Bitcoin Investor Creates 1100 Diversified Crypto Portfolio with Unexpected Outcome
A Bitcoin enthusiast, analyst, and successful writer has embarked on a unique venture with his newly crypto-friendly bank. Investing $1,100 in the 11 digital currencies offered by the bank, he has now revealed the results of his cryptocurrency portfolio after four months.
The individual behind this experiment is Marco Bühler, known as sunnydecree on X, where he has shared his ongoing experience. “Four months back, my bank introduced cryptocurrencies to its services. Just for fun, I put $100 into each coin, totaling $1,100. Here’s how it’s progressing.”
After this period, the shared image displays a crypto portfolio worth $1,005.24, showing a decrease of $95, or 8.6%. Among the digital assets, Polygon (MATIC) suffered the most significant loss, down by 41%, while Bitcoin Cash (BCH) emerged as the top performer, with a gain of 47.8%.
Reviewing the crypto portfolio four months after the initial $100 investment in 11 different cryptocurrencies, the outcomes are as follows. Bitcoin Cash, Bitcoin, Ethereum, and Litecoin are the ones that have unrealized gains, amounting to a nominal value of $478.57. These top four digital currencies make up 36% of the total assets and contribute to 47.6% of the portfolio’s value up to the present moment.
The remaining selections – Uniswap, Aave, Chainlink, Tezos, Compound, Cosmos, and MATIC – have a combined nominal value of $526.67. An unexpected development was the performance of Bitcoin Cash, which deviated from conventional expectations due to its relatively low market capitalization.
This experiment highlights the unpredictable nature of cryptocurrency investments, even within a short timeframe. While diversification can help manage risks, it does not guarantee profits in the volatile market. Ultimately, the experiment suggests that strategic selection of projects may yield better results than investing in all available options.
However, individuals venturing into cryptocurrencies should carefully assess their risk tolerance and investment strategies. It is crucial to remember that investing in cryptocurrencies carries speculative risks, and capital is at stake.
