Cryptocurrency Portfolio Weighting Strategies
Cryptocurrency Portfolio Weighting Strategies
This chart shows the historical performance of differently weighted portfolios when lump sum investing at a certain date. If a coin did not exist at a given starting date then it is ignored until its data becomes available. On the date that its price data becomes available all assets will be re-weighted according to the market caps on this date.
The “Market Cap” line shows the portfolio performance if you had weighted your investment by market cap at the date of investing. Based on this approach you first calculate the sum of market caps for the basket of assets used, then you calculate the percentage that each asset’s market cap contributes to this sum and then you allocate this percentage of your lump sum amount to this asset.
The “Ln(Market Cap)” and “Sqrt(Market Cap)” are similarly calculated as the market cap method but instead of taking the sum of market caps we now take the sum of Ln(market caps) and Sqrt(market caps). The individual percentages are determined by the contribution of the asset’s “Ln(Market Cap)” and “Sqrt(Market Cap)” to the total sum.
The equal amount strategy simply invests an equal amount in each asset.
The default options shows the portfolio performance if you would have invested $1000 in the top 10 cryptocurrencies at the 2018 bear market bottom. The “Options” button allow you to configure the variables. The pre-defined dates will select the assets that belonged to the top 10 cryptocurrencies on those dates. Below the main chart there is a table that shows the amount invested in each asset for every strategy.
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Disclaimer: The information presented within this video is NOT financial advice.
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I’m confused. What’s a crystal ball?
Please watch Jan 3rd video (and previous) from Money Rules – Investing called "Is it too late to buy Bitcoin in 2025?" and make a video that talks about this. Won’t the little ones like us not make profits from buying Satoshis?
I think the top is in for memecoins, even PEPE (the leader of memecoins this cycle) with +100 Trillions in supply would need a tremendous amount of money and a bigger news than Coinbase to go higher. Last pump were mostly Altcoins so I think we will have a proper alt season now.
the best strategie is never to sell. My BTC are tax free in germany after one year of holding for ever. but wenn I sell and rebuy it could change in thet 1 year and than it could be taxed.
Damn I wish I’d just listened to Ben. Dude is a true TA wizard.
For the algo
A big thumbs up for the "you must have a crystal ball…" comment. Kitty has claws!
You always open up new perspectives to your viewers. Thanks a lot 🙂
In my opinion the only Altcoin to be looked at rn would be LINK just because of its use cases
Question is what’s is your equities/crypto/cash weightings
Neat way to allocate capital.
my altcoins never go down ben. green bar forever, this time is different.
No Ben, the lesson to be learned is I don’t know Jack , and that’s why I follow you.
Wheres the strategy
For you, how much % of portfolio in BTC means BTC heavy? Thanks.
Ben, can you make a video about when do you think the market will top.
Thx for your content it is amazing i put a like without even starting to watch the video. ❤
add SUI and other new asset to the list also.
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Great video
I don’t understand what weighting by natural log means.
Could someone help explain?
Let me guess Ben. 96% BTC and 4% ETH 😂
it would be useful to see difference between portfolios normalized. then we could get oscillator hopefully showing actual market phaze. based on that we could decide if this is the time to in/decrease risky assets. this could be great help choosing assets for DCA
Lol “you must have a crystal ball, because you criticise me all the time.” Love your videos Ben and most who watch do. Really you should just ignore the haters
"Awesome video! The presentation was thorough and easy to follow—definitely learned a lot about cryptocurrency. Keep it up!"
I got a crystal ball the other day from Amazon, but it still hasn’t came in yet
are yiu sure you are counting ADI for top100 correctly?
your database is updating each day what top100 are? or yoy cus take top100 from first data point which is 2015.
🙏🏻
I actually do have a real crystal ball, but guess what, I am still watching 😅
Weight by market cap makes sense but how does one calculate Sqrt Market Cap and Ln Market Cap?
Commenting for the algorithm to boost the social metrics 🧠
what does log of mc mean vs mc?
Different but insightful. Thank you . Happy new year
What does weighing it by market cap vs nat log vs square root mean? 😅
0:40 🤣
Is it to late to buy bitcoin now? Or wait till it dips again?
Very interesting topic, but a longer and deeper analyses would be great! (Like in the old days 😉)
I tried to explain this to my "retail" Uncle Frank at dinner, and he agreed it was good to diversify. He said he always he starts with a Firestarter log, and then diversifies into natural logs. We love ya, Ben!
thanks chessmaster B
Most likely the top will be when Ben reaches 1Mil+ subscribers! Still early imo
Thx
Is ADA a relic now?
Yea, I totally get everything you were saying. So hypotenuse squared gamma rays is the better bet in offseason prehalving election year mid bull cycles.
⚠️Note: beware of fake Ben *scamBots.*
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Thanks, Ben! 🙏
If the four-year market cycle persists, the following strategy could be considered:
Bear Market: Prioritize holding USDT or other stablecoins to minimize exposure to market volatility.
Accumulation Phase: Focus on investing in the top 10 cryptocurrencies (excluding BTC, USDT, and USDC) to build positions in established assets.
Pre-Bull Market: Allocate resources to Bitcoin (BTC) as it typically leads the market recovery.
Bull Run: Diversify into altcoins outside the top 10 to maximize potential high returns.
"Great video on cryptocurrency, very informative!"
Was tax considered if not holding all the time?
I did ask chatgpt if I invest $1000 on top 5 crypto in Sept 2020. Well… it cannot answer me. Ben is better than chatgpt.
I feel bad for all those who panic-sold on their bleeding alts. OF COURSE my alt is performing well
Hey Ben! Why Eth/btc is not moving?