RE: What percentage should you invest in each cryptocurrency? A guaranteed winning strategy (index updated 8/13/2017)
Well written and always interesting to see strategies of other investors.
The biggest risk with that strategy (like you mentioned yourself) I feel is that new coins like: iota, neo and omisego sky rocket into the top market cap. You would start to buy big after they had massive gains. The risk that those are coming down again is quite high. And if they are coming down you would tend to sell them for other coins who are now in the top market cap charts. I see that especially with certain trend which appear. Eg beginning of the it was private cryptos. But now you don't see much about pivx and zcash anymore. At the moment it is china/asia coins. Who knows where they are in 3-6 month. And if you look up who was in the top 10 market cap in 2016 a lot of them arent there any more.
Also regularly leveling leads to sell the winners.
But that are certain risks which you just habe to manage as onvesting always comes with risks. And I totally agree that you need to have an investment perspective on all the top market cap projects.
Hello famunger, thanks for your kind remarks. Missing the wonder coins is the price you pay for sleeping well, keeping your marriage and not dying young from a heart attack trying to pick winners ;). Also, rebalancing too often is a bad idea. I have to emphasize that in my post and will do it thanks to your comments. My best regards friend, happy investing!
Hello cryptoeagle
Thank you for your comment. I absolutely agree that rebalancing too often is a problem which too many are falling for.
I like the very strong mechanic in your approach helping to leave emotions out.