What Crypto To Buy? | The Ever-Lasting Question Month-on-Month

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1 year ago

Topics: Bitcoin, Ethereum, Utility Coins, Shit coins

Disclaimer: This looks like financial advice, doesn’t it? You look at it from the right, it even looks like I am pushing you to do what is written in the article. If you put your head down and think, you may be convinced that this indeed is financial advice. If you close your eyes, it may seem logical to do what is in the article.

Even then, Do Your Own Research! This is not financial advice! 😊

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The Crypto Buying Dilemma

There is no argument on which coin to buy when you go out there to buy crypto. We know the bulk should go towards Bitcoin and the next best, Ethereum. But then that ever-present itch to try other cryptos, gets me now and then.

I mean, during the last bull run and even the downturn, exchange coins were quite a thing. BNB led the market in the exchange coins case and then there were Ku, OKX, and whatnot. I had only looked at BNB back then. Only the FTX collapse brought to the fore that centralized exchange tokens have no merit or fundamentals in their creation. It is just a liquidity-creating instrument for the exchange owner.

So, this time around even that was out. What do I do then?

BTC and ETH | Followed By Applications I Use | Followed by Shitcoin For Pure Speculation

I already mentioned that BTC and ETH are a must-have in your portfolio and it is part of mine too. I will just increase the percentage over the next few months. So far so good and there is no rocket science there.

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Then What About the Next level of tokens/coins?

There is a next level of tokens and coins and here I use the general principle of only going for those which I am using. In other words, these are tokens that are created out of utility for the end user in some way. So, there are tokens from writing sites, gaming sites, and a few others, but not the ones which I am not using.

Some of the tokens are as follows:

Hive, LEO, POB – All three are site-cum-community tokens from the Hive Blockchain where I write. The site hardforked from the Steem blockchain.

SPS, DEC, GLX – Gaming tokens on the Hive Blockchain. Again, these are games that I play.

XTM, BCH – Again, tokens that I earn from writing sites. Of course, BCH is a more famous one - the younger brother of BTC.

WRX – This one is a contradiction. Why? Because this is a centralized exchange token and goes against my logic of not holding any. The only reason I hold it is because of the reduction in the transaction fees on my home exchange. And, of course, it appreciates too.

There are other logical tokens to have like Matic, XRP (assuming the SEC verdict goes in its favor), BCHA (ecash), AXIE, and many more. I know they make sense and I do keep putting some money here and there. But never fully invested in them.

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And Then There Are the Sh*tcoins

This is where you know you are going to lose the money and the only reason you put money anyway is because you want to speculate and win. So, the ones I buy here are:

Doge – Okay, no biggie here.

Shib – no biggie here either. The only reason I bought this one was because I do play their Shibarium game. I like that one and hence am not averse to buying Shib.

Floki – don’t ask me why. I saw them on Alfa Romeo cars in F1 last year and bought them.

Evergrow Coin – just bought it for the sake of BUSD reflections. It is sitting pretty in my Metamask.

RichQuack – I bought it just because they advertised like crazy on Twitter. Logic? - No. Emotions? - Yes. Alright, they also have a big community. The shitcoins work on the community backing alone. So, yes, I bought this one without regrets.

Now, the problem with this third type of token/coin is that we get in that urge of buying more because if it goes up, it goes up real big. This is something I need to learn to avoid. If that can be handled then the real focus should be on the first two varieties.

How Does My Funds Distribution Look?

I hold approximately 51% in BTC and ETH while 35% of the application tokens. The last variety is about 14%. These percentages are pretty dynamic. At one point, I had about 80% of BTC alone and just 20% of everything else. And then there was this one month, I think it was October 2022, when I had 61.5% of shitcoins. I was just crazy to be at that level, but thankfully I could exit without getting hurt and put the money in the right place.

The only problem I have is figuring out how to use the new money that comes in. Should I buy or explore new tokens, or should I just average buy (or DCA) existing coins/tokens? Even if I settle for the latter then which one should I DCA? Is it Bitcoin (obviously, yes), or is it shitcoins (obviously, no, and yet I do it out of some weird emotional response)?

This is my biggest challenge.

So, DCA? | Or Invest in New Tokens/Coins?

This is a tricky one to answer, and we will be swayed by what we see in the market or what we read. So, I kept a simple rule for the next five months. I will only be DCAing whatever I am holding for the next five months. The bulk goes to BTC, of course, and then the rest.

So far, I have been doing fine, and let’s see if I can continue to stay disciplined for the next few months.

That’s it and I will see you all soon.