We received an email from a member recently that asked the following questions (and I’m paraphrasing):
- Why are underperforming coins still in the Crypto Asset Strategies portfolio?
- Why aren’t coins like ethereum, solana and others that have performed well in recent history in the Crypto Asset Strategies portfolio?
- What are we going to be doing differently in terms of crypto investments now that Crypto Asset Strategies founder Adam Sharp has moved on to pursue other opportunities?
I’m certain many of you have the same questions. So let’s answer these questions one at a time.
What to Do With Underperforming Portfolio Coins
It is 100% time to clean out the portfolio. If you’re still holding any of the following coins, you should sell them immediately:
- Ark
- BitShares
- Nano
- Vertcoin
- Decred
Decred is the only close call here. It was trading as high as $174 last May. Decred does many things well. But I don’t believe Decred does any single thing well enough to justify holding on to it moving forward. And it simply has too many competitors to keep up with. Hopefully many of you took some profits or sold when Adam suggested it last year.
I had planned on issuing these sell alerts later this month. But market conditions suggest investors need to get out as soon as possible. The crypto markets are so closely correlated with the broader stock markets right now that investors need to exit weaker positions immediately. The stock markets are a mess. And they’re dragging crypto down with it.
Please note that it will take a few days for us to update the portfolio on our website. But the portfolio in the email version of this article is up to date.
Why Ethereum, Solana and Other Top-Performing Coins Aren’t in the Portfolio
Ethereum and Solana are part of our First Stage Investor crypto portfolio, which focuses on “blue chip” or “large cap” cryptos. The goal at Crypto Asset Strategies is to focus on small-cap altcoins.
That said, the fact that ethereum and solana are not part of the Crypto Asset Strategies portfolio bothers me. I’m an Ethereum bull. And I was telling anyone who listened that they should buy ethereum when it was trading around $150. We recommended bitcoin to Crypto Asset Strategies members at $6,295.97 because it was an incredible opportunity. We should have done the same with ethereum.
I still think we should add ethereum to our portfolio. But I think we can get a better price if we wait.
Solana and avalanche are two coins we should have recommended to you while they were still small-cap coins. I tipped people off to both coins early at investment conferences. And people who did buy enjoyed significant upside.
What We’ll Do Differently Moving Forward
Adam and I are friends. But we approach crypto investing differently. Over time, Adam preferred sticking mostly with bitcoin (though his Cosmos pick was brilliant) because he believed it carried the least amount of risk and the highest upside.
I view the crypto universe differently. I outlined my investment thesis last month. Please give it a read if you haven’t seen it. Here are a couple of key paragraphs:
Sure, there are still some speculative coins that seem to exist for no reason. But even more prevalent are crypto projects tackling real-world problems that desperately need solving. Projects building a future that we’re just starting to understand and recognize. And projects creating the tools necessary to make crypto work better. The possibilities are endless.
The key to succeeding in this constantly shifting environment is diversifying your portfolio. Smart crypto investors should build portfolios that give them exposure to DeFi, NFTs, pick and shovel plays, storage, decentralized social media and much more.
So my personal approach to thinking about crypto is different. I believe there are many investment opportunities out there for crypto investors. And those opportunities are always evolving. That’s why I will recommend at least one investment opportunity a month.
Another key difference in how we will approach crypto investing is data.
KingsCrowd acquired Early Investing (including Crypto Asset Strategies) in 2020. KingsCrowd’s core mission is to provide data-driven actionable investment intelligence. And we’ll be incorporating data into our research process in (hopefully) new and innovative ways.
I believe there are plenty of good investment opportunities out there. And that by recommending one coin a month, we’ll build a powerful and diverse crypto portfolio relatively quickly.
Two other things you should know about me:
- I’ve been working on the bleeding edge of technology for most of my career. And moving money and data around has been a significant problem each step of the way. I understand what crypto is trying to do.
- Many moons ago, I helped run a startup in Asia that combined crypto and gaming. So I understand firsthand the problems that need solving. And it’s why I gravitate to cryptos that have incredible use cases. I want people to invest in projects with staying power.
I’m not a trader. My goal isn’t to enter and exit a position in a matter of days or hours. And the projects I recommend will reflect that. They will be serious projects with long-term potential.
But I do like taking profits and making money. So if I see an opportunity for investors to make some money, I’ll suggest it.
I hope this answers some of the questions you might have about the new direction of Crypto Asset Strategies.