Here is the monthly follow-up to my blog post from a few weeks ago. In that post, I created my own sort of “ETF” with the top 20 cryptocurrencies at the moment. I recommend that you go and check that post first so that you can have the appropriate context for this update.
I’m writing this post on January 31st, 2022. However, it may get posted on Friday the 4th of February.
Disclaimers
Before we continue, please remember that this post is not investment advice in any way, shape, or form.
Now, let’s get started with the analysis.
Market Crash
Had I waited just one or two more weeks to start my portfolio, I would be in much better shape in terms of percentages. 2022 has not been very kind to either the stock market or crypto markets. Furthermore, it is interesting to see that Bitcoin and other cryptocurrencies appear to be highly correlated with the stock market. Now there is less confidence that cryptocurrencies can be good hedges against stock market swings, but I digress.
Table of Prices
Here is the portfolio as of January 31st, after a brutal market correction in the last few weeks.
| Coin | Amount | Cost Basis | Current Price | % Change |
| BTC | 0.00030695 | $48,623.69 | $37,269.91 | -23.38% |
| ETH | 0.00378657 | $3,941.66 | $2,559.04 | -35.10% |
| BNB | 0.023982 | $529.00 | $374.03 | -29.31% |
| SOL | 0.058 | $179.33 | $92.07 | -48.90% |
| ADA | 7.12 | $1.36 | $1.02 | -24.95% |
| WLUNA | 0.104 | $93.22 | $47.40 | -49.44% |
| AVAX | 0.08 | $121.33 | $66.50 | -45.38% |
| DOT | 0.352 | $27.68 | $17.78 | -35.79% |
| DOGE | 42.3 | $0.18 | $0.14 | -22.22% |
| SHIB | 164.383 | $0.0000365 | $0.02 | -42.21% |
| MATIC | 1.7 | $2.55 | $1.58 | -40.18% |
| CRO | 7.8 | $0.57 | $0.42 | -27.46% |
| LTC | 0.02859375 | $157.29 | $105.97 | -32.67% |
| UNI | 0.259222 | $17.35 | $10.76 | -38.00% |
| LINK | 0.21 | $21.15 | $17.00 | -20.67% |
| ALGO | 3 | $1.40 | $0.93 | -43.78% |
| BCH | 0.01015652 | $442.82 | $280.61 | -36.67% |
| XLM | 16 | $0.28 | $0.20 | -37.35% |
| ATOM | 0.1 | $27.45 | $26.80 | -40.31% |
| AXS | 0.043 | $102.30 | $50.70 | -51.56% |
And the total change in the portfolio is here:
| $ Invested | $ Current Value | % Change |
| $151.38 | $97.51 | -35.59% |
As the table shows, this new crypto portfolio is down over 35% in just one month. Funnily enough, Dogecoin is among the coins that held their value the best during the crash.
The best-performing coins / best-losers were: Bitcoin (BTC), Cardano (ADA), Dogecoin (DOGE), and Chainlink (LINK) with a group average of -22.8%. On the other hand, the worst performers were Solana (SOL), Wrapped Luna (WLUNA), Avalanche (AVAX), and Axie Infinity (AXS), with a group average of -48.8%.
Another interesting contrast can be seen from the dog coins. While Dogecoin retained its value better (-22.2%), Shiba Inu (SHIB) was among the worst performers. SHIB token fell by 42.2% since the start of the portfolio. I guess you could say that Dogecoin came out as the top dog in this fight.
What’s Next?
I consider myself a long-term investor, so I will likely hold this portfolio for a while. That being said, I will reconsider my stance near the end of the year, since I could take advantage of short-term capital losses to offset other gains.
I have also been thinking of boosting the number of coins in the portfolio by using lending sites to earn interest from them. Thus, I could be slowly accumulating more coins while I wait for a more favorable market.
If you are also interested in doing the same, I wrote a post about the platforms that I use to gain interest from my crypto. Additionally, many of those platforms offer nice sign-up bonuses if you don’t already have an account with them.
I also have another post specifically about 4 different ways to earn passive income with crypto.
I don’t know what the market is going to do next. On one hand, bitcoin dropped close to 50% from its peak at some point in the past week. This seems to me like a good point for other buyers to start getting back in. On the other hand, I’m not sure how investors are going to react to interest rate hikes when they happen.
I imagine that most of the scares are already priced in. However, the past few weeks tell me that investors in both crypto and the stock market are highly emotional.
Conclusion
I just wanted to share a tiny monthly update of the portfolio. If you are experimenting with some other approach, feel free to share it in the comments. I would like to see what others are doing. Also, consider joining the newsletter email. I will be sharing more info there.