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:
| Ethereum | Internet Money | 28% |
| Arweave | Decentralized Data Storage / Permaweb | 19% |
| Axie Infinity | Top play to earn game | 18% |
| Terra | Programmable stablecoin | 10% |
| 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.
Facebook: https://www.facebook.com/chaindebrief
Twitter: https://twitter.com/chaindebrief
Also Read: A look at our portfolio breakdown
Mr And Mrs Budget 
Hey, how do you catch the crypto wave so early? And its amazing how you double in a year! Pls share your secret!
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Hello! We are actually not early, but in the grander scheme of things, we are all still early!
We think we are just getting started with big companies only starting to join and explore the different use cases of blockchain.
We think blockchain is set to grow multiple folds over the next few years as adoption ramps up. Can read this: https://chaindebrief.com/what-is-the-crypto-supercycle/
Moral of the story: we are still early even today. 🙂 even putting in some small amount of money on a monthly basis into btc or eth over the next 10 years will yield you an enormous upside. But that’s just our opinion. 🙂
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Hi,
I personally am staking most of my coins in Binance so just wondering do you think it’s better to get our cryptos off the exchange and store it either in a hot/cold wallet instead of staking it? I worry that one day if and only if the exchange is hacked, all my coins will be gone but at the same time wanna stake to earn some interests. Any thoughts on this?
Have been reading through your posts and suffice to say I have learnt a thing or two from all your posts so just wanna say thank you so much for sharing!
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Hi Lawrence!
Thanks for dropping by.
For me I don’t really use hot / cold wallet cuz I tend to have swing trades. If u hold long term then u can consider. A lot of sg crypto companies like Coinhako or hodlnaut actually store their crypto in cold wallet so I treat that as a proxy to my crypto being stored in cold wallet. For staking, we stake in decentralized yield farms such as quickswap and pancakeswap. Don’t think it will be hacked.
Actually in crypto, hackers can be traced and it’s actually v v hard for hackers to run away w hacked fund nowadays. Recently there was a big hack on polynetwork and all 600m was being returned,because every fund movement is recorded on the blockchain. 🙂 so we are not that worried I guess.
We are also spreading out our holdings, eg for eth, we are not trading it so we hold all of it in hodlnaut for 7% annual interest. That’s about 30% of our crypto portfolio.
Then another 50% of our portfolio is in Binance for swing trades.
Then another 10% is in our metamask wallet for interactions with defi and dapps, and another 10% is in farms.
So that’s what we are roughly doing now. Hope this helps give an idea!
There are no correct way to structure ur crypto portfolio because soon u will realize the defi world is so big and u can do so many things across many different blockchains and applications. 🙂
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Hi Mr Budget. Will you be shifting your crypto to other alternative now that binance is on IAL?
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Hi Kel,
Thanks for asking! We were a bit worried too for a while, and then we reassured ourselves that we should:
– Wait for official announcement from binance wrt any token withdrawals if any.
– even if binance will be banned from withdrawal, binance will give some time to investors to move their funds and not suddenly close it.
– most likely the ban is on p2p trading and fiat on and off ramp but trading can still happen eg u can buy and sell coins.
I think most likely this will be resolved soon, probably another 2 to 4 weeks depending on how fast binance fix their p2p merchant kyc issue.
If you are worried, probably can try out ftx for advanced trades but otherwise if u are holding, can move ur holdings to gemini, hodlnaut, or hako all of which are all the MAS PSA list 🙂
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