If you have read my previous blogs you already know I always talk about how one should manage the cash flow, how to spend it wisely into assets and my ways using which I’m trying to be financially independent.
But this blog is different here I’m gonna talk about an asset class that is comparatively very new than some of the traditional asset classes like equity, gold or real state, but everyone has gone crazy about it these days i.e. cryptocurrencies. And the biggest player in this crypto market is bitcoin which is a missed opportunity for most of us including me as its price has gone crazy but there is no need to be sad because there are other cryptocurrencies aka altcoins in the market that has the potential to reach or surpass the level where bitcoin currently is. So in this blog, I’ll discuss my views on what could be the next bitcoin according to me, on what altcoins I’m putting my money and how my cryptocurrency portfolio looks like.
WHY CRYPTO?
Let's discuss why cryptos have become so popular these days? there can be many answers or reasons to this question but according to me, the biggest reason is that cryptocurrencies can make you rich overnight. I always talk about one can not become rich overnight but cryptocurrencies have changed that scenario. We can hear a number of stories of someone who become rich overnight just by holding an XYZ crypto coin. And that inspires the people most and that is why more and more people putting their money in crypto.
THE PROBLEM WITH BITCOIN
Now next thing is why we should be looking for the next bitcoin already? Bitcoin is doing good crushing its all-time high price every other day. So what is the problem with bitcoin? Why I should be putting my money on some other altcoins? There are 2 reasons first, bitcoin has become too expensive it has the potential to reach newer highs but that won’t be as significant as compared to its previous value boom. The second and the more important reason is the energy consumption in bitcoin mining, it takes a huge amount of energy to mine bitcoins and it's a serious threat to the environment. Given the current scenario and the sentiment of the whole world towards energy crunch, energy consumption can be the biggest threat to bitcoin value or even to its existence in the longer term.
THE NEXT BITCOIN (According to me)
A few important things to mention before we discuss my investments in the crypto space, First I’ve included both crypto tokens and coins here in this blog and I’m going to skip the difference between a coin and a token because that will be too technical for a financial blog. Second, every coin or token that I’m going to mention has a different need and it has been introduced to solve a specific problem so if I compare them it’ll be as good as comparing an apple to an orange so this blog is focused on there future values in terms of real money. Third, there can be some obvious choices which I think can surpass bitcoin in terms of values so if you don’t find anything new or exciting I’m sorry for that already. Fourth, blockchains and crypto can be too technical to understand for most people I’ll try to explain in simple words why I’m putting my money in these specific coins without being too technical but still, some of the terms may be unheard or unclear to you so for that you should try to search and understand what they are.
Finally, let’s talk about what could be the next bitcoin according to me and where I’m putting my money in the crypto space. So let's see the list -
- Ethereum (ETH)- Ethereum is the second biggest cryptocurrency in the world which makes it an obvious contender that will surpass bitcoin in terms of values. Especially the upcoming upgrade in Ethereum 2.0 which is going to roll out in the next few months I’m very bullish on ETH that it will make a new all-time high valuation record again and again. Ethereum is the third biggest holding in my crypto portfolio. And it consists of 10% of my total portfolio.
- Decentraland (MANA)- Mana tokens are the biggest holding in my crypto portfolio and it consists 20% of my overall portfolio. Mana token is a virtual currency of https://decentraland.org/ metaverse. I think it's an excellent project and I’m very positive about this token that it can reach the level of bitcoin especially when some of the biggest tech giants are into metaverse and virtual reality. Facebook has recently changed its name to meta and it shows the commitment and seriousness of Facebook towards metaverse and virtual reality. I’ve got 4x returns on my investment since I’ve bought this and I’m very confident that Mana can make my money 10x or maybe 15x in longer-term so I’m still holding all my mana tokens and I’ve not sold any single mana token till now even after getting 4x returns. I’ll put more money into it if I see a dip.
- Solana (SOL)- Solana coins are my 5th biggest holding and cover 8% of my crypto portfolio. Solana is the fastest blockchain in the world and far better than Ethereum. Every blockchain has a cost to perform a transaction Solana has one of the cheapest average transaction cost prices and it addresses many problems associated with Ethereum and that is why more and more projects coming on Solana and more projects mean more increase in values of Solana coins. The last one year return of Solana coins is 12000%. I’ve got an 80x return on my investment in Solana. I wish I could have found this coin a bit earlier so my gains would have been more than double compared to what I’ve right now. (I’m really greedy isn’t it?)
- Helium (HNT)- Helium network token (https://www.helium.com/hnt) is my 10th biggest holding and cover 3% of my crypto portfolio. Helium is a blockchain that works on the Internet of things (IoT) and wireless networks. And if we look around there are plenty of smart devices around us already and they are growing in numbers continuously. The more devices meaning the more values they will add to HNT. I think HNT is a mind-blowing project and has a lot of potentials. My return on HNT is in negative 2x which is ok for me because I can hold HNT for maybe the next 5 years. I’m putting more money into it just to lower my average price here.
- PolkaDot (DOT)- Polkadot is my 6th top holding and has a 7% stake in my portfolio. The main reason to buy Polkadot or DOT is the scalability of the application because it provides a framework to perform cross-chain transactions. It is already way faster than Ethereum and the transaction fee is also pretty low. My return on DOT is negative 1.5x. But it’ll cover my losses in no time given more projects are migrating from Ethereum to PolkaDot parachain.
So these are top picks that I think can be the next bitcoin in longer terms. I could be wrong here but if I’m right I’ll be a millionaire soon (Just daydreaming :-D). I hold some other coins too, mostly stablecoins which I use to generate my passive income. Below is a snapshot of my crypto portfolio.
Now before I close this blog there are a few important things to mention I’m not a crypto genius nor a crypto millionaire and certainly not a financial advisor. This blog is just to put my thoughts on what can be the next big thing in the crypto world according to me and how I’m managing my money in crypto. I’ve done a lot of research before I’ve put my money in these coins and still I can be wrong because the cryptocurrency world is very uncertain and risky. I may lose all of my money here. So I request you all to do your own research before putting any money in crypto. I put only my gambling money in the crypto portfolio which I can afford to lose. Currently, my crypto portfolio is only 2% of my total networth.
I’m still having most of the money that I’ll spend on my wife and children invested in bluechip companies and I’m ok with the fact that I’m never gonna get crazy returns that I may get in crypto but I can not afford to take the risk to lose money that will take care of my future.
Let me know in the comments what crypto coins you are invested in currently. If I get a good response in this blog I may reveal my buying price for these cryptos. Thanks for reading this block till here and best of luck with your cryptocurrency investment journey.