Managing crypto portfolios

Hi Steemians

I just finished restructuring my portfolio and the method how I manage it. That is what I like to share with you today. It might give an impulse to some of you to improve their own portfolio but also I am very curious about your thoughts on my approach. I love to learn and approach it even further.

Please keep in mind that I am no professional and that projects selected are no investment advice.

basic idea:
I want to focus on the market leaders BTC and ETH. I see a lot of potential here. The greatest risk is that a challenger might surpass one of them. That is why I want my portfolio to be diversified. I also see use cases in certain industries which I find very promising. I also try to keep my portfolio diversified industries wise.

I tried to implement mechanics which force me to make decision because there are so many interesting projects out there and it doesn't make sense to invest in to many projects. It does not make sense from my point of view because than the percentage you invest in each project is so little that even if it gives you 10x it won't move your portfolio significantly. Also it is really hard to follow more than 20 projects and keep yourself up-to-date.

That made me think that I need categories with different strategies for each one.

The first level of categorization is about the quality of the projects. I defined 4 categories:

1. "Leading Edge" making 50% of my investments limited (at the moment) to BTC and ETH
2. "Prime / A-picks" making 30% - limited to 6 pics from different industries. Projects I see a huge potential in. I monitor those regularly and try to be up-to-date about their progress. I do understand their business model in depth.
3. "B-picks" projects (15%) I like and see great potential - they are contender of the "A-picks" and might replace one of them over time. Limited to 15 projects. I monitor the projects but not too closely. I like the use cases and understand them - but not (always) the same detail level than the "A-picks".
4. "C-picks" projects (5%) which I want to be invested in an keep track of. Often projects with a special technical advancement or a promising use case which first need to get some "grip" and show some results to become part of the B or A pick list. I monitor them sporadically and like the general concept of them. Limited to 25 (might strip it down to 15-20).

Second level of distributing the investment amount is different for each category:

1. For Leading Edge it is direct %-wise distribution. At the moment I am weighting both BTC and ETH equally (50/50) but that could change.
2. For Prime Pics same thing. I am distributing the investment amount %tage wise to the 6 projects. Here I am assigning %weighting individually. Steem is a big junk here only surpassed by EOS
3. B-Picks: Here I am looking for the distribution over industries through distributing the investment amount to industries first - than to projects within those industries.
4. C-Picks: The 5% investment is just equally distributed over all projects - I see it as "standard investment amount".

So the target investment volume is calculated as follows (example wise per category)

For 1'000$ investment volume

1. level 1 category leading edge 50% x project weighting BTC 50% = 25% of total investment = 2'500$
2. level 1 category A-picks 30% x project weighting Steem 20% = 6% of total investment = 600$
3. level 1 category B-picks 15% x industry weighting "currency only" 15% x project weighting Dash 50% = 1.1% of total investment = 110$
4. level 1 category C-picks 5% x even distribution / 25 = 0.2% = 20$

Projects can move up or down. Than the limit of the category above forces me to make a decision which project that one replaces.
For each project I monitor performance on a weekly basis. Due to different performances the %-tage within those categories and overall is going to shift. That again forces me to make decisions. Do I see the performance differences temporary or fundamental?
What does that mean for the lower performing project? Are that the right picks? Do I want to just accept the shift in weighting in my portfolio? Do I want to level (sell/buy) back to target weighting?

Leading edge and A-Picks are "long-term" investments anyway - my target is here only to accumulate and not to sell short term. So here I would rebuy if those projects drop below target weighting and accept if the performance brings them above the target weighting.
For B and C picks I might decide to level (buy/sell) unless I decide a high performer moves a category up or a low performer moves a category down.

Here a picture of how that looks like in my excel sheet which I am happily share if someone is interested.

And here the excel for download

What I am still struggling with:
-Number of projects still seem to big. I would be happier with a total of 30 or so projects.
-Is the 50% for BTC/ETH too low - should it be more like 60% or so?
-Does the "industry" distribution enforced through the categories in B-picks makes sense? Or should I just ensure that the pick list is done balanced from different industries? Would reduce some complexity.

I hope you were able to pick up some ideas for your crypto portfolio and now I am very interested to hear your thoughts on my approach and learn from your experience!