$204,279.83 in one year investing in the top 10 Cryptocurrencies!


#1

Good morning, Pub! Hope you’re having a GREAT weekend.

The past few weeks I’ve been trying to do some shorter term trades, some with significant amounts of money, and you know what? I’ve realised that I’m not that good at it, and, it’s much harder to hold your nerve with coins you either haven’t fully researched or don’t fully believe in.

This has been a great learning process for me because it’s made me realise that, primarily I want to be a HODLer. Sure, I will still have a bit of “play money” to try and keep learning about shorter term trading. But, I do think that it can be a very dangerous game. Especially emotionally!

So, I did a little activity yesterday, thinking about the longer term HODL.

I went back to coin market cap one year ago and pretended that I had put $1000 into each of the top 10 coins back then. Here are the results:

I was just BLOWN away by the gainz!

It really does go to show how short-sighted we can be in the crypto community!

I know the haters might say we won’t see those results again, and they might be right. But I’m not part of this #cryptonation because I’m an unbeliever!

I’m going to be backing the coins I believe in and gearing up for the HODL!

Are you in?


What's your weekly $100 buy?
Investing in about 20 different coins?
It's time to build generational wealth. What are your top 3 picks that will get us there?
November 11, 2017 - ROLL CALL! - Lessons Learned
#2

oh boy…great stuff mate…if only we could go back in time…hopefully the next 12 months can produce some good gains.

That NEM though…oooweee…


#3

I know, right? Some crazy gains!


#4

Wauw thats amazing. Will be interesting to see what we hodlers can gain in the next 365 days.

Would be cool to write down your wallets inventory at this moment plus its value, and see in one year how it worked out :grin::rocket:


#5

Very cool vid James. Thank you for that. thats a good one to think about :smile:


#6

Defo! Very excited to track this!


#7

Glad you liked it! It’s great to be on this space ship! :rocket::rocket::rocket:


#8

Holy cow! HOLDing is really the best strategy. :money_mouth_face:


#9

Does seem that way! I think the :key: is to pick coins you truly believe in. That gives you the hope to HODL through the storm!


#10

I’m in. I’m executing on that strategy this week (as my funds arrive from the bank into coinbase).

Thanks so much for doing this analysis.

Michael


#11

as I always say. The current market cap for crypto is around $155 billion. The current market cap for Facebook alone is over $450 billion. Crypto has a long long way to go. The truth of it is, the majority of the ‘top 100’ coins will show gains over a year, so buy those coins cheap, hold on and enjoy the ride. It might take ‘years’, but it will be worth it IMO


#12

Hey Michael, you’re so welcome! Thanks for the encouragement.


#13

Woop woop! Getting me excited! To the moon!


#14

Really interesting stats you have there…
This just shows why you should focus long term instead of short sighted gains.
Thanks for opening our eyes!


#15

You’re welcome! This has got me so pumped about the HODL!

…and it’s great that we are doing it together as a #cryptonation!


#16

That was such a great exercise, I did some more number crunching…

I took the last week of August 2016 (613 coins) and last week of August 2017 (1029 coins) and matched them up for a total of 468 pairs.

If you’d invested in every coin that came out, that would be $613k investment total. Today, you’d have $97.6 million.
If you’d invested $1000 in top 5, your investment of $5k would be worth $98.5k
$1,000 invested in top 10 was $204k on $10k, while $1000 in the next 10 (11th ~ 20th) was only $123k, or $327k on $20k investment.

If you’d invested $500 in top 20, that’d be $10k total investment for $163.8k return on investment.

So clearly, there’s definitely a law of diminishing returns and keeping your core investment confined to top 10, but I wondered if there was a sweet spot here as well as what happens if you’re top-heavy.

A little more number crunching and I found that investing $1250 into top 8 ($10k total) yields $255k while $2000 into top 5 yields $197k.

Text versions of the data can be found here: https://gist.github.com/mwlang/251a6461ebe75318335bf56e0fd54f14 along with a Ruby script to figure out any other combination of investments from that data set.

Cheers,

Michael


#17

Wow! Thanks for taking this to the next level! Suuuuuper interesting!

You the man! :rocket:


#18

Nice script @mwlang thanks for the added value :grinning:


#19

man, that would have been great if that is what you had done!!!


#20

Amazing gains. Thanks for sharing!