In April, I provided a small group of friends with an update on several coins and tokens that I had acquired. These included Avalanche, Realio Network, Injective Protocol, Ethereum, Liquity, Trader Joe (DEX), Matic, and The Graph. Here's the latest update.
As of April 18, 2023, a strategic investment made on that particular day would have yielded these returns. Realio surged over 100%, Inj demonstrated a remarkable increase of over 90%, while Avalanche and ETH saw gains of 5%. On the flip side, LQTY, JOE, Matic, and Graph experienced declines of -30%, -30%, -30%, and -12%, respectively. If an investment of $100 was made in each, the initial $800 investment would have grown to approximately $905.
April 18, 2023, turned out to be a local top for many cryptocurrencies, so we saw a lot of downside in the following months that I could take advantage of with a DCA strategy.
Portfolio Overview and DCA Strategy
My current investment portfolio reflects a strategic approach known as Dollar-Cost Averaging (DCA). This strategy involves investing on days when prices experience significant drops. The portfolio highlights substantial gains, with Realio showing an increase of +185%, INJ with +93.75%, Avalanche with +50%, and Ethereum with +12%. Notable transactions include selling LQTY in June with a loss of -54%, selling Joe on Nov. 3 with a loss of -19%, selling Matic in June with a gain of +14%, and selling Graph in June with a minimal loss of -1%. The initial $800 investment has grown to $1,080.
Reasons for Selling
LQTY
The decision to sell LQTY was influenced by the oversaturation in the market for borrowing protocols. Additionally, being on the ETH blockchain resulted in high gas expenses, particularly when purchasing from decentralized exchanges like Uniswap.
JOE
Trade Joe has found itself entangled in a legal dispute with the Trader Joe's grocery chain. The lack of transparency regarding the lawsuit's status raised concerns, prompting the decision to sell. While anticipation remains for Trader Joe to thrive in the bull run, the absence of transparency became a significant factor.
Matic
The SEC's classification of Matic as a security presented an opportune moment to sell before an anticipated price crash. Despite this, a positive outlook is maintained for Matic's performance during the bull run, given its active user base and high trading volumes.
Graph
The decision to sell Graph in June was part of an effort to restructure the portfolio. Accessing blockchain data is perceived as a less compelling narrative during the upcoming bull run, influencing the decision to move away from holding Graph.
In conclusion, dollar cost averaging and a proactive approach to portfolio management have played a crucial role in maximizing returns and adapting to evolving market dynamics. As the financial landscape shifts, staying informed and adjusting investment strategies accordingly remains paramount.