This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $1200 worth. I really encourage you to check them out.The makeup of your crypto portfolio should be specifically determined by the type of investor you are and your personal investment goals.A well diversified portfolio with exposure to every facet of the crypto ecosystem should, in theory, see slow and steady progress, inching up somewhat consistently with time. Crypto is very volatile in general, so this is all relative! We are not comparing it to bonds or fixed income. A well balanced portfolio should track the ebb and flow of the macro crypto market, which has always risen over time.A portfolio that is extremely concentrated is likely to see more explosive moves in both directions. A highly concentrated portfolio (all NFTS, all DeFi, all dog coins etc.) can vary drastically from the direction of the macro market and is far more likely to behave separately. This can be an incredibly good thing if you choose well, but more often than not leads to greater losses for an emotional investor.There are caveats to both of these theoretical outcomes.An investor with a diversified portfolio can hit the jackpot on a small-cap coin, dragging up the entire portfolio and overshadowing the other investments. Of course, the portfolio would no longer be balanced, and the investor would have to rebalance - a good problem to have. The benefit to solid diversification is that your downside exposure to any single asset is limited. If a small-cap goes to $0, it is unlikely to make a huge dent in your portfolio if you are properly allocated - it would take an entire market collapse to wipe you out.An investor with a concentrated portfolio can see a number of outcomes, as his success or failure is entirely dependent on a single asset or group of coins. A portfolio composed entirely of Bitcoin looks very different from one entirely composed of a single small cap. Going all in on a high-risk asset brings you much closer to the possibility of 100% downside volatility - if the one coin goes to 0, so does your entire portfolio.What kind of an investor do you want to be? Once you answer this question honestly, you can decide what portfolio structure works best for you. The more you diversify, the less emotionally attached you will be to any particular investment. The more you concentrate, the more open you are to larger price swings, emotional highs and lows, and higher risk/reward.Decide what works best for you, make a plan, and stick to it, come hell or high water.Chart Request Live Stream at 1:30 PM EST. Please follow the rules. I cannot take requests at any other time, so if you send them during a different window they may not get charted. Remember, no more email requests.1 chart per person, per weekSubmit your request between now and 12:30 PM EST.You can only submit your request through the link below.If it is not on TradingView, there is a chance I will not able to chart it.REMINDER: I can only do so many charts on the livestream. My assistant picks 25 random requests from everyone’s submissions and those are the coins I chart.Chart Request FormYouTube If you are a new member, please refer to THIS BLOG for instructions on how to make my charts your own.In This Issue:Portfolio StructureCrypto's Metaverse - IntoTheBlockBitcoin Thoughts And AnalysisAltcoin ChartsCoinbase Offering LoansEl Salvador Is Putting Its Bitcoin Profits To Good UseAthletes And Politicians Want BitcoinMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO
The Wolf Den #364 - Portfolio Structure
The Wolf Den #364 - Portfolio Structure
The Wolf Den #364 - Portfolio Structure
This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $1200 worth. I really encourage you to check them out.The makeup of your crypto portfolio should be specifically determined by the type of investor you are and your personal investment goals.A well diversified portfolio with exposure to every facet of the crypto ecosystem should, in theory, see slow and steady progress, inching up somewhat consistently with time. Crypto is very volatile in general, so this is all relative! We are not comparing it to bonds or fixed income. A well balanced portfolio should track the ebb and flow of the macro crypto market, which has always risen over time.A portfolio that is extremely concentrated is likely to see more explosive moves in both directions. A highly concentrated portfolio (all NFTS, all DeFi, all dog coins etc.) can vary drastically from the direction of the macro market and is far more likely to behave separately. This can be an incredibly good thing if you choose well, but more often than not leads to greater losses for an emotional investor.There are caveats to both of these theoretical outcomes.An investor with a diversified portfolio can hit the jackpot on a small-cap coin, dragging up the entire portfolio and overshadowing the other investments. Of course, the portfolio would no longer be balanced, and the investor would have to rebalance - a good problem to have. The benefit to solid diversification is that your downside exposure to any single asset is limited. If a small-cap goes to $0, it is unlikely to make a huge dent in your portfolio if you are properly allocated - it would take an entire market collapse to wipe you out.An investor with a concentrated portfolio can see a number of outcomes, as his success or failure is entirely dependent on a single asset or group of coins. A portfolio composed entirely of Bitcoin looks very different from one entirely composed of a single small cap. Going all in on a high-risk asset brings you much closer to the possibility of 100% downside volatility - if the one coin goes to 0, so does your entire portfolio.What kind of an investor do you want to be? Once you answer this question honestly, you can decide what portfolio structure works best for you. The more you diversify, the less emotionally attached you will be to any particular investment. The more you concentrate, the more open you are to larger price swings, emotional highs and lows, and higher risk/reward.Decide what works best for you, make a plan, and stick to it, come hell or high water.Chart Request Live Stream at 1:30 PM EST. Please follow the rules. I cannot take requests at any other time, so if you send them during a different window they may not get charted. Remember, no more email requests.1 chart per person, per weekSubmit your request between now and 12:30 PM EST.You can only submit your request through the link below.If it is not on TradingView, there is a chance I will not able to chart it.REMINDER: I can only do so many charts on the livestream. My assistant picks 25 random requests from everyone’s submissions and those are the coins I chart.Chart Request FormYouTube If you are a new member, please refer to THIS BLOG for instructions on how to make my charts your own.In This Issue:Portfolio StructureCrypto's Metaverse - IntoTheBlockBitcoin Thoughts And AnalysisAltcoin ChartsCoinbase Offering LoansEl Salvador Is Putting Its Bitcoin Profits To Good UseAthletes And Politicians Want BitcoinMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO