Crypto Portfolio Adjustments - Making it Lean

Jul 9, 2019 Andrew Gonci Archived

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The initial leg of a Bull Market often separates the potential winners from losers.  We are adjusting our portfolio for the next leg higher.
Overview
The initial leg of a Bull Market often separates the potential winners from losers. Not always as there will often be a laggard.  For the most part however, larger operators and smart investors were buying during the initial leg in during the accumulation stage of the cycle. This sets the tone for where smart money is positioning and we want to position where the smart money is going.  No different than the FANG play for so many years. So in preparation for the next leg higher we are going to make the following adjustments in our portfolio.  This does not imply you have to make the same.  The intent is to trim into those positions which have the highest probability of making a new ATH and with this the best chance of return on our investment. For our new menbers we will be very clear and concise when we make a add or subtraction from our model portfolio or take a position trade.
Sell to Close the Following in our Model Portfolio:
BCH - @ $416  - 1.9 =  790.0
BSV - @ $206 -  1.3  =  270
DASH - @ 155 -  5 = 775
Wabi - @ 0.19 -  1819 =  350
XLM - @ 0.10 - 2400 = 240
Cash added back to the portfolio -  $2425
 
Reasoning:
It was a tough decision between Bitcoin Cash, Monero and Elastos.  I want to get my portfolio down to five (5) core holdings and a few speculative positions.  If I am going with a long shot it is Elastos.   This is just me personally and it is up to each individual to make this decision. The reasons I took Monero over Bitcoin Cash is simply longevity and continuity of the development team.  They are also a pure play privacy coin.  Bitcoin Cash has had a lot of drama surrounding it, and the fact they rolled back the block-chain just does not sit right with me. I know someone will say "Bitcoin rolled it back in 2013".  True but this was a fork and the other miners could have continued on and let the market decide which survives.  If there was a consensus rollback today people would likely lose faith in an immutable ledger. One could argue, what about Litecoin?  It just has a better structured chart period.  In the end it is up to the investor as to what assets they hold in their wallets, and I like to be lean, not loose.  It is also the coin I use the most.  That simple. The other argument would be Ethereum which has not performed as well as BCH since the 1st of the year.  True, but with MSFT building Ethereum Apps on for Azure cloud, we are seeing adoption of this crypto in main stream. Also Ethereum has not seen the depreciation BCH has since the top.  BCH is simply a payment method and though they plan on having smart contracts, Ethereum has a huge First Mover Advantage. This does not imply we will not position trade Bitcoin Cash and build some inventory this way.  We are not abandoning Bitcoin Cash but for now we want to be lean in our holdings. As for the others, well they have just under-performed and I am looking to free up Cash to buy any dip. In the end I want to be overweight Bitcoin with a few other core coins.  Of course this again is up to the individual investor and you may decide to remain diversified among a bunch of coins, rather than focus on a few.  
Summary
We do not constantly flip in and out of equities as this is a losing game.  Yet once or twice a year we review our portfolio and make some changes.  Last October we sold some coins off before the dip.  Today we are selling more before the next swing higher. Please feel free to comment, and again this is up to the individual investor. ADA is likely to be listed on Coinbase in the near term.  At that time I will be selling out. NEO we own at $1.25 a coin so I do not mind holding the remaining inventory or even adding through position trades. BAT has a working product and is the most likely competitor to Google. Theta we threw 100 bucks at, if it works out it works out, it doesn't I will not sweat it. I think many are over-estimating a alt-coin bull run and I am not going to be in a bunch of crap coins and watch Bitcoin reach new highs, while 30 coins I own flip flop around and do not increase in value.  I may be wrong, but I am quite sure 5 years from now Bitcoin will still be around, others maybe not so likely. I will also be using any losses to offset my tax gains in others.