ByteFolio Update 11

ByteFolio Update 11

Disclaimer: Your capital is at risk. This is not investment advice.

ByteTree's Model Portfolio

ByteFolio brings together ATOMIC, ByteTrend and Token Takeaway to create ByteTree’s model portfolio, known as ByteFolio. This is a selection of crypto tokens, which are weighted according to their risk/reward characteristics. ByteFolio has a modest turnover and will not suit traders. It will appeal to investors who wish to diversify beyond bitcoin, with the aim to beat it.

Today, ByteFolio will sell 100% of ETH and 50% of TRX for BTC.

This crypto storm is brutal, and it keeps on coming. ByteFolio is now down to 9.27 BTC, having started at 10 BTC. The aim was to outperform BTC by owning higher return assets. Alas, this winter has offered us nowhere to hide.

BNB has come under the spotlight but seems remarkably stable. With a cap of $37bn compared to ETH’s $150bn, you have to wonder if that plays to its advantage.

Source: ByteTree. BNB ByteTrend, measured in BTC, over the past 52 weeks.

ETH has made a clear new low in BTC, and that reflects less activity, whether it be stablecoin transactions or NFTs. This is weak and given no good reasons to believe it will outperform BTC in the short to medium term, it is prudent to sell.

We will also trim TRX to a more manageable size. Due to USDD and TRX's burn and mint mechanism to maintain the USDD peg, which follows a demand and supply model, there is a high chance that TRX’s supply will inflate following today's USDD depeg (made a low of 0.975). 8% is too high given the risks and we halve the position.

Source: ByteTree. ETH ByteTrend, measured in BTC, over the past 52 weeks.

That will leave NEAR and DFI as the remaining losers, but their positions are small and so pose little portfolio risk. It is also important to consider that ByteFolio needs a couple of things that can bounce.

This market is tough, but the good times will eventually return. That remains our motivation.

ByteFolio started on 6 April 2022 with 10 BTC. Prices bought or sold are recorded at the end of the day after publication. Historical ByteFolio trades have been recorded as follows:

Purchases and sales

Action: ByteFolio will sell 100% of ETH and 50% of TRX for BTC