Crypto-retirement: April is a big plus

Today it's time for a second summary of our retirement portfolio, based on investments in the most risky assets on the market: cryptocurrencies. We lost in the first month, because a hurricane of decline swept the cryptocurrency market. Further purchases and price increases meant that not only did we make up for the losses, but we're already in a big plus.

Recall: we started a month ago our experiment, which will involve regularly investing in cryptocurrencies.

Crypto-retirement rules of the Forex Club Portal:

• we invest on Binance Stock Market, which is not only the largest in the world, but also - so far - the most stable,
• every month we devote 60 euros (this is the minimum deposit threshold in Binance),
• we want to invest approx. half of the funds in Bitcoin, as the "king of cryptocurrencies" and the indisputable flywheel of the entire market,
• in addition to BTC, we selected 3 other cryptocurrencies: LINK, ADA and BNB, in which we will invest at least until the end of the year,
• if it is possible, we pay cryptocurrencies on "deposits" in Binance,
• at the end of the year we will decide if there are other cryptocurrencies in the portfolio,
• the investment horizon is at least 10 years.

CHECK BINANCE

Cryptocurrencies are waiting for halving

In April, more and more people began to speak and write about the upcoming halving. What is that? It's an automatic mechanism that prevents cryptocurrency inflation. The target number of Bitcoin units (like most cryptocurrencies) is in fact strictly defined, but still incomplete. Mining takes place all the time, for which miners receive remuneration. They currently get 12,5 BTC for each block they dig. In order not to cause inflation, BTC has programmed halving, i.e. halving the reward for mining the block. In the case of bitcoin, this happens every 210. blocks. According to calculations, it is in May 2020 that miners will dig another 210 BTC blocks and the prize will decrease from 12,5 Bitcoin to 6,25 BTC. From this day, twice as fewer BTC per day will arrive (approx. 900).

So much theory, but practice shows that at this time the price of Bitcoin always increases, and with it the valuation of most other cryptocurrencies. The period before and after halving Bitcoin has always been marked by a dynamic increase in price. How far can it reach? We will not forecast, but we can already see that we use it.

Portfolio status at the beginning of April

In early April - after the second cryptocurrency purchase for EUR 60 - the value of our retirement portfolio was EUR 97,29. We have deposited cryptocurrencies from Link and Binance Coin on deposits available at Binance, where the annual rate of return does not exceed 1%, but thanks to daily capitalization, you can slowly save more eurocents.

However, the market was exceptionally gracious in April and we recorded a significant portfolio increase. During the month, its valuation reached EUR 140,05.

Profit after two months: + 43,95 %

Portfolio status on 01.05.2020/XNUMX/XNUMX

What did we make so much money on? On everything :). The price of Bitcoin increased by 39% in April, Link increased by 72%, Binance Coin by 42% and Ada by 64%. Of course, it is too early for hurray optimism, but the increases show that - so far - we have chosen a pretty good set of cryptocurrencies. This allows us to look into the future with confidence, so we continue our investments as planned. We always choose from the same cryptocurrencies: BTC, LINK, ADA and BNB.

So again we pay 60 euros and invest. This time mainly at BNB. Currently, our portfolio looks like this:

As of 01.05.2020: 198,11 euros

All BNB, LINK and ADA units are immediately frozen in deposits. And we are waiting what the future will bring 🙂

Next summary in a month!

Learn more about selected cryptocurrencies:

1. Bitcoin - all about the "king of cryptocurrencies"
2. Link - a cryptocurrency that Intel has bet on
3. ADA - a token created by scientists
4. BNB - a token from the Binance exchange