Welcome to BitBoy Crypto!
My name is Ben.
We're going to do a different kind of portfolio video today
because, No. 1, our portfolios haven't really done anything recently,
and we're not going to be making any moves today,
so I thought we could do something a little bit different.
So, what I want to do today is talk about another way to allocate your portfolio.
And I want to know down below in the comments
the way you think that I should do this to maybe add another portfolio to our portfolio challenge.
So, obviously, when it comes to diversifying, you want to have a wide array, not too wide,
but a diversified set of assets in your portfolio.
Unless you're a Bitcoin maximalist,
you don't want to just take one shot, pick one coin and ride it all the way.
That's usually a good way to get wrecked
because if it goes up, you don't take profits,
it goes back down,
you end up married to the bag,
and then you just don't have any other option.
You can't jump around if some coins are getting hot.
So, in my opinion, I definitely think it's good to have anywhere
from four to 10 coins in a given portfolio.
Now, of course, if you've got a million dollars, you can have more than that,
but, in general, for what most people are working with,
I think probably somewhere you know, eight to 10 is probably where you want to be.
Now, how do we do these different allocations with these different coins?
Well, you can do it where you take a coin in the top 5,
you take one in the top 10,
you take two in the top 20,
whatever the case may be,
and just try to go down and pick coins, you know, that you like that are good,
but what are you really basing that on?
One thing that works very well is to have a system and to follow it.
Okay?
So, let's say you want to create a portfolio and you want two layer 1 coins,
you want one layer 2 network,
you want maybe one privacy coin,
which I wouldn't put in my portfolio, to be honest with you,
but maybe you want some Bitcoin, of course,
then you may want maybe an exchange token,
once again, not something I'm doing right now,
you may want a storage token, whatever it might be.
You might build your portfolio like that instead of just picking random coins.
Now, another way you can do it is to invest in a niche.
And so that's what we're going to be talking about today.
There's a ton of different niches out there,
and, you know, some we're going to be talking about in the channel soon
that we haven't ever talked about before, new niches that are coming up,
such as DeSci, decentralized science, very interesting stuff there that we're discovering.
You also have plenty of other projects out there.
You have metaverse projects.
I wouldn't go hard in that right now.
You obviously have exchange tokens, storage coins, kind of like we just talked about with all those.
So what I want to do is I want to put together a portfolio of only one niche.
I think the one that I want to do is layer 2.
I can set up a portfolio.
I don't know how much we'll put in it.
Maybe $5,000 is a pretty good tester, somewhere thereabouts.
Maybe we do more because I'm really bullish on this niche.
We do Polygon.
We do Optimism.
We do Arbitrum.
Then we go around and start picking on some of the layer 2s maybe on other networks.
Look into those and maybe find a gem somewhere.
It's a good way where you can balance your portfolio with really strong picks
at the top of a niche that we think that's going to do really well
and then also have some that are more speculative.
You know, maybe in the top 100.
Maybe you get a little bit outside the top 100.
Something like that.
But it's a good way, like, I will just say it like this.
Layer 1 platforms had been my No. 1 investment in the history of my crypto portfolios.
Consistently betting on layer 1 protocols wins.
Well, naturally, now that those seem to win every cycle,
now, it makes sense that layer 2s would also be moving with them.
We've seen Polygon move in tandem with Ethereum.
We now know that with the Ethereum Merge, it's got great tokenomics.
It's going to fix some of the issues.
It's obviously proof-of-stake now.
It's not proof-of-work.
So that means Polygon is going to get a lot of benefit as well,
a lot of people wanting to build on, you know, on Polygon.
We saw it move with Ethereum.
Will we see some of these other projects do it as well?
The more the network gets used, the more they're going to need layer 2.
So as long as you're counting on Ethereum to go up,
which I am,
not financial advice,
then you could really look at Polygon and some of these other layer 2s
to move with it.
So there are other niches you could do this with though.
Another one I would be really interested in is decentralized storage.
I think that's going to be a big narrative in the bull run.
I think it's going to be a positive niche.
Then you have some of the ones that are more speculative,
like the DeSci, one I'm just learning about.
Obviously, you wouldn't want to really go too speculative in a niche
that you don't really know yet.
There's going to be a lot of projects way down on CoinMarketCap.
But I will tell you this.
That's what DeFi was in 2020.
And a lot of those projects, you know.
People got rewarded for taking that risk
and getting in early on a lot of those decentralized finance projects.
Not only were they earning money in the portfolio,
but they were also earning passive income with DeFi.
So that's another thing to think about.
Could you set up a portfolio that's only out of coins that are making you passive income?
Now, of course, we don't want to do that off-chain.
You know what I'm saying?
If you're going to get Cardano,
make sure you're using our staking pool, the BitPool,
or at least a Cardano staking pool,
not doing it on a platform like Gemini Earn or Celsius.
We see what happens there.
You're just giving up access to your coins.
You don't want to do that unless you absolutely have to.
If you do, make sure it's a small percentage of your portfolio
and it won't break you.
But you don't want to have a portfolio that's 100% coins earning yield on third parties.
That's not a great idea.
So that could be something really interesting to look at, you know,
Cardano, Cosmos, you know, Algorand,
some of these projects that have staking, you can do it on-chain.
It can definitely be something that, you know, is very interesting.
Let me turn my blinker off.
How about that?
Did you guys like that?
So I heard also today that apparently Coffeezilla is putting out a response
to Logan Paul in that CryptoZoo situation.
Have you been following along with that like most of you have?
I'm sure most of you guys know at least generally what it's about.
Man, very interesting.
We're putting out a video tonight at 10PM.
Make sure to come check it out.
We're going to be filling in some of the details and some of-- well, they're major, in my opinion,
but some of the finer points that really had a big impact on what happened there with CryptoZoo.
And I think at this point, like, it's way more beneficial--
Coffeezilla doesn't need to respond to Logan Paul.
He doesn't need to respond.
And certainly the clicks are going to be good on a response video.
But, in my opinion, it's time to, you know, really just say
"What can we learn from this?"
"What can we take away from it?"
Not "Can we just keep bickering back and forth and feuding back and forth?"
I don't think it's really super beneficial.
I think people can see that Logan Paul's response video,
it really didn't hit the mark.
And Coffeezilla is just continuing to fuel it with him here.
I just don't--
I think Coffeezilla should probably be the bigger man here and just kind of let it go.
And I'm not talking about finding new information.
I'm talking about just the bickering back and forth.
It's really unnecessary.
I obviously have done some bickering myself.
But I think at this point,
the points were made and they were driven home like really hard and really strong.
And so, like I said, let's see what we can learn from it.
Maybe we get those two guys, you know, to come together and do a debate live somewhere,
but definitely not in either one of them studios
because if you accept another man's challenge to go to his studio,
you're a beta.
That's all I got.
Be blessed.
Make sure to put in the comments which niche you want to see a portfolio on.
That's all I got.
Be blessed.
BitBoy out.