A Cryptocurrency Investing Experiment

New idea for the new year

Now that it’s getting close to the end of the year, it’s time to finish putting together all the plans for the newsletter in 2021. I’ve written a few times about the plan to create a long-term investment fund, where I’m regularly picking and buying stocks and hoping not to screw it all up.

An important aspect to tracking the performance of that fund is benchmarking. Sure, we’ve got the S&P 500 but we can also create other benchmarks, even if they may or may not be totally related to the portfolio we want to manage. So, why not have some fun with it?

Starting on January 1, I’m going to make a super simple cryptocurrency portfolio. It will be like an experiment. We will take $1000 and invest it in ten popular cryptocurrencies at the start of the new year. Then, we will do absolutely nothing to it. We can track it’s performance over time and basically just see what happens!

I’m hoping to do this for a few different small portfolios. That way, we have a bunch of different benchmarks that we can watch throughout the year. I think this will add some additional first-hand insight to the newsletter and provide some interesting investing lessons along the way!