ICOs, Altcoin investing is hard. One of the best funds around seems to be Pantera Capital. I was looking at their returns and it is nothing to write home about A quick glance at the returns and it seems to me that one would have been better off owning Bitcoin since 2017 rather than investing in these funds, and it wasnt close, Bitcoin just killed everything else. This will probably change as the bull market rages one and an big alt season takes place but then, this will change again when the bear market comes and they get killed again. And Pantera has the benefit of pre-sales, private sales, buying security tokens, which retail does not. I still like the idea of investing in an early stage token fund like this one and I might even invest at some point but I find it very interesting how they have failed to beat BTC so far despite all their advantages
One of the downsides of his Early Stage Token fund is that there is a 12 month gate for withdraws. So you got to predict tops 12 months before they happen, to avoid the gigantic drawdowns. If I were invested, I would be probably asking for withdraws right now, so in early 2022 I would get the money. So, it doesnt seem to make sense to invest at this moment. His liquid altcoin fund doesnt provide the advantages of the early token fund does, anyone can buy Polkadot. So I wouldn't want to pay 2/20 for that. But I will invest in his early token fund at the depths of the next bear market
I just run the comparisson return numbers on Excel vs Bitcoin returns over the same period. Pantera has been taking on the chin vs Bitcoin. And this understates the difference because I used their "Bitcoin Fund" returns, which include a fee. I'm no maximalist, I like ETH and own a fair amount plus some alts. But I try to keep non-ETH alts small, the fact that Pantera has been sucking only goes to show how hard this game really is
If his Early Stage Token fund has been sucking like this, it leads to the question, perhaps instead of investing in a fund like that, it could be better to just buy more bitcoin (raising the % allocation in a portfolio). The final risk adjusted return will probably be higher with less work (having to do all the research and stuff). Perhaps, alt coins will be an easier game when Bitcoin has matured, when it is an established macro asset without exponential upside. As it is right now, why risk missing out on a certain 5-10x on Bitcoin to get an uncertain 20-50x in an alt, assuming you sell at the right time? These things drop like a rock after they top out. Anyway, I'm just raising some points for discussion, I would love feedback from experienced crypto investors out there
The key is trading alt/BTC pairs while monitoring BTC.D Alt/USD misses out on the BTC moves and doesn’t return as high. It pretty easy to see the parabolic moves that are happening in various alts rn, and they are coming like constant waves. As for them dropping like rocks, yeah that sucks but there is another train going up the mountain.
Here is a view: Its a lot of work for an uncertain payoff, why not just own, say, 75% BTC 25% ETH and call it a day? ETH has even been beating Bitcoin in last 15 months or so, I think thats what a core crypto portfolio should look like. So, now, an alt portfolio has to beat ETH as well (in my mind). Maybe it can be done, maybe it cant. But if crypto is the future, that core portfolio (properly hodled) is likely to beat 99% of everything else out there. Why research for hours on end, having to dodge all the crap out there (all the stuff that youtubers love to pump), have a lot more volatility in the portfolio to at the end of the day, probably produce a worse risk adjusted return?
I did a little comparisson between some of the exchanges/brokers that I use for crypto TS Crypto is not an exchange, its an aggregator. So it looks like they bundle together BTC avaliable at other places and offer them in blocks (probably with a spread gain for them) whereas Kraken and Binance are just internal level 2s. For big size, TS Crypto is pretty good. For smaller orders, its probably best to use Kraken or Binance