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RE: A Strategic Cryptocurrency Portfolio - The 70% Core / 30% Play Money Approach

in #cryptocurrencies7 years ago (edited)

Will follow! You've written some interesting stuff as well I see.

To answer you question: Basically with every coin I buy, I buy it for a reason. There is something (or multiple things) that make me think the coin is going to outperform my core segment and shows potential. I also try to determine the moment in the future I should be able to prove myself right or wrong. Then I pick that date as the moment when I evaluate whether I should keep a coin or not. Usually I draw my conclusions from roadmaps, announcements, rumors, Slack channels etc. But my decision can also be based on signals of very active development. So when do I step out? When a coin does not meet my expectations at the evaluation date :-)

Btw, there is already a subsequent post, the first of a series of updates on my crypto portfolio ;-) Check it out here!

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Thanks! So, in case you are not recovering the investment, do you step out from that coin as well?

Good one, should have added that to my reply ;-)

At the evaluation moment I will look at the coins future again and go through the same decision making process as before. I decide to keep it when I think it will outperform my core segment. For instance, sometimes some functionalities have a delayed release. My evaluation moment was around the initial release timing, but since it has been moved I force myself to think about it again. In the end I don't look at whether I need to sell for less or more than my initial investment. Sunk costs...