Dear Crypto friends!Every few months I mention on Reddit how I use a percentage based portfolio management strategy and that I believe it is the "right" way to manage your portfolio. When this comes up I mention the google sheets document I've created over the past three years to organize, view, and react to my portfolio. Every time somebody asks me to share this document, but doing so takes a lot of effort and I've been too lazy. Well last night it happened again and this morning I finally wasn't too lazy. So without further ado here is a way too long post about how I view finances and why I believe you should try to adapt my strategy to fit your needs.*First things first, I am not a financial advisor, I am an internet bozo that you have never met. Don't invest more than you're willing to lose, do your own research, not your keys not your coin, feel free to comment more cliches and I can add them here.*I adhere to the belief that the very first step to proper financial management as an adult is to create a monthly budget for your life. I have used mint for years as a way to track my spending and help me figure out what a realistic monthly budget for my lifestyle is. Once I feel good that my monthly budget is accurate I put 3 months worth of my budget in my traditional credit union savings account, 1 months worth in my traditional checking account and then I direct deposit my paycheck into a third traditional savings account. I then place 3 more months of my budget into a high interest DeFi account. Now I want to pause here because everyone comes from very different financial backgrounds. We all hear "Don't invest more than you're willing to lose" but nobody likes to define this. Regardless of how you feel about USD stability (if you're in this community it's probably because you don't trust fiat) most "experts" believe you're first financial priority as an adult is accumulating a 6 month emergency fund. We live in crazy times and if the past 3 months didn't convince you that an emergency fund is necessary I don't know what to say. I understand that even if you have a minuscule $2,000 a month budget(good luck getting a studio apartment in NYC?) my strategy requires $14,000 before you even start investing in crypto. That is way more than most people actually have and I completely empathize if you are unwilling or feel unable to wait until you have that. If you absolutely can't wait that long, I hope you at least start building towards your emergency fund using a high interest DeFi account (I recommend Nexo, Blockfi or DefiSaver). I am not a financial advisor!Now that I have my bank accounts set up, it is time to invest in my favorite cryptocurrencies. Everyone has their own rules (DYOR!) my rule is, I only invest in coins I use. So for example I feel the C20 token is extremely interesting and I have thought about buying some, however it is an index fund not something I can spend, so at this time I'm not investing in it. I also feel EOS/Steller and some other chains are also really interesting, but same issue, I don't actually use them. What do I use? Personally I regularly spend USD(no shocker there), BTC (I've recently gotten into using the lightning network using the FOLD app), ETH(God's Unchained is better than Hearthstone, fight me!), BCH (Purse has been great!), Nexo, BNB, and Dash. Ok I don't actually spend Dash. Eventually I think I'm going to switch Dash to Monero, but either way I feel holding a privacy coin during extreme civil unrest is reasonable.I'm definitely not here to say one coin is better than another and that my choices are correct. If you want to tell me how much of an idiot I am for using the lightning network or that spending bcash is a scam feel free to do so in the comments, just know that I don't care and I wont read them. DYOR!!Once you have the coins you would like to hold I believe you should set a target % that you want each coin to take of your total portfolio. You can do this by saying everything is equal at 10% or as I do where each coin has it's own target percentage based on how I feel about them. DYOR!!! If the roller coaster meme gets posted and your actual percentage held goes from 10% to 15% using my strategy you would sell off that 5% and distribute it to a coin that hasn't skyrocketed(yet!). Conditional formatting in the document triggers a Green fill when a coin passes 103% of it's target % and a Red fill triggers when a coin drops below 96% of it's target %.That's it, that's my strategy. When the market goes up I trade for some USDC and when it goes down I spend that USDC to accumulate units for the next bull run. It is very simple, but forces you to not care about fancy technical analysis or dollar averaging. Just buy when the market tells you to buy and sell when it tells you to sell. At the end of each day I click the "History" tab, copy the days data and "paste values only(Ctrl+Shift+V)" on the bottom row. When my paycheck comes in I top off my checking account to a full months budget then look to see how much my sheet recommends sending from my traditional bank account to my DeFi savings account.Those of you who are interested I'm attaching a link to my google sheet. It is going to be able to be viewed but not edited so you will need to duplicate it to your own account to use yourself. I have added lots of tiny notes to explain different sections and help you learn how to interact with the data. One issue that may arise is if you try to copy paste the sheet. When pasting formulas, if you go to copy and paste and are only getting values click "view > show formulas" then copy paste. You wont get my many notes and pretty formatting but it's a start. Another issue is with adding the "CRYPTOFINANCE()" script. For instructions and more information. Hopefully you'll be able to duplicate this document without issue, but if not let me know and I'll do my best to troubleshoot. I'm really proud of this document and have put a lot of time and effort into it the past 3 years, so please be kind in your criticisms but by all means give me advice on ways I can improve it more.Percentage Based Crypto Portfolio TemplateI hope you found this interesting and useful,Sincerely,Clark KentEdit: One tidbit that I forgot to touch on but that is absolutely necessary to share. The cyptofinance() data pull method isn't perfect. It is not unreasonable for the prices it shares to be 20 minutes delayed. For this reason you should only use the document as a guide. Double check that the price of the coin it is telling to sell is still close to what the document believes it is.
Submitted June 12, 2020 at 09:42PM
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