I bought $1000 worth of the Top Ten Cryptos on January 1st, 2019 (Jan 2020 Update) : CryptoForeign money
2019 “Index Fund” EXPERIMENT – Tracking Top 10 Cryptocurrencies of 2019 – Jan 2020 Update – Up 63%
tl;dr – The Forks rule January with BSV and Bitcoin Cash dominating the month. Bitcoin loses total result in BSV which is now nicely forward of its friends. 40% of the 2019 Top Ten Cryptos are up over +100% total. Stellar is the worst performer, down practically half since Jan. 2019.
Instead of hypothetically monitoring cryptos, I made an precise $1000 funding, $100 in every of the Top 10 cryptocurrencies by market cap on the 1st of January 2018. The outcome? The 2018 Top Ten portfolio ended the yr down 85%, my $1000 worth solely $150.
Think of the Top Ten Experiments as a lazy man’s Index Fund (no weighting or rebalancing), much less technical, however hopefully nonetheless a proxy for the market as an entire – or at the very least an fascinating snapshot of the 2018, 2019, and 2020 crypto house.
I am making an attempt to maintain this undertaking easy and accessible for freshmen and people seeking to get into crypto however perhaps not fairly prepared to leap in but. I strive to not take sides or analyze, however relatively try to report in a indifferent method letting the numbers converse for themselves.
This will not be investing recommendation – as a matter of truth, the overwhelming majority of the stories will present that the Top Ten method underneath performs different methods. This is experiment is designed to be documentary in nature, describing a selected interval in cryptocurrency historical past.
Month Thirteen – UP 63%
The new yr introduced new life to the crypto markets. After two down months to finish 2019 at practically the break even level (I was up solely +2% after monitoring these cryptos for one yr) the 2019 Top Ten had a really sturdy January and now has gained +63% since January 2019.
Additionally, each crypto completed the first month of the yr in the inexperienced, one thing this group hasn’t achieved since October 2019.
Ranking and January Winners and Losers
9 ten cryptos modified positions this month. BTCSV gained the most floor advancing 4 spots as Stellar headed in the wrong way, down three locations in January. The solely cryptos to remain put have been the high three: BTC, ETH, and XRP.
Stellar and Tron have dropped out of the 2019 Top Ten and have been changed by Binance Coin and Cardano.
January Winners – Good month for the forks: BTCSV completely crushed its friends in January, up +193%. Bitcoin Cash completed in second place, up +87%.
January Losers – Tether picks up a loss, all the time a very good signal for the relaxation of the 2019 Top Ten (no offense Tether). +24% wasn’t sufficient for XRP to keep away from being the second worst performing crypto in January.
For these holding rating, right here is tally of which cash have the most month-to-month wins and loses throughout the first 13 months of this experiment: Tether remains to be in the lead adopted by BTCSV in second place. Bitcoin SV additionally holds the most month-to-month losses, ending final in 4 out of 13 months.
Overall replace – Bitcoin falls behind BTCSV. Stellar and Ripple nonetheless worst performers.
Bitcoin, after ending 2019 with a big lead over then second place Litecoin, has fallen behind BTCSV which ended the month up +194% since January 2019. Bitcoin is now in second place total (up +147%) adopted by Bitcoin Cash which is up +129%. My preliminary $100 funding in BTCSV is now worth $296.
40% of the 2019 Top Ten Cryptos are up over +100% at the second: BTCSV, Bitcoin, Bitcoin Cash, and Litecoin,.
On the different aspect of the coin (see what I did there?) Stellar and XRP are taking a beating, down -47% and -33% respectively.
Total Market Cap for the total cryptocurrency sector:
The crypto market gained over $67B in January 2020. The total market cap is now again over $250B, a stage final seen in September 2019. Bigger image, the crypto market is up over +100% since the Experiment started in January 2019.
Bitcoin dominance dipped a number of share factors throughout the first month of 2020, an indicator that the sturdy January might be attributed extra to altcoins than to Bitcoin.
Overall return on funding since January 1st, 2019:
The 2019 Top Ten Portfolio gained about $615 in January 2020. After an preliminary $1000 funding, the 2019 Top Ten Portfolio is worth $1,631, up about +63%.
Here’s a have a look at the total experiment, month by month:
Every month besides the first month (January 2019) is inexperienced.
How does the 2019 Top Ten Experiment evaluate to the parallel initiatives?
Taken collectively, right here’s the backside backside backside line:
After a $3000 funding in the 2018, 2019, and 2020 Top Ten Cryptocurrencies, my portfolios are worth $three,382.
That’s up about 12.7%.
While the crypto market as an entire is up about +100% since January 2019, the 2019 Top Ten cryptos have gained simply +63%.
This is reminiscent of the 2018 group as at no level in the first twenty-five months of the Top Ten 2018 Experiment has the method of focusing on the Top Ten cryptos outperformed the total market. There are a number of examples, nevertheless, of this method outperforming the market in the 2019 Top Ten Crypto Experiment and, spoiler alert, the first replace of the 2020 Top Ten Crypto Experiment reveals that focusing on the Top Ten was a very good technique in January 2020.
I’m additionally monitoring the S&P 500 as half of my experiment to have a comparability level with different common investments choices. The S&P 500 is up +29% since the starting of 2019. This is lower than half the +63% acquire that the 2019 Top Ten portfolio is returning.
So, the preliminary $1k funding I put into crypto would now be worth $1290 had it been redirected to the S&P 500 in January 2019.
But what if I took the identical world’s-slowest-dollar-cost-averaging/$1,000-per-year-in-January method with the S&P 500? It would yield the following:
$1000 funding in S&P 500 on January 1st, 2018: +$210
$1000 funding in S&P 500 on January 1st, 2019: +$290
$1000 funding in S&P 500 on January 1st, 2020: +$zero
Taken collectively, right here’s the backside backside backside line for the S&P:
After three $1,000 investments into an S&P 500 index fund in January 2018, 2019, and 2020, my portfolio can be worth $three,500.
That’s up about +17% (in comparison with +12.7% with the Top Ten Crypto Experiments).
It was a pleasant change to have such a powerful begin to 2020 – each 2018 and 2019 started with crypto in a downward pattern. With the Bitcoin Halving solely about 100 days away, we ought to be in for a wild first half of the yr.
Thanks for studying and for supporting the experiment. I hope you’ve discovered it useful. I proceed to be dedicated to seeing this course of by and reporting alongside the manner. Feel free to achieve out with any questions and keep tuned for progress stories. Keep a watch out for the authentic 2018 Top Ten Crypto Index Fund Experiment and the just lately launched 2020 Top Ten Experiment.