From Microstrategy’s $500 Million investment in Bitcoin[1] to PayPal’s[2] integration of crypto, in the past three months, we have seen it all. November 2020 is unlike any month since 2018. Bitcoin is trading above $13k and the top 10 altcoins have gained 10-12% in the past week. Additionally, BTC, ETH, and USDT reserves are the lowest since 2019 and they are dropping further closer to November 2020.
How a retail trader would invest a $1000 in crypto winter is way different from how they possibly invest/ trade in November 2020. In a hotter market in July or August this year, you could divide $1000 in Bitcoin and Altcoins ranking 1 to 25 on CoinMarketCap. October was so unique that traders with Bitcoin and Ethereum in their portfolio have made over 50% in profits. However, with an Altcoin rally retail needs to change strategy. Portfolios that list cryptocurrencies ranking in the top 20 have given over 20% returns in July and August 2020.
Portfolio with assets from top 25 || Source: eToro[3]
With nearly 25% in Bitcoin, 30% in Ethereum, and 32% in ZEC, this portfolio gave over 46% profits in July 2020, and 10% in August 2020. This portfolio offered barely 2.72% returns in October 2020.
Portfolio Performance || Source: eToro[4]
A portfolio with a similar allocation to The TIE-Long Only, from eToro with a difference in allocation and choice of assets could possibly close November at over 30% in profits. Limiting exposure to top 25 altcoins based on their market capitalization and limiting Bitcoin to 50% or less for November 2020, may turn out to be a strategically wise move. Bitcoin is 12.5% up in the past 7 days, however, if you bought around the $8.5-$9k level, you are
