What I have been doing since the last post
18 Dec 2017 • 0 Comments[DRAFT]
It’s been three months since my last post, and I’ve drafted a couple of posts, but didn’t end up publishing them. Mostly this is because I decided that time is better spent actively following news and acting upon them, then on writing in-depth articles. To illustrate this point is waltonchain. Waltonchain was trading at less than a dollar back in August, and I hadn’t heard of it – and honestly I think it’s such a good idea that it’s a no-brainer to buy it whenever I had heard of it. I only heard of it around early October when the masternode was announced and it was around 7 dollars. So despite the run-up in price, I jumped on it immediately and I tweeted about this on InvestFeed:
I think it was a good decision, but one of the lessons learned is to stay on top of the news. Another great reason to stay on top of the news is airdrops. There has been a few worthwhile airdrops - they are economic miracles really, and it’s like money is literally falling from the sky!
Here is a run down of my thoughts and learnings from the crypto world in the past three months. When I worked in finance, my portfolio manager always liked to note his mistakes so that he could do better, so I’m going to note my learnings in terms of hits and misses. Although, let’s be honest, I don’t think my misses are very terrible, not that one can do really terribly in this market anyway :)
Hits Good projects with masternodes are the best Masternodes were popularized by Dash - many coins have them now, but generally a masternode is a computer that performs essential functions for a cryptocurrency and earns more coins in return, and must be “secured” by a large number of coins.
This is great because you generate passive income just by holding coins and running software. It is also great for the price dynamic of a coin, because it locks up a lot of the tradeable supply into masternodes. As a project develops and more good news come out, there are less coins in the market to buy so price can move up more quickly.
Now, a coin doesn’t need to be an extremely good project, but have a masternode with high ROI, and it could still be profitable in invest in it. MasterNodes.pro lists masternodes by ROI. Currently the coin with the highest ROI is crowdcoin with 1683% ROI – I’ve never heard of this coin, but it could be profitable because you are can more than double your coin in a month, and so long as the price of the coin doesn’t half, you would be making money. However, I think the only coin that is also a solid project on MasterNodes.pro is PIVX (and it is the only one with a relatively large market cap) – and notice that its ROI is only 5.47%. However, the price of PIVX appreciated 1197x since the beginning of the year! So it is much better to invest in PIVX, and have the masternode as a nice add-on.
I think coins with masternodes fall on a spectrum of high to low ROI, and on another spectrum of good and not-so-good projects (good project meaning good technology is being developed for good purpose, and not so good is the lack thereof)
Supply chain is a good application for the blockchain
Airdrops are great
Misses Token burns are not to be trusted, what does market cap really mean anyway? Arbitrage is difficult because you can’t get around confirmation times