Managing a 100.000,00 EUR longterm Crypto Portfolio
Seperate investments like FACTOM are not included, I only use the coins which will stay in my "retirement" portfolio and which I think are the coins with the best future development.
The rates are as follows:
The chart represents the total value of the above listed coins by these ratios.
If the total value rises they gain weight against BTC and the opposite.
BTC (excluded) 50%
You should always hold 20-25% of your total crypto portfolio as FIAT.
This guarantees you are never stuck bagholding a position and gives you the possibility to do short term trades to buy dips and increase your Crypto or FIAT holdings.
Rebalancing after 30 days:
Choose a day in a month where you rebalance your portfolio to maintain the above rates.
For example next month your total crypto portfolio increased from 100.000 € to 120.000 €
Now we take these 120.000 € and multiply it with 0.02 to see how our REP balance should look and we get 2400 € .
If your REP balance is now above this number you sell so many REP tokens that you have 2400 € left in REP.
If the balance decreased, you buy so many REP that it is back to a 2400 € value again.
Do this for all other coins to always maintain the above ratios.
Of course everyone should decide what coins and ratios are best for yourself, because everyone has different preferences.
PLEASE NOTE: THIS IS NOT A TRADING PORTFOLIO.
It is for the longterm use only
This Strategy is rather more interesting for early investors who bought latest in Jan-Feb 2017 before the huge bull runs as most people became pretty wealthy during that time.
I hope you like my approach of money management and look forward to your comments
I'm struggling with the rebalancing idea, I get it in principle, but on occasion you will be profit taking from more successful projects and supporting the losers. Yes it will average out the peaks and troughs, but how often to you reassess which bags you are holding, or their proportion overall?
Their proportion must be adjusted to risk and marketcap. For example you can add higher % in bigger marketcap coins as they will remain the strongest.
If you buy a looser like Stellar you should no longer add to it since it corrected too much. below 60% corrections tend to end in a bear market, which doesnt directly mean they will never come back, but simply that there can be better performers for example NEO, OMG and QTUM.
You decide if you want a living portfolio or if you want to stick to the coins you choose from the start. The first requires more work of course.
The most important thing is that at least 80% of your portfolio is tied to high marketcap coins (top 10 at best) and they also come back with force after big corrections