Since our last portfolio update in June 2022, our long-term crypto portfolio has a current return of +17.61%. This is based on a market turn around over the past 4–6 weeks, while during 2022 the portfolio experienced a drawdown of -56%.
The year before that, 2021, our portfolio returns were +637.23%. While drawdowns are never good for investors, with a long-term horizon and a highly volatile industry, as long as we manage a diversified portfolio the risk:reward ratio is well worth it.
I am happy that we have some clear winners in our portfolio, including Fantom (109%) and Polygon (197%), which have both exceeded our expectations. Uniswap (53%) and Binance (50%) also held up well over the past year.
Unfortunately, we were caught on the wrong side of the trade with FTX Token (-92%) but this is the wild west of crypto. Mt. Gox was the first and FTX surely won't be the last. If you have been around long enough in crypto, you would have trust issues and PTSD by now, but there is always some mind-numbing narrative in crypto that emerges to make you forget about the pain.
Despite this setback, which we successfully managed by diversifying our portfolio, the hit was only -2.78% to our portfolio.
Let's review our current portfolio...