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Monthly Crypto Portfolio Update (Feb 2020)

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@newageinv
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One of the challenges of preparing monthly updates is that the sentiment created by markets shifts very often and perspective is often lost when reviewing or monitoring a portfolio. Markets are currently pretty weak and while that does not impact the reality of what was February, it does shift the thinking while I write this. In addition, I was really positive about the performance of the market last month as I recall seeing strong movements in the assets I track to add to my portfolio. However, I was surprised to see that the general market for cryptocurrencies actually fell in Feb! I guess I wasn’t paying attention!

Source

The market capitalization fell from $255 billion to $247 billion in February but the change does not tell the complete story. The reality is that the market continued its strong momentum from January into the month with Market Capitalization exceeding $300 billion for the first time in months. Of course it was led by bitcoin as it surpassed $10k once again as many believe that the upcoming halvening will be a catalyst for its price. However, it moved other assets more as the bitcoin dominance dropped from 66% to 64%.

Some assets had very strong performances this month as the trend continues where good projects are being valued better and outperforming others. I was happy to see Ether performing quite well although it made my costs of buying more as I continue to add to my position in preparation for the future Proof of Stake protocol launch. That itself has been under scrutiny as of late given the Steem situation but I think knowing the possibility helps prepare the community at large.

The portfolio has continued to scale into crypto assets although it will still be another month or two until I can really accelerate that pace. However, when I do I am also challenged with the decision on how to allocate the incoming capital into individual assets. My favorite segments of Steem and DeFi have been hit by some uncertainty recently and given my limited time to research them, I have yet to decide on an alternative. This will likely have the impact of reducing my allocation to Cryptocurrencies in the short term until I do my proper homework to deploy the capital in a responsible manner. Maybe bitcoin may become again my first choice!

In addition to my Ether purchase this last month, I made my Dollar Cost Average contribution of DAI as I continue to be encouraged by the growth and potential of DeFi Dapps despite the challenges. That was all I added given my limited time but I am getting ready to be more active as I assess the situation in the various markets I track. I believe that the potential turmoil or crisis in traditional financial markets can present an opportunity for decentralized assets. However, I do think that some liquidity challenges may also impact the crypto asset market as well in the short term.

Another item I am reviewing is whether or not I start to include my Steem related assets on this report. Given the recent issues, I have begun to look at my Steem holdings more like a portfolio investment rather than a business venture. I hope to be still wrong on that, but it has gotten me thinking about how to better monitor my investments in the short term. I did review of the portfolio this way and found that I am surely heavily weighted in Steem related assets given the amount of resources I have dedicated to the ecosystem over the last two years. In investments, knowing is half the battle!

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