We're Being Put To The Test
This year is like a roller coaster ride regarding what's happening in the crypto world. I'm not entirely sure but I think it's safe to say that there has never been a similar year before. One surprise coming after the other, the year is far from being over.
We're about to witness another huge surprise, which (kind of) had been expected but no one knew when it's going to happen. We're heading to a new low as I am writing this post.
Facts
#btc has lost the 2021 Higher Low, the multi-week Higher Low, the 50 week EMA as support and so on.
If you're a crypto hodler, you know how things stand. However, what you see on social media platform is people are fighting about if we're in a bull market or bear market. This is their biggest concern, to define what type of market we're in right now.
I personally couldn't care less how you call the market. There are more important things to do, one of which is to restructure your portfolio, in case it is needed.
I've found this list on Twitter. If it's accurate (and I don't have any reason to doubt it is, it can be checked easily), then we have to think about which can asset hold long term.
One of the golden rules in investment is to diversify your portfolio. This is key if you want to avoid getting badly hurt by putting all your eggs in one basket.
Over the years we've learnt that there are a few cryptocurrency projects that are safer than the others, but the latest events have not spared any of them and a few of those so called safe coins got hurt, got hit more than the others.
Just to be clear, I'm not talking about Shiba Inu, Doge and other related coins. I'm not going to waste my time or capital, not even from my trading portfolio.
If you look at the list you can see that some of the coins with good fundamentals are not as high on the list as they should be, which is quite surprising.
Cardano (ADA)
One of the biggest surprise (in a very good way) has been produced by Cardano (ADA), which took second position by sitting before ETH. ADA has surprised a lot of people by holding its ground better than the other coins. They say don't fall in love with your trading coins, which is a very good advice but ADA for me is both for long term holding and for trading as well. It has passed the test with flying colors. ADA hodlers are not joking!
Binance Coin (BNB)
Unfortunately BNB is not doing so well and the reason for that 61% drop from the 2021's high is not just the market. The latest problems Binance is facing has also contributed to the correction. I still trust the project and think this is a temporary setback, which will be sorted soon. Am I too optimistic? It's possible.
Chainlink (LINK)
Compared to ADA, LINK took a bigger hit, being at -73% below 2021's high. The difference between the two is -18%, which is quite a lot, no matter how you look at it. I've been expecting more from LINK to be honest.
Polkadot (DOT)
DOT is even worth as it's down -78% this year and below DOGE, can you believe it?
Bottom Line
Portfolios are structured based on certain criteria and can and should be changed, reorganized anytime the portfolio owner thinks it's necessary. It's recommended to hodl good coins, whatever that means to you.
Spot wallets are easy to manage as you don't fall in love with your coins, you see an opportunity, jump in, then when it's time to take profits, you sell. Then look for the next opportunity.
Long term portfolios however work differently. You buy and hold, till time comes, which means months, years.
Now that we've witnessed these swings and can compare results, it's time to rethink our portfolio structure. I will certainly do! The changes I make may bring me more benefits in the future.
The only thing that remains unchanged is my investment on Hive, Leofinance and CUBDeFi.
I've been in CUBDeFi since the beginning, the USD value of my portfolio has been going up and down ever since, but that's how DeFi works. I trust the project and know it needs time to grow and I'm patient.
I haven't sold a single CUB and have no intention to sell till it's time. Right now I'm enjoying watching my stake grow day by day. This is the time to accumulate and enjoy those APY's.
What about you? Are you going to change anything in your long term portfolio?
Posted Using LeoFinance Beta
