The Blockchain Believers Portfolio is an easy-to-use template for investing in blockchain in a smart and sensible way. We designed it here at Bitcoin Market Journal in order to make crypto investing available to everyone.
First, let’s review the principles behind smart blockchain investing:
- Blockchain is a slice of the pie. Treat blockchain investments, like bitcoin and crypto assets, as a part of your overall investment portfolio.
- Blockchain is your “mad money.” Keep the majority of your investments in stocks and bonds, with a small percentage (between 2%-10%) in blockchain.
- Stick to safety. Within your blockchain investments, stick to the top altcoins, or other investments that you have thoroughly researched. Avoid speculation on “small coins.”
- Grow the pie. Contribute a small amount from your paycheck each month to your investments – preferably through direct deposit – even if it’s just $100.
- See losses as lessons. As with all investing, don’t invest more than you’re willing to lose – and if you do lose, see it as “tuition paid” for valuable learning.
With those principles in mind, we’ve developed two copy-and-paste portfolios that you can use to guide your own investing.
The Baby Blockchain Believer portfolio is a more conservative approach (2.5% invested in bitcoin; the rest in stocks and bonds).
The Big Blockchain Believer portfolio is a more aggressive approach (10% invested between bitcoin, Ethereum, and Ripple; the rest in stocks and bonds).
We compare these with the Non Believer Portfolio, which is just invested in traditional stocks and bonds—no blockchain at all.
Our publisher John Hargrave created these Blockchain Believers Portfolios in much more detail in his crypto investing book BLOCKCHAIN FOR EVERYONE. He showed that the performance of these portfolios had radically outperformed the traditional investment portfolio — but it’s easy to predict the past.
How would this strategy hold up over time? Let’s look at the results since we launched this portfolio when his book was published on September 1, 2018.
The stock market, measured by the Vanguard Total Stock Market Index Fund (VTSMX), has increased considerably, even given the challenges of Covid-19. The bond market, for which we use the Vanguard Total Bond Market Index Fund (VBMFX), has increased slightly during that time.
Bitcoin and crypto investments have gone through the roof, reaching new all-time highs. Our approach lets you enjoy the upside of bitcoin without betting the farm on it.
But here is the power of the portfolio: when times get tough, our diversified approach keeps the losses manageable -- unlike people who bet big on one coin and lose it all.
So far, it pays to be a believer. Both the Baby Believers Portfolio and the Big Believers Portfolio have outperformed the Non Believer Portfolio even during the harsh "crypto winter" of 2018/2019, which saw digital asset prices plunge. It's easy to make money in a boom market, but our portfolio has outperformed even during the dark days.
An Open-Source Portfolio
In the spirit of blockchain, this portfolio is open source and free for all to use, so that anyone can copy and paste these strategies for their own investments.
Moreover, our daily Bitcoin Market Journal newsletter is free to subscribe and share. Our goal is to help investors hedge their risks while sharing in the rewards.
Education for everyone. Investing for everyone. Blockchain for everyone.
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