How a $100k crypto portfolio should look like
There is clearly no model answer to the subject title, it depends on the risk appetite of one individual. The content below basically reflects my own personal opinion pursuing a moderate risk taking approach.
One may always question? How to invest in the crypto market? As of today, there are more than 20,000 cryptocurrencies in circulations. It would a headache to someone whom is new to this space, or possibly also to those whom has been around for few years since the crypto market is so dynamic and ever-changing.
For me, I would personally allocate 50% into Bitcoin and Ethereum evenly. And the remaining to split among promising bluechip coins.
The reason is very simple. Bitcoin is the king of crypto and has proven to be the number one across various bull and bear markets, no matter in terms of market cap and trading volume.
Despite without the smart contract scalability like $ETH, Bitcoin will be always treated as “digital gold” due to its limited supply and halving effects. The market has developed Wrapped Bitcoin (WBTC) to enable the smart contract capability of Bitcoin, I believe the technology will keep evolving and help Bitcoin to scale and provide more use cases.
Investing into Ethereum is no brainer like investing into Bitcoin. As the second largest cryptocurrency, Ethereum has the competitive edge given its dominating position among all Layer one players. It has over 50% of the entire TVL over all smart contracts protocols with leading projects/developers on this chain. Ethereum is like the APP Store in the crypto space and is always being treated as the premium protocol. Developers tend to build on Ethereum for branding purpose, as long as the gas fee problem will be gradually resolved after the merge.
Chainlink is the leading Oracle within web3, capturing more than 45% of market share of the entire TVL. coupled with 236 leading protocols working under Chainlink to make it unbeatable among others.
Put it simple. Chainlink is the bridge to connect between web2 and web3. Let’s imagine every corporate in the fortune 500 have needs to draw live streaming useful on-chain data, as a result they must have to go through chainlink. It opens up enormous opportunities if one has a vision that web3 is to grow tremendously in the next decade.
Avalanche is a PoS blockchain aims to be a faster, cheaper and more performant platform for dapps. Rather than using existing traditional consensus mechanism, AVA labs created “Avalanche consensus” which claims to deliver near infinite scalability and sub two second finality.
Avalanche is a hedge against my investment stake towards Ethereum. After-all competition among Layer 1 is tremendous and only a handful will last at the end of the day.
Following the shocking collapse of FTX, one might question the creditability of Centralised Exchange platforms. People are worried about parking their life saving investments on a CEX that somehow might go insolvent one day.
And Uniswap is well positioned to address that concern.
People no longer suffer counterparty risk if they choose to self-custody their coins and trade at Uniswap when necessary.
Somehow I believe both CEX and DEX will exist and function independently. Having an investment stake on Uniswap is betting that DEX to eventually capturing more market share from that of CEX. (Binance currently account for over 80% of crypto spot trading market)
SHIBA INU (5%)
As the most popular memecoin, SHIB has over 3.6M followers on Twitter and on 1.8M watchlists on Coinmarketcap. Its popularity is second to none. Put a tiny 5% of your portfolio into degen trading can possibly enjoy a face-melting parabolic bull run. So why not?
George Soros once said “When I see a bubble, I rush to buy it”
I hope you enjoyed my article. In case you would like to understand more on the timing to trade crypto within 2023, feel free to check out my previous article “How to navigate the Crypto market in 2023“.
Thanks and happy trading.
Disclaimer: This article is not financial advice