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I decided 10 days ago to make a small (0.2% of my portfolio) in Ethereum through the Fidelity ETF. I decided on Ethereum over Bitcoin only because Ethereum had fallen in price quite a bit at the end of January.
Just curious how many of you have any crypto investments and if so how much of your portfolio and which crypto currencies (all Bitcoin?)
I must say that I’m a little more exposed to this industry as my son is with a cryptocurrency brokerage and digital asset organization. Not that I understand it well at all.
Coinbase, a crypto company which was just added to the S &P 500, reported it was hacked resulting in losses in the $400M range. You can read the details here: https://finance.yahoo.com/news/coinbase-hack-rocks-company-led-213619102.html
I don’t understand why/how employees in India would have access to customer data which they could steal and sell to thieves.
And yet the administration on March 6 issued Executive Order establishing a Strategic Bitcoin Reserve 🤷♂️
I haven’t directly invested in bitcoin, but I did buy a small amount (less than .25% of my investment account) of BITO, a bitcoin ETF. Thus far, the investment has returned between 3-5%, PER MONTH. I consider it a high risk investment, and limit the investment accordingly, but the initial investment is about paid off at this point.
For the skeptics…I allocated 5% of my portfolio to BTC five years ago. It’s now 11% via growth. It’s not that the rest of my portfolio hasn’t grown. I carry many T-bills and low-beta dividend stocks in tax-deferred accounts. Bitcoin is my Alpha.
I invest in Bitcoin and Solana. Bitcoin is the only hard asset in crypto. Ethereum is transactional, as is Solana. Solana can handle much higher transaction volume. I view altcoins (ETH, SOL, others) as unregulated securities without 3rd party financial verification, hence much riskier. My advice is to buy Bitcoin and hold it for the long haul. I’m up substantially over the past five years. If you look at the CAGR of Bitcoin over the past decade, it’s a top-two asset. Eight of the last 11 years, it’s been the #1 performing asset class. In other years, it’s been dead last. But, even with those down years, BTC has a CAGR of over 60%. I view BTC as a long-term replacement for Treasury Bonds. The dollar may be in its terminal decade if the Legislative Branch doesn’t become fiscally responsible. There isn’t much evidence in that direction.