A Diversified, Living Crypto Portfolio

As a part of my dive into the web3 space, I’m writing this doc to understand what it means to invest in a crypto portfolio. At present, I don’t know about anything past {BTC, ETH, SOL} and one or two more coins. But, there’s lots more to invest in. I’m figuring this out here - if you’re like me, this post might be useful. Inspired partially by this post.

Areas to invest in:

  • Layer one chains (staple): main blockchains -- namely Bitcoin (BTC) and Ethereum (ETH)

  • Layer one chains (emerging): new, competing blockchains with benefits over BTC and ETH -- Solana is picking up steam, Avalanche, etc.

  • Layer two protocols: new protocols to take pressure off the computation all being done on layer one chains today (Stacks, Polygon, etc.)

  • DeFi protocols: Aave, Compound, Uniswap, etc.

  • Storage protocols: Filecoin, Arweave

  • Privacy-based: Zcash, Monero

  • DEXes: Uniswap, SushiSwap, Curve Financial, etc.

  • Stable coins: pegged to USD -- Tether (USDT), USD Coin (USDC), etc.

  • CEXes: Binance, FTX, Huobi, OKex

DeFi Protocol

Source: St. Louis Fed
Source: St. Louis Fed

NFT

Content Platforms -- Monetization Strategies

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NFT Stack -- Map of the Web

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Web3

Largely just a map of the ecosystem -- mapping I found to be useful

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References

Thanks to the authors of these posts -- they helped me pull this together.