Crypto Update

The last quarter of 2021 has seen incredible volatility in the crypto space.

That's entirely normal for those who have been around these markets for some time but is very challenging for the new investor.

Here's what I am doing now.

As funds become available I am dollar cost averaging (DCA).

DCA is a strategy of purchasing a specific dollar amount of any asset on a regular basis. Depending on your circumstances it could be $5000 every month or $50 every week.

If prices fall, you'll get more of your chosen asset with every purchase. If they rise, although you'll be purchasing less with each investment,  you will benefit from your existing holdings go up.

The focus of my DCA strategy has been accumulation of Bitcoin.

Right now it is priced at around 50% of where I expected it to be at this time but this needs to be put in perspective.

Bitcoin is still up more than 60% this year and is up 680% from January 2020.

Sure, it's well off all time highs but corrections and consolidations are part of the journey.

Rather than lament the price drop I am using it as an opportunity to buy more.

I've also chosen not to add to the ETH and LINK holdings.

While ETH is the business infrastructure of the cryptocurrency domain, the current gas fees make it very difficult to justify.  

My LINK holdings are also static but not for any lack of confidence in the project. It is simply that I want to maximise my BTC holdings while prices are where they are.

When markets recover, that may mean I won't get as much upside benefit as if I'd purchased smaller cap coins but at least I will have reached my targeted amount of BTC.

In the future, I think the price of BTC would have made achieving that target (measured by number of coins held) almost impossible to achieve.

That said, I've also been unable to resist having a punt in the micro-cap gaming token space. While still trying to understand the full potential of this new realm, I. put a very small amount of money into a project that is releasing an online game in 2022.

This game will allow players to earn and spend tokens. If it is a success, the token prices should rise by many multiples. If the project fails, I will have lost my money.

It is an all or nothing shot which is reflected in the title of the game - Moonshot Voyage.

That's the state of play for Confidential Crypto holdings at the end of 2021.

While not enjoying as much success as the previous year, the foundations for a strong crypto portfolio has been laid and we hope to see the benefits in 2022.