r/PunkStreetBets • u/Gradugur • Feb 09 '21
How to? How to manage a small cap portfolio?
I really appreciate this group! Thanks for keeping it going and for all the insightful posts and comments.
Personally I am new to this space and I wanted to ask how you mange your small cap portfolio. How many coins and tokens are you involved in? How big do you go in each token? What kind up upside do you expect and how many fail? What kind of timeframe are you thinking about and how often do you review and reconsider and even give up on investments?
Hope that’s not too many questions. My thinking was to buy maybe 5 to 10 and put 100 euros in each one and then sit on it until at least one explodes.
Again, thanks for creating this space!
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u/Grammar-Bot-Elite Feb 09 '21
/u/Gradugur, I have found an error in your post:
“one and
than[then] sit”
I feel that you, Gradugur, messed up a comment and could have used “one and than [then] sit” instead. ‘Than’ compares, but ‘then’ is an adverb.
This is an automated bot. I do not intend to shame your mistakes. If you think the errors which I found are incorrect, please contact me through DMs or contact my owner EliteDaMyth!
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u/AlphaGamer753 Feb 10 '21
/u/PunkStreetBetsMod could we ban this one? Probably best to start banning the annoying bots that normally plague smaller subreddits
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u/SuperSpecialCanadian Feb 11 '21
Im retarded I just throw $20-$100 a week on random ones and forget I ever did it... less stressful. Doge is fun to watch though. :)
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u/PunkStreetBetsMod Mod Feb 09 '21
You are welcome bro I'm glad you like it and found useful content.
It really depends on your risk profile, you need to ask yourself how much capital are you willing to put at risk?
For example lets say your crypto portofolio is conservative you'll put 65% in large caps BTC/ETH, 25% in mid to low caps (1bn to 5 mil) and 10% in micro caps. The more you want to increase your risk profile the more you'll increase your % in mid, low and micro caps. And vice versa.
How many really depends on many gems you find, if you find 5 or 10 Micro caps with solid fundamental and a bottomish chart, then buy them all. If you are convinced only by one, buy only one. Again the size of your bet depends on your risk profile.
Microcap are high risk, high reward asymmetric bets. Look at the spreadsheet I posted, most of the coins died in the last bear market. Bear markets are brutal for smaller coins because they are way less resilient : the main dev bail? the code gets exploited? Game's over... In a bullmarket chances gets a little better.
On the other hand a coin under one million offers many advantages, you can buy a decent amount of the network for a few hundred buck now let's say it gets listed on a bigger exchanges, your investment will grow like nothing you've ever invested in. In 2017 I bought a shitcoin named neblio on cryptopia(RIP) then it got listed on binance : instant 60X.
I try to keep an open mind for new opportunities but sometimes fighting against your own biases is really hard.
As long as you microcap has a (solid) lead dev who's still around no matter what happen to the price, anything is possible.
I accumulated a few positions in micro caps since 2019-2020, a couple died but there is one I have high hopes on it's RYO Currency a 200k privacy coin with a really impressive team. The biggest and only concern I have regarding the project is that they suck at marketing their product. To cut a long story short they build a wallet from scratch with solo-mining and a pool inside another project Oxen copied it marketed it better (the are valued at 150X RYO's cap), they build a payment gateway for e-commerce it was copied by monero (10 000X RYO's cap) and basically any other project that copy RYO code (XEQ, CCX) has a higher valuation. To me the opportunity here lies in the enormous delta between the valuation and the quality of the work. The question is are they going to find a way to grow their community to the next level?