The portfolio is not real, does not take into account any fees and does not constitute investment advice. Please invest responsibly. Any questions or feedback send to email@example.com
Bitcoin was just the first iteration of digital assets, and it’s innovation has paved the way for an entirely new asset class. There has been an eruption of digital assets that hit the market and position themselves as having a unique network value. The sheer volume over a short period has caused a clutter of noise and speculation, ultimately leading to extreme volatility in this young market. And without official regulation, even some ‘slight of hand’ projects have thrived, leaving investors with empty pockets. Our aim, through our research, is not only to cut through the clutter and find the projects that we believe will ultimately succeed in the space but formulate a calculated investment plan and strategy around this emerging asset class. *Note: We take a long-term approach and steer away from short-term plays or hype projects. This strategy is best suited for people who believe in the digital asset class for the long-term. Patience is your ally.
How it works
We provide a hypothetical portfolio that we track. We started with $10,000 USD on December 1st, 2017. The portfolio is not real, it does not take into account any fees and does not constitute investment advice.
Core and Satellite Approach
At Coin Hunter, we use a similar strategy to the traditional core and satellite approach used commonly amongst wealth managers. For us, this involves building a large core portion of stable, time-proven, and fundamental coins aided by two smaller satellite portions which are inherently riskier but provide much more upside potential. If significant profits are yielded through the satellite positions, the philosophy is to strengthen your long-term holdings by distributing them back to the core position. We also maintain a cash buffer to allow us to capitalise on market dips or to take money off the table if we believe the market is overvalued.
- Provide a highly structured approach to investing in Digital Assets
- Achieved via a Core & Satellite approach with monthly rebalancing
- Risk must be appropriate to the reward,
- Therefore we have set our annual growth goal to 40% + p.a.
Core Portfolio — Millennium Falcon (70–80% of Portfolio, 3+ year horizon)
Our Core portfolio is made up of 10 digital assets which we believe have strong fundamentals and a proven track record of delivery. They own the most significant market share of the space and have built up healthy communities. Inherently, these digital assets usually comprise of bottom layer protocols (currencies and platforms). Many believe that this is where the most value will lie, but yet no individual project has stood out as an outright winner for mass adoption therefore diversification is key. By investing in mainly premium digital assets, we hope to preserve our capital in market downturns while add value over the long term.
Satellite 1 — Catch Me If You Can (10–20% of Portfolio,1–2 year horizon)
Our first satellite looks for strong fundamental coins outside the top tier that are moving up the coin rankings quickly and have price catalysts within the short to mid-term. We attempt to diversify across multiple industries that have strong use cases for blockchain technology and find the projects that have the potential to become their industry leader. These coins are considered mid-market cap coins and have the potential to have significant swings in price. Monthly rebalancing allows us to capitalise on these swings and crystalise profits when made.
Satellite 2 — Ricky Bobby (5–10% of Portfolio, 12-month horizon)
Our second satellite is our smallest allocation and looks to gain exposure to small market cap coins that have the potential to realise explosive returns. Here we are looking for early-stage projects or under the radar projects that could add significant value to the core portion. Upon achieving significant returns, we must analyse the digital asset and have clear exit strategies in place to crystalise profits.
Cash Buffer — Bruce (0–15%)
Cash reserves allows us to capitalise on market opportunities without having to sell down other investments. Put simply, buy when others are selling and selling when others are buying.