there's only one cryptocurrency that would be acceptable to PWC, Deloitte, EY and KPMG" is an explicit assumption, and - when you give it a moment's thought - a pretty stupid one. And yet your entire argument depends on it.

You say that you are trying to dumb this down. You don't have to; it's already pretty dumb.

dirk_dangler

https://www.boards.ie/discussion/comment/118717507#Comment_118717507

If you are going to quote me, use what i actually posted, don't make it up, that is bad form.

I believe i would have to start sniffing glue to get to the level of dumb you require, anyway best of luck with your investing, its at $15.30 now, down from a ATH of $52 so don't worry about me I'll be Ok, only looking at 3,000% profit today and climbing😂🤣😂🤣😂🤣

Potatoeman

The percent of your portfolio in crypto is up to your risk tolerance. If you’re risk averse then limit it to 1% and stick to the mains and even then don’t go in all at once. The potential upside is too good not to. The bigger gains are in the smaller market caps as they can grow faster but also drop just as fast.

Take everything people say with a lot of salt. People get too emotionally invested in their favourite projects.

dirk_dangler

https://www.boards.ie/discussion/comment/118767172#Comment_118767172

The average annual earnings for employees in Ireland is €40,283 per year 

Limit it to 1% of your worth, lets break that down, probably age 30 and renting, have at most €20k in bank, so that would be big investment of €200, better of going down to paddy power FFS.

Ok maybe a little older, 40 a wife and two children, a house worth €350k(we wont count the 25 years to go on payments) and would be lucky to have €20k in bank, this 1% nonsense is not worth the effort. Don't include the mortgaged house in your net worth and your in the same boat as the single 30 year old.

Big changes are coming to the world and they are coming fast, either study hard and find what you want to invest in and pull the trigger soon or forget about it, the future monetary system of the world is already in the oven cooking as of now and the probabilities of it using some current crypto currency that you can buy now is high.

14th March

In two weeks, China, Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan will reveal a new, independent, international monetary and financial system.

It will be based on a new international currency, calculated from an index of national currencies of the participating countries and international commodity prices.

coinsrider

any new allocation suggestion on portfolio building in Crypto space epically as a beginner.

Potatoeman

https://www.boards.ie/discussion/comment/119230090#Comment_119230090

We’re in a bear market. The standard advise now is stay in Bitcoin until the market picks up and set up monthly buys. Just be prepared to see the price fall further.

You also need to be prepared for this to go on for up to two years.