First thing first, a snapshot of my crypto investing portfolio (pay attention to “Crypto Titans Fund” or ‘CTF’). I’ll give you more context below; just don’t skip anything.
This was on 19 Nov 2024.
CTF allocations are as such:
Now if you look at CTF itself on the same day, it only reported a 12.60% year-to-date (YTD) return, so why was my portfolio up by 36% YTD instead?
The reason is, I was ringgit-cost-averaged (RCA) weekly, coincidentally at a time when crypto markets were down.
Now, I confess that the subject line of this email is a bit of a misnomer that might make you think ‘timing’ the market is about looking at the price movement trends every day.
Nope, not at all.
Instead, ‘Timing the market’ is about understanding the probable changes in global economy and geopolitics, then continuing doing your usual investing anyway after concluding the worst-case scenario won’t affect your livelihood in any way.
In this case, cryptocurrencies, led by bitcoin, surged because of Trump being pro-crypto, vowed to make US the “global crypto investing capital”.
Nobody knew (and I surely didn’t) if Trump was going to win, but that does not matter when your overall investment portfolio is structured to take advantage of any market shifts on a longer-term horizon (yes, even if Kamala were to win).
Obviously, crypto investing is speculative and NOT backed by business fundamentals, unlike stocks and bonds.
But I am showing you this extreme, ‘put-my-own-money-where-my-mouth-is’ example, NOT to impress you but to impress upon you, that RCA aka ‘investing progressively in small tranches’ always works….
…even when you think the market is too high, but definitely can do better when the market is low.
You don’t need a high IQ and fancy or complex tools/technique to do this.
Just don’t RCA blindly into anything you don’t understand. Set a longer-term goal (5 years and above), then just let time do its magic.
After you set things in motion, meanwhile when you wait, just focus on other areas of life – like your job/business/family.
You can neither control the price movements nor the global events affecting your investment, but you can definitely control these:
- Whether or not, to get one-time/ongoing advice to make your money work harder
- Whether or not, to buy/invest more (and how much) consistently
On the other hand, even though the bitcoin price has returned over 100% from 1 Jan 2024 to 19 Nov 2024, my other pure bitcoin fund (invested in lump sum) only managed to capture 20% of it, again, demonstrating to you that we can’t always connect the dots looking forward.
You win some, you lose (or miss out) some, but overall still better than having money sitting idling inside a bank account, yes?
What better way to emphasize such an important concept for you, other than putting my own money on the line, having skin in the game and sharing with you my learnings/mistakes?
So you can fast-track your own learnings by learning from my blunders, which I’ve paid the tuition fee to the market 😫
Rgds
Lieu
p.s.
My crypto portfolio shown above is actively managed by Halogen Capital that specializes in this.
I find it way easier and safer this way to park money in crypto because everything is licensed and regulated in Malaysia by the Securities Commission.
Halogen, the fund manager, is audited by Ernst & Young, in accordance with the Malaysian Financial Reporting Standards (MFRS), and I don’t have to worry about the tax matters because it is taken care of on the fund level by PwC – both are Big 4 accounting firms.
It is also Shariah compliant, and money invested via UOB Bank is held offline in cold storage (BitGo) so I ain’t worrying about losing my wallet’s crypto key or it being stolen. Or thinking about FX gain/loss coz it is already reflected in the % of return/loss altogether
Now, if you don’t already have an account…
No initial investment or upfront cost needed other than to explore whether what they offer suits your needs & risk profile.
Disclaimer: crypto prices very likely have changed after the time of this writing (19/11/24) and I could have suffered 50% paper loss due to the volatile nature of it, so do NOT take this as a recommendation to buy/invest.
The real takeaways from my sharing above is about RCA (Ringgit Cost Averaging) and using a safer, hassle-free method to park your money in crypto, instead of unregulated overseas platform….regardless whether you want to start small or already doing it.