Aggressive Crypto Portfolio to turn $25K into $1M between Jan 1, 2024 and mid-2025 — Progress Update February 2024
Abstract
Gleaned on data from the last few crypto bull markets, I designed a new $25,000 (as of January 1, 2024) crypto portfolio aimed at growing into $1,000,000 (by mid-2025). The portfolio gained 3.36% in the first month, which is lower than what I would have expected but still better than a direct investment in Bitcoin alone which did a 2.88% return. This portfolio primarily targets Decentralized Artificial Intelligence, DeFi & TradeFi, SocialFi, GambleFi with a higher focus on tokens that might be SEC compliant. The full portfolio is shown on CoinGecko. This is by no means financial advice, it is purely a track record of my own investments in the crypto industry and growth target for various assets that I believe in. I could be entirely wrong and suffer massive losses. As well, the portfolio will have some re-allocation and use leverage in certain cases to maximize returns even though this is highly risky. For changes to the portfolio, I will keep my community informed on x.com/Crypto_Rookies. In the last month, there was an investment of $1250 in Covalent ($CQT) on January 5th at a price of $0.251761, than a sale of 4 BitTensor ($TAO) on January 30, 2024 at a price of $455 for $1820.
Introduction
Every four years, the crypto industry undergoes massive growth until the market crashes again. If timing follows past patterns, the next crash may be somewhere after mid 2025. Until then, it is likely that momentum from Bitcoin & Ethereum ETF will fuel early growth into the market. As well, the GAAP accounting rules will be modified to be more favorable to crypto assets, and finally the US election will be occurring which means additional liquidity into the market. Overall, we can expect some narrative of the crypto industry to vastly outperform others. I have selected primarily the Decentralized Artificial Intelligence (DeAI), SocialFi, GambleFi, DeFi & TradeFi to be the sector of high potential growth. As well, I have focused on crypto assets that could be viewed as SEC compliant such that we may see additional potential buying volume from large institutional investors such as pension plans, etc.
Strategy
Given that we are very early in the bull cycle, I intend to utilize 2X or 3X leverage in certain cases to increase the size of the portfolio. As we get closer to the end of 2024, I will completely remove all leverage.
I am setting aside 10% of the portfolio into stablecoins (USDT) to make investments when good opportunities arise, and new digital assets are launched. Meanwhile, I will be taking profits from certain projects that have high growth to re-invest in new projects along the way. Ideally the portfolio will grow into about 30 different assets. As of January 30, 2024 I have $1820 in USDT ready to deploy again if the market goes down significantly over the next 2 weeks.
Finally, starting in early 2025, I will start taking profits from the projects I feel have reached close to their target market cap, and start allocating capital in tokenized real world assets that I believe would protect my capital against a collapse. As well, I will be re-allocating the high risk projects into BTC and ETH because I believe they may not suffer a massive collapse given the changes to the GAAP accounting rules, and institutional investors appetite that could onboard over more than 1 cycle. I will readjust that theory along the way, but in this case, I would build a large capital pool of these two assets, or other crypto assets that would be ETF at that point (i.e. maybe Solana), and take loans on that collateral using Aave to buy equity stake entirely outside the crypto industry maybe in Real Estate, maybe in precious metal for electronics, water purification, food production, sanitary management, etc. This way, if the crypto market suffers a massive collapse like every 4 years, then I will lose my crypto capital, but I will not lose the money I took out entirely of the crypto industry. Meanwhile, if demand for BTC and ETH continues, then I still ride the wave and can take additional loans to invest in non-risky assets.
Initial Portfolio
Take a look at the evolving portfolio on CoinGecko.
- USDT — this is a stablecoin, and 10% of my portfolio will be allocated there.
- Bitcoin ($BTC) — $1250 (5%) using a 3X leverage to maximize returns, SEC compliant and up coming ETF
- Ethereum ($ETH) — $1250 (5%) using a 3X leverage to maximize returns, SEC compliant and up coming ETF
- BitTensor ($TAO) — $3750 (15%) might be SEC compliant, it is the best DeAI layer-1 on the market
- Injective ($INJ) — $3750 (15%) very good layer-1 on the Cosmos ecosystem designed for financial applications
- Kaspa ($KAS) — $3750 (15%) similar to BTC, but with much higher transaction speed and smart contract capabilities, and very likely to be SEC compliant
- Jackal ($JKL) — $1250 (5%) decentralized file storage optimized for artificial intelligence processing and similar applications that require high throughput. Part of the Cosmos ecosystem.
- Solana ($SOL) — $2500 (10%) biggest competitor to ETH with much higher speed
- Rollbit ($RLB) — $1250 (5%) the biggest crypto casino on the market
- Bazed Games ($BAZED) — $500 (2%) amongst the smallest crypto casino on the market, highly risky but lots of growth potential
- Aave ($AAVE) — $1250 (5%) one of the best peer-to-peer lending protocol on Ethereum and supported by many other chains
- Graph ($GRT) — $1250 (5%) indexing protocol to re-order blockchain data for more efficient processing by certain AI applications
- TonCoin ($TON) — $750 (3%) part of Telegram which has 55M users, many crypto casinos starting to be built on Telegram
Summary
This is an initial crypto portfolio with high potential. Note that there are very few low cap crypto projects at the moment, and this is because I plan on re-allocating capital to them as they get launched in the next 6 to 12 months. While the crypto market is growing, there will be a period of momentary downturn that could be as high as a 30% dip. I have experienced this many times in the past, and patience is key. Day traders try to time these dips using technical analysis of charts, but you often lose out in such cases, after all, 90% of traders actually lose money.
Over the last 30 days, I performed the following adjustments:
- Bought 4965.02 ($1,250) of Covalent ($CQT) on January 5, 2024 because it is a great project to add to my portfolio
- Sold 4 ($1,820) of BitTensor ($TAO) on January 30, 2024 at $455 because the price had gone up a lot on the news of Vitalik Buterin talking about AI and $TAO, I will reallocate if the price go back down below $350
- Doubled my position of Graph ($GRT) using a 2X leverage on February 2, 2024 because of the up coming Ethereum ETF
- Doubled my position of Aave ($AAVE) using a 2X leverage on February 2, 2024 because of the up coming Ethereum ETF
Check the latest progress update on the portfolio:
- January 1, 2024 — Initial Portfolio Creation
- February 2, 2024 — Progress Update after 1st month
- March 3, 2024 — Progress Update after 2nd month
- April 9, 2024 — Progress Update after 3rd month
About
Crypto Rookies is a crypto investor, serial entrepreneur in Artificial Intelligence and Web3/crypto with expertise in tokenomics and market making. Currently CEO of Smooth, which is a Market Making as a Service infrastructure designed to prevent economic collapse of crypto-currencies.
This blog channel generates 6000+ views per month on the topic of tokenomics and crypto investments, so if you are interested in becoming a sponsor, please reach out to Crypto Rookies.
Meanwhile, please feel free to join the various communities I am involved in and do not hesitate to reach out.
- YouTube with Cyrator and Mikhail Yergen
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Also check out some of the early stage crypto assets that I’m actively using:
- GRVT, it’s a Decentralized zk-powered crypto exchange.
- MarginFi, it’s a peer-to-peer lending protocol on Solana.
- Drift, it’s a Decentralized crypto exchange on Solana.
- Swell, it’s a liquid staking protocol to use in conjunction with EigenLayer.
- Linea, a layer 2 protocol of Ethereum using ZK technology.
- GetGrass, a DePIN project for shared internet bandwidth with an upcoming data labelling system
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