Hello everyone! It’s the end of the month again, not sure if this monthly update is still relevant to readers but we are using this to document some of our thoughts as well as our progress.
As with our monthly updates, here are what we’ve done in August 2021 with regards to our personal finance.
For August, we continue to add into crypto as we’ve previously mentioned, we are unsure where else to put our money at this point. US equities also looked a bit overheated for us now, with limited upside.
For August, we traded a fair bit of our crypto positions here and there, and repositioned our crypto to a new conviction name, namely Arweave.
Arweave is quite exciting, it basically allows anyone or any protocols to save their data on Arweave’s permaweb in perpetuity for a very very small up front cost. Imagine not needing to pay for a monthly google cloud or AWS subscription anymore! We discovered Arweave via Singapore crypto media Chain Debrief, you can read about the Arweave project here.
To fund our position in Arweave, we exited our position from Chainlink as we realized that it is tracking the movement of Ethereum which we have the largest holding.
For crypto too, the month of August was characterized by NFTs and the Solana season. Unfortunately, we were stupid to have exitted Solana for a 5% gain and if we held on that would have been a 100%+ gain. We didnt really do enough research to the space.
Our combined net worth is now at $2,070,000, including CPF but excluding our property and mortgage. This is up from $1,673,000 last month, a change of +S$440,000.
Our portfolio may look exciting, but these are all digital money – we have not cashed out anything so everything could be gone in 1 day when the market decide to crash. Eg in June our net worth had a -18% drop!
Outlook moving forward
Typically for the month of September, crypto market will see a pullback, and I do think we are seeing some signs of overheating in the NFT market. Although it is overheating, we are seeing more and more retail and institution investors coming onboard. So there are both push and pull factors.
The on chain metrics are still quite healthy overall, so we have no plans to take profit yet. We may take our capital out when we see Ethereum hitting $6000 or $8000, otherwise we will be buying whatever dips we can get our hands on.
We also mentioned that we will be starting a satellite portfolio for Baby Budget, and we will write about that soon.
For us now, we are just continuing to accumulate quality crypto, with our CPF and US stocks acting as the conservative portion of our portfolio, while crypto becomes the growth portion of our portfolio. If crypto do crash, we do foresee us even liquidating our US portfolio to buy more crypto.
Crypto is also finding its first few massive product market fit with NFT gaming as well as NFT for creatives, and that helped a lot more people understand the potential use case of blockchain.
The question that we always ask ourselves is, what if crypto is here to stay, and what if it is not.
The upside for the former is much much higher, and we are ok to accept the downside for the later. And we are only investing majority in revenue generating protocols with actual use case and product market fit. Here’s our current top crypto allocation:
|Arweave||Decentralized Data Storage / Permaweb||19%|
|Axie Infinity||Top play to earn game||18%|
|Sand, YGG, Lukso||NFT Themed||10%|
|Coin98, Ava, bnb, quick||Other blockchains||14%|
Crypto is truly a rabbit hole its so hard to follow up w all the different projects around.
Also if you are looking for a Singapore crypto media outlet, do check out Chain Debrief– we discovered a lot of great projects there. Shout out to the team for a good job! What I do is to follow their Facebook, instagram and twitter for daily updates.
Also Read: A look at our portfolio breakdown