This post is an update on how the Crypto VA strategy has performed this month (month 3 out of 6 of the strategy).
So far the portfolio has returned 76.39% (September 1st to 28th November) with less downside volatility than the overall crypto market.
Disclaimer before we go on: Investing in cryptocurrencies is risky. This is not investment advice, it's just what I'm doing. Only invest a very small portion of your investment portfolio in cryptocurrencies. If you have not read the original post relating to this then the below won't make much sense, so please read it before moving on.
In this post, I'll quickly go over:
Last month I started investing in cryptocurrencies using the Crypto Value Averaging Strategy described here. This post is an update on how the strategy is going so far.
The usual disclaimer: investing in cryptocurrencies is super risky. This is not investment advice, it's just what I'm doing. Only invest a very small portion of your investment portfolio in cryptocurrencies. If you have not read the original post relating to this then the below won't make much sense, so please read it before moving on.
Crypto market update: September 2017
Anyone invested in cryptocurrencies during September knows that it wasn't a great month. This was mostly down to:
The crypto market has gone up massively already this year so the price drops of September were a healthy correction in my opinion.
The chart below shows what happened to the price of Bitcoin in EUR over September. The first half of the month was bad but the second half was a lot better!
Bitcoin price in Euros September 2017
Looking back, it would have been great to buy Bitcoin on September 15th. But knowing that Bitcoin would go up after that would have been very difficult.
Starting the strategy on September 1st wasn't ideal, but at least with Value Averaging (VA) I only invested small amounts in each crypto. As you will see in this post, I got some better bargains in October!
Investing a bit of money each month over many years will go a long way towards growing your retirement pot. The easiest way to do this is through Dollar Cost Averaging, where you invest the same amount of money each month into your portfolio, regardless of what the market is doing. Over time, this lets you average the prices at which you buy your fund units.
Dollar Cost Averaging (DCA) is great, but Value Averaging (VA) is better. In this post, I'll explain: