I will try and keep this as current as I possibly can over time.
As always, make sure you read the disclaimer, and understand this is not investment advice. Most of these coins and tokens were purchased at a cheaper price than where they are now, and I cannot officially say whether or not I would endorse any of them at their current prices.
This is my crypto portfolio as of December 3, 2020, and I do not plan on buying anything for another month or two. Any extra money I make this month, and likely next, is going into cash.
Criteria
I am only interested in large cap and mid cap coins. Crypto on its own is already a high variance, high volatility market. No need for me to sit here and try to shoot the moon. These are buy and holds.
It also has to be on one of the four exchanges I’m on, or included in my hot wallet. Four is way too much for me, honestly. I have mentioned before how I am a fan of diversifying your money and spreading it out, but even I have to admit this is getting silly.
I already have four crypto exchanges, a physical metals account, two FX accounts, one stock brokerage account, PayPal, Google AdSense, and four bank accounts. It has officially gotten ridiculous. I will be looking to consolidate some of these come 2021.
Edit 2/19/21 – I have deviated from this already. At the time, the best chance for real upside with the least chance of downside was on the large and mid-cap coins. Now I’m hunting for value, and this has shifted to the lower-cap coins IMO. To mitigate risk, I am taking crypto gains and rolling some of them over into a lower-cap gem or two, so it can be a “free play”. For the most part however, I am still tilted heavily towards the larger coins going forward. See my adds further down.
I am not a super crypto nerd, super crypto nerds might take issue with some of the things I say here, and I’m fine with that. No need to chime in, you just do you.
I am a finance guy however, and sleeping on what could very well be the future of finance, even if it’s for only a decade or so, is a huge mistake. All of you reading this should at least be staying up to date on this space. No excuses not to, even if you hate it.
You are officially finance people too now. We will always have a specialty of course. I’ll be an FX specialist for life. But it makes zero sense not to also be learned in the stock world, the commodities world, and now the crypto world as well. Zero sense.
The ability to be on top of what’s going on the in the world of money, while the rest of the planet looks around in confusion and scratches their butt cheeks is the one thing protecting us from a very uncertain future in the world of finance. Do not screw around here.
You aren’t required to participate, just have a plan ready, and be able to strike when it’s time, and before everyone else finally figures it out.
But bonus points for participating, for sure. Cryptocurrency could very well go down in a once-in-a-three-generations opportunity when it’s all said and done. And we had plenty of time to enter. At NNFX, we play it smart by using strict money management, and by putting the odds in our favor at every turn.
Even with high-variance markets and sectors, the odds can be disproportionately in our favor, and I believe it is here.
Below, I will list what cryptos I am holding, and why. You will also see updates in italics as I trim positions or get rid of one altogether.
Bitcoin
Already made an entire blog post about this one. The ecosystem this time around is entirely different than it was before. I’m happy with my choice here, without a doubt.
As far as adding on, I will not be adding on past $20,000 per BTC. I don’t have much of a solid reasoning for this, other than “Hey, you gotta stop somewhere, amirite?”
Money management-wise, it’s hard to replicate a lot of the structures we use on the channel, so your Buy and Hold playbook is important here.
Keep in mind however, if this really is the future of money, and once BTC runs out and becomes coveted, there really is no logical place to exit out completely. You just have to play it by ear, which totally sucks, but it won’t feel so bad if BTC runs to $500K or more like some are predicting. Luxury problem.
1/4 of my position closed. Initial investment recouped. Free shares now.
Ethereum
This is the one I have been choosing to add on to when I get the opportunity. The future is crazy bright. It’s the one chain everyone else wants to build on. Buterin is a genius, the funding behind it is tremendous, and the sky really is the limit here.
Will it get replaced in the future? Certainly could, but if you had the chance to get into something like MySpace early on, you wouldn’t think twice about it. I see MySpace earliness with Facebook upside. Lots of institutional money agrees, and provides a nice cushion below.
XRP
UPDATE – As of December 28, 2020 I have traded in all of my XRP for more ETH. This is on the heels of the SEC investigation going on right now against Ripple Labs and its founders.
The SEC does not lose. What’s worse, is that US citizens can no longer purchase XRP on exchanges. Not sure if this will last, and XRP is “cheap” right now, but hear me out on this.
There is so much upside to larger cap coins like ETH, ADA, DOT, and LINK, that I feel very little desire to chase lower cap coins at this point, or projects like XRP which have hurdles and headwinds that these other projects do not.
Still rooting for you guys in XRP-land, I hope it does moon. The community deserves it IMO. But I will say, not being married to these projects does have its advantages.
Litecoin
You just can’t keep Litecoin down. I’m probably heavier into this one than I want to be, but with an ambitious founder, huge community, and as much as I make fun of things like Mimblewimble, you certainly want to be in projects who are constantly trying to bring new innovations to the forefront.
PayPal chose LTC as one of their available coins, which is huge, and if I look back on it, this has been the one non-stablecoin I have transacted with in the past, and it really is lightning fast and a simple process. As far as transactions go, nobody is going to want to transact with BTC or ETH, people would much rather hold those. If LTC can go down as the top transactional non-stablecoin, this is big.
Once people have gobbled up supply of BTC, what is next down the list in terms of scarcity? It’s Litecoin. There are only 84 million Litecoin in circulation. This means something. Lots of funds out there look specifically for scarcity. I want more Litecoin going forward. What’s next after Litecoin as far as scarcity goes? Believe it or not, Bitcoin Cash, who also only has 21 million in circulation, and at a much lower price. Just sayin.
1/4 of my position exited. Initial investment recouped. Free shares now.
Chainlink
I traded in my Dash for Chainlink awhile back, and while I really like Dash, probably even now more than ever, I certainly don’t regret the decision. Huge gains.
To me this is like investing in Cisco early on. LINK is the best-of-breed in the oracle space, which people would be crazy not to be a part of. LINK has a huge lead on everyone else. There are some other intriguing plays in the space, but they have massive amounts of catching-up to to. Interested in adding more LINK down the road too.
Cardano
Boy do I love this one. So sexy. Another genius founder who really played the long game and took his time, and now it’s paying off big.
ADA has the real chance of becoming the blockchain of choice over time, but even if it doesn’t, the upside is still fantastic. It has the luxury of sitting back and watching what ETH does, then improving on it by avoiding the problems which crop up with ETH sometimes and bog it down.
It’s only other competition I see right now is Polka Dot, which is strong, but it’s really the only other legit competitor I see currently. And it’s probably not going to be a winner-take-all scenario either. One can be Twitter, one can be InstaGram, fine with me.
On the top end, it could end up being the “next Facebook” to Etherium’s MySpace (in my made-up crypto parlance), but even if it’s not, getting in early on the next Twitter, Slack, or Reddit as a consolation prize is no small feat.
Uniswap
DeFi looks like it’s here to stay, and this is good for the citizens of the world. So may ways you can go here.
Lots of speculators out there right now in this particular space. Lots of growing small caps can be traded and held at the “Uniswap Casino”. Which one will you choose?
My choice is the casino itself, thank you. If given the choice, I’ll always take the casino over the gamblers. Uniswap is where a very high amount of the gamblers play right now. It’s only challenge at this point is to make sure it remains that way. I’m keeping a close eye on this space.
Update 2/19/21 – People have asked if I want to get into competitors like Sushi and 1inch, and my response is I’d rather sit back and wait for better value in the space. Missed Pancakeswap, but there will certainly be more opportunities to enter the DEX space down the road. No need to rush.
Crypto.com Coin (CRO)
What a complete dog turd of a coin this is. I decided to try out the indigo version of their credit card, and stake MCO, which later turned into the much maligned CRO.
I actually do like the card. I still have a short-sale with my old condo still on my record, so I’m not eligible for any of the nicer credit cards out there anytime soon. This card at the very least gives me 3% back (which they give to me in CRO) on everything.
By getting reimbursed in CRO dog turds, I also get “free” Netflix (which I’m getting rid of once I finish Ozark), free Spotify (which I love), Amazon Prime, and an airport lounge pass, which is nice because my Priority Pass just expired.
But this CRO token is for the birds. I was suspicious of this too. How can you continue to give me and everyone else all of this free CRO, and not dilute the shit out of its value over time?
I remain somewhat optimistic here however. The app is great, the platform is cool, and although I think it’s growing too fast, unlike a lot of crypto projects, you at least know the effort is absolutely there, and growth is a priority. It has a really nice lead on most of its competitors as I write this.
Perhaps being an early adopter will pay off someday. In the meantime, I really do like the card and will continue to use it. Super easy to use out of the country as well for what it’s worth. No need to call my bank and do all that shit, I just hit a switch and I’m good to go.
Not to boast but if I’m being candid, my other positions have done well enough to where I can afford to be patient and possibly ride this one all the way down to zero with not much regret.
Edit 2/19/21 – CRO is finally coming back to par, but it’s still a shit crypto. I will continue to stack however in terms of the 3% “cash back” on the card.
Basic Attention Token
We have hit the drop-off point. I am not heavily invested here. This is what you receive every month when you use the Brave browser. There is no reason you shouldn’t be on this too. No ads, which viewers of NNFX know I particularly hate more than most people do, and above anything, you get free BAT!
A lot of strong names in the crypto YouTube space are suspiciously high on this one too for 2021. I guess we’ll see. I’m not gonna buy any, but I’ll certainly keep letting Brave browser send them to me.
Etherium Classic
A subscriber who mines ETC sent me one of these last year, and my wallet won’t let me exchange it, so I’m just gonna smile and keep it. Thanks, if you’re reading this!
Bondly
Updated 2/19/21
This is my first low-cap buy. I got in at 80 cents (worst price ever) on 2/19/21. I’ve been keen to the NFT space for months now (see my interview on DCL Blogger’s podcast), and it got popular in a hurry come early 2021. Even Gary V came in and put his blessing on the space in a big way, and he rarely misses.
Instead of buying collectables, which I have zero eye for, I would rather play the space on a broader scale. Kind of like playing an ETF instead of a stock.
The brightest minds in the NFT space that I know of are all bullish on Bondly. There are a good handful of tokens out there like this, but Bondly has gotten ahead of the game as far as getting influencers on board, and building the bridges between NFTs and the unwashed masses.
Something very interesting as well — this has Ellio’s blessing. EllioTrades is one of the largest crypto channels on YouTube. By the time you hear Ellio recommend something, it’s already too late. Price has already gone nuts. He has praised this coin in the past, but he did it on Bondly’s YouTube channel, so almost nobody saw it.
NFTs have such ridiculous upside, I don’t want to walk away with no pieces of it. I have a plot of land on Decentraland, and some Bondly. I’m good for now.
1inch
Added 4/4/21
I wanted more DeFi exposure, and I’m not ready to dive into the lenders just yet, so I took another Dex play. 1inch is a superior product IMO to UNI and CAKE, and the pullback was just right. They have added access to the Binance Smart Chain as well. I see less downside here, and continued upside as DeFi grows.
USDC
My stablecoin of choice. Great for transacting. If you’re on Coinbase, this is the only coin you can buy there to my knowledge, and not get bent over in the process. Then you can send it to a less-rapey exchange and use it to buy the coins you really want.
And I know, it’s centralized, but I’m not looking to be sneaky here. I’m an American with an American passport. My privacy has been dead for years. No escaping it. Just gotta accept it.
You may have noticed in my Bitcoin blog post, I was listing my current holdings, and also had Zilliqa at one point. I traded it in for USDC, and then later bought Uniswap with it. We’ll see how it goes.
Money Management
I will make updates here occasionally, but I will probably not remember to update every time I take profit or sell for a loss, nor am I required to. I am not a signal service, and I don’t owe you anything.
This is the most important section in the blog post. So many crypto holders are going to get rekt if they do nothing but hold. Read this closely.
All they have known is alpha. And when things go down, they go right back up again. Why study up on history? “It’s different now”. It always is.
It’s not their fault for being young and inexperienced, but as a result, most of them also have shitty financial psychology, as does just about everyone who doesn’t watch my videos. Once BTC reaches a certain level, this becomes their new normal, and they are no longer satisfied with it.
When will they become satisfied? Never, and that’s the problem. If the price drops, even precipitously, their standards are already set, and they will either “buy the dip” because it’s worked every time prior, or they will simply wait for price to come back up to where it was before.
There will come a point in time where that day is no longer coming. But many will still hold anyway. All the way down to who-knows-where.
They all look like this, I’m 100% convinced.
They never once took profit, and now they have little to show for it. They had 20X gains on one position, and did nothing because they were convinced in their own zero-experience heads it was going much higher.
They are they guy I mentioned in a video long ago, who went to the blackjack table with $100, played it up to $2000, then walked away with nothing.
The concept of scaling out is laughable to them. Why trim a position that’s going to the moon? Do you hate money? Remember, these are people whose only frame of reference when it comes to finance is cryptocurrency.
Young guns, listen up. You NEED guys like me. Guys who are a generation above you who also love crypto, but are true finance guys and have also known what it’s like to have the market fall apart right in front of you (and not like in 2020 when it just rebounded right back up).
You need guys like me who know what it’s like to hold something and have caviar dreams (pulling my dick out and telling my boss “I quit” for example), only to have those assets fall, refusing to give up on them, then coming out of it all with nothing.
I love money, and that’s why I take profit here and there, moving stop losses up as I do. Just like in Forex, you’re not going to get all 600 pips in that 600 pip move. But you will make good money, to where most people will take part in that very same move, and not make any at all.
I stated on Twitter, right around when BTC broke $23,000 USD how I was putting a “trailing take profit” for 1/4 of my position at $2050. BTC has done nothing but go up since, and the trailing TP has not gotten triggered, and has since gone up with it.
I have done the same with LTC as well, as of today, the 30th of December, 2020. That recent move up was awfully curious.
If I take 1/4 profit on BTC at $28,000 for example, and the price of BTC goes to $400,000, some will point and laugh, but they’re the same people I just described above.
At that point however, I will have made back my initial investment, and all of my shares will be free. It’s a great feeling, and smart management.
Money management is a rare and beautiful lifetime skill, which will keep on giving over and over again, regardless of what you’re investing in.
Once you cash out, if you don’t depend on the money you just cashed out for, the aristocratic thing to do is to move that money into something cheap, thus keeping the cycle of gains going.
Rich people for centuries have moved into something neutral like cash and let it sit there until they felt things were going to go up again. In the case with crypto, many feel like we’re just getting started, so now there are many additional options, including digital cash (stablecoins), and digital gold/silver (Digix, Paxos Gold, Lode, etc) if you insist in keeping it on the blockchain.
You really do get a nice opportunity to become more diversified as you take profit. You can certainly buy back your crypto at a cheaper price if it gets there, but there is ZERO wrong with putting it in an asset which gains less over time for the sake of diversification.
If that last sentence didn’t make sense to you, trust me, it will someday.
Future Possibilities
As I mentioned at the top, I’m not buying anything else for awhile, but I am also interested in….
DASH (again)
DOT
MATIC
SNX
VET
THETA
Edit 2/19/21 – Aaaaand I got assed-out of all of these. They all ran big. It happens, no regrets, I did not have the allocation for any of those at the time, so why cry about it? Always more opportunities to be had.
Everyone has their favorites and their reasons why. No need to tell them to me. I have my trusted sources, and that’s who I go with.
Let’s just hope the future of money, whatever it is, is as “for the people” as it possibly can be.
I won’t hold my breath. I’m just hoping things like gold and crypto can protect us and our future.
— VP