Hello everyone! It’s the end of yet another month, and hopefully May has been great for everyone!
We know we haven’t been updating much on our publication, but hopefully this monthly update serves as a good update from us. 🙂
As with our monthly updates, here are what we’ve done in May 2021 with regards to our personal finance.
Position Added: Matic, Celer Network
Take Profit / Cut Loss: PDD, ARKG
Position Added: Matic, Celer Network
For May, we continue to add into crypto as we do more and more research in the space. For Mr Budget, he took profit on Pinduoduo (+235% in 18 months) and cut loss on his ARKG position (-14% in 6 months) and bought in more Matic as well as initiated a position on Celer Network.
For readers who are in crypto, you would know that for the month of May, there is a huge crypto retracement which saw major coins such as Bitcoin and Ethereum retracing up to 50% and more for some altcoins. If you manage to scoop up some good deals, congrats! Even right now, crypto are still trading at a good price below their all time high.
Net Worth Updates
While crypto had saw a huge retracement, we are quite lucky our portfolio did not hit as much. This is because majority of our portfolio are now held in Matic, which quickly rebounded back to its high after a 60% retracement. In a 30 day period, Matic is still almost double its price in April. Matic is now almost 80% of our entire crypto portfolio!
Our combined net worth is now at $1,800,000, including CPF but excluding our property and mortgage. This is up from $1,640,000 last month, a change of +S$150,000.
This month’s gain is contributed by gains from our crypto (+S$200,000), offsetting the losses from the crypto futures fund (-$80,000) and the rest are from employment and CPF. Our US stocks are flat this month.
At the peak, we had another +$300,000 extra of networth but that has been “returned” to the market due to the market retracement, so we are quite thankful that we manage to move majority of our crypto holdings into a quality one which rebounded back and reversed our losses.
We are again quite thankful that we manage to get into the crypto market space, and we think there are still more room for massive growth in the crypto market.
Crypto is also the best performing asset class this year, so investors do really need to think about having crypto as a hedge in your portfolio.
Outlook moving forward
To be completely honest, since investing into crypto, we are now quite spoilt with the growth from crypto investing. I think it’s a bit unhealthy to be putting in so much of our capital into crypto – our crypto portfolio is almost reaching S$1,000,000 now on a capital of $332,000 since we started in November 2020.
I think we may start to be less aggressive in our crypto portfolio and start to allocate a bit of capital back into US stocks.
But the returns from the crypto space is simply too hard to ignore. Especially when there are still huge market forces catalyzing the growth of the crypto market:
- Biden announced more money printing (another $6T)
- Institutions are coming into crypto and this will provide a strong price support
- New crypto ETFs are waiting to be approved by the SEC (new SEC chairman is also pro crypto)
- DeFi projects are seeing huge growth in volume
- Even DBS is saying that crypto is a game changer – surely this cannot be the top?
I’m also under the thinking that anyone who has been exposed to crypto and DeFi can never go back to TradFi (traditional finance).
So it all boils down to risk management for us.
For now, we still have about $50,000 in day to day liquid cash for daily uses, and our US combined portfolio is at $300,000. Our combined CPF is at S$320,000, and the rest are all in crypto.
If crypto goes down to zero, we can still survive but we will be quite upset – so we will see if there are opportunities to take some profit off the table and turn them into stablecoins.
But most probably crypto will not fall to zero, so let’s hope the bull market stays a bit longer for a few more months!
Also Read: What Have We Done This Month Towards Our Financial Goals – April 2021
6 thoughts on “What Have We Done This Month Towards Our Financial Goals – May 2021”
Impressive results. I am new to crypto and how to start this investment?
The easiest way is to open an account, and start buying some crypto. 🙂
you can purchase $10 of bitcoin, ethereum or whichever as a start. And then start researching on the coins that you are interested in.
if you are looking for a broker account, we are using binance as they are the exchange with the highest trading volume in the world. you may use our referral code for 5% fees off: https://accounts.binance.com/en/register?ref=YTRT82F7
Hi Mr and Mrs Budget,
Curious if you guys do any DeFi stuff, since your MATIC holdings is this high and while MATIC is in demand? If you do, are there any guides that you recommend?
For matic, we are staking about 5% of it on quickswap to earn quick via the matic-quick pool. the APY on that is about 85% now (https://quickswap.exchange/#/quick). This is probably to hold for the long term.
For the rest of it, we are locking it in binance earn to earn a 11% APY. This takes about 1-2 days for withdrawal – we might be trading matic away to derisk in the next few weeks since the market is undecided on which way it is going.
There are probably a lot more sophisticated things one can do (aave lending, abritrage across matic bridge) but we have only been looking at LP staking for now.
We havent been writing about staking and defi but here’s a recent guide we came across for those looking to get started: https://chaindebrief.com/39/crypto-yield-farming-ultimate-guide-and-how-to-get-started/
Hope this helps! 🙂
Dfyn has better apr than quickswap. Been farming as the market trade sideway. Nonetheless defi is just starting.
hey justin! thanks for this! we are sticking with quickswap because it has the highest volume locked and its sort of the official dex of polygon. but yes you are right there are so many other farms out there and defi is just starting.
for matic, we want to farm in a relatively safer pool (ie quickswap) (around 70% APY).
for higher APY farms we are farming on the ONE ecosystem (viper / mochi) and FTM ecosystem (boo) for around 270% – 1000%. But this one is only for like less than 1% of our portfolio.