5000 USD challenge! Investing in ICOs and Cryptos for a year...

Since December last year I have been interested in cryptos.

My brother had some money he put in a few months earlier and my father put in some money too.
My father 10xed and my brother 8xed. Of course I wanted the same success, I started out with 1300 USD and grew it to 8000 USD within a month.
Then my portfolio dropped and I could not hedge it with another crypto because everything was dropping. I have now about 5000 USD left and I think it is a nice starting point for something different, ICOs!

Because the USA and China are usually prohibited from participating in ICOs, when the ICO gets listed on a exchange a lot of Americans and Chinese will buy them if they want to invest in the project. So I’m aware that I might be more lucky because I live in Europe and can participate in all the new projects that give out ICOs.

This is my portfolio and the amount I invested per ICO, sometimes it takes some time for the ICO to be listed on a exchange.

To check out how my current portfolio is doing click -> portfolio
note that not all ICOs are listed yet and therefore are not seen in the portfolio.

A lot of ICOs go 4x within a month they are available on a exchange and some become worthless. So I made a plan on how to manage my portfolio. And for the record, I’m aware ICOs are a risky investment.

I set up some portfolio management rules for myself:

1. Don’t put all your eggs in one basket
There is always a chance that the ICO is a scam or that the token becomes worthless. That’s why I try not to put in more than 1/5th of my portfolio in one project. Hopefully after a certain point if the portfolio gets so big that 1/5th of the portfolio will be more worth than 5 Ethereum. A lot of projects have a personal cap of 5 Ethereum this means that there will be more money than I can invest in good projects. What I try to accomplish is that my portfolio eventually will consist of 40% ICO tokens, 40% of crypto currencies and 20% of FIAT money in my case EUROs.

2. Minimize risk if possible
When the token get listed on a major exchange like Binance or Kucoin the token can be bought by the people that where missed out on the presale. Often the token goes times 4 in the beginning when it is for sale for the public. If this happens I like to sell half of my tokens and keep the other half. This way I double my investment and I still have the other half of the tokens to keep for a longer period of time.

3. Evaluate the token after 3 months
A lot of times the ICO token should have increased in value a few times. If this is not the case try to find out how the project is going and the market reacted on certain milestones from the roadmap. At this point I will consider to sell and put my money in a new ICO project. I expect an ICO to 4x and if this is not happening maybe another ICO project is better. Also when the token only doubles maybe I sell half of the tokens and leave the other half for another 3 months.

Not all the tokens are released yet and therefore not visible in my online portfolio

but I will keep you updated with a nice Excel sheet again next time.

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