{"id":415728,"date":"2020-02-24T11:00:07","date_gmt":"2020-02-24T11:00:07","guid":{"rendered":"https:\/\/wncen.com\/?p=415728"},"modified":"2020-02-24T00:00:14","modified_gmt":"2020-02-24T00:00:14","slug":"investor-1000-top-10-crypto-assets-start-2020-heres-how-going-now","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/investor-1000-top-10-crypto-assets-start-2020-heres-how-going-now\/","title":{"rendered":"Investor Put $1k In Top 10 Crypto Assets to Start 2020. Here’s How It’s Going Now"},"content":{"rendered":"
Despite Bitcoin’s extremely strong performance in 2019, crypto assets as a class didn’t fare too well. Sure, some altcoins like Litecoin managed to surge by hundreds of percent. But, the aggregate market capitalization of cryptocurrencies that aren’t BTC managed to register a slightly negative performance last year, with altcoin projects in Ethereum and XRP actually falling.<\/a><\/p>\n This meant that those that abided by “diversification” strategies in the crypto space lost out. Big time<\/a>.<\/p>\n But, as one Redditor’s crypto-viral experiment has shown<\/a>, buyers are once again rushing to buy altcoins, allowing Ethereum, XRP, and a swath of other digital currencies to outperform BTC.<\/p>\n If you’ve been on the “cryptocurrency” Reddit at all, you likely know of a user going by \u201cJoe-M-4.\u201d Over the past few years, the user has embarked on a number of experiments, attempting to determine the validity of diversification strategies in the cryptocurrency market.<\/p>\n The experiments are centered around this strategy: at the start of each year, take $100 and put that sum into each of the top 10 crypto assets by market capitalization \u2014 from Bitcoin to Ethereum to XRP and onward \u2014 without rebalancing the fund, ever. As Joe wrote, it\u2019s a \u201clazy man\u2019s [crypto] Index Fund.\u201d<\/p>\n Last year, the experiment proved altcoin investing in 2019 was hilariously sad, with the Redditor revealing that the fund ended the year up 1.7%, \u2018rallying\u2019 from $1,000 to $1,017 in a 12-month period.<\/p>\n Though, it seems that the experiment is faring better in 2020. Per an update published by the user this week for January 2020,<\/a> the portfolio posted a 55% performance in January, meaning $1,000 was turned into $1,550 on paper. This outperformed the crypto market’s capitalization, up 36% in the same time period.<\/p>\n Notably, altcoins have been doing even better in February, though this update only covered the performance of the crypto portfolio in January 2020.<\/p>\n While the positive results of the diversification experiment suggest altcoins may have a positive 2020, some fear that non-BTC crypto assets are going to have a tough time in the coming years.<\/p>\n Prominent cryptocurrency commentator and analyst Ceteris Paribus\u00a0recently noted<\/a>\u00a0that the launch of the\u00a0CME\u2019s Bitcoin options could be bearish for altcoins<\/a>: \u201cIf it isn\u2019t obvious, the more we see products like this get offered the more bearish it is for the majority of alts,\u201d they wrote.<\/p>\n They elaborated on this point by noting that \u201c99% of crypto assets are basically quasi-derivatives of Bitcoin,\u201d meaning that the introduction of actual, regulated derivatives for traders may lead to an erosion in the volume figures for altcoins.<\/p>\n https:\/\/twitter.com\/ceterispar1bus\/status\/86456833<\/p>\n Also, Michael Novogratz \u2014 current CEO of \u201ccrypto merchant bank\u201d Galaxy Digital and a former partner at Goldman Sachs \u2014 released aired a number of his concerns about altcoin investing in an extensive Twitter thread.<\/a><\/p>\n“Top 10 Crypto” Experiment Finally Goes Right, At Least For January<\/h2>\n
Altcoins Have a Harrowing Long-Term Outlook, Some Warn<\/h2>\n