- Coin Bureau has revealed what cryptocurrencies he holds, and surprisingly, the biggest stake isn’t in Bitcoin.
- The popular YouTuber also shared its investment strategy and what to look out for before putting your money in any project.
Cryptocurrencies have proven to be the most profitable investment class in the past decade. However, making money in this industry requires having a stellar investment strategy and betting on the right cryptocurrencies. Coin Bureau, one of the industry’s most popular YouTube channels, shared the strategies it has applied to reap great returns as well as the top five cryptocurrencies he holds.
While I freely disclose my #crypto portfolio in my newsletter, I have never really explained *why* I hold what I do. This all comes down to my investing strategy which has informed the natural evolution of my portfolio over the years. All covered today 😎https://t.co/y8qzREos7L
— Coin Bureau (guy.eth)🕵🏻 (@coinbureau) April 10, 2021
I wholeheartedly believe that Bitcoin is the best hedge against the current monetary system, and I unironically consider BTC to be digital gold.
Guy acknowledged that Bitcoin has its flaws. For starters, it’s not the most efficient in the market, even with scaling solutions like the Lightning Network. This makes it unlikely that BTC will ever become the digital cash Satoshi intended it to be. It also has limited programming ability unlike its peers such as Ethereum.
However, there is one thing Bitcoin does better than any other cryptocurrency, fiat currency, or financial institution. That is storing and transferring value in a secure, decentralized, and peer-to-peer manner. […] BTC is leaps and bounds ahead in both retail and institutional adoption compared to other cryptos.
Guy’s Bitcoin position has reduced drastically in the past year. He has instead focused some of the funds on altcoins which have higher percentage gains. He is, however, still a strong believer in Bitcoin.
Every penny of this altcoin profit will go towards stacking sats because I ain’t touching that filthy fiat with a 10-foot pole.
Betting on altcoins
The Coin Bureau founder’s biggest investment is in Ethereum which accounts for 30% of his portfolio. Ethereum has continued to dominate the market due to its first-mover advantage in the smart contracts field. Most of the booming DeFi and NFT projects exist or leverage Ethereum in some way. With Ethereum 2.0 in the pipeline, there has never been a better time to invest in Ether, he believes.
With all these facts, it’s easy to see why Ethereum is the cryptocurrency of choice after Bitcoin for most institutional and retail investors.
Despite its market dominance, Ethereum still faces challenges such as scalability and high fees. This could lead to capital outflow from Ethereum into other smart contract platforms. For this reason, Guy has invested in Ethereum rivals Polkadot and Cardano, accounting for and 9.34% and 8% respectively.
Polkadot is next in line to the smart contracts throne if Ethereum ever slips. Gavin Wood, the founder of the project, was one of the cofounders of Ethereum alongside Vitalik Buterin. He has touted Polkadot to be his way of fulfilling the promises Ethereum made that it has yet to fulfill. Cardano’s founder Charles Hoskinson was yet another Ethereum co-founder and has been aggressively targeting the Ethereum market.
Guy has also invested in Chainlink, the leading oracles network, which accounts for 4% of his portfolio.
If you believe in things like DeFi and NFTs and other decentralized technologies beyond digital cash, you should consider holding an oracle crypto. Without oracles, dApps and protocols would have little to no real-world utility. My personal preference is Chainlink because it has the largest ecosystem of any oracle.