Last month Adam Sharp mentioned I would be taking over as your Crypto Asset Strategies guide. Adam has only been gone a few weeks. And he is sorely missed. But in the life of a crypto investor, the only certainty is change. And we’re changing things up at Crypto Asset Strategies.
Recommendations
Starting this month, we will recommend at least one cryptocurrency to invest in per month. These recommendations will focus on mostly smaller coins. And they will sometimes be paired with some highly speculative plays that we won’t be adding to our portfolio because they don’t quite fit our investment thesis. But they’re opportunistic plays that fit in well with the recommendation that we’re making. And you should be aware of the opportunity.
Investment Thesis
The crypto universe has changed dramatically in the last five years. One of the biggest changes is that the number of use cases for crypto has exploded. From smart contracts to NFTs, DeFi and logistics, the sheer number of uses for crypto is mind-boggling.
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.
By investing in a diverse group of cryptos, investors maximize their opportunity to find the next hot coin or sector.
Broadening your portfolio de-risks your crypto investments. It’s too early to tell which crypto sectors will take off first or have staying power. An investor who focuses exclusively on one sector runs the risk of losing everything if that crypto segment collapses. A diversified portfolio prevents that from happening.
There are plenty of opportunities to make money despite the uncertainty. It’s like investing in internet stocks in 1995. Nobody was sure where it was going to end up. But we knew it would be a wild (and hopefully profitable) ride. And almost 30 years later, we’re still investing in new internet businesses.
Crypto is following the same trajectory. And the investor who understands how to turn uncertainty into their friend while limiting their risk will be the most successful.
Going Micro
Macroeconomic analysis is critical to understanding why crypto is important and why more and more people view it as a potential solution for some of the world’s monetary and economic problems. But there’s more to crypto than just being a hedge against inflation or an alternative store of value. Moving forward, we’ll take deep micro dives into the wide variety of key factors shaping crypto’s growth so you have the information you need to make more informed investment decisions.
Crypto Monitor Returns
Crypto Monitor, our video podcast, will have a different feel moving forward. Allison Brickell and I will co-host the show. Andy Gordon will swing by every now and then. And a new episode will drop every other Friday.
We’ll still talk about the trends that are driving the markets. But we’ll also cover the wide variety of crypto sectors people can invest in, add additional context to our recommendations and invite more guests to join the show.
We hope you enjoy the new Crypto Asset Strategies. And if you want even more crypto (and startup) news and insights, please follow me on Twitter. My handle is @vinistic.