Bitcoin Investor Builds $1,100 Diversified Crypto Portfolio with Surprising Results
A Bitcoin (BTC) investor, analyst, and bestselling author embarked on an intriguing experiment with his now crypto-friendly bank. Marco Bühler, who goes by sunnydecree on X, invested $1,100 in 11 different cryptocurrencies, with each receiving an equal $100 share. He shared the performance of this diversified crypto portfolio after a four-month period.
A Detailed Look into the Experiment
"Four months ago, my bank started offering cryptocurrencies. For fun, I invested $100 in each coin for a total of $1,100. This is how it's going," Marco Bühler stated in a recent post on X.
The accompanying image showed a portfolio now valued at $1,005.24, indicating a loss of $95, or 8.6%, over four months. Notably, Polygon (MATIC) emerged as the biggest loser, dropping 41%, while Bitcoin Cash (BCH) led the gains with an impressive rise of 47.8%.
Breakdown of the Crypto Portfolio
Here's a look at the performance of Bühler's $1,100 diversified crypto portfolio after four months:
BCH, BTC, Ethereum (ETH), and Litecoin (LTC) were the standout performers, contributing to a combined nominal value of $478.57. These top four cryptocurrencies accounted for 36% of the portfolio's asset count and 47.6% of its total valuation.
The remaining assets, which include Uniswap (UNI), Aave (AAVE), Chainlink (LINK), Tezos (XTZ), Compound (COMP), Cosmos (ATOM), and MATIC, accounted for a combined nominal value of $526.67.
Surprising Top Performer: Bitcoin Cash
Bitcoin Cash’s unexpectedly strong performance has intrigued investors, given its relatively lower market cap. The experiment underscores the unpredictable nature of crypto investments, even within a span as short as four months.
Key Takeaways
This initiative by Marco Bühler revealing the volatility and risk of cryptocurrency investments. While diversification can help mitigate some risks, it does not ensure profits in such a volatile market.
In conclusion, it's evident that carefully selecting the right projects might be a more advantageous strategy than merely spreading investments across all available options. Investors are urged to consider their risk tolerance and investment strategies thoroughly when diving into the volatile world of cryptocurrencies.
