Transcription
All right, this video is for the lazy investors. I'm going to give you a set and forget portfolio that I believe is likely to outperform the market. If you're sick of chopping yourself up in the crypto market, hopping from narrative to narrative, well, this portfolio may be just for you.
If I had, let's say, $10,000 to invest, I think this would be a good portfolio to target the $50,000 mark because it has a nice blend of safety and also risk to aim for those higher targets. If you enjoy videos like this, which give you the edge in the crypto market, make sure to click the subscribe button. This is a brand new channel, which is giving you alpha-acked by-sized videos that are going to help you level up your crypto game, combining all the knowledge that I've learned over my past 6 years in crypto.
So, let's get into part one of the video, which is my portfolio philosophy. So, when I say lazy in the title of this video, what I mean is set and forget. a portfolio that doesn't require you to chop yourself up, exposes you to the right narratives, but also doesn't expose yourself to a ton of risk. Obviously, the riskier coins you get into, the more actively you need to manage your portfolio. I understand there are a lot of investors, they have jobs, they don't want to chop themselves up. Maybe they've traded and they realize that they aren't emotionally great at trading. That's fine. This is where a portfolio like this comes in handy. It's a simple portfolio, but I think it checks all the boxes heading into Q4 in the market.
The beauty of a portfolio where you're only aiming for a 5x is you can take on less risk. So the odds of you blowing yourself up is a lot less compared to going for, you know, 100x moonshot portfolio where, all right, you might outperform if you get your plays right. But if you don't, there's a very strong chance your portfolio goes to zero. But keep in mind, I'm not saying this portfolio is risk-free. There are altcoins in here which do contain an element of risk. And even Bitcoin itself is not risk- free. So I don't want you to get that impression. But obviously we're focusing on some of the more established plays in the market.
The way I'm splitting this portfolio up is into majors, midcaps, and moonshot plays. Majors are going to make up 60% of the portfolio. These are safer players that have less upside but are more established. Out of that 60%, Bitcoin is going to come in at 25%. We all know Bitcoin. It's the king of crypto. It's actually outperformed for a long period in the cycle before ETH started to outperform again. And there's definitely a chance that it goes on another leg to the upside, especially with gold breaking to new highs. So, it deservedly takes the biggest place in this portfolio.
Next, I have Ethereum at 20%. The reason I have Ethereum at such a high waiting is because it's the next logical rotational play after Bitcoin. Typically, in the cycle, capital rotates from Bitcoin into Ethereum and then to another asset that I'm going to speak about next. Ethereum has a strong treasury bid. It's probably earlier on in its treasury bid curve than Bitcoin is with Michael Sailor, which also I think gives it a little bit more upside. If I had to bet, I actually think Ethereum outperforms Bitcoin this cycle, but Bitcoin maintains its positioning because it's slightly safer and is likely to be less affected during downturns.
The next asset, which we're also seeing a speculative rotational effect into, is Salana. This is going to come in at 15% of my portfolio and is probably the L1 aside from Ethereum that's gained the most traction this cycle. A lot of innovation is happening on Salana. It's become the hotbed for experimentation and retail speculation through applications like Pump Fun, which have led to memecoin frenzies, a lot of new token listings, and a lot of interesting new DAPs that have cropped up. So, Salana maintains my favoritism in terms of the top alt outside of Ethereum, which is why it commands a 15% waiting in my portfolio. And it's also looking quite strong from a relative strength point of view given the fact that we're starting to see this rotation from Bitcoin into Ethereum into Salana. So that is the larger cap bucket of my portfolio which compounds without you needing to overthink.
Let's go into the second part of my portfolio which are the midcaps. These constitute 25% of my portfolio. They're not super risky but they are slightly riskier than Bitcoin ETH and Salana. The first one is ENA. This is coming in at 7% of my portfolio. This is an interesting asset because there are treasury companies that are accumulating hundreds of millions of dollars of Athena and it's also closely aligned to the Ethereum narrative. So, it acts like a beta and the stable coin narrative because they have one of the fastest growing stable coins in the space. It's also a very reflexive token to upside in the market as you can earn higher APRs during high funding periods in the market which tends to happen towards the end of the bull. That's why Athena takes a place in my portfolio at the 7% waiting.
Next is Hyperlquid. is also coming in at around 7% because it's the bonafide decks of this cycle. The volume's been crazy. The revenue and buybacks are super transparent and overall it's just shown so much traction as crypto's leading DAP, arguably alongside Pump Fund, which ultimately is why I put it in with a 7% waiting. Speaking of Pump Fund, this is the next token I'm putting in with a 6% portfolio waiting. And you could probably flip this with Hyperlid if you want, depending on how risky you want to go. Because I think if you're bullish on the Salana ecosystem, Pump Fun is a higher beta exposure to Salana, but specifically on the DGEN side of the Salana blockchain because the more speculation that's happening on new protocols, the more speculation that's happening on memes, the more revenue pump does. It's actually valued on a ratio four times less than Hyperlid in terms of its market cap to revenue ratio. So you could argue based on the current pace of buybacks, it's undervalued versus Hyperlquid. But I do think Hyperlid has attained a premium due to being the more transparent asset in terms of its buybacks of the two. But Pump Fund, I think, is still a great bet on retail mania. And if that happens again this cycle, you're going to see Pump do really well, which is why it's in the high conviction basket here. And then finally, to round out the 25%, coming in at 5% is Mantle. Mantle is essentially to Bybit what BNB is to Binance. Now, Bybit hasn't officially come out and said that Mantle is their official token, but their actions speak louder than words. They are adding Mantle to the launch pools. You need to hold and stake Mantle in order to get discounts on trading. There are mantle rewards going out to buy the users. It's basically becoming their deacto token. And not all of the market has woken up to this yet. Remember how crazy B&B's run was last cycle? It's also doing very well this cycle. The more volume that gets traded on exchanges, the better the exchange tokens do. OKB and Bit token have also done really well and Bybit overall is the second biggest exchange in crypto. So if you want to catch B&B at like an earlier stage, I think Mantle is exactly that and I don't think the market has fully realized this yet, which is why it comes in under the high conviction bucket of my portfolio.
Now let's get into the more DGEN portion of my portfolio, which is the remaining 15% which is going into the high risk bucket. These are the moonshot plays, but I want to keep it in line with the theme of the video, which is a lazy portfolio. So, these are plays that you're just going to buy into and set and forget. You are willing with the moonshot percentage of your portfolio. If you're playing this game, you don't have to play this game. You can go even safer, but if you truly want to target a 5x, you're probably going to need to have a few of these. You're willing for these tokens to go to zero. If you're buying any of these moonshot plays, you are willing for them to go to zero. Now, you might have an invalidation clause, like a max draw down of 50%. You need to be a little bit more lenient with your draw down clauses on these coins because they can be volatile and you don't want to be faked out on a bull market dip before they eventually go to new highs. So, you can protect yourself somewhat, but you are going to be willing to accept a much larger door down on these assets versus the lowrisk basket.
Now, I'm not going to give you exact moonshots in today's video because that's not what this video is about. And frankly, it doesn't really matter because this is the DGEN portion of your portfolio where you can get into low caps across a few sectors. AI, robotics, RWA, stable coins, DeFi, anything that's a lower cap, that has a strong narrative, a strong team, and has the strong propensity to pump during strong market conditions. These are the sorts of assets I'm looking at accumulating, and I'll speak about them on the channel in future videos. This portion of your portfolio gives you that exposure to that crazy upside where maybe you could hit a 20x and that's going to help balance your portfolio out to an overall 5x if you know Bitcoin or Ethereum only do a 2x. So you need to have different waitings. Hence why I've weighted them from large caps to midcaps and then to moonshot plays. the moonshot play section of your portfolio, you are a lot more willing to deal with risk. And in the high conviction section of your portfolio, you are less willing to deal with risk, but obviously you're going in with higher stakes in order to maximize those specific positions.
So to summarize, 60% are in majors like Bitcoin, Ethereum, Salana. 25% are in high conviction plays like Hyperlid, Pump Fund, and Mantle. and then 15% are in moonshot plays to help barbell the portfolio a little bit to give you higher exposure upside. Just remember, as the cycle continues to evolve, you want to make sure you're taking profits on these assets over time. So, at the end of this video, I'm going to link my exit or sell strategy video, which is going to help you know exactly when to sell these altcoins, cuz I don't want you to buy into the market or hold a bunch of coins in the market and then not know when to exit. So, at the end of this video, go watch that video so you know exactly where to exit. And make sure to subscribe to the channel for more Crypto Alpha like this, helping you get the edge on your competition. I'll see you guys in the next one. Peace out. [Music]