Crypto Investment Update - December 2021

This Opinion post first appeared in my blog here:

https://pwlcm.wordpress.com/2022/01/01/crypto-investment-update-december-2021/

This is an update to my crypto portfolio posted here:

https://seedly.sg/opinions/my-speculative-crypto-investment-journey

Disclaimer: This post is just for educational sharing purposes. Please do your own due diligence on any products introduced in this post.

Second Altcoin

When I posted my crypto journey, I was already watching another altcoin for a while. In addition to Proof of Work (PoW) and Proof of Stake (PoS), I came across another consensus mechanism known as Proof of History (PoH). That leads me to Solana (SOL), which is the first blockchain to use PoH. I read about SOL in an article "What is Solana? Guide for Beginners",

On 1 December 2021, I decided to take the plunge on SOL, but I didn't want to add capital with my crypto portfolio hitting 7% portfolio allocation. Instead, I took partial profits in LUNA, making it a totally risk-free investment, and channeled some proceeds into SOL.

Here were the charts of LUNA vs SOL when I made the decision:

As you can see in the chart, the bullish trends for both LUNA and SOL were still intact as indicated by their prices above respective Ichimoku clouds and the presence of the upwards channel. However, LUNA was hitting the upper boundary of its upwards channel, whereas SOL was closer to the lower boundary of its upwards channel as well as supported by the Ichimoku cloud. So it seemed logical to take profits from LUNA and invest in SOL.

Once completed the trades, I immediately proceeded to pair-stake SOL with TKX for an 8% APR.

Performance Update

Here is the performance update as of end December 2021:

My crypto portfolio had dropped to 6.49% of my overall investment portfolio. The newcomer SOL had declined -23.7%. As shown in the charts below, BTC/ETH/SOL all declined in December, only LUNA maintained its upwards movement:

Key Observations

1. LUNA continued to be the star performer.
2. SOL had a bad start, but I am not too worried.

3. Overall portfolio value still double my capital.

References

Proof of Work: https://ethereum.org/en/developers/docs/consensus-mechanisms/pow/

Proof of Stake: https://ethereum.org/en/developers/docs/consensus-mechanisms/pos/

Proof of History: https://tokens-economy.gitbook.io/consensus/chain-based-proof-of-capacity-space/proof-of-history

Terra LUNA: https://www.theancientbabylonians.com/what-is-terra-luna/

Solana: https://cryptopotato.com/what-is-solana/

Solana uses PoH: https://www.leewayhertz.com/solana-blockchain-using-poh/

Referral Links

Tokenize Exchange: https://tokenize.exchange/topic/invited/?invite_code=Vn58M