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RE: Cryptocurrency and Risk Management.
Great post. I know volatility in the crypto world has cost me some hours of sleep in the past. By treating my crypto investments more like the traditional stocks/trackers I developed a system that minimizes volatility a bit. I am curious what you think about my portfolio approach.
Next to that, I find CryptoPanic (what's in a name?) a nice crypto news aggregator. I discovered it by accident and a cool thing is that the developer is very open to suggestions for improvements :-)
I think your approach is great! I am shocked that more people aren't taking your advice. The 70/30 Rule is something I myself am planning to do once I meet some predetermined goals. The only thing I might add is a small segment called chance. While there is a lot of money to be made with the larger value coins I feel like some of these like Reddcoin (reddit's coin) I am eyeing because they are fractions of a penny and I feel that they might have a chance of growing to a dollar or more one day... They are of course more risky... but the upside is that a small investment of 100 dollars can get tens of thousands of coins. Worst case scenario you lose a hundred, best case you become rich. Ultimately I think my investment will be 70/25/5(for chance).
Also Thank you SO MUCH for Crypto panic I will start using it daily!
Thanks @cryptogopher! Interesting thought. For myself I decided to really stick to my rules. Basically the only way a 'small coin' would end up in my Play Money segment would be if I believe it would outperform my core segment in the short run. That is also the way I contain myself, otherwise I might buy all the coins just not to miss out ;-) When I am not certain about a coin, or when might be a possible moment it would become much more valuable for instance looking at their roadmap, I just don't buy. That why I also included the max 10 coins rule in this segment, to force myself to ask the question: 'Which coin should I sell and why in order to make room for this small uncertain coin?'
Thanks for mentioning CryptoPanic. I'm very open to suggestions indeed! :) Stay tuned for more great updates very soon. @cryptogopher and @cryptographer - glad you find it useful!