If you didn’t catch my introductory post explaining why I’m creating and tracking different Cryptocurrency Indices, check out my first post in Month 1. https://steemit.com/cryptocurrency/@maskedrider/cryptocurrency-index-investing-experiment
A quick recap, I’m using the top 10 coins in coingecko.com and starting out July 1, 2017 with $10,000 paper money into 3 different index strategies and track which performs the best.
Equal Weighting - This is the most straightforward way to allocate the 10 positions. Each receives an equal weight, $1,000 spread out over the 10 coins.
Market Cap - This allocation takes the total market cap of the top 10 coins, divides the individual market cap of each coin by the total and ranks the allocation accordingly.
Coin Gecko - This takes the Coin Gecko ranking and divides by the total rating of the 10 coins and allocations the portfolio.
July 2017 Recap
Despite the dreaded Bitcoin fork, Bitcoin finished the month up $278 at the time of this writing. Etherem had a wild month but finished slightly down while Litecoin finished slightly down.
Ripple, Siacoin and Golem were the main detractors from the portfolio.
Golem dropped out of Coin Gecko’s Top 10 and was replaced by EOS. Golem was liquidated out of the indices and all 3 indices were rebalanced.
Equal Weighting - finished July down to $8,365.42
Market Cap Allocation - finished July down to $9,729.32
Coin Gecko Allocation - finished July down to $8,726.34
The above graph tracks investments in the Equal Weighted Index, Market Weighted Index, Coin Gecko Weighted Index, CRIX index, ICNX and VOO(Vanguard S&P 500 ETF).
In July 2017, you would have had the greatest return by simply investing in the S&P 500.
As always, would enjoy any comments, questions or suggestions on how to improve this experiment and I look forward to further tracking these. Until next month.