Topic: Any critics about my portfolio? - page 2. (Read 2630 times)

One thing to keep in mind when choosing assets if you are considering changes in exchange rate is whether the asset is more correlated with BTC value or fiat (USD) value. Pure BTC bonds, such as the BTCST passthroughs, as well as TEEK.A and .B etc are fully correlated with BTC value.

Mining assets tend to be more correlated with fiat value, because when the BTC exchange rate increases, difficulty tends to increase as well. Also, even if denominated in MH/s, mining bonds or shares represent a certain amount of mining hardware (and possibly prepaid costs, such as electricity and depreciation, which are denominated in fiat), the value of which correlates more closely to fiat values.

Some assets are a mixture. BIB.BVPS is probably more correlated to fiat values, because their costs and the sales, while paid in BTC, correlated with fiat values.

If you are aiming for a mixture of BTC and fiat exposure, it is good to know what type of investment an asset represents. If you wish to maintain a certain level of exposure to the bitcoin price, you can hedge investments in "fiat-correlated" assets by buying more bitcoin in an amount corresponding to your investment, or by taking a leveraged position (e.g. POLY.10.1).

Disclosure: The author operates assets on GLBSE and holds investments in some of the assets mentioned in this post.

You have either BTCST or Mining bonds.
Maybe you'd like to look into assets that are neither of the two, like: SILVER, CIUCIU.BOND or BDT.

Also, from the mining bonds, I can recommend MOORE, which should keep up the value while the other mining bonds are falling.

And, as when it comes to BTCST pass-through investments, after couple of months of dealing with GLBSE, I finally realized that services like BitcoinMax and Hashking are far much better for this.
They provide a better interest rate and also a better liquidity, meaning: easier and cheaper to withdraw your money from BTCST when you want it.
You can also open a savings account at the pirate directly, removing the middle man risk at the cost of lower interest rate, but there you need to put in at least 100 BTC.

needs more GIPPT and BDT

Well, if YARR were to drop back down then why not pick up more? But there's always other options available. It depends on what the conditions at the time are.

But overall my strategy is roughly to risk the initial principle on BTCST derivatives and reinvest the dividends in safer choices. Once the non-BTCST investments reach parity with the original principle (which will be pretty soon for me) then even if BTCST disappears outright then I'm no worse off than before I started. But then I'm willing to take more risks than the average person.

I could do this, but its not only that btcst could crash, it could happen too, that one assetowner will go home with the bitcoins he had. So playing his own little hyip. This way i have spread the risk about 4 assets of this type. But i will go out of them anyway. The earning earned more above miningassets related to the risk isnt good enough i think.
But the prices should only drop when the dividends are lower. Or the bonds were overprized. I hope i made a good buy now, when the prices dropped and hopefully they dont go down in future.
I think youre right here. It looks too much like a hyip. Only thing thats unusual in my opinion is the high price for a share of btcst. Normally hyips take very low amounts of money too to maximize the profits. But, like i said, i wont take the risk in the future.

My thoughts:

• For the small amount in BTCST, I would just combine them into 1 security to avoid having to keep track of 4.
• You must also consider the change in price of the bonds. Mining bonds have not been a good investment lately because their prices have dropped so much.
• By belief is that BTCST is not just "risky", it is certain to fail and investors will lose everything. Others disagree.
  

Then what do you do with the BTC? Buy more YARR? Playing volatility games is tricky. I wouldn't build my whole investment strategy around it.

I know I'm very heavy into pirate based investments right now, but then I need the growth more than the safety. My medium to longer term strategy is to gradually shift my dividend reinvestments from pirate based to safer stuff like mining. I don't believe BTCST will last forever, but am hopeful that it winds down nicely when it needs to. In this manner I hope to gradually grow into more safety.

One thing I do like to do is when I buy some shares I figure out what price I'd sell for and set up the sell. For example, I might buy 10 shares of YARR for 1.6 and immediately place a sell order for 10 at 1.9 - that way if for some reason it jumps up I make a nice deal. When I first started BTC investing I did that for some PPT.x shares and made a better deal than holding them would have.

yeah its not like there is any "lucurative" investments right now, anything better than anything else, I'd be happy to post mine.

sounds like a great idea!

I love the idea of seeing other people portfolio, should a new thread be made or could this be used for that? Is there any risk I may be missing with sharing that info?

I've just got into securities as a nice stable place to earn interest, until I feel like selling a good chunk of my bitcoins.
I like mining based securities for that safe bet aspect, so I think you are doing okay having an even spread.

Ok, ill think about what i will do. Most of the btcst-fonds will get dividend in the next 1 or 2 days. I will wait till that dates at least.

I think he is talking about the btcst thingies (the PPT`s).
Major RISK!


Greetz

Do you see risks in the Mining-Assets i bought or only the btcst ones?

It depends on what risk profile you want. Right now you have a pretty high risk but also a high reward kind of portfolio. There's nothing wrong with that as long as you aware of the risk.
//DeaDTerra

I now bought a small portfolio while taking a look at the roi mostly. Second look was if the project looks trustworthy and i spreaded the risk a bit. So now i have:


Any critics about this portfolio? I bought always for the lowest Ask-Price to have the share instantly so i had to pay some fees. In total: 0.0763445 BTC in fees. I think thats ok.

On the other hand bitcoin was 7.2usd at end of july the 11th and at the end of august the 11th it was at 11.5813usd which means around 61% more value after one month. Even the best assets, that use BTCST, which maybe even is an hyip only has only half that performance. So im asking myself if the best investment wouldnt be to have it invested in bitcoins only. But when im thinking over it... that seems to be a wrong thought, because the BTCs are invested and not turned into another currency and the dividends are bitcoins too. So in total after a month you have more bitcoins because of the dividends and you have more usd-value for each bitcoin because of the currency exchanging value. Or is there another wrong thought in this?

You think i should risk less bitcoins in btcst?

Thanks!
Sebastian