Friends, Family, & Fellow sovereign-individuals:
October was a good month: our portfolio is up +33%. (~3000% annualized)
Easy explanation: all 3 crypto majors BTC, ETH, & SOL are each up ~33%.
Plan = diversify + hold: we’re entering ~90-day-phase of parabolic price discovery.
Final Reminder of the best 4 ways to be involved in crypto → scroll to bottom.
Last month: September was rocky, volatile, and net-negative if you were holding a market-cap-weighted portfolio of majors (66% Bitcoin, 30% Ethereum, 4% Solana).
This month: A wide range of fund-managers, crypto-traders, and analyst-degens I follow on twitter were prepping for a consolidation breakout mirroring last October 2020… and sure enough we had a similar compression-then-spring effect.
Now: We still hold a balance of leading layer-1 protocols (BTC + ETH + SOL), but through rest of the year will be diversifying into a range of strategies including the 8 I shared in original doc: especially YieldingStables, MintDrops, & HyperGrowth.
By the way, we’re still WAY outperforming all other investments you & other boomers are still holding in your 401k, RothIRA, pension-plan, and CharlesSchwab account: here are IRRs over the same time period for stocks (+19%), bonds (-9%), gold (+7%), real estate (+8%), commodities (+18%), and the US dollar index (-2%).
Since COVID-lockdowns started, my personal-account IRR = +393%.
And since accepting investors shortly after, rolling blended IRR = +80%.
Below are 4 slides from my OG investment deck, but first with added commentary:
Early: Yes, I bought BTC @ $2400, ETH @ $300, SOL @ $5 → my advice to crypto rookies is still to just buy these 3 with 1-10% of your net worth and hold forever; don’t check prices nor try to time buys/sells unless you’re trading >10 hours/week.
Backtest: an all-time-high price-break is still the best risk/reward-adjusted time to buy Bitcoin and hold for the next 3-8 months; so from now until Jan-June 2022.
Plan of Attack: during parabolic price-discovery above all-time-highs, usually smaller-cap tokens have higher % upside during the advance; so I’ll be rotating into them when the daily BTC.Dominance indicator tops and starts trending down.
Risk-Very-On: in crypto there’s no such thing as risk-OFF, only risk-ON and VERY-ON. In the latter category I have 5 active strategies: DefiBluechips (with a better mix than Coop’s $DPI), HyperGrowth (PMF traction evident in value fundamentals and price acceleration), ConvexOption (mostly calls + protective puts), MintDrops (opportunistic cheap NFTs or token airdrops), & FanFaves (yes, meme-tokens).
Let me be clear: the next 90 days will be the most dangerous time in Bitcoin’s 4-year-cycle for crypto rookies to try trading, timing, or outsmarting the market. Please, instead of doing anything stupid, pick at least one of these four:
Buy & Hold with a plan to not look at crypto prices for >10 years.
Play Around in web3, NFTs, & crypto wild-west with money you’re okay to LOSE.
Jump In full-time and join other cryptonites building a better open internet.
Outsource your portfolio-management to professional help – yes, like Sovereigns.
As always- thank you for your support, faith, and trust to let me do what I love most: helping friends, family, and fellow sovereign-individuals … diversify, encrypt, and grow their wealth… in a world drowning in corrupt money.
wagmi.
– Sovereign