Cumulative Crypto Portfolio
Key Insights
- A 50% allocation in coins such as BTC, ETH and BNB allow for long-term value retention.
- DeFi platforms bring growth potential as demand increases from users seeking anonymity and decentralization.
- Meme coins, despite being highly speculative, can provide asymmetric upside from viral rallies.
This cumulative portfolio consists of stablecoins by 50%, fundamental projects by 30%, DeFi projects by 15%, and meme coins by 5%. All the coins listed below are available for fiat or crypto on SimpleSwap.
Stablecoins (50%)
We store our fiat dollars in digital ones, which allows you to always be ready to buy coins at great prices. Let's divide it into 3 most proven stablecoins.
What Is Stablecoin
A stablecoin is a type of cryptocurrency that is backed by reserve assets, such as the U.S. dollar or gold, to provide price stability. This backing makes it less susceptible to market fluctuations.
The fact that stablecoins are backed by something makes them more attractive as an exchange medium and as a store of value. These characteristics make it more realistic for stablecoins to become a substitute for fiat money.
Below are stable coins that we chose for this crypto portfolio:
- USDT
Tether (USDT) is the third cryptocurrency in terms of market capitalization (after Bitcoin and Ethereum respectively), and is the largest stablecoin. USDT is a coin that is pegged to the U.S. dollar and backed by Tether company’s dollar reserves.
- USDC
USD Coin (USDC) is a digital currency that is backed 1:1 by U.S. dollar. It is a tokenized U.S. dollar, with the value of one USDC coin being as close to the value of one U.S. dollar as possible. USDC is a stablecoin, designed to maintain a stable value.
- DAI
DAI’s price is pegged to the US dollar rate. Stability of DAI is guaranteed not only by its peg to the dollar, but also by its use of Collaterilized Debt Positions (CDPs) and smart contract technology.
DAI provides stability in the face of volatility. It is a cryptocurrency that automatically responds to changing market conditions to maintain a stable value against major world currencies.
Fundamental Crypto Projects (30%)
We need number 1 crypto in the portfolio to store the value of funds. Bitcoin is comparable to gold in its limited issuance, but has a higher degree of mobility. Over the entire history of BTC existence, globally, it’s shown exceptional growth, which is associated with the development of the crypto industry and the influx of funds.
The future of Bitcoin as an investment asset, though, isn’t defined, therefore it’s not worth investing the entire amount allocated for investment in crypto.
- ETH
The second biggest crypto is bought to store value, too, but to a lesser extent than Bitcoin, since Ethereum is more “applicable”. Ethereum is an ecosystem project where you need to spend ETH coins to use the ecosystem’s products.
Thus, we believe in the development of Ethereum as an ecosystem and the growth in the use of its coin, which contributes to the growth in value.
- BNB
Binance Coin (BNB) is a cryptocurrency that facilitates trading and fee payment on the Binance cryptocurrency exchange. Originally built on the Ethereum network, BNB now serves as the native currency of Binance's blockchain, the Binance Chain.
DeFi Crypto Projects (15%)
The high growth of interest in crypto regulators in different countries pushes more users seeking anonymity in DeFi. Here are coins of 3 popular DeFi products selected by us.
- UNI
Uniswap is a decentralized crypto exchange that uses an automated market making (AMM) model to provide liquidity for crypto trades without an intermediary. Uniswap runs on the Ethereum blockchain and was one of the first DEX to gain widespread adoption.
- LIDO
Lido Finance is a platform that allows users to earn rewards from staking their crypto assets without actually locking them up. This process is called liquid staking. With this platform, users can deposit their Ethereum and receive Lido crypto tokens in return.
- AAVE
AAVE is a decentralized, non-custodial liquidity market protocol, which users can participate in by either supplying or borrowing. Suppliers provide AAVE liquidity to earn a passive income, while borrowers can borrow in an over-collateralised (perpetual) or under-collateralised (one-block liquidity) manner.
Meme Coins (5%)
What Is Meme Coin
To further provide portfolio diversification, we included here the meme tokens, each of which has its own unique features and symbolism. This makes them attractive to various investors and fans of viral content.
Some of the meme coins, like Dogecoin, started out as a joke but have become ones of the most recognisable crypto projects. Their symbolism give the project a unique and friendly character. Meme coins have quickly gained popularity thanks to its community, memes, and massive support.
We buy some meme coins and wait for a random pump.
Shiba Inc, also known as SHIB, emerged as an offshoot of Dogecoin and quickly gained popularity. Its symbolism is associated with the Shiba Inu dog and memes, which has made it attractive to investors looking for high growth.
Summary
Besides material benefits, diversified portfolio is more stable and brings peace of mind, including in terms of risk management. All investments won’t decrease in price simultaneously. A more predictable return with less volatility helps investors reduce stress, stay focused, and avoid impulsive investment decision.
Users can get any of the portfolio coins on SimpleSwap or via the widget below this article.
The information in this article is not a piece of financial advice or any other advice of any kind. The reader should be aware of the risks involved in trading cryptocurrencies and make their own informed decisions. SimpleSwap is not responsible for any losses incurred due to such risks. For details, please see our Terms of Service.
