Having been a Dividend Growth Investor since 2009 with a strong focus on acquiring high quality income generating assets, it took me quite a while to take a stake in Crypto Currencies.
Taking exposure to Cryptos is not investing per se. It’s a combination of speculating but also a way of participating in the underlying technologies and applications.
As a long term oriented investor I want to be positioned for the future. I want to have a stake in winning businesses and technologies.
That’s why I also started my Tech Portfolio back in 2020. My Dividend Portfolio is set to generate around USD 15’000 in passive income and my Tech Portfolio not only brings dynamic and growth to my overall investments, but I am also positioned in the future dividend payers. For instance, I wouldn’t be too surprised to see Alphabet pay out dividends in the not so distant future.
Cryptos are still at a very early stage. And there are fantastic opportunities, so I consider it as less risky to invest a few thousand USD to have some exposure instead of remaining completely at the sideline.
So, I have “skin in the game” in the amount of around USD 4’000, invested in following Cryptos:
- Bitcoin
- Ethereum
- Cardano
- Ripple
You can find here some background information on the specific Cryptos and the underlying technology and applications:
- Why investing in Bitcoin?
- Comparing Bitcoin to Gold
- Building the Investment Case for Ethereum
- Why investing in Cardano?
- Homepage of ripple.com
Currently, I have roughly USD 4’750 in these four Crypto Positions (Bitcoin, Ethereum, Cardano, Ripple).
If you put that amount into context to our other investments:
- Our Dividend Stock Portfolio plus Tech Portfolio have currently a market value of around USD 500’000.
- Our Peer to Peer Lending Positons make up for around USD 15’0000 and
- we have roughly USD 35’000 invested into corporate bonds.
So, our Crypto Portfolio represents less than 1 % of our total invested capital (around half a million USD).
As of writing this blogpost, my Crypto Portfolio shows a book gain of around 28 % resp. USD 750.
From May to October, my Crypto Portfolio fluctuated a lot:
- August: book gain of 3 % resp. USD 120
- July: book loss of 23 % or USD 700
- June: book loss of around 12.5 % or USD 500
- May: book gain of around 12.5 % resp. USD 500
Clearly, Cryptos are extremely volatile and there is inherently a significant speculative element which you have always to bear in mind when taking a stake in that kind of asset.
On the other hand, Bitcoin, Ethereum, Cardano and Ripple are connected to very interesting applications and technologies which have huge potential to completely transform our economy and the way we interact. That’s the main reason I want to have a stake in them.
What about you? Are you invested in Cryptos as well? Have you made any moves lately?
Thanks for sharing in the commentary section below.
Disclaimer
You are responsible for your own investment and financial decisions. This article is not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.
I like the approach you’ve taken. Build out the core DG and Tech portfolio and then dabble in the more speculative possibilities. Especially since your DG portfolio is set to pay out $15k in dividends. That’s a nice supplemental income there. I own a small amount of BTC but never ventured further from there. We’re still primarily focused on building up our DG portfolio or other alternative cash flows, i.e. rental property which is probably less likely and/or a possible business venture that likely wouldn’t bear fruit for a few years but could potentially generate a good secondary/tertiary income after that.
Hey there, Passive Income Pursuit!
Yes, indeed, the Dividend Portfolio serves as a plattform to generate additional income, churning out USD 15’000 in 2021. I am optimistic that it will grow further, as we are committed to put our savings to work on a regular basis. Ventures like real estate etc. will likely take some time, fully agree, and over time, income streams should diversify nicely over time.
Thanks for stopping by and commenting.
Cheers
I also think cryptocurrencies are here to stay. I don’t know what the future holds, but it will probably be involved with Bitcoin one way or another. I only hold BTC and ETH right now. They make up about 2% of my current net worth. I’m comfortable if this gets to 5% eventually. My ultimate goal is to become a wholecoiner of Bitcoin some day. It would be easier to do the math.
Hi Liquid
Definitively agree with you, Bitcoin is here to stay, the technology and applications are amazingly powerful. Same with ETH.
I like your approach, a certain portion belongs to cryptos and I’d feel comfortable with 5 % as well, being in this asset class.
Appreciate your commentary and thanks for stopping by.
Cheers