In the first quarter of 2024 I wrote an article entitled Crypto Assets – Should You, Shouldn’t You?
This article delves into the market performance, volatility, and various strategic investment approaches to cryptos. It explores the benefits and risks of investing in crypto assets, evidences how small crypto holdings might enhance returns at tolerable risk. It also takes a look at the impacts of Blockchain, DeFi and Web3. Whether you’re a seasoned crypto investor or just curious about this nascent asset class, you will find much of interest.
My opinions on crypto assets are my own. As much as I have tried to be objective, open-minded and rational when researching the cryptosphere, given the embryonic nature of crypto assets, I am perforce obliged to submit my personal opinions on a number of issues. Many, and with valid reasons, will take a very different perspective on the subject.
As the article is too long for a blog post, you can simply click on the link immediately below to read the full article.
Here are the contents for the article
Disclaimer
To Save Your Time
What are Crypto Assets?
Cryptocurrency Charts
The Background
The Arguments Against Cryptocurrencies
Table 1: Bitcoin vs Major Asset Classes
Table 2: Changes in Cryptocurrency Market Dominance
Table 3: Periodic Table of Cryptocurrency Returns
The Arguments for Cryptocurrencies
Table 4: Bitcoin Correlation with Other Asset Classes
Understanding Correlations
Graph1: One Year Rolling Correlation Between Bitcoin and Gold
A Personal Interpretation
Figure1: Selected Drivers of Equity Values
Cryptocurrency Performance
Figure2: Market Capitalisation of Top 5 Cryptocurrencies
Figure3: Weekly Value Trends in Crypto Assets
Figure4: Yearly Change in Crypto Asset Values
Volatility vs Risk
If You Decide to Invest
Table 5: % Bitcoin in Portfolios
Interpreting Table 5
Table 6: Bitcoin vs S&P 500
Risk-Adjusted Crypto Returns
Table 7: Risk-Adjusted Bitcoin Returns
When to Sell Cryptocurrencies
Introducing Two Strategies
Warning
Your Choices, Your Risks
Backtesting 15 Months
Table 8: Strategy 1
Table 9: Strategy 2
Table 10: Buy and Hold Strategy
Understanding the Maths Behind the Strategies
Backtesting 11 years
Table 11: Summary of Strategies After Nearly 11 Years
Another Warning
Crypto Taxation
Investing in NFTs
An interesting report
DeFi
Figure 5: The Risks of DeFi
Web3
Some Example Apps
Web3 – what does the future hold?
While I’m on this topic..!
Should You, Shouldn’t You?
Best Practice
Blockchain and DeFi
Crypto Security
Buying Bitcoin and Other Cryptos
Crypto Platforms for UK Residents
Helpful Hyperlinks
Feedback
Detailed 11 Years Backtesting Tables
Table 12: Strategy One 11 Year Detailed Returns
Table 13: Strategy Two 11 Year Detailed Returns
Table 14: Buy & Hold 11 Year Return