GM PRO DOers! š
2024 has been a massive year for crypto and weāre only 75 days in!
Bitcoin has surpassed all-time highs, Ethereum hit $4,000, AI Tokens are skyrocketing and memecoins are completely nuts. As a result, Iāve been getting many questions regarding what my portfolio looks like and what I recommend people should be investing in.
On January 4th, 2024, I shared a complete breakdown of my portfolio, which you can view here.
But of course, things have changed significantly since thenā¦
Today, I'm diving into all the assets I've got, how much of my total investments they make up, and my thoughts on investing in them right now. Plus, I'll let you know if I'm thinking about selling any of them soon.
FYI I think 2024 is going to continue to be a great year and Iām continuing to dollar cost average (DCA) into my crypto portfolio (though only in a certain sector which I will explain below).
I believe we're heading into another classic crypto cycle similar to what we've seen in previous years. This cycle usually starts with a boom, leading to sky-high valuations, and then takes a sharp turn with a major correction, where we could see a drop of 50% across the board, with many assets plunging by 90% or even more.
My plan is to take profits at certain points throughout this cycle with part of my portfolio (for lifestyle chips) as well as HODL a large sum of my portfolio through the dip (to earn passive income via staking and just in case the dip never comes). Below I will share my gameplan.
At the bottom of this report I share my key takeaways and best/worst trades so far this cycle.
Before you review my portfolio and thoughts below, hereās some reading material that might help provide context and strategy around my portfolio and how to structure your own:
Remember, the key is to develop your own unique strategy that fits your own unique situation. My lifestyle, risk tolerance, goals and more are likely very different from yours, which means our investment portfolio and strategy should be too.
Use this to help you build a portfolio and strategy, do not copy and paste it.
Ok, letās get into it!
FYI the #% in each asset title was my % of allocation on Jan 4th, the clear #% is what it is now.
Ethereum
$ETH (55% 64% of my onchain portfolio)
$ETH continues to be my highest conviction investment by a longshot. The risk/reward is unlike anything Iāve ever seen and the rest of my portfolio is compared to $ETH in terms of risk/reward.
I think $ETH could see some pretty big numbers in this bull market, considering itās the first cycle that we have the burn + proof of stake + restaking demand + significant L2 adoption and continued demand for the L1 (i.e. high fees on L1).
If the $ETH ETF gets approved then the supply shock of $ETH this cycle is going to be ludicrous (Iām writing a report on this in a few weeks).
My price target for $ETH in the next 12-18 months is $10k-$20k.
Most of my $ETH I donāt plan to sell, however I have been putting plenty of it to work to earn additional APY (yield) and airdrops. Below is the list I originally shared with updates and notes:
Staked ETH:
58%51.6% is held in $rETH on my Ledger earning ā¼4% APY
Airdrop Farming/Staking/Restaking:
5.4%14.2% is held in $eETH (a liquid restaking token), earning ā¼4% APY + restaking APY (% TBD) and is farming the Ether.fi and EigenLayer airdrop.5.4% is held in $STONE on Manta Network earning ā¼4% APY and is farming the $MANTA airdropI received a $2500 airdrop and sold all my $MANTA at $3.6. Iāve since sold my 5.4% $STONE into $ETH and bridged to Scroll, ZkSync and Linea to farm potential airdrops.
5.4%4.8% is held in $swETH and restaked on EigenLayer, earning ā¼4% APY + restaking APY (% TBD) and is farming the Swell and EigenLayer airdrop.To use Swell and farm the airdrop, follow this link here.
To use Eignlayer, follow this link here.
5.4%4.8% is held in $rETH and restaked on EigenLayer, earning ā¼4% APY + restaking APY (% TBD) and is farming the EigenLayer airdrop.1.6% was bridged to the L2 Mode and is held in $ezETH (a liquid restaking token), earning ā¼2.96% APY + restaking APY (% TBD) and is farming the MODE, RENZO and EigenLayer airdrop
To farm the Mode Airdrop, you can bridge here
To farm the RENZO + Eigenlayer airdrop, you can swap here.
FYI this one is very new and I havenāt done my full due diligence, so DYOR before bridging here.
Vanilla ETH:
5.4%6% is just vanilla $ETH held on an old Trezor hardware wallet, this $ETH hasnāt been touched since I bought it at $150 in 2020!
This Cycleās Plan:
I sold a small % of my onchain $ETH into $SOL a few weeks ago when SOL/ETH hit .035. This has proven to be a good move so far as SOL/ETH currently sits at .04 even as $ETH has been on a tear the last 2 months. This also made me eligible to receive the Wormhole airdrop announced last week!
P.S. I put a call out in the #PRO-Discussion channel in our Discord when I made this trade. If youāre a PRO member and not yet here, join now for more of my thoughts and ideas as we progress through this bull market!
I donāt plan to sell any of my $ETH held onchain this cycle into FIAT, and very likely not into any other assets this cycle. I have a decent sized position in an $ETH ETF within my Tax Free Savings Account (TFSA) that I plan to convert into $USD later in the cycle for life purchases (see below section for details on when I plan to sell).
Iām not currently dollar cost averaging (DCA) into onchain $ETH. Instead, Iām DCAing into offchain $ETH (more details below) in my Tax Free Savings Account to sell at certain points in this cycle. However, my $ETH is being used to stake/restake as well as farm airdrops. When I receive airdrops I strategically sell back into $ETH, allowing me to āEAAā into $ETH. This is a term created by @kuba in our discord that stands for āETH Airdrop Averagingā and simply means using $ETH to earn more $ETH by selling airdropped tokens into $ETH ā haha I like it!
As Eigenlayer moves to mainnet and restaking is āde-riskedā I will move most of my $ETH into restaked $ETH for the extra yield and to generate long-term passive income.
Solana
$SOL (21.5% 23.5% of my onchain portfolio)
Solana has been a significant investment for me as I have high conviction that it will become a dominant blockchain ecosystem.
While it doesnāt have the deflationary supply like $ETH or the potential of an ETF this cycle, it has clear product market fit as the āretail chainā and outstanding tech.
I think this narrative only continues moving into this bull cycle and as a result $SOL will do extremely well. My price target for $SOL is less clear than $ETH, however I feel pretty good about it reaching $1,000+ at the top.
My only concern is that if (when) we have another bear, Solana will have a significant drop vs. $ETH or $BTC due to the high inflation and token unlocks.
$SOL is another great asset to put to work to earn yield and airdrops. Below is what Iām doing with my $SOL.
Staked:
73%63% is delegated staked via the Phantom wallet and backed by my Ledger, earning ā¼6.87% APY
Airdrop Farming:
37% is held in $jitoSOL earning ā¼7% APY.
25%37.5% of my $jitoSOL is lent out in Kamino Finance, earning an extra 0.18% APY and farming the Kamino Airdrop.Kamino has announced their upcoming airdrop, with the snapshot taking place March 31st. As a result, I moved a chunk of my $jitoSol in MarginFi to Kamino for this.
Secondly, I realized if I supplied $SOL instead of $jitosol into Kamino I would get a 5x bonus on points. I moved most of this into $SOL for the final month to get a boost, after the snapshot I will likely move it all into MarginFi.
50%37.5% of my $jitoSOL is lent out in MarginFI, earning an extra 0.15% APY and farming the MarginFi Airdrop. Iām also borrowing $mSOL for additional points, and lending that in Kamino Finance and Meteora.To use MarginFi, follow this link here.
To use Kamino Finance, follow this link here.
To use Meteora, follow this link here.
The remaining 25% is sitting in my Ledger, awaiting my next airdrop farm opportunity.
This Cycle's Plan:
My plan with $SOL is similar to the above with $ETH, however, I believe that $SOL will outperform $ETH during this bull market and significantly underperform $ETH during the following bear market.
I plan to sell a % of my onchain $SOL this cycle for life purposes, similar to how I mentioned that for my offchain $ETH.
The difference here is that I have no offchain alternative for $SOL, which means I will need to pay taxes on this sale.
For this reason, I will try to limit the amount I sell (hopefully getting all the profits I need from my $ETH in the TFSA).
For tax purposes, I will simply hold a large % of my $SOL through the bear market rather than sell into another asset that I think will outperform in the bear market (i.e. $ETH or $BTC).
Bitcoin
$BTC (10% 10.5% of my onchain portfolio)
I didnāt buy any more Bitcoin, despite it being a larger % of my total portfolio now (I havenāt actually bought any $BTC since 2020, other than in a Canadian ETF months before the USA ETF was approved).
Itās only a larger % simply because itās outperformed almost everything else.
I think weāve hit the top for Bitcoin dominance now and the rest of the bull market will be led by $ETH and $SOL.
That said, the Bitcoin ETF has been a massive surprise to the upside and if the $ETH ETF doesnāt get approved, Bitcoinās momentum may continue for a while longer.
Even if this is the case, I think it would be a short-term outperformance for $BTC and then back to $ETH and alts.
100% is held in an old Trezor hardware wallet, this $BTC hasnāt been touched since I bought it between $5,000 - $10,000 in 2020.
I donāt plan to sell this $BTC.
L2 Tokens
$IMX (<1% 1.2% of my onchain portfolio)
$OP (1.5% 1% of my onchain portfolio)
$ARB (<1% of my onchain portfolio)
$MATIC (<1% of my onchain portfolio)
L2 tokens had a big move in Q4 2023, but have been dominated by $ETH so far in 2024.
I feel pretty confident this will change once we get the real altcoin season, though with the launch of EIP-4844 yesterday, this could send these tokens on a serious run sooner than later!
$IMX and $OP are my 2 favorites on this list. $ARB is great, however it has a big token unlock on March 16th that may cause some sell pressure in the short-term. If it has a pullback or lags the other L2s, it would be a great buying opportunity.
I plan to sell all of these tokens at some point in the cycle. There are going to be 10s if not 100s of L2 tokens at the end of this cycle, many of which will fail.
Also, most of these tokens still have plenty of supply to unlock over the coming years, which will force their price down if the bear market comes.
Unless these projects do something interesting with their token (ie. rev share and staking) I will be selling 100%.
AI Tokens
AI tokens have caught a huge narrative and I believe are going to be the biggest bubble of this cycle, similar to NFTs last cycle and ICOs the one before it.
While there is fundamental innovation here in combining AI and blockchain, much of it isnāt real and most of it is already overvalued vs. fundamentals.
That said, it likely goes WAY higher than any of us think and then crashes massively afterwards too, so be careful!
I own two āAI tokensā, but I owned them before they were part of the AI narrative. They just happened to have an existing product that was good for AI and/or have incredible marketing teams.
By the way, we have an AI x blockchain PRO report coming your way soon to help you navigate this space! š
$AKT (<1% of my onchain portfolio)
$AKT was up 1100% when I wrote the last report and has done another 2.5x since.
Itās caught the AI narrative and in my opinion is already way overvalued for what it is. That said, it probably continues to do well during the obvious AI x crypto bubble that will lead this bull market.
100% is held in a KEPLR wallet and staked, earning ā¼10% APY
I plan to sell 100% of this later in the cycle (sooner than later).
$NEAR (<1% of my onchain portfolio)
Bought it at $3.50 in December, itās now sitting at $8.22 because it caught the AI narrative somehow.
Near must have some great marketers because they played off the Data Availability Layer narrative from Celestia in Q4 2023 and somehow managed to catch the AI narrative now too.
100% is held on Coinbase and ready to be sold any moment.
The problem with the 2 above is that even though they have both performed well in a short period of time, they are so difficult to buy and hold with any significant size.
This is what makes investing in alts so difficult.
Sure, you can find a few that rip on a narrative, but there's so many narratives, so many tokens and none of them have any fundamental relevance whatsoever, so how can you allocate a large % of your portfolio to them?
I canāt do it personally, so even when it goes up 2200%, itās a drop in the bucket to my overall portfolio.
This is more of a āfun to playā than any meaningful part of my investment strategy.
That covers my entire onchain portfolio.
As you may have noticed, I donāt hold many assets, as I believe that is a losing strategy. I hold onto assets that I understand and that I use their product.
Call me boring but this allows me to build conviction, understand the fundamentals and follow along.
If I held 20 or 30 assets I would have no time to keep up with the tech and fundamentals of each asset.
I also bought all of these early in this cycle (and/or last cycle) and plan to do little to no ātradingā throughout the bull market.
I plan to ride each of these assets throughout the cycle and sell some of them along the way.
Letās dive into my offchain portfolio and then share my best/worst trades below.
My Offchain Portfolio
$QETH - The Ether Fund (70% 83%)
This is a Canadian ETH ETF that I am able to hold in a Tax Free Savings Account.
This allows me to get exposure to $ETH and sell as much as I want, without any tax implications.
I continue to dollar cost average into this asset every month and will likely continue to do so until ETH hits an all time high at $5,000. After we surpass $ETH all time high, I will significantly lower the amount I DCA into crypto on a monthly basis.
I plan to sell most of this when $ETH hits $7,500 and/or $Bitcoin hits $100,000.
Yes, this is well below what I think will be the top this cycle, however I have specific things I want to purchase from these investments and want to guarantee that I get to take profits this cycle, rather than hope I can time the top and maximize my profits.
Just because we think $ETH will go to $10-$20k, doesnāt mean it will! And if it does, I still hold PLENTY off onchain $ETH, so all is well.
You can learn more about my sell plan here.
$COIN - Coinbase (8.5%)
One of my best investments ever was buying Coinbase at $38, but I have continued to buy at $55 and more recently I sold all my Marathon in February (a Bitcoin Mining stock) to get more $COIN at $140.
That has proven to be a great move as $MARA is down and $COIN is now sitting at $264!
I havenāt yet figured out when Iām going to sell my $COIN, but I think we still have a long way to go as previous all time highs were at $430. I think we definitely surpass ATH this cycle and then the top of $COIN likely coincides with the top of Bitcoin.
$COIN is easily a long term hold like $ETH or $BTC that will continue to do well for years to come, but since itās a stock held in my TFSA, I will try to time the top since it wonāt initiate a tax hit for me.
I will continue to put some work on Coinbase and update my price thesis when I can!
$TSLA - Tesla (8.5%)
My only investment outside of crypto is Tesla. I recently sold all of my Microsoft, Google and Apple to buy more $COIN and more $TSLA.
Iām buying Tesla because I believe itās one of the only non-crypto plays that might outperform crypto this cycle.
For a detailed explanation on why Tesla, check out a recent PRO report we did here outlining the bull case for Tesla to become the largest company in the world in the next 3 years!
My Thoughts So Far Into This Cycle š
My portfolio is up more than 4x since January of 2023, pretty wild! š¤Æ
But, itās been pretty easy to get investments right over the last year. At any point last year, if you closed your eyes, bought 10 tokens in the top 100 on CoinGecko, you would be up big in all 10 of them.
The key at this point however is to realize that you are not a genius (no one is in terms of investing in this industry) and you donāt know it all. Donāt get too cocky and start risking a large part of your portfolio farther down the risk curve. Stick to the plan!
Whatās worked really well for me so far is to continue to block out all the noise that comes with a bull market (itās only going to get worse), donāt try to hold too many assets (especially ones that you donāt understand or keep on top of) and double down on your highest conviction bets when they have large pullbacks.
There is plenty of FOMO and temptation out there that makes me want to break from my strategy, but I continue to put in the work to manage my emotions and stay on track. I gave plenty of tips on this here.
My biggest moves in the last 6 months so far have been the following:
Firstly, when $COIN dropped from $185 down to $120 in February, I consolidated my assets and bought more $COIN.
I got rid of Marathon, Microsoft, Apple and Google because I donāt study their businesses like I do Coinbase.
This has allowed me to double down on my winners and remain focused (4 less companies I need to think about!)
Secondly, when $SOL topped out at $125 and dropped down to $85, while at the same time $ETH started ripping, I moved some of my $ETH into $SOL.
A high conviction bet into another one of my high conviction bets. I still remain focused, there's no new token for me to consider and yet I managed to grab an extra 14% in a short period of time.
Thirdly, just before the Bitcoin ETF approval I sold my Canadian Bitcoin ETF shares (which were outperforming) into a Canadian $ETH ETF as I felt $ETH was lagging.
This also worked out well because $ETH has since out performed, giving me an extra 7% on that capital so far.
Fourthly, my biggest mistake so far was selling my $TIA airdrop into $SOL when $TIA was at $3 and $SOL was at $50.
$TIA is now at $18 (a 6x) and $SOL is at $150 (a 3x).
But hereās the thing, I stuck to my strategy of consolidating tokens and doubling down on my high conviction assets.
I may have missed a 6x, but I still got a 3x and had to put 0 additional work, time or resources into studying that trade because it was a trade I already had on.
In reality, I donāt see this as a mistake, I see it as sticking to my plan. Iām continuing to put my time, energy and money into a few high conviction assets and block out the rest of the noise.
THIS is the key to succeeding this cycle! Not trying to find 10 other tokens that might be a 10x or 20x, because you probably wonāt find it and waste your capital/time all the while. And if you do find it, youāll probably screw up the trade anyway by selling too soon or too late.
My biggest advice is to pick a few investments that you truly believe in, invest in them and continue to double down by buying dips and put in the work to understand how to earn more of it (airdrops, yield, etc.).
Block out the noise. Control your FOMO. Donāt get too greedy. Donāt forget to take profits ā especially now that weāre entering the crazier part of the cycle.
Good luck out there friends! Iāll be back in a bit with another update on the portfolio :)
Thanks for reading. And remember, you're strong, youāre powerful, youāre alpha! ā¤
How'd you feel about our read today?
ABOUT THE AUTHOR
Kyle Reidhead
Founder of Web3 Academy and Impact3
Find him on Twitter
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